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Hermes, Moran Logistics and Whirlpool UK Appliances are all shortlisted for the Operational and Compliance Excellence Award, sponsored by Eddie Stobart Logistics at the 2018 Motor Transport Awards.
The Motor Transport Awards 2018 take place at the Grosvenor House Hotel in London on 4 July.
Operational and Compliance Excellence Award (sponsored by Eddie Stobart)
Hermes
Parcels carrier Hermes last year managed the difficult balancing act of increasing volumes by 13.5% while improving KPIs such as driving infringements, fuel consumption, accident rates, driving style and customer service levels across its HGV trunking fleet.
Some improvements were dramatic – a 5.5% drop in fuel consumption, a 15.5% improvement in driving style scores and a drop of 10.5 driving hours infringements to just 34.7 for every 10,000 miles driven.
Hermes uses a dashboard to monitor key operational metrics. This also forecasts demand three times a day so managers can improve the operation and plan resources more accurately using the combined planning, execution, tracking and review transport management system.
It helped the business achieve impressive vehicle fill rates of between 79% and 93% on its inbound and outbound trunks.
The carrier uses an in-cab camera-based system to improve driver behaviour, which in turn cuts fuel consumption and accident rates. Fuel use was also reduced by investment in better aerodynamics and more efficient tractor units. This contributed to a 1p per mile cut in cost per mile across the depots and a huge 54p per mile drop in hub linehaul costs.
Judges liked the Hermes submission, which presented a “well-managed business”. One commented on the excellent weekly reports on driving styles that were presented in a league table across the depots – “this shows healthy competition and the scores mirrored the performance”.
Moran Logistics
Moran Logistics’ ambition is to be the UK’s leading distributor of chilled, ambient and frozen foods, and as such sees it as its responsibility to set the highest standards of operational and compliance excellence. It uses state-of-the art telematics and transport management systems to monitor a number of KPIs and drive improvements in efficiency, customer service, compliance and environmental performance. One impressive KPI was that empty running was less than 1% across the Moran network, far lower than the national average of 28%.
Key to ensuring the operation is delivering what its customers want are a structured series of client reviews, held daily, weekly and monthly, to look at performance and measure how well services are meeting their needs and expectations.
One major customer said: “You delivered good service over the peak weeks and this is testament to the real commitment from your team to deliver an excellent performance. Your communication was excellent and the overall performance gave us real confidence.”
Judges were equally happy, praising the ‘no-nonsense’ entry’s attention to detail and saying Moran was a “professional, well-run company doing all the things every 3PL should be doing”.
Whirlpool UK Appliances
As the only major domestic appliance manufacturer to run its own home delivery operation, Hotpoint Home Solutions (HHS), Whirlpool says its logistics division is managed with military precision and its people are ambassadors for the brand.
HHS delivers almost 750,000 products to customers’ homes each year, managing the process from customer order, delivery, unpacking and installation, and including removal of the old appliance and packaging. Customers are given a three-hour delivery window and successful delivery rates were almost 100% last year.
A winner of this award in 2015, HHS holds product at its NDC in Raunds, distributing to 11 satellite depots for onward delivery. It operates 140 vehicles and employs 330 drivers and attendants.
The HHS fleet department has a clear focus on compliance and has a programme of three annual internal audits at each depot, covering vehicles hired in for peak periods as well as the core owned fleet.
The audits cover more than 100 points to check compliance with all O-licence requirements and other legislation. Last year’s audits revealed compliance had risen to a record 97.5%. Any non-conformities are addressed with an improvement plan held on a company-wide SharePoint.
A combination of introducing more efficient 5-tonne and 7-tonne vehicles alongside the conventional 7.5-tonners, and driver training has seen consistent improvement in MPG across the Euro-5 EEV and Euro-6 fleet.
Judges liked this ‘well-presented’ submission. One said: “The entry clearly provides evidence of how they have gone over and above the call of duty to ensure the profitable, safe, legal and efficient running of their fleet.”