FLEET MANAGEMENT – A CONTINUING CHALLENGE

1. FLEET MANAGEMENT – A CONTINUING CHALLENGE Nigel Trotman, Business Relationship Manager, Whitbread Plc

2. AGENDA • Risk and Accident Management • The Green Agenda • Some Future Challenges

3. What’s In A Name? • Occupational Road Risk / Duty of Care / Work-Related Road Safety / Corporate Manslaughter • Key Elements: • Understand the level of risk • Take appropriate measures to manage the risk • Ensure that you understand the full picture These should not need compulsion – they make good business sense!

4. Road Safety - The Wider Agenda • Corporate Manslaughter Legislation. • Driver Expectations. • Government & Industry Initiatives. Electronic Stability Program ESP®

5. The Whitbread Experience • Separate responsibilities – Cars with Fleet, Accident Management with Insurance. • Lack of understanding of full costs – especially “hidden” elements, e.g. Personal Injury Liabilities. • Driver Training “nobody’s responsibility”. • No budget = no training. • Frustrated Fleet Manager.

6. WRRS – The Whitbread Way • Accident Management moved to Fleet. • Clear visibility of ALL related costs. • Senior Management buy-in. • GE/RAC programme adopted – licence checks, risk assessments, training & accident follow-up. • Programme implemented for all company car drivers. • Being rolled out to all drivers.

7. Accident Follow-Up • Link from Accident Management programme. • Applies to “serious” incidents – e.g. £1000 repair cost. • Call made close to incident. • Standard questions – agreed with Whitbread. • Appropriate action identified. • Closes the “risk loop”.

8. Progress To Date • 437 drivers risk assessed. • 164 drivers trained in-car. • 261 drivers undertaken E-Learning. • 36 Follow-Up calls out of 197 incidents, 23 required further action. • Added benefits – training for “nervous” drivers and those new to UK. • Continuous process.

9. The GREEN Agenda • Whitbread an early adopter – incentives for fuel efficiency introduced in 1999. • Average fleet mpg moved from 34.4 to 47.4. • Diesel percentage moved from 18% to 90%. • Annual savings +£300k p.a. • Significant CO2 reductions – over 1000 tonnes p.a.. • PR opportunities.

10. New Green Measures • New Car Policy introduced June 2005. • Fast rotation – new technology delivered quicker. • CO2 limits – 190g/km for 2007/8. • Increased incentives. • Hybrids. • Driver Training – includes fuel efficiency. Less accidents = less environmental impact.

11. Future Challenges - Mobility • How do I provide staff with the level of mobility they need to do their job? • Not just cars – public transport & technology are part of the picture. • Can new ways of working help? • How can I approach new legislative challenges – congestion charging extensions, road pricing, etc.? • ALL at the lowest possible cost?

12. Future Challenges – Delivering Value • Traditional Fleet Manager almost extinct – now more generalist role. • More is expected, delivering value in a range of areas. • Needs to address all key areas. • Understand cost and deliver value for money – cheapest is not always best. • Don’t forget the value of PR. • Your job is as big as you make it.

13. Some Lessons Learned • While the fleet landscape has changed, many principles still hold true – and will continue to do so. • The role of the fleet manager (or equivalent) is more important – and potentially challenging – than ever before. This represents a huge opportunity!

14. There is no one solution for all fleets. • Use the resources available – suppliers, ACFO, networking, etc. • Drivers are the key.