Fleet Management 2014 - Skills for Logistics

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INDUSTRY SKILLS REPORT
Fleet Management
FEBRUARY 2014
Industry Skills Report: Fleet
Management
Produced by:
Adam Skelton
Gwenn Winters
Skills for Logistics
February 2014
With co-investment from UK Commission for Employment and Skills
ii
Foreword
Skills for Logistics (SfL) is the Sector Skills Council for the UK’s freight logistics and
wholesaling sectors. SfL works alongside companies in the UK that are involved in the
moving, handling, storing and wholesaling of goods.
SfL’s vision is to deliver the best skilled logistics workforce in the world. It will do so through
our aims to:

Attract talented new people into our sector, which is often mischaracterised as one
that does not offer great career opportunities

Develop solutions such as pre-employment training, to ensure people have the ‘work
ready’ skills to get a job

Support employers, local authorities, Local Enterprise Partnerships, schools, colleges
and other organisations to help tackle issues surrounding access to funding for skills
and training
SfL is not in competition with sector bodies and management organisations. Our purpose is
to get jobseekers into jobs and satisfy the demand for people in our sector. The Logistics
Sector needs to attract new talent, make people better at their jobs and improve businesses.
Underpinning our work programmes to attract, develop and support, is SfL’s research and
intelligence, which not only helps us but also employers and partners to understand the
Logistics Sector. Our highly regarded intelligence can inform planning and investment
decisions by employers, partners and government – both nationally and locally.
This research was carried out via funding from the UK Commission for Employment and
Skills. It highlights the key industry characteristics and integrates employer’s views from
SfL’s employer survey to provide a greater understand about the employment, skills and
training issues of the Fleet Management.
Sharing our research and engaging with our audience is important to further develop the
evidence on which we base our work. Through debating the issues they raise we can work
with the sector to develop solutions. All our research outputs can be accessed Skills for
Logistics website www.skillsforlogistics.org.
We hope that you find this report useful and informative. If you would like to provide any
feedback or comments, or have any queries please email info@skillsforlogistics.org, quoting
the report title.
Dr Ross Moloney
CEO
Skills for Logistics
iii
Contents
Foreword............................................................................................................................... iii
Contents ...............................................................................................................................iv
List of Tables ........................................................................................................................vi
List of Figures .......................................................................................................................vi
Executive Summary ............................................................................................................. vii
1
Introduction .................................................................................................................... 1
1.1
Purpose of the report .............................................................................................. 1
1.2
Summary of methodology ....................................................................................... 1
2
Fleet management ......................................................................................................... 2
3
Occupational characteristics and skills requirement ....................................................... 3
3.1
Occupational characteristics ................................................................................... 3
3.1.1
Transport and distribution clerks and assistants............................................... 4
3.1.2
Managers and directors in transport and distribution ........................................ 4
3.2
Skills requirement ................................................................................................... 4
4
Skills Gaps and needs ................................................................................................... 9
5
Recruitment ................................................................................................................. 10
5.1
Recruitment .......................................................................................................... 10
5.1.1
Recruitment Methods ..................................................................................... 10
5.1.2
Recruitment Difficulties .................................................................................. 11
5.1.3
Historical recruitment patterns ....................................................................... 12
Managerial transport and distribution role .................................................................... 12
Transport and distribution clerk roles ........................................................................... 12
5.2
6
7
Retention .............................................................................................................. 13
Workforce skills and development ................................................................................ 15
6.1
Company Training................................................................................................. 15
6.2
Types of Training .................................................................................................. 15
6.3
Reasons for Training............................................................................................. 16
6.4
Business Improvements ........................................................................................ 16
6.5
Training Provision ................................................................................................. 17
Future workforce skills ................................................................................................. 18
7.1
Governance and regulation ................................................................................... 18
7.2
Globalisation and economics ................................................................................ 18
7.3
Environment.......................................................................................................... 18
8
7.3.1
Vehicle utilisation ........................................................................................... 18
7.3.2
Planning the route .......................................................................................... 19
7.3.3
Vehicle operation ........................................................................................... 19
7.3.4
Vehicle maintenance...................................................................................... 20
7.4
Technology ........................................................................................................... 20
7.5
Customer demand ................................................................................................ 21
Steps to improve the skills position .............................................................................. 22
8.1
Skills for Logistics ................................................................................................. 22
8.1.1
The Professional Development Stairway (PDS) ............................................. 22
8.1.2
Programme Development .............................................................................. 22
Table 4: Apprenticeships available in the fleet management industry.................................. 22
8.1.3
Logistics Locker ............................................................................................. 23
8.1.4
The Logistics Guild ........................................................................................ 23
8.1.5
The Skills Calculator ...................................................................................... 23
8.2
9
Freight Transport Association ............................................................................... 24
Conclusion ................................................................................................................... 25
10 Bibliography ................................................................................................................. 26
v
List of Tables
Table 1: Workforce characteristics of those working in fleet management, 2012 ................... 3
Table 2: Occupations entry and skills requirements available in Fleet Management ............. 5
Table 3: The proportion of staff considered to be fully proficient at their job .......................... 9
Table 4: The number of companies who said they recruited in the past 12 months ............. 10
Table 5: The reasons organisations recruited in the past 12 months ................................... 10
Table 6: The methods used by organisations to recruit during the past 12 months ............. 11
Table 7: Levels of staff turnover within each organisation over the past 12 months ............ 13
Table 8: The factors that contribute most towards staff retention in an organisation ............ 14
Table 9: Organisations that have provided training over the past 12 months ....................... 15
Table 10: Types of training funded or organised for staff over the past 12 months .............. 16
Table 11: The reasons organisations decided to implement training solutions over the past
12 months ........................................................................................................................... 16
Table 12: The types of improvements that have been realised as a result of staff undertaking
training or qualifications ...................................................................................................... 17
Table 13: Are the training solutions currently available fulfilling the training requirements of
those either entering or already working in the industry? ..................................................... 17
Table 14: Fuel cost for various goods vehicles, 2012 .......................................................... 20
Table 4: Apprenticeships available in the fleet management industry.................................. 22
List of Figures
Figure 1: Number of vacancies notified to Jobcentre Plus and the number of JSA claimants
seeking a managerial transport and distribution role, 2007 - 2012 ...................................... 12
Figure 2: Number of vacancies notified to Jobcentre Plus and the number of JSA claimants
seeking a transport and distribution clerk role, 2007-2012 .................................................. 13
vi
Executive Summary
Fleet management is the management of a company’s transportation fleet, which enables
the company to meet customer requests. The company’s ‘fleet’ can represent many forms.
For example, road transport firms can manage a fleet of drivers, tractors and trailers.
The global recession has impacted upon the fleet management industry where tighter
margins have made fleet operators look at ways to achieve better cost management. The
volatile and high fuel costs have made such efforts more challenging. While internal
challenges, such as duty of care, and difficulties in recruiting competent drivers are issues
that fleet managers have to deal with on a daily basis.
Occupational profile
Fleet management roles include transport clerks, traffic office roles and road transport
managers. They generally work in a busy office environment, where the hours of work may
be varied, particularly if the organisation operates 24/7 and requires shift work. Depending
on the individual’s experience and skills level they may be involved in the planning of routes,
scheduling vehicles and drivers, monitoring vehicle movement and completing movement
documentation.
There are currently 129,200 people working as transport and distribution clerks and
assistants and managers or directors. However, since 2007 these occupations have seen a
large decrease in the number of people working within them.
The age profile varies amongst these two occupations. Transport and distribution clerks and
assistants attract a higher proportion of the workforce under the age of 35 years (34%)
compared to those working in Manager and director transport and distribution roles (14%),
where 58 per cent of the workforce are over the age of 45 years.
The National Occupational Standards for these occupations have determined that the
minimum skill level for those working as transport and distribution clerks and assistants is a
level 2 and a level 3 for those with more experience. However, at present 34 per cent of the
workforce do not have a level 2 qualification.
A level 3 qualification is considered to a minimum standard for managers and directors in
transport and distribution, however currently just over half (51%) of the workforce do not hold
a level 3 qualification.
The skills needed by employees working in the fleet management industry vary depending
on the type of company and sector they work within. Those working within fleet management
require a combination of ‘soft’ and ‘hard’ skills.
Skills gaps and requirements
Training and learning opportunities in the logistics sector have historically been low, however
the situation appears to be changing. It is boosted by the trend that transport oriented
companies are switching to whole supply chain activities and require a higher customer
service level. In addition, with increasing fuel costs, insurance premiums and competition,
employers have an increased interest in keeping expenses to an absolute minimum.
vii
Consequently, increased training is being carried out because of the savings related to
enhanced efficiency.
Fleet management is influenced by a number of factors which have an impact on how the
profession operates and the skills required. Some major drivers of change include
governance and regulation, globalisation and economics, environmental changes,
technology and changing customer demand.
At least 30 per cent of employers in operating a fleet, report that they employ middle or junior
managers who are not fully proficient in their role. This decreases to at least 28 per cent for
administrative staff, 25 per cent for operational staff and 15 per cent for directors and senior
managers.
Three in five employers believe that communication skills are the most important and the
same proportion believe that the lack of time to train is the largest contributing factor to the
need for requiring workforce skills improvement.
Recruitment
Research shows that 77 per cent of employers believe that the logistics sector as a whole
has trouble attracting new recruits with the right training or development. One of the reasons
the industry struggles to attract new entrants is due to the image of the industry. The lack of
understanding about the industry, the perceived lack of career progression and the role of
the media and Government all contribute to the poor image, which in turn results in the
sector struggling to attract quality staff.
75 per cent of employers in the industry recruited over the past 12 months, with 68 per cent
of these positions being filled due to staff turnover, which was above the sector average
figure of 60 per cent. The most popular recruitment method is word of mouth (66%), which
incidentally is the most popular method use across the entire Logistics Sector (67%).
Jobcentre Plus data which reports the number of jobs roles advertised and the number of
individuals on Job Seekers Allowance (JSA) who are seeking a role/s associated with fleet
management shows that there are more individuals seeking a role than there are
opportunities.
Employers confirm this by reporting that they receive plenty of applications when recruiting,
however they still experience recruitment difficulties, which are found to be the consequence
of:



The low number of applicants with the required skills.
The low number of applicants with the required attitude, motivation or personality.
The lack of work experience required by the employer.
viii
Workforce Development
A greater proportion of employers in the industry reported that they provided both on-the-job
and off-the-job training opportunities for their staff over the past 12 months compared to the
Logistics Sector. The training that the majority of employers offered was either safety/first aid
(93%) or job specific (92%), following the similar trend of the entire sector.
Complying with Government Legislation (96%) and to make sure staff were equipped with
the appropriate skills (93%) were seen as the major reasons to train their staff over the past
12 months, with the biggest improvements being increased productivity (28%) and increased
efficiency (27%).
Opportunities
Although there are some barriers to entering the industry, there are opportunities for those
who are keen to work in the industry as well as those looking for a career change. There are
a number of opportunities available, through apprenticeships and training schemes,
foundation degrees, undergraduate and postgraduate degrees. Once in the industry and
through the process of gaining knowledge, talented individuals have the opportunity for
career progression.
ix
Introduction
In collaboration with the UK Commission for Employment and Skills (UKCES), Skills for
Logistics has secured Employer Investment Funding to deliver the programme of work
“Intelligent Logistics”.
Intelligent Logistics will drive employer ownership of the skills system through the collation of
intelligence derived from employer-led, occupational groupings. This intelligence will be used
to build a range of products to inform employer decision making and also the development of
standards and qualification frameworks critical to the effective operation of the skills system
for the sector. A key aspect of the intelligent logistics programme is to engage with a group
of experts in eight Logistics industries collate intelligence at an industry level. The eight
industries are:








Driving
Fleet Management
International Trade
Mail and Courier
Supply Chain
Port Operations
Warehousing
Wholesaling
1.1 Purpose of the report
The purpose of the Skills for Logistics industry reports is to provide intelligence into each of
the eight areas. This report is part of a suite of reports and focuses on the Driving Industry. It
provides key characteristics and skills requirements needed by those currently employed in
the industry, issues associated with the recruitment and retention of employees, workforce
development and drivers of change that will influence the skill requirements of those working
or looking to enter into the industry.
The intelligence contained within this report is to support employers, employees, individuals,
Government organisations and careers advisors.
1.2 Summary of methodology
This report combines top-down data with bottom-up intelligence to provide a rich
assessment of the challenges and opportunities facing the Driving Industry.
Two main types of information have been drawn on in preparation of this report:


Quantitative data generated via a telephone survey with 277 logistics employers
Industry data generated by Skills for Logistics and others (including Government
departments and agencies, academics and professional associations)
Further methodological information on the primary research can be found in the ‘Logistics
Employer Survey 2013’.
1
Fleet management
Fleet management is the management of a company’s transportation fleet, which enables
the company to meet customer requests. The company ‘fleet’ can represent many forms. For
example, road transport firms must manage a fleet of drivers, tractors and trailers. Those
that operate rail transport must manage rail operations and may face the additional
complexity that the loads are part of a multimodal chain and require transfer, either to road
or at sea ports, en route from origin to destination, while container fleet operators must
manage global transportation of fleets of various container types.
Fleet management allows companies which rely on transportation to minimise risks
associated with vehicle investment, improve efficiency and productivity and reduce the
overall transportation and staff costs, while providing compliance with rules and regulations.
It can include a range of functions, such as vehicle financing, vehicle maintenance, vehicle
telematics (tracking and diagnostics), driver management, fuel management and health and
safety management. These functions can be dealt with by either an in-house fleet
management team or department or an outsourced fleet management provider.
The global recession and ever tighter margins have made fleet operators look at ways to
achieve better cost management. The volatile and high fuel costs have made such efforts
more challenging. While internal challenges, such as duty of care, and difficulties in
recruiting competent drivers are issues that the fleet manager has to deal with on a daily
basis.
2
Occupational characteristics and skills requirement
This section of the report focuses on the main occupations within the fleet management
industry, the occupational characteristics and the skills requirement.
Fleet management roles include transport clerks, traffic office roles and road transport
managers. They generally work in a busy office environment, where the hours of work may
be varied, particularly if the organisation operates 24/7 and requires shift work.
Depending on the individual’s experience and level they may be involved in the planning of
routes, scheduling vehicles and drivers, monitoring vehicle movement and completing
movement documentation. They may need to check driver documentation and complete
records, to collect documentation from on or off site dispatch and receipt locations or to take
fuel readings from vehicles and pumps/dispensers and maintain records. They could be
involved in driver pre and post journey briefings and take disciplinary action in line with
company policy.
3.1 Occupational characteristics
Using official statistics we can investigate the workforce characteristics of transport and
distribution clerks and road transport managers.
Table 1: Workforce characteristics of those working in fleet management, 2012
Gender
Employment
Age
Qualifications
Female
Male
Self
employed
Part Time
16 -24
25 – 34
35 - 44
45 – 59
60 +
Below
Level 2
Level 2
Above
Level 2
Transport and
Managers and
All
distribution clerks
directors in transport
Sectors
and assistants1
and distribution2
(UK)
31%
15%
46%
69%
85%
54%
3%
12%
14%
Total
employment
12%
11%
23%
28%
31%
8%
34%
3%
1%
13%
28%
51%
7%
26%
27%
12%
23%
23%
33%
8%
23%
21%
45%
19%
54%
16%
61%
59,300
69,900
Source: Annual Population Survey, 2012
1
2
Standard Occupational Code 4134
Standard Occupational Code 1161
3
3.1.1
Transport and distribution clerks and assistants
There are currently 59,300 individuals employed as transport and distribution clerks and
assistants across the UK. Since 2007 the number has decreased 9 per cent, from nearly
65,000 and by 3 per cent on last year’s figure (61,000). This is most likely as a consequence
of the poor economic climate, which the UK and large parts of the world are still feeling the
effects of since 2008.
The majority (89%) of the workers are based in England; mainly within London, the South
East, North West and West Midlands – the areas where the largest numbers of logistics
companies are located.
The age profile of workers shows that 34 per cent are under 35 years of age, which is just
below the all economy figure of 35 per cent. Young individuals who have the opportunity to
enter this occupation and gain the right training and skills development, can progress into
management roles in the future.
The National Occupational Standards (NOS) for this occupation have determined that the
minimum skill level for those working in this occupation is a level 2 and for those with more
experience a level 3. At present, 34 per cent of the workforce have not achieved a level 2
qualification.
3.1.2
Managers and directors in transport and distribution
There are 69,900 transport and distribution managers across the UK, a decrease of 20 per
cent since 2007 and by 12 per cent alone on last year’s figure of 79,000. The majority (84%)
are employed within England, with 11 per cent in Scotland, 3 per cent in Wales and 2 per
cent based in Northern Ireland.
The age profile indicates that over half (58%) of the workers are over 45 years of age, which
is not unexpected as these roles do require significant experience and a higher skill level
than the clerks and assistants roles for example. The younger profile of clerks and
assistants would indicate that there is potential to develop these workers to fulfil
management capability in the future.
Of concern, however, is that over half (51%) of managers and directors in this role do not
hold a level 3 qualification, which is considered to be the minimum standard for this role. The
high number of managers without a level 3 qualification can be attributed to two factors.
Firstly, the experience and time spent with the company rather than the pre-employment
training and qualifications to facilitate employee promotions into managerial positions.
Secondly, the significant volume of the owner-manager category, as the Logistics Sector
heavily relies on small and middle size operators. However, it is vital that managers and
directors have the appropriate skill level to ensure the competitive nature of the business is
met.
3.2 Skills requirement
The mix of skills needed for the jobs within fleet management varies with the type of
company and sector they work within. Those working within fleet management require a
combination of ‘soft’ and ‘hard’ skills. Table 2 provides an indication of the entry route, skills
and competencies required.
4
Table 2: Occupations entry and skills requirements available in Fleet Management
Role
Entry



Through job applications, agency
work or internal transfer. It is
possible you could be offered a post
through work experience placement
programmes.
Knowledge of the Logistics industry
and your organisation’s supply chain
needs.
Health and Safety procedures will be
required, and knowledge of the UK
road system and driver’s hours
would be desirable.
Skills




Good communication.
Numeracy skills.
Reasonable ICT skills.
You must be confident, organised
and have the ability to work on
your own or as part of a team.
Competencies

















Trainee Transport
Clerk / Transport
Clerk








5
Optimise the use of logistic resources.
Post journey reports and checks.
Produce costings for freight.
Manage your own resources and professional
development.
Minimise the environmental impact of logistics
operations.
Monitor vehicle movements.
Respond to problems in logistics operations.
Provide leadership for your team.
Routing and scheduling loads.
Schedule logistics operations to meet customer
requirements.
Allocate and check work in your team.
Recruit, select and keep colleagues.
Release vehicles for daily tasks.
Manage the traffic office.
Build and manage teams.
Contribute to the provision of customer service.
Develop productive working relationships with
colleagues.
Apply technology in logistics operations.
Arrange the transportation of goods using multiple
modes.
Improve the performance of logistics operations.
International road transport operations.
Maintain health and safety in logistics operations.
Ensure compliance with legal, regulatory, ethical and
social requirements.
Help team members address problems affecting their
performance.
Identify suitable collection and delivery points.
Role
Entry


Team leader –
Transport Clerk




Traffic Office
Manager


Through job applications, agency
work or internal transfer. It is
possible you could be offered a post
through work experience placement
programmes.
Knowledge of the Logistics industry
and of the UK road system may be
essential to your role.
You will need knowledge of current
driver’s hours and Working Time
Directive, and a general
understanding of current driver
legislation and regulations.
Good knowledge of organisation’s
Health and Safety procedures will be
required.
Through job applications, agency
work or internal transfer. It is
possible you could be offered a post
through work experience placement
programmes.
Knowledge of the Logistics industry
and of the UK road system may be
essential to your role.
You will need knowledge of current
driver’s hours and Working Time
Directive, and a general
understanding of current driver
legislation and regulations.
Good knowledge of organisation’s
Health and Safety procedures will be
required.
Skills


Good communication, numeracy
skills and reasonable ICT skills.
You must be confident, organised
and have the ability to work on
your own or as part of a team.
Competencies














You should have good
organisational, communication and
numeracy skills, be ICT literate
with experience of spread sheets.
You must be confident and have
the ability to work on your own or
as part of a team.
You will need to be flexible and
stay calm under pressure, resolve
developing situations which may
affect transport related activities
and be prepared to deputise for
the Transport Manager when
required.
You will need to have an
awareness of current legislative
requirements and be able to lead a
team.
6















Post journey reports and checks.
Produce costing for freight.
Manage your own resources and professional
development.
Monitor vehicle movements.
Routing and scheduling loads.
Release vehicles for daily tasks.
Build and manage teams.
Develop productive working relationships with
colleagues.
Help team members address problems affecting their
performance.
Identify suitable collection and delivery points.
Post journey reports and checks.
Produce costing for freight.
Manage your own resources and professional
development.
Monitor vehicle movements.
Routing and scheduling loads.
Make an effective contribution to the business.
Recruit, select and keep colleagues.
Manage the traffic office.
Build and manage teams.
Contribute to the provision of customer service.
Develop productive working relationships with
colleagues.
International road transport operations.
Maintain health and safety in logistics operations.
Help team members address problems affecting their
performance.
Identify suitable collection and delivery points.
Role
Entry




Transport
Supervisor



Through job applications, internal
transfer.
Good knowledge of the UK road
system will be essential to your role.
You will need knowledge of current
driver’s hours and regulations and
legislation.
Good knowledge of organisation’s
fault and maintenance systems and
Health and Safety procedures will be
required.
It is essential that you hold a valid
driving licence for the vehicle you will
be using and you will be required to
have knowledge of tachograph
operation and to understand
regulations in regard to vehicle loads
and axle weights.
It is possible that you will need to be
SAFED and ADR trained.
It is more than likely that you will be
required to complete the
requirements for Driver Certificate of
Professional Competency (DCPC).
You may also need to be a
registered driving instructor.
Skills



Good communication, basic
finance and numeracy skills and
reasonable ICT skills.
O licence awareness may also be
required.
You must be confident, organised
and have the ability to work on
your own or as part of a team.
Competencies










7
Make an effective contribution to the business.
Minimise the environmental impact of logistics
operations.
Provide leadership for your team.
Respond to problems in logistics operations.
Schedule logistics operations to meet customer
requirements.
Recruit, select and keep colleagues.
Develop productive working relationships with
colleagues.
Apply technology in logistics operations.
Improve the performance of logistics operations.
Ensure compliance with legal, regulatory, ethical and
social requirements.
Role
Entry
Skills
 Good organisational,
Through job applications, agency
communication and numeracy
work or internal transfer.
skills, be ICT literate with
 You will need knowledge of driver’s
experience of spreadsheets.
hours and Working Time Directive.
 You must be confident and have
You will need to understand
the ability to work on your own or
regulations in regard to vehicle loads
as part of a team.
Transport
and axle weights. Some knowledge
 You will need to be flexible and
Manager
of contracts and service level
stay calm under pressure.
agreements may also be required as

You will need awareness of
will knowledge of your organisation’s
current legislative requirements,
supply chain and the logistics
VOSA inspections.
industry, and knowledge of the UK

You will need to be able to lead a
road system. You may need to hold
team.
CPC or CPC(I).
Source: Professional Development Stairway, Skills for Logistics, 2013

8
Competencies










Make an effective contribution to the business.
Optimise the use of logistics resources.
Minimise the environmental impact of logistics
operations.
Provide leadership for your team.
Respond to problems in logistics operations.
Recruit, select and keep colleagues.
Develop productive working relationships with
colleagues.
Apply technology in logistics operations.
Improve the performance of logistics operations.
Ensure compliance with legal, regulatory, ethical and
social requirements.
Skills Gaps and needs
At least 15 per cent of employers operating in the Fleet Management reported that they had
directors and senior management who were not fully proficient at their job roles.
Staff at junior and middle management level once again had the lowest proportion of
proficiency, with at least one in three employers reporting skills gaps at this level.
Administrative and secretarial and also operational staff didn’t fare much better, with at least
28 and 25 per cent respectively of employers reporting skills gaps at these staff levels.
Table 3: The proportion of staff considered to be fully proficient at their job
Directors
and
senior
management
Middle
and
junior
management
Admin
and
secretarial
staff
Fleet
Management
Logistics
Sector
Fleet
Management
Logistics
Sector
Fleet
Management
Logistics
Sector
A max
25% of
staff fully
proficient
Between
26 – 50%
of staff
are fully
proficient
Between
51 – 75%
of staff
are fully
proficient
More than
75% of
staff are
fully
proficient
Don't
know
Base
1%
1%
13%
79%
6%
166
1%
2%
12%
80%
5%
263
1%
2%
27%
64%
6%
152
1%
3%
27%
65%
5%
219
1%
4%
23%
67%
5%
172
*%
3%
23%
70%
4%
255
3%
21%
71%
4%
170
3%
18%
74%
4%
260
Operational
staff
Fleet
Management
1%
Logistics
Sector
*%
Source: Skills for Logistics Skills Survey 2013
When Fleet Management organisations were asked about what skills needed improving in
order for current staff to do their jobs more effectively in the ‘Skills for Logistics Employer
Survey 2013’, the top 5 skills in need of most improvement were:




Communication skills (60%)
Organising and planning skills (56%)
Job specific/teamwork and interpersonal skills (55%)
IT Skills/problem solving skills/customer service (all 53%)
The lack of time to train (60%) and Government legislation (57%) were reported as the
largest contributing factors that resulted in the need for improving workforce skills.
9
Recruitment
5.1 Recruitment
75% of Fleet Management organisations recruited across their company during the past 12
months, which was equal to the Logistics Sector average (Skills for Logistics, 2013).
Table 4: The number of companies who said they recruited in the past 12 months
Percentage of organisations who
recruited
75%
75%
Industry
Fleet Management
Logistics Sector
Source: Skills for Logistics Skills Survey 2013
68 per cent of recruitment needs were to due gaps created by staff turnover, a much higher
figure than the Logistics Sector average (60%) and which was the highest figure across the
whole sector. This suggests that Fleet Management is an industry within logistics that has a
problem with keeping their staff members.
59 per cent to fill new posts created through expansion and just 37 per cent to fill new posts
created through reorganisation. These latter two figures all but matched the Logistics Sector
figures of 61 and 36 per cent respectively.
Table 5: The reasons organisations recruited in the past 12 months
Only to fill
gaps created
by staff
turnover
To fill new posts
created through
expansion
To fill new
posts created
through
reorganisation
Fleet Management
68%
59%
37%
Logistics Sector
60%
61%
36%
Reasons for
Recruitment
Source: Skills for Logistics Skills Survey 2013
Of the employers who recruited across the industry, 87 per cent did so for operational staff,
54 per cent for admin and secretarial roles, 44 per cent for middle and junior managers and
25 per cent for director and senior management roles.
5.1.1
Recruitment Methods
The most popular method of recruitment used by Fleet Management employers over the
past 12 months was via word of mouth (66%), which was also the most popular method
across the entire Logistics Sector (67%). Employers in the industry were more likely to use
Newspapers to advertised recruitment opportunities compared to sector as a whole (51%
compared to 40%) (Table 6).
10
Table 6: The methods used by organisations to recruit during the past 12 months
Recruitment
method
Word
of
mouth
Jobcentre
Plus
Newspapers
Fleet
66%
42%
51%
Management
Logistics
67%
40%
40%
Sector
Source: Skills for Logistics Skills Survey 2013
5.1.2
External
websites
Own
website
Recruitment
agency
Social
media
Internal
promotion
47%
50%
50%
19%
48%
44%
47%
51%
18%
48%
Recruitment Difficulties
All logistics industries experienced difficulties when recruiting staff over the past 12 months,
with the major contributing factor being the lack of suitable applicants holding the required
skills (51%), a full 31 percentage points more than the next contributing factors of applicants
failing to have the required qualifications or the required level of work experience.
The biggest problem that this caused was reported to be the increase in workload on
existing staff members, of which 90 per cent of all respondents across the entire sector
agreed upon (Skills for Logistics, 2013).
Another recruitment difficulty that employers face is the struggle to attract new entrants due
to the image of the industry, the lack of understanding about the industry, the perceived lack
of career progression and the role of the media and Government that all contribute to the
poor image, which in turn results in the industry struggling to attract quality staff.
The Office of National Statistics freely publish the number of notified vacancies at JobCentre
Plus and the claimant counts on a monthly basis at a detailed occupational level. By looking
at both of these, the supply of available jobs can be indicated, as can the number of
individuals seeking such a position.
Figures 1 and 2 shows the number of job roles advertised and how many individuals are on
Jobseeker’s Allowance (JSA) and seeking a role/s associated with fleet management. The
data shows that there are more individuals seeking a role than there are opportunities.
Employers confirm this by reporting that they receive plenty of applications when recruiting.
However they still experience recruitment difficulties, which are found to be the consequence
of:



A low number of applicants with the required skills.
A low number of applicants with the required attitude, motivation or personality.
A lack of work experience required by the employer.
11
5.1.3
Historical recruitment patterns
Managerial transport and distribution role
The number of individuals claiming JSA and seeking a managerial transport and distribution
role has been consistently greater than the number of jobs being advertised (Figure 1).
The number of vacancies has remained fairly consistent since 2007; however the number of
claimants seeking a role in this industry has fluctuated between 2007 and 2012. The number
of individuals seeking a managerial transport and distribution role increased rapidly during
2009 as the recession took hold and more individuals were seeking a role than jobs
advertised. However, the current level of claimants has returned to the same levels as 2007,
before the impact of the recession.
Figure 1: Number of vacancies notified to Jobcentre Plus and the number of JSA claimants
seeking a managerial transport and distribution role, 2007 - 2012
2,500
Vacancies
2,000
Claimants
1,500
1,000
500
May 2012
January 2012
September 2011
May 2011
January 2011
September 2010
May 2010
January 2010
September 2009
May 2009
January 2009
September 2008
May 2008
January 2008
September 2007
May 2007
January 2007
0
Source: Claimant Count and Job Vacancies by Occupation, Office of National Statistics, NOMIS,
2012
Transport and distribution clerk roles
Between 2007 and 2008 Jobcentre Plus advertised more transport and distribution clerk
roles than the number of claimants seeking such a position (Figure 2). This changed during
2009 when the number of claimants exceeded the number of vacancies and this remained
the case until late 2011. However, between January 2012 and May 2012 the number of
vacancies rose once again above the claimant level, suggesting that the industry was
recovering from the recession but also that individuals who are applying for these roles may
be lacking the appropriate qualifications, skills or experience to carry out such a role.
12
Figure 2: Number of vacancies notified to Jobcentre Plus and the number of JSA claimants
seeking a transport and distribution clerk role, 2007-2012
1,000
900
800
700
600
500
400
300
200
100
0
May 2012
January 2012
September 2011
May 2011
January 2011
September 2010
May 2010
January 2010
September 2009
May 2009
January 2009
September 2008
May 2008
January 2008
September 2007
May 2007
January 2007
Vacancies
Claimants
Source: Claimant Count and Job Vacancies by Occupation, Office of National Statistics, NOMIS,
2012
5.2 Retention
25 per cent of employers across the whole Logistics Sector reported staff turnover to be nonexistent over the past 12 months and a further 58 per cent reported it to be either low or very
low during the same time frame. Only 19 per cent of Fleet Management employers believed
that staff turnover was non-existent during this period and 66 per cent stated that either low
or very low staff turnover existed (Skills for Logistics, 2013).
However, 4 per cent are experiencing high levels of staff turnover which will have impact
upon the efficiency of their business.
Table 7: Levels of staff turnover within each organisation over the past 12 months
Turnover for last 12
months
Fleet Management
Whole Sector
High
Neither
high nor
low
Low
Very low
Non
existent
4%
5%
10%
11%
28%
23%
38%
35%
19%
25%
Source: Skills for Logistics Skills Survey 2013
A third of all employers in both Fleet Management organisations (33%) and the Logistics
Sector (34%) reported that having good terms and conditions in place for their employees
was a major contributing factor to reducing staff turnover. A greater proportion of Fleet
Management employers placed an importance on how staff are treated (20%) and staff
loyalty (11%) compared to the Logistics Sector averages of 17 and 9 per cent respectively.
13
Table 8: The factors that contribute most towards staff retention in an organisation
Fleet
Management
Logistics Sector
33%
34%
23%
23%
20%
17%
19%
16%
15%
11%
18%
17%
14%
9%
Family run business (inc. staff are
family members)
9%
7%
Company reputation
8%
11%
Training Opportunities
5%
6%
Others
23%
42%
Staff Retention Factors
Terms and conditions (inc. pay and
working hours)
Job satisfaction
How staff are treated (inc. receive
recognition/are valued)
Working environment
Limited opportunities elsewhere
Job security
Staff loyalty
Source: Skills for Logistics Skills Survey 2013
14
Workforce skills and development
Fundamental to the development of skills within the logistics workforce is the provision of
staff training and development. A constant focus on training and development can help
prepare people for change. Research shows that companies who do not provide training are
two and a half times more likely to fail than those who do3.
Skills for Logistics own research4 shows that skills development is vital and that companies
investing in training their people are more likely to survive through the downturn and beyond.
Training and learning opportunities in the Logistics Sector have historically been low;
however the situation appears to be changing. It is boosted by the trend that transport
oriented companies are switching to whole supply change activities and require a higher
customer service level. In addition, with increasing fuel costs, insurance premiums and
competition, employers have an increased interest in keeping expenses to an absolute
minimum. Consequently, increased training is being carried out because of the savings
related to enhanced efficiency.
6.1 Company Training
81 per cent of Fleet Management employers provided on-the-job training for their staff
members during the past 12 months compared to 78 per cent of employers across the whole
Logistics Sector. The off-the-job training figures were similar Table 9.
Table 9: Organisations that have provided training over the past 12 months
Industry Type
Fleet Management
Logistics Sector
Off-the-job
Training
On-the-job
Training
74%
73%
81%
78%
Source: Skills for Logistics Skills Survey 2013
6.2 Types of Training
The types of training that had been funded or arranged by Fleet Management employers for
their staff over the past 12 months, is shown below (Table 10). 93 per cent of employers
provided health and safety/first aid training during this time and 92 per cent of employers
reported that their staff had received job-specific training as well.
At least seven in ten employers across the sector provided fully funded training across all
occupational roles, less than 5 per cent of logistics employers provided no funded training at
all.
3
4
Sector Skills Development Agency 2007. Training and Establishment Survival
Skills for Logistics 2009. Skills to Survive
15
Table 10: Types of training funded or organised for staff over the past 12 months
Health & Safety/first aid training
Fleet
Management
93%
Logistics Sector
91%
Job specific training
92%
92%
Induction training
78%
76%
Training in new technology
61%
56%
Supervisory training
Management training
Other
53%
48%
30%
48%
44%
28%
Source: Skills for Logistics Skills Survey 2013
The proportion of Fleet Management employers that provided their staff with training during
this period were 94 per cent for operational staff, with 60 per cent for
administration/secretarial roles, 61 per cent for middle/junior management staff plus 45 per
cent for directors and senior management staff.
6.3 Reasons for Training
The table below shows what the main reasons were for employers to provide training for
their staff members over the past 12 months. The Fleet Management figures closely
resemble those of the Logistics Sector average figures.
Table 11: The reasons organisations decided to implement training solutions over the past 12
months
To comply
with
legislation
requirements
To ensure
staff are
equipped
with the
appropriate
skills
For staff
development
/ progression
opportunities
To benefit
the bottom
line i.e.
profitability
To ensure
staff can
use
machinery
or
technology
84%
70%
83%
82%
71%
83%
Fleet
96%
93%
Management
Logistics
91%
93%
Sector
Source: Skills for Logistics Skills Survey 2013
6.4 Business Improvements
Both Fleet Management and employers across the whole Logistics Sector felt that the
biggest improvement resulting from training their staff was productivity (both 28%) (Table
12). 27 per cent of Fleet Management employers recognised increased efficiency as an
improvement. Only 5 per cent believed an increased profitability was the biggest
improvement and only 4 per cent believed it to result in increased staff retention, both of
which were lower than the Logistics Sector average figures of 7 and 5 per cent respectively.
16
Table 12: The types of improvements that have been realised as a result of staff undertaking
training or qualifications
Type of improvement
Increased productivity
Increased efficiency
Staff motivation
Lower operating costs
Increased profitability
Staff retention
Increased turnover
Decreased workload
Development of new products /services
Fleet
Management
28%
27%
12%
6%
5%
4%
3%
2%
2%
Logistics Sector
28%
26%
12%
5%
7%
5%
3%
2%
1%
Source: Skills for Logistics Skills Survey 2013
6.5 Training Provision
74 per cent of Fleet Management employers felt that the current training solutions in place
were fulfilling requirements for new staff entering the industry and 77 per cent felt that the
training requirements were fulfilling the needs of those already working in the industry.
Table 13: Are the training solutions currently available fulfilling the training requirements of
those either entering or already working in the industry?
Fleet Management
Logistics Sector
Entering the industry
74%
73%
Working in the industry
77%
78%
Source: Skills for Logistics Skills Survey 2013
Where current training methods have not been available or effective, Fleet Management
employers felt that more training needs to be made available, especially more job specific or
specialised training and they would ideally like to employ new workers who are more
prepared/educated/skilled for the job.
17
Future workforce skills
Research by Berg Insight (2012) reveals that the European fleet management market has
entered a growth period that will last for several years. However, in today’s transport and
logistics sector, fleet operators face a number of internal and external challenges which need
to be overcome to improve their services and remain competitive. The following highlights
the main factors of change which are likely to affect the industry moving forward.
7.1 Governance and regulation
European Directives and Regulations affect many areas of the transport sector, and are
anticipated to increase over the coming years (Europa 2011). Recent examples include the
Driver CPC (2003/59/EC) and the Working Time Directive (2002/15/EC)).
In Northern Ireland, the Department of the Environment (DoENI) has implemented new
legislation on operating licensing. From the 1st July 2012 all those using goods vehicles over
3.5 tonne to carry goods as part of a trade or business must have a Goods Vehicle
Operators Licence (DoENI, 2012). This change will have affected some 7,500 vehicles, the
equivalent to over 70 per cent of goods vehicles in Northern Ireland (FTA 2012) and has
brought regulations for all goods vehicles in Northern Ireland into line with the rest of the UK.
These national and international regulations need to be met and therefore it is essential that
those working in fleet management are aware of the implications they may have on their
workforce and implement any necessary changes and reporting activities.
7.2 Globalisation and economics
In today’s global economy, production facilities and consumption markets are often
separated by vast distances, meaning that many freight transport companies have a global
operational scope. In the context of fleet management it is important to understand, and be
able to schedule, when and where the goods will be available.
7.3 Environment
The emphasis on reducing emissions, brought about by the Climate Change Act which will
see the UK reduce greenhouse gas emission by 80 per cent by 2050 against 1990 levels,
can be a catalyst for improvements in the way logistics is managed. As well as lowering
emissions, many measures that companies can implement will also result in significant cost
savings for the company.
Areas that fleet managers may consider include operating fleets at full capacity and reducing
empty running, improving fuel efficiency through route planning, driver training and vehicle
maintenance.
7.3.1
Vehicle utilisation
Evidence suggests that one of the key rules in fleet management of assigning the right
vehicle for the right job is often broken. Many vehicles are not utilised fully, and often their
vehicle capacity is less than their allowable payload. For example, Knight et al (2008) found
that in the UK, 44-tonne trucks, which can carry a maximum payload of 29 tonnes, transport
on average only 17.6 tonnes when laden and 12.7 tonnes if allowance is made for empty
running.
18
Mckinnon and Edwards (2010), report that companies do not wilfully under-load their
vehicles or want to have empty running, but a number of constraints results in this. These
include:










Demand fluctuations.
Lack of knowledge of loading opportunities.
Health and safety regulations.
Vehicle size and weight restrictions.
Unreliable delivery schedules.
Just-in-time delivery.
Goods-handling requirements.
Limited capacity at facilities.
Incompatibility of vehicles and products.
Poor coordination of purchasing, sales and logistics.
Greater priority needs to be given to vehicle fill and trying to overcome constraints, which will
require careful planning of workloads.
7.3.2
Planning the route
The routing and scheduling of vehicles involves a number of decisions that can have a
significant impact on cost and levels of service provided. The problem of organising and
routing a fleet is called the vehicle routing and scheduling problem (VRSP) 5. If the set of
customers and their demands change occasionally then the routing and scheduling can be
fairly straightforward. However, when the customer base and demands change regularly, the
use of VRSP software packages can help a company make savings in the order of 5 per
cent to 20 per cent in transportation costs6.
Much traffic congestion is regular and predictable, allowing companies to accommodate
delays by building in some slack. However, the unforeseeable traffic incidents, like accidents
and road works can significantly increase transit time. It has been estimated that 24 per cent
of deliveries are delayed due to factors like traffic congestion, vehicle breakdowns, and
absenteeism7. Advances in technology and telematics now allow for tracking which provides
advance warnings of delays and allows fleet managers to re-plan routes in real time.
7.3.3
Vehicle operation
Fuel costs represent a large proportion of the total vehicle operating costs8. Fuel cost as a
proportion of total vehicle costs ranges between 24 per cent and 38 per cent (Table 14).
5
Eglese and Black, 2010
Toth and Vigo in Eglese and Black, 2010
7 Mckinnon, 2009: in Mckinnon and Edwards, 2010
8 FTA 2012: DFF International Ltd 2012
6
19
Table 14: Fuel cost for various goods vehicles, 2012
Average mileage p.a.
7.5t rigid
26t rigid
33t rigid
32t drawbar
33t (2+2) artic
40t (2+3) artic
40,000
50,000
55,000
60,000
75,000
70,000
Fuel costs as a percentage
of total cost of vehicle and
driver
24%
31%
34%
35%
37%
38%
Source: FTA's Manager's Guide to Distribution Costs 2012, April 2012
For most companies, the main incentive to reduce fuel is therefore economic. It is important
for transport managers to be able to measure fuel efficiency in order to manage it effectively,
and to implement appropriate actions to continuously improve. There are many fuel
efficiency interventions available in the marketplace (Freight Best Practice, 2008). However,
transport managers need to understand whether the claimed fuel savings can be realised in
practice. Therefore considering a trial of selected fuel efficiency interventions on a suitable
sample of their fleet before deciding on the most appropriate option to roll-out across their
whole fleet would be beneficial.
7.3.4
Vehicle maintenance
A wide range of technical imperfections can prevent a truck from operating at optimum fuel
efficiency. Typical defects include9:


