DRIVING
Issue 12 Summer 2015 £4.50
Helping you make better decisions
9 STEPS TO BECOME A BETTER LEADER How to influence others and bring about change in your company
NEW CARS COMING SOON Ford Edge Toyota Avensis Mitsubishi L200 Kia Optima
WIN NEW CUSTOMERS WITH CLEAN VANS Improved brand image drives growth for Pimlico Plumbers
FUEL SPECIAL
CUT YOUR FUEL BILL AND AVOID FRAUD Unlock significant savings for your business with the right fuel card
Contents
ISSUE 12 Summer 2015
FRONT END
7
Access to licences Employers are to get early access to the DVLA’s licence-checking service ahead of the abolition of the paper counterpart.
8 Drivers are still unaware of new drug-driving laws The majority of drivers remain ignorant about prescription drugs cited in the new legislation.
BROADER VIEW
12 Pimlico Plumbers Brand image is paramount for the company, and there’s no excuse for a dirty van.
15 Leadership Business guru Stephen Archer explains some guiding principles, including why the ability to influence is key to management.
FUEL
12 Pimlico plumbers 17
Fuel
19 Fuel cards: pricing In a hugely competitive market, it is possible for companies to shop around to get the best deal.
23 Fuel cards: fraud How do fuel card companies deal with fraud? And what can you do to protect your business?
CARS
26 Coming soon A look at new model launches including the Ford Edge.
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Leadership
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Cars coming soon mydrivingbusiness.co.uk ❚ Summer 2015 ❚ 3
DRIVING
Helping you make better decisions
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Contact us Driving Business, Media House, Lynchwood, Peterborough PE2 6EA. Email editorial@mydrivingbusiness.co.uk If you or someone you know is aged between 16 and 24 and is interested in work experience opportunities at Bauer Media, visit: gothinkbig.co.uk Editorial Editor-in-chief Stephen Briers 01733 468024 stephen.briers@bauermedia.co.uk Editor Sarah Tooze 01733 468901 sarah.tooze@bauermedia.co.uk News editor Gareth Roberts 01733 468314 gareth.roberts@bauermedia.co.uk Features editor Andrew Ryan 01733 468308 andrew.ryan@bauermedia.co.uk Web producer Christopher Smith 01733 468655 christopher.smith@bauermedia.co.uk Contributors John Charles, Ben Rooth Production Head of publishing Luke Neal 01733 468262 Designer Erika Small 01733 468312 Production editors Richard Davis 01733 468310 Finbarr O’Reilly 01733 468267 Head of project management Leanne Patterson 01733 468332 Project managers Lucy Peacock 01733 468338 Angela Price 01733 468253 Kerry Unwin 01733 468327 Advertising Group sales manager Sarah Crown 01733 366466 Group advertisement manager Sheryl Graham 01733 366467 Account managers Wendy Cowell 01733 366472 Lucy Herbert 01733 366469 Lisa Turner 01733 366471 Stuart Wakeling 01733 366470 Marcus Woods 01733 366468 Publishing Managing director Tim Lucas 01733 468340 Group marketing manager Bev Mason 01733 468295 Office manager Vicky Meadows 01733 468319 Group managing director Rob Munro-Hall Chief executive officer Paul Keenan Subscriptions: subscription@mydrivingbusiness.co.uk Printing: Precision Colour Printing, Telford. © 2015 Bauer Media No part of this magazine may be reproduced without the permission of the publisher. You can purchase words or pictures for your own publications. Phone 01733 465982 or email syndication@bauermedia.co.uk. Driving Business will not accept responsibility for unsolicited material.
