Tesco.com in the vanguard of at-work driver safety with savings worth millions of pounds The online shopping arm of Britain’s biggest retailer, Tesco, is savings millions of pounds following the implementation of an industry-leading occupational road risk management programme. Tesco.com, which operates a fleet of 2,200 vehicles delivering goods to online customers across Britain, and employs 8,000 drivers, has introduced a raft of initiatives that has resulted in: Vehicle incident rates - all damage from a broken rear light to a writeoff must be reported - cut by 26% since 2005/6 during which time the van fleet has expanded from 1,200 vehicles Damage to the 3.5-tonne fleet of Mercedes-Benz and Ford vans cut by 90% thus saving more than £1 million Traffic offences committed by drivers reduced by 60% Fuel consumption down 11% saving more than £1.4 million per annum No single serious injury or fatal crash despite vehicles travelling more than 60 million miles per annum. Tesco.com is the world’s biggest online retailer with annual turnover in excess of £1.6 billion and occupational road risk manager Andy Kemp said: “We are at the forefront of pro-actively managing occupational road safety. The financial benefits of the programme run into savings of millions of pounds.” One of the major spin-off benefits of the focus on at-work driver safety has been a huge reduction in staff turnover. In some regions driver turnover has been cut from almost 50% a year to just 4%. Mr Kemp said: “The whole programme is a win-win-win for the business, our drivers and our customers. The company is cutting costs; our drivers feel appreciated and valued and most of our customers receive their deliveries on schedule.” In the last 12 months, Tesco.com’s safety drive has been centered on the introduction of telematics systems into all of its vehicles following a hugely successful pilot scheme early last year. In addition, the company has deemed the use of hands-free mobile phones by drivers a distraction and banned their use unless the van is parked with the engine switched off; and has broken the mould by actively recruiting drivers as young as 18-years-old. The risk management focus started in 2005 and the speed of development has seen Tesco.com become a beacon of occupational road risk management best practice. As a result the company is: One of 27 ‘business champions’ within the Government-backed ‘Driving for Better Business’ campaign delivered by RoadSafe The current holder of the Royal Society for the Prevention of Accidents’ MORR Trophy (managing occupational road risk), a title the business also won in 2007 Working closely with the Driving Standards Agency (DSA) on its development of a new vocational van driving qualification, which is part of the Government’s new strategy designed to further reduce road casualties A DSA registered driving instructor trainer organisation Sponsoring one of its managers to research occupational road risk to doctorate level at Middlesex University Rolling out the concept of safer driving to Tesco.com stores overseas Working with Tesco plc to launch occupational road risk training for its company car drivers Changing driver attitudes - drivers at Tesco.com are known as customer delivery assistants - and behaviour was key if Tesco.com was to truly manage its occupational road risk. As a result, with senior management and trade union support, an in-house driver training and development team was launched in 2005. To ensure national standards are in place, Tesco.com employs its own customer delivery assistant trainers - 20 have been trained to approved driving instructor level and there are a further 20 trained driving assessors and the company works closely with the Royal Society for the Prevention of Accidents on all aspects of its training and assessment including full legal compliance. Tesco.com believed that the programme was not simply about testing an individual’s driving ability but that a cultural change involving attitude and behaviour was key. As a result, the programme kicks-in at the recruitment stage when potential customer delivery assistants are tested on their map reading skills and navigation ability and driving licence and eyesight checks are also made. Additionally, a 60-minute on-the-road assessment is also undertaken. Throughout their driving career with Tesco.com staff driving licences are checked twice a year and eyesight annually. On becoming a driver, staff undergo one-day of classroom-based training and a day of on-the-road training while undertaking customer deliveries. They then complete a driving validation report to demonstrate competence, known as the ‘Bronze Driver Validation’ - Silver and Gold standards have also been added. Scrupulous daily vehicle records and checks are completed by drivers and the whole process is underpinned by the company’s Accident Review Board. It is composed of two drivers and two managers and investigates all incidents. Mr Kemp said: “The effect of the whole system has been to involve Teco.com’s drivers in the process of delivering improved performance and profitability, while raising safety standards. As a result, the company’s drivers feel valued.” In addition, drivers as well as store directors, store managers and duty managers - in excess of 11,000 people - attended courses related to the introduction of the 2008 Corporate Manslaughter and Corporate Homicide Act. Mr Kemp said: “All managers are aware of the direct impact they can have on managing occupational road risk and ensuring the safety of Tesco.com employees and other road users.” The across the board installation of telematics systems into vehicles means that Tesco.com is now able to analyse and benchmark the performance of both its drivers and vehicles. One of the benefits of the technology has been the real-time debriefing of drivers on their return to base using information produced by the telematics system covering issues such as ‘inappropriate’ driving. Ultimately the sanctions can include dismissal. Mr Kemp explained: “As we are able to identify safety-related issues such as harsh braking, speeding, over-revving engine and van idling with the system, we are able to better performance manage drivers and arrange any remedial training. “However, because our drivers are closely involved in all issues related to occupational road safety incidents are rare because they know the telemetry is constantly recording information.” The data available has supported the introduction of Driver of Month and Driver of the Year competitions. The data recorded is also the foundation for further improvements in business efficiency with Mr Kemp saying: “Tesco.com has already made significant changes to its procedures and is now achieving greater efficiency in route selection and planning, drop rate and van loading. The information provided will enable the business to deliver better and safer vans and better work schedules which will benefit drivers.” Meanwhile, Department for Transport figures highlight that young drivers are in the highest risk category on the UK’s roads and crashes are the single biggest killer of young people. But, said Mr Kemp: “Tesco.com has reduced its lower age limit for its van drivers to 18, in line with the latest age discrimination laws. As a result, we have found that some young drivers are capable of working within our operation after undertaking our selection, assessment and development processes.” Tesco.com was one of the initial ‘business champions’ within the ‘Driving for Better Business’ campaign and is working closely with companies and other organisations to share their experiences. Experience tells Mr Kemp that communication with drivers, who are on the customer-facing frontline, as well as middle and senior management is crucial if road safety among at-work drivers is to be achieved. He concluded: “Communication and driver involvement is essential. If drivers and their managers know what is trying to be achieved and why and how they will benefit then their support is gained. The drivers are Tesco.com’s ambassadors on the road and they need to be valued and appreciated. The business can’t function without them.” Notes to Editors 1. The Driving for Better Business campaign being run by RoadSafe forms part of the Department for Transport’s Driving for Work road safety strategy. The aim of the campaign is to raise awareness of the importance of work-related road safety, in the business community and public sector by using advocates drawn from these communities to promote the business benefits of managing it effectively. 2. The campaign is managed by RoadSafe, which is recognized as a leading forum for promoting and devising solutions to road safety problems. 3. RoadSafe’s mission is to reduce road deaths and injuries through building partnerships between the motor industry and related companies, traffic engineers, the police and road safety professionals, promoting the safe design and use of vehicles and roads and encouraging education and innovation www.roadsafe.com 4. Further information about the Driving for Better Business campaign is available at www.drivingforbetterbusiness.com or contact Ed James on 02073449236 (ejames@roadsafe.com) 5. Ends Tesco online shopping and home delivery service at www.tesco.com