Rising fuel prices, onerous legislation and driver shortages mean that there has never been a more difficult time to run a large transport fleet. Doing so successfully involves meticulous control of every aspect of the operation, including vehicle and driver performance, maintenance and safety. All these factors have been addressed by Dave Parkes, PepsiCo International's fleet engineer. His efforts were recognised with the Fleet Engineer of the Year trophy at this year's Motor Transport Awards. PepsiCo International is the parent company of the Pepsi, Quaker, Tropicana and Walkers Snacks brands and Parkes manages almost all the company's fleet carrying non-liquid products.
Since he joined the company eight years ago the number of trailers has almost trebled to 590 and the number of tractors has doubled to 245 - there are also more than 50 rigid vehicles, most of them 14-tonners but some 7.5- tonners, along with a number of shunters. The tractors used for Walkers deliveries mainly operate at 28-tonnes and those for Quakers mainly at 34-tonnes. Around 70% of the vehicles are maintained in-house at the company's Leicester hub with the remainder carried out by contracted service providers close to the other seven depots in the network. All trailers are maintained in Leicester. He is responsible for the acquisition, maintenance and disposal of the vehicles. He is supported by a team of what he describes as 14 "great mechanics" in Leicester, as well as a fleet assistant and fleet administrator. They have managed to keep the level of first-time MoT failures at 8% compared to a national average of 38.9%.
Parkes has introduced a database with a maintenance record for each vehicle. This has allowed PepsiCo to examine the Leicester workshop's performance and to confirm that it is more cost-effective than switching to R&M contracts or leasing agreements. Another advantage is the ability to look at costs for each weight and configuration compared to published FTA figures. The company's 34-tonners have maintenance costs of £3,967 a year based on a seven-year vehicle life, that's 17% lower than the FTA average. Having access to such statistics is essential, Parkes believes. "If you can't measure something you can't do anything about it," he comments. One important part of keeping costs down is to manage the purchase and storage of parts. The large size of the fleet gives the company buying power when negotiating prices and, once purchased, their use is tightly controlled using a barcode system that allows mechanics to book out parts and replenish stock. The system identifies warranty parts and improvement in claims in this area has already more than paid for the price of the software.
The close control over maintenance costs has enabled PepsiCo to maintain the same budget as in 2000. There have been similar improvements in managing the company's annual fuel budget of around £10m. Driver training has reduced the fuel used by the same type of trucks by 9% over the past four years, while engineering and vehicle selection have reduced fuel consumption by 14% over the same period. Individual drivers' performance is scrutinised using a Btrack in-cab monitor. "We work on the basis of rewarding the top drivers for their effort and giving extra training to those at the bottom," Parkes explains. There are several fully-qualified trainers and four trucks fitted with an extra seat so that two drivers can be trained at the same time.
Driver training and modifications to equipment are also vital elements of PepsiCo's safety policy. Drivers are taught to drive defensively through adhering to stopping distances, lane discipline, maximum visibility practices and good anticipation. As well as being desirable in its own right, this has also enabled the company to reduce its insurance premiums. Parkes records accident damage costs across all sites and sets period and annual objectives - the targets are set 10% lower each year.
Acquisition policy
The PepsiCo fleet is a mixture of Scania, Daf and Mercedes models but there is no set agenda for buying from particular manufacturers. Historic information about how well different makes have performed along with the cost of major components is taken into account but ultimately vehicles are chosen according to their ability to do the job. "I'm not particularly loyal to any one make and we purchase what is the best truck for us. One manufacturer may produce a great model one year but not the next," Parkes says.