Royal Mail delivers advice on fleet spend

[TrueBlueTerrier]

http://www.supplymanagement.com/news/20 ... eet-spend/" onclick="window.open(this.href);return false;?

Fleet purchasers will face higher, not lower, costs if they concentrate on driving down the price of assets.

According to Andrew Smith, head of procurement – vehicles, assets and logistics at Royal Mail, even if buyers could achieve good savings on vehicles or fuel, it was likely rising inflation would negate their contribution.

“If you focus on the price of asset itself you are going to see some additional costs, rather than reduced costs over time,” he told delegates at the ProcureCon Indirect conference in London last week.

Smith had three tips for the audience, based on the total cost of ownership approach that the organisation – which has a fleet of 39,000 vehicles – pursues in this category. These were:

● Consolidate volume. “The trick is to consolidate the volume and go to market at the right time,” he said. “Drip feeding it is not the best way to get the best value.”
● Reduce specifications. Smith said the company had around 28 specifications for light commercial vehicles that have now been reduced to three.
● Drive competition. “Having a panel of suppliers, or more than one supplier in your fleet can give you significant advantages as well, because the active competition makes it a really competitive industry,” he said. “There is lots of testosterone, lots of men who love nothing better than beating up their competition, and you can get some great deals by establishing that competition.”

He also said the organisation had done a lot of work at the RFI stage of the procurement process, including asking manufacturers for feedback on whether the specification is in line with the market. The frank and open responses received have also helped buyers engage with stakeholders.

“Where it is really useful is internally, where suppliers are telling us we are a bit out of kilter [with the market] or we could be more sensible in the way we approach it. That can be a very powerful message for our internal stakeholders,” Smith said. “Probably more powerful than me telling them that, because the manufacturers have more credibility as there is less of a vested interest because [stakeholders] know procurement sometimes has targets that don’t support their primary motivations.”

[DB1100]

Being as Andrew Smith is head of procurement does that mean he is responsible for the schoolboy error of leasing the incorrect vehicles ref the PF scandal,is he fit to hold the job.I think not,so his comments are pointless really.

[DGP1]

I think he actually means............holding onto the vans far beyond the time that they are economical and then filling the yard with hire vans

[UnhappyGremlin]

Anyone who takes the advice of a man who is responsible for the department that has made a number of massive cock ups, some of which we have yet to suffer from, is more deficient in intelligence than he is.

[Thunderthighs]

So...a cracked windscreen is ok to use then,as we're getting new vans?
( Please excuse the sarcasm...but its not a joke.)

[UnhappyGremlin]

I once had a mechanic refusing to replace brake pads on my van as it was due for replacement in 2 months time.
I logged it off 3 times and it was sent back unrepaired each time, on the last time the mechanic drove it back and insisted on speaking to me to tell me to stop logging it off. I asked if the pads had been replaced, he said no as a new van was on its way. I pointed out H&S etc., he told me I should pre-plan my braking to accommodate the worn pads. Couldn't believe it. I logged it off in front of his face, told him to drive it back to the workshops and fix it, and if it came back in the same state I'd report him to H&S executive(or whatever body) and VOSA, the DOM/DSM etc.. He then relented and fixed it. Anyone would think it was their own money they spent on the van.

[suz67]

I once had a mechanic refusing to replace brake pads on my van as it was due for replacement in 2 months time.
I logged it off 3 times and it was sent back unrepaired each time, on the last time the mechanic drove it back and insisted on speaking to me to tell me to stop logging it off. I asked if the pads had been replaced, he said no as a new van was on its way. I pointed out H&S etc., he told me I should pre-plan my braking to accommodate the worn pads. Couldn't believe it. I logged it off in front of his face, told him to drive it back to the workshops and fix it, and if it came back in the same state I'd report him to H&S executive(or whatever body) and VOSA, the DOM/DSM etc.. He then relented and fixed it. Anyone would think it was their own money they spent on the van.

similar,my van went in for service and given a reserve van with the n/s door mirror hanging off by the adjusting cable and the drivers seat had literally collapsed !! logged it off and refused to drive it,manager said the seat was ok and i didn't need the mirror as i had an o/s one working,still refused to drive it and told him to suspend me for refusing or put it in writing that the van was roadworthy,surprise surprise backed down and got another van,even refused to return it to the mechs so he got another opg to do it,asked him not to drive it but guess what? he did!!!!

[UnhappyGremlin]

I once had a mechanic refusing to replace brake pads on my van as it was due for replacement in 2 months time.
I logged it off 3 times and it was sent back unrepaired each time, on the last time the mechanic drove it back and insisted on speaking to me to tell me to stop logging it off. I asked if the pads had been replaced, he said no as a new van was on its way. I pointed out H&S etc., he told me I should pre-plan my braking to accommodate the worn pads. Couldn't believe it. I logged it off in front of his face, told him to drive it back to the workshops and fix it, and if it came back in the same state I'd report him to H&S executive(or whatever body) and VOSA, the DOM/DSM etc.. He then relented and fixed it. Anyone would think it was their own money they spent on the van.

similar,my van went in for service and given a reserve van with the n/s door mirror hanging off by the adjusting cable and the drivers seat had literally collapsed !! logged it off and refused to drive it,manager said the seat was ok and i didn't need the mirror as i had an o/s one working,still refused to drive it and told him to suspend me for refusing or put it in writing that the van was roadworthy,surprise surprise backed down and got another van,even refused to return it to the mechs so he got another opg to do it,asked him not to drive it but guess what? he did!!!!

I'd have TOLD him not to drive it, and if he did, I'd ring the police. it is illegal to drive any vehicle with one mirror, they are required to have 2 by law and will fail MOT if they only have one. I'd have reported the manager to his boss, and also pointed out the van shouldn't have been sent out by workshops, they should know better as they do our MOT's themselves.
I've refused to drive a van because it had no tax disc, it was taxed, but there wasn't a disc to display, which is illegal. I do as you did, when instructed to do something I know is wrong, I ask for it in writing, which they have always refused. Even if they did write the instruction, I'd refuse, but I'd file a grievance against them and report them to VOSA, enclosing a photocopy of the letter.

[Puppetmaster]

Is this some sort of SICK JOKE RM Top Managers giving advice on vehicle fleet management .

I understand their were a number of items this guy wanted to say but never got time to say ,now listed below .

At RM we can keep fleet costs down substantial by doing our MOT'S in house.
this saves money in several ways ,
RM MOT testers are the most efficient in the Country, our research shows RM mot testers on average will test 3 times the amount of vehicles in a day than the average independent garage tests.
I am sure you will agree this is a considerable saving ,not only are our testers more efficient our average spend per MOT is 99.99% below the average vehicle spend to pass a MOT I am sure you will agree these are impressive figures.

I am sure you will wish to know how our MOT Testers are so efficient and vehicle spend for a MOT is so small .
RM looked into the cost of MOT preparation and realised their was room for substantial efficiency savings.

1 ,Our MOT'S are done in house by our own testers
2,Our MOT testers are office based their by improving their by improving working conditions and their efficiency .

Infact our MOT TESTERS NEVER ACTUAL INSPECT THE VEICHLE THEY ARE DOING THE MOT FOR cost savings to the company are enormous for this method of MOT .

3.WE have a cosy relationship with VOSA none of our vehicles ever get checked , so the condition of the vehicles is unimportant as long as they run and leave the yard.

4,More cost savings were made when the line manager was put in charge of all aspects of vehicles ,he decides if a vehicle is fit to drive or if it needs a new tyre ,the driver does jut that drive ,if he has concerns about his vehicle he reports it to a Manager who simply tells the driver to drive the van don't worry about bald tyres ,none working wipers ,none working lights ,none working seatbelts or missing seat belts ,largely unimportant and trival matters as in 10 years time we will get new vans !

Another aspect we are currently trailingas we are a Green Company ,and wish to reduce our carbon foot print is to use Human foot print and make our staff even more efficient to reduce fuel costs and to make our vans cooler for staff in summer, is the following
By allowing large wholes in the floor of the van ,eventual the whole will be big enough for staff to be able to put their feet through and push the van Fred Flintsone stlye, and having vans with missing windows will help keep staff cooler in summer .

Many vans often get dirty we do not need staff to spend working hours cleaning the back of the van ,by allowing foot square wholes in the back of vans ,when it rains the back of the van is washed automatically .

I get annoyed when staff moan about petty things ,like not having any de-icer in the office or scrapers ,moaning about a mirror missing or brakes not working correctly.
Christ we often have LDV crew busses where the crew side door falls off on the road ,these are issues we need to look into not petty stuff like tyres that are 75% bald and line manager says ok they are fine ,or people moaning about brakes not working or not being able to steer the van as big problems with steering ,look in the future we will all get brand new vans so the condition of your van today is not important as long as it as 4 wheels that's fine ,windows are a bonus as are brakes and any thing else is luxury .

RM is a world class mail provider using 3rd world vehicles.,
Any Private company would be taken to court for using vans in such bad conditions ,look at the vans of our competitors ,UPS ,UK Mail.

[Mister T]

HGV fleet that looking old and tired, some still running have 800,000 miles on the clock, drivers have a CD to listen to like WTL, there more keen to swap the drivers seat because of the wear, than swapping the trucks. Keep thinking were working for Salford Van Hire!!!

[DGP1]

. Keep thinking were working for Salford Van Hire!!!

[UnhappyGremlin]

Puppetmaster

For a minute I thought you were being serious in defending RM.
Then I realised you were serious, and I agree with you that our fleet is poorly maintained.
Last time my van had an MOT, it was gone 4 WEEKS. How's that for efficiency?

Some of our vans are so old they have tape decks in them. You can't even buy tapes anymore. Can you?

[The_Wax_Man]

● Consolidate volume. “The trick is to consolidate the volume and go to market at the right time,” he said. “Drip feeding it is not the best way to get the best value.”

tsk tsk my man for not doing your job correct. Based on rotational volume spread across manufacturer take, look at direct supply from manufacturer inline with an agreed protected price point over a projected acquisition BP period. The major howlers of RM fleet is non forecast costs both at acquisition and in-life.

No need to drip feed or be scared of not going to market at right time - just a case of sitting down around the table, advising them of the 39,000 fleet you carry and not getting ones niagras squeezed.

Honestly. It's not hard.

EDIT >

...“Where it is really useful is internally, where suppliers are telling us we are a bit out of kilter [with the market] or we could be more sensible in the way we approach it....



Dude, are you serious that you are head of this position and don't know your market !!!! - Think you need to do some direct research. If your suppliers are telling you that - it's a rather embarrassing position to be in.

[Mister T]

Puppetmaster



Some of our vans are so old they have tape decks in them. You can't even buy tapes anymore. Can you?

Thats nothing!!! we have 8 Track Cartridge, all Don Williams lol

[Mat2090]

I drove an 05 plate daf 85 last week and it had over a million km on the clock, the size of the font on the speedo reduces to get the extra digit in

It also had a tape deck on board

All hired units and trailers everywhere, brown envelopes me thinks