Techniques for optimising schedules have become critical in response to customer demands for a better, timelier delivery experience. Such schedules leave no leeway for being pulled over by the DVSA for a spot check – and an infringement fine will wipe out the profit margin. So how can companies tread the fine line between compliance and optimising efficiency?
Pól Sweeney, Vice President Sales, Descartes Systems UK, explains the importance of baking compliance into every aspect of the business.
Pushing the Limits
Eroding profit margins; driver shortages; and an ever more demanding customer base – is it any wonder that companies are pushing the limits in order to achieve tight delivery slots and maximise asset value. Yet how many companies are accurately assessing the risk of this model? Every day a driver is pulled up and slapped with a fine for exceeding permitted hours; every day a vehicle is subject to a snap roadside worthiness inspection – and fails on several counts.
Taken as isolated incidents – a £300 fine here and there – and a company may perceive that pushing the limits in order to meet customer expectations and deliver a better experience is worth it. But is that true? In addition to cost – and with fines rising each time an infraction occurs, a company’s profit for that journey is quickly wiped out – there is the impact on delivery times. Such roadside inspections are not quick, especially for repeat offenders, and the delay will compromise the company’s ability to keep on schedule.
But the impact goes further than each individual journey. Each time the DVSA has cause to penalise a company or its drivers, the Operators Compliance and Risk Score (OCRS) will rise. And that means more risk of fines and more attention – not just on the roadside but at head office as well. The reality is that pushing the boundaries without true visibility of the potential implications is a high risk strategy and one that actually adds cost and undermines the customer experience.
Automating Compliance
The only way to manage this risk effectively is to take a ‘compliance first’ approach. From tracking driver hours to checking licenses and ensuring pre-journey vehicle inspections are undertaken, embedding these processes within day-to-day operations makes these essential aspects of compliance business as usual.
For example, a way of automatically and routinely checking a driver’s license – including points – directly with the DVSA not only saves time but avoids the risk of out of date information from the (soon to be discarded) paper license. With up to date, accurate information, a company can rapidly assess the level of risk it is carrying based on overall driver endorsements and the potential impact on insurance. Moreover, for those drivers with more points and therefore a greater risk profile, the company can instigate more frequent checks, ensuring compliance is maintained at all times.
In addition, DVSA estimates that 85% of roadworthiness infringements could be avoided if the driver undertook a walk around the vehicle before starting the journey*. And while it can be hard to ensure these checks are undertaken, companies can remove the risk associated with management by trust by using an App to record a driver’s pre-journey review of tyres, windscreen wipers, lights and so on.
Of course the biggest issue is tracking and managing driver hours. And with the shortage in drivers, the opportunities for individuals to work longer than the allotted 45 hours each week continually grow. Drivers face pressure from some firms to work extra hours; while some drivers decide to take that risk themselves. Either way, the potential business impact is huge. Companies need to not only enforce the limit but also ensure that measurement is done accurately and effectively, creating a audit proof record for the DVSA in the event of a potential breach case.
Conclusion
With confidence that compliance is ‘baked in’, it is far easier for organisations to optimise journeys and meet customer demands. Dynamic appointments can be offered, reservations met and the entire customer experience enhanced with no fear of accidentally pushing the limits – and paying the price.
*DVSA Effectiveness report, 2012 – 2013: http://www.fleetnews.co.uk/news/2014/7/18/dvsa-no-government-licensing-regime-for-vans/53032/
