Civica Case Study DHL improves efficiency of logistics operation by 150% DHL Supply Chain, the global logistics and supply chain management company has been working with a large supermarket chain for several years, since winning the contract for distribution. The contract includes managing the distribution of goods to stores across the South West of England. To manage the administration and servicing requirements of their distribution fleet, DHL decided to invest in a fleet management solution and chose Tranman from Civica. Based at the Regional Distribution Centre in Bristol, DHL’s fleet consists of 89 tractor units, 10 rigid vehicles, 198 trailers, as well as a few cars and vans. All servicing and MOT work is carried out in-house at the Vehicle Maintenance Unit (VMU). Where possible repairs are carried out on site with a bodyshop for accident damage repairs. The VMU employs nine mechanics and operates a 24/7 operation in order to reduce vehicle downtime and maximise the availability of vehicles for deliveries. "Although DHL’s fleet size has remained relatively consistent over the last four years, the revenue of the Vehicle Maintenance Unit has gone up by DHL is responsible for carrying out all scheduled servicing of the fleet and recharges the customer as part of a fixed price maintenance contract. The VMU has five users accessing Tranman to manage vehicle maintenance. On a daily basis, drivers report any vehicle defects and the maintenance work is scheduled and administered using Tranman. Work is intelligently scheduled to meet the business requirements. For 150%." DHL’s customer the busiest part of week is the end of week, so planned servicing is Alison Udall Alison Udall, Commercial Manager, DHL Supply Chain comments "The fleet Commercial Manager, DHL Supply Chain scheduled to be completed by Wednesday. represents our customer’s brand and therefore has to be kept in an immaculate condition. Vehicles are checked by drivers every day and defects reported, all accident damage must be repaired immediately. " Fleet software benefits The Tranman system has evolved since its installation four years ago. Initially it was used solely for charging out. All the pricing for stock is recorded in the system which has resulted in less administrative errors. An additional benefit is that a previously labour intensive process has been automated, DHL are now able to cost jobs properly and make sure revenue is recovered. Alison Udall describes the situation, "Before Tranman we just didn’t have any accountability, our recharging was inaccurate and we were drowning under mountains of paperwork." London, UK Leeds, UK Tel: +44 (0) 20 7760 2800 Tel: +44 (0) 113 244 1404 2 Burston Road, London Vanguard House, Dewsbury Road SW15 6AR Leeds LS11 5DD marketing@civica.co.uk marketing@civica.co.uk www.civica.co.uk www.civica.co.uk Warranties are an area where DHL has been able to reduce costs. DHL also use Tranman dashboards to monitor fleet performance at a Warranty work is now properly managed and claimed for. Using Tranman to glance. DHL chose services due by week, MOTs due by month and record standard work types, DHL has made substantial cost savings by driver licence checks as their key performance indicators. Alison Udall ensuring claims are submitted to the manufacturer and followed up. concludes, "All the information you need is available at the touch of a button! " With the introduction of Tranman, the workshop is now operating more efficiently. "Initially our staff were resistant to change, but we have been able to make real savings through automating our processes. Parts issuing is much improved and everything is traceable. This has saved us a lot of money through accurate monitoring of stock," says Alison Udall. Tranman records a full audit trail including which mechanic has worked on Tranman has been proven to help DHL meet its objectives of prioritising safety, minimising off road time and reducing fleet costs. The biggest achievement explains Alison Udall is, "Although DHL’s fleet size has remained relatively consistent over the last four years, the revenue of the VMU has gone up by 150%." each vehicle. Free text notes can be added against each a job record which helps when dealing with queries later on. Similarly if a job takes longer than expected this is now reported along with the reasons why, which helps to make sure jobs are accurately costed. Another benefit of using Tranman is the ability to upload photographs against vehicle records, this has proven to be especially useful for hire kit. Any items hired in to supplement the fleet can be photographed and saved in Tranman if they already have damaged bodywork which has given DHL evidence to dispute charges which they may be billed for later. Improving driver safety Driver management is another area where Tranman has been able to deliver cost savings. Driver safety and complying with duty of care legislation is an important part of fleet management and DHL use the system to monitor and record all driver training and driver licence checks, making sure their drivers are safe and legal to drive. Paula Stanton, VMU Administrator, DHL Supply Chain explains how information collated in Tranman is used for accident management. "Tranman highlights areas we can improve on, the system reports indicate if specific drivers are having more accidents, so we can investigate these cases and then recommend retraining. For example we had a recent case where the system flagged that a specific driver had recently reported several cases of accident damage. We looked into this further and all the accidents were relating to damage to rear lights. As a result we were able to request to send the driver on a reversing refresher course." Analysis of accident data has also highlighted specific locations and supermarket stores where more accidents occur. Paula Stanton continues, "When we notice an increase in accidents taking place at the same store we About Civica Civica Group Limited (www.civica.co.uk) is a market leader in specialist systems and outsourcing services that help organisations to improve service delivery and efficiency. The group supplies more than 1,800 customers in the UK, Australia, New Zealand, Singapore and the USA, including 94 per cent of the UK’s local authorities. arrange for a site visit to check if anything has changed. Often it will be something simple, such as a new bollard positioned in a bad place. By recording detailed information about the accident, we have been able to request low cost solutions to improve visibility and prevent further damage and expensive repair costs." Tranman provides the management team with monthly reports of driver performance, accidents and fleet costs, enabling them to measure exactly how the contract is progressing and to analyse trend information. London, UK Leeds, UK Tel: +44 (0) 20 7760 2800 Tel: +44 (0) 113 244 1404 2 Burston Road, London Vanguard House, Dewsbury Road SW15 6AR Leeds LS11 5DD marketing@civica.co.uk marketing@civica.co.uk www.civica.co.uk www.civica.co.uk