Misalignment of axels: a 1 degree misalignment of a single axle on a multi-axle trailer
can raise fuel consumption by roughly 3 per cent, while a 2 degree misalignment will
increase it by 8 per cent (Department for Transport, 2006).
Under-inflated tyres: 20 per cent under-inflation of tyres will result in a 10 per cent
increase in rolling resistance and cause a 2 per cent reduction in fuel efficiency.
Michelin estimate that 58 per cent of tyres in the UK are at least 10 per cent underinflated and therefore incur a fuel penalty of 1.5 per cent or more.
Regular maintenance can help detect and correct these but on a day-to-day basis, drivers
need to be encouraged to look out for obvious signs that a vehicle’s fuel efficiency is not
being impaired.
7.4 Technology
Technological change has affected the transport sector profoundly in the last ten years, and
will probably affect it even more in the next ten years. The desire to improve competitiveness
means employers look for technologies to gain greater efficiencies.
Modern developments in tracking technology continue to bring about new opportunities to
improve vehicle routing and scheduling, by taking account of expected congestion, and the
ability to modify routing plans dynamically when taking into account current traffic plans.
9
Mckinnon 2010
20
Management decisions will continue to be required to identify which technologically
advanced vehicles are best suited to the company’s operations. New vehicles may bring
about new skills needs for drivers and maintenance personnel to ensure safe operation and
maintenance of the vehicles.
7.5 Customer demand
Customer demand is one source of uncertainty in many freight transport systems, which can
be a substantial challenge for fleet managers. In most systems, customers will provide a
notice of intent to move freight in advance, although the ‘lead time’ of such information may
be short (i.e. a few hours, next day deliveries). Therefore, information about customer
location, demand quantities and demand timing may all be uncertain to some degree in
advance of execution. The key to effective fleet management is to make decisions with the
best information available at the times when decisions need to be made.
One key area for the industry is the increased use of the internet and home delivery. Direct
delivery to customers involves more urban freight, which in turn demands consideration and
planning of the appropriate use of delivery vehicles, particularly in areas that have low
emission zones or congestion charges such as London. In addition, there are likely to be
more failed deliveries which are unusual in business-to-business deliveries, but fairly
common in customer deliveries. Furthermore, customers want to be able to have deliveries
convenient to their lifestyles, along with the opportunity to track their progress. So more and
more companies are offering the choice of delivery dates and times and the ability to track
and trace products. However, this requires strong planning skills from the distribution
facilities and customer service skills from the deliverers.
21
Steps to improve the skills position
There are a number of organisations and professional bodies based in the UK that provide
support and advice to employers in the Logistics Sector, as well as developing frameworks
and tools in order to better equip the workforce. Some of the prominent organisations are
listed below:
8.1 Skills for Logistics
Skills for Logistics has implemented a number of steps that are, and will continue to
encourage the skills development of individuals working in the sector and encourage
recruitment in the sector. The following provides a brief overview of some of these products
and services.
8.1.1
The Professional Development Stairway (PDS)
The sector has historically lacked a career progression route. To improve the skills position,
Skills for Logistics produced, with the support and in consultation with employers, the
Professional Development Stairway (PDS). The PDS provides a common platform for
employers, employees and stakeholders to understand and manage career development
opportunities across the Logistics Sector. At each level on the PDS, it is possible to match a
course, qualification, certificate and learning.
For further information please visit: http://thestairway.org/
8.1.2
Programme Development
Skills for Logistics together with employers, employees and training experts from across the
UK, work to enhance the range and quality of the National Occupational Standards (NOS)
for all aspects of job roles in the sector. NOS set the benchmark standard for workplace
performance in terms of knowledge and skill and they are also the building blocks for
vocational qualifications and apprenticeships.
NOS relevant to the fleet management industry includes the Traffic Office framework.
Table 4 below highlights the various apprenticeships available to individuals aged 16 and
above who are not in full-time education. There are different frameworks across the UK
which are specific to fleet management.
Table 15: Apprenticeships available in the fleet management industry
England
Scotland
Wales
Intermediate Level 2
Traffic Office Clerk
Level 2 Modern
Apprenticeship
Level 2Foundation
Apprenticeship
Advanced Level 3
Traffic Office Manager
Level 3 Modern
Apprenticeship
Traffic Office
Level 3 Modern
Apprenticeship
Traffic Office Clerk
Traffic Office Manager
Higher Apprenticeship
Higher Modern
Apprenticeship
Higher Apprenticeship
For more information on NOS and the vocational qualifications and apprenticeships available
please visit http://www.skillsforlogistics.org/home/qualifications/
22
8.1.3
Logistics Locker
Although the Logistics Sector employs over 8 per cent of the UK workforce, the sector is
often disregarded despite the imperative role it plays in supply chain management and the
operative flow of goods and services across cities, industries and borders. Skills for Logistics
is working to raise awareness and promote the sector in order to close the gap between
other industry sectors. Work is already taking place to inspire schools, colleges and
employers. The Logistics Locker is packaged in order to help educate, inform and build
confidence amongst young talent, as well as those looking for a new career and experienced
skilled logistics employees looking to move forward in the career ladder.
For further information please visit: http://www.logisticslocker.com/
8.1.4
The Logistics Guild
The Logistics Guild provides a shared support network of resource, information and
opportunity, run for and by its members who will be able to share ideas, support, guidance,
development and jobs with members.
Our resource network has been set up to support those who work in any aspect of logistics the handling, movement or storage of goods or materials, either working for logistics
providers, wholesalers or ports or within the logistics operations of companies involved in
making, selling or distributing goods. Specially set up for anyone who works in the Logistics
Sector, the Logistics Guild is free to join and no qualifications are required to become a
member.
For more information please visit: http://logisticsguild.com/about-us
8.1.5
The Skills Calculator
The 'Skills Calculator' has been developed to help both raise the awareness of and to also
demonstrate the financial benefits of investing in workplace skills and career development
throughout the entire UK's Freight Logistics and Wholesale industries.
There are two versions of the tool, one is aimed at employers and the other is aimed at
individuals. Employers will be provided with Return on Training Investment % (RoTI %)
analysis for hiring and training an apprentice on any one of the Logistics Apprenticeship
Frameworks, whereas individuals can discover what their annual salary earning potential
could be as a fully skilled employee in any of the over 150 job roles currently identified
across all job functions and career levels.
The 'Skills Calculator' will also act as a useful resource tool for any stakeholders involved in
increasing either their own or others uptake of skills development and recruitment for the
entire UK's logistics workforce. These may include; training providers, learners, HR
associates and recruitment specialists.
The ‘Skills Calculator’ can be accessed via the following web link: www.skillscalculator.org
23
8.2 Freight Transport Association
Freight Transport Association (FTA) is one of the UK’s largest trade associations and
represents the transport interests of companies moving goods by road, rail, sea and air.
The FTA specialises in delivering safe, sustainable and efficient logistics through the
following ways:




Representation – by representing the needs of the logistics industry at local, national
and European level.
Campaigning - FTA’s campaigns raise awareness of the logistics industry.
Compliance - by informing and preparing their members about the latest compliance
requirements.
Training - by offering training schemes to improve the skills and knowledge of drivers
and managers in the industry.
For more information please visit: http://www.fta.co.uk/
24
Conclusion
Efficient fleet management is becoming an increasingly important requirement for any freight
transport company in today’s world of increasing customer demands, as well as increasing
personnel and fuel costs.
The global recession and ever tighter margins have made fleet operators look at ways to
achieve better cost management. The volatile and high fuel costs have made such efforts
more challenging. While internal challenges, such as duty of care, and difficulties in
recruiting competent drivers are issues that the fleet manager has to deal with on a daily
basis.
The fleet management industry has and will continue to be influenced and affected by a
number of external factors such as governance and regulation, globalisation and economics,
environmental factors, technological changes and changing customer demand. These
factors all have implications on skills which employers need to ensure they are aware of and
have the appropriate training mechanism in place to meet the changing needs of the
industry.
While the numbers of those working as road transport managers and transport and
distribution clerks have decreased since 2007, it has been predicted that the European fleet
management market has entered a growth period that will last for several years. This brings
about the challenge of ensuring that the industry has sufficient qualified and skilled
personnel working within fleet management. Across the UK, a large proportion of the current
workforce are not qualified to the minimum entry level in roles such as transport and
distribution clerks and assistants, managers and directors.
Although there are some barriers to entering the industry, there are opportunities for those
who are keen to work in the industry as well as those looking for a career change. There are
a number of opportunities available through apprenticeships and training schemes,
foundation degrees, undergraduate and postgraduate degrees. Once in the industry and
through the process of gaining knowledge, talented individuals have the opportunity for
career progression.
25
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