Welcome By the time this issue of Driving Business lands on your desk the uncertainty over the general election will have ended – a welcome relief for small businesses. Hopefully those of you that had put investment plans on hold (a fifth of SMEs, according to the most recent Close Brothers Business Barometer) can now start to make decisions. Even if you are not able to invest in new vehicles this year it is worth keeping your existing fleet in good condition – a strategy that has paid off for Charlie Mullins, founder of Pimlico Plumbers (see pages 12-13). Fuel is also an important consideration. It would be an unpopular move for the new chancellor to end the fuel duty freeze which, by the end of 2015/16, will have eased the burden on motorists by £22.4 billion – the equivalent of saving £1,400 for a small business with a van – but whether they will go a step further and cut fuel duty seems unlikely. That means that SMEs will need to look at alternative ways of reducing their fuel spend. If you use fuel cards, the good news is that the market is very competitive at the moment with a range of new cards on offer, which we outline on pages 19 to 22. Having the right card could realistically save you 4p per litre, which could add up to thousands across a number of vehicles. It is also now possible to use a fuel card to pay for service, maintenance and repair costs, with Allstar promising a 20% saving for SMEs (see page 7). Sarah Tooze Editor, Driving Business
Complaints: Bauer Consumer Media Limited is a member of the Independent Press Standards Organisation (www.ipso.co.uk) and endeavours to respond to and resolve your concerns quickly. Our Editorial Complaints Policy (including full details of how to contact us about editorial complaints and IPSO’s contact details) can be found at www.bauermediacomplaints.co.uk. Our email address for editorial complaints covered by the Editorial Complaints Policy is complaints@bauermedia.co.uk.
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Employers get early access to DVLA licence-checking service Employers will have access to a new electronic licence-checking service a month before the paper counterpart is abolished on June 8. Industry bodies and associations have already been testing the online alternative with the Driver and Vehicle Licensing Agency (DVLA). However, it hopes making the service available to all employers – a month before the paper counterpart is withdrawn – will make the transition easier for businesses. Similar in principle to the paper counterpart, the online alternative – Share Driving Licence – places the driving licence holder in control of their information and who they share it with. The first part of the process requires the driving licence holder to log on to the View Driving Licence service and generate a unique, one-time use access code for their record. They may then share that access code, plus the last eight digits of their driving licence number, to anyone who has a right to see it. The second part of the process will enable a third party to enter the access code and last eight digits of the driving licence number via the Share Driving Licence page on the Government website gov.uk. This will allow the third party to see the driver’s licence status, endorsements and what vehicles they can drive. The view of the driving licence presented back to the third party will be date- and time-
The DVLA believes the new service will cut risk by giving employers real-time access to driving licence data stamped, and downloadable in the form of a PDF. The information will be accurate at the time of download and is a snapshot of the record at that time. Drivers will also have the option of downloading a PDF summary of their driving licence information that will have the unique one-time access code printed on it. The DVLA believes the new service, which it says will “initially” be free, will improve risk management by giving employers access to “real-time” driving licence data. In the event of a driver receiving any endorsements, courts will update driver records within 24 hours. Companies have been assured that, provided they use the process recommended
by the DVLA, no offence under the Data Protection Act will be committed when accessing employees’ driving licences. Driver licence validation and the checking of penalty points is a critical part of employers’ duty of care under health and safety legislation and an essential feature of all occupational road risk management policies. Philip Somarakis, a partner in London-based Gordon Dadds Solicitors, said: “The checking of driving records has been a lawful activity to date in the context that employers can insist that employees agree to it or it could become a disciplinary matter. “This is not about punitive measures being taken by employers against employees, but a good approach to managing on-road risk.”
Allstar offers 20% Tracker launches entrydiscount on SMR costs level telematics for SMEs
Fuel card provider Allstar has launched a new product that promises SMEs up to 20% off their vehicle servicing, maintenance and repair (SMR) costs. The network of garages and service centres where the Allstar fuel card can be used to pay for SMR costs will start at about 4,000, but it is expected to grow to 9,000 before the end of the year. That’s just more than 50% of the UK’s existing network and will consist of franchised dealerships as well as independents. Customers will be able to search for their local service centres via Allstar’s free Android or Apple site locator app. The new service will provide businesses with simplified administration and increased cost control, as they will be able to manage both their fuel and maintenance costs in a combined Allstar/HM Revenue and Customs (HMRC)-approved VAT invoice. Allstar is also introducing new, more secure fuel cards, which will be embedded with chip-and-pin technology.
Tracker has launched Tracker Tracker’s Fleet Evo starts Fleet Evo, an entry-level at £4.95 a month telematics system for businesses with up to 20 vehicles. SMEs can select the degree of data and functionality they need, with prices starting at £4.95 a month. “Based on feedback from our customers, SMEs see the benefits of telematics, but often don’t need all the features provided on more complex systems,” said David Wilson, chief operating officer at Tracker. “By creating Tracker Fleet Evo, we can offer a modular system, allowing them to simply ‘track and trace’ vehicles, or add more features as they go.”
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95% of drivers unaware of law on prescription drugs
The Government has imposed restrictions on 16 drugs, eight of which are available on prescription
The vast majority (95%) of drivers do not know that some prescription drugs fall under the scope of new drug-driving regulations, according to a recent survey. The Government has imposed restrictions on 16 drugs, eight of which are available on prescription (clonazepam, diazepam, flunitrazepam, lorazepam, methadone, morphine or similar derivative drugs, oxazepam, and temazepam). Penalties for breaking the tightened drugdriving laws are a minimum one-year driving ban and a fine of up to £5,000. Those convicted will get a criminal record. Mark Hall, from car leasing company Flexed. co.uk, which carried out the survey of 1,250 drivers, said: “We applaud the move to set firm limits on the use of banned drugs, such as cocaine, LSD and heroin. “Drug-driving is a deadly menace on our roads and the new laws are a step toward
wiping it out. However, we’re concerned that patients on some prescription drugs might not be aware of the change.” While some drugs that are used as sedatives come with clear instructions not to drive or operate machinery, some users of anti-anxiety medications may not be aware their driving reactions may be impaired. That raises the possibility of some drivers being behind the wheel illegally without their knowledge. “It’s important that anyone who is on prescription drugs for anxiety or panic disorders checks with their GP or pharmacist to see if they should be driving,” said Hall. “The limits are rather generous for prescription drugs, but it is vital to check.” Flexed.co.uk suggested that as well as taking professional advice, drivers using legal drugs should keep a medical note in their car, in case the police need proof.
Free simulator driver training ‘could cut fuel costs by 10%’ Tadea is offering a free half-day simulator-based driver training package for SMEs based in the North East. Offered in partnership with Teesside University, the training will cover hazard perception, fuel efficiency and tired driving and could cut fuel costs by more than 10%. Teesside University will gather data before, during and after the training and analyse the cost benefits of fuelefficient driver training to the businesses involved. SMEs can register interest at tadea.com/etsfreetraining
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The training covers hazard perception, fuel efficiency and tired driving
Free pack aims to boost driver safety Road safety charity Brake has released a free resource pack aimed at helping SMEs improve the safety of staff who drive for work, to prevent crashes and cut costs. Julie Townsend, deputy chief executive at Brake, said: “It can be daunting for smaller organisations to put in place effective safety practices, but these resources make clear the business case for doing so, and simple steps you can take. “They also direct to further useful tools available from Brake and other agencies.” The resource pack is available by completing a form at brakepro.org/roadrisksmes
Volvo Co-Pilot scheme aims to help SMEs cut costs and risk
Volvo business customers get hire vehicle discount SMEs that buy or lease their first Volvo will be able to access hire vehicles from Enterprise Rent-A-Car at short notice and at discounted rates. The offer is part of Volvo’s Co-Pilot scheme, which aims to help SMEs minimise the risks – and costs – of business driving. Ross Pengilly of Enterprise Rent-A-Car said: “Helping SMEs keep their staff on the road, whether sales teams, executives or delivery staff, is not just about convenience; it’s about making a real difference to their bottom line.”
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■ BROADER VIE W
THE DRIVING BUSINESS INTERVIE W
‘There is no excuse for arriving at a job with a dirty van’ From individualised number-plates to hiring full-time valeters, brand image is all-important for Pimlico Plumbers, reports John Charles
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learly branded commercial vehicles and drivers raise a company’s identity, boost its marketplace profile and generates inquiries from the thousands of people an hour who see such vans operating in busy areas. That’s why Pimlico Plumbers’ engineers wear a smart company uniform and drive identical, spotless blue, white and red-liveried vans displaying the organisation’s brand. The company employs six cleaners and valeters to ensure there are no excuses for engineers arriving at a job with a dirty van, says transport manager George Lusham. This has been part of the company’s philosophy since entrepreneur Charlie Mullins founded it in 1979 in the basement of an estate agent in Pimlico. Mullins had just completed a four-year apprenticeship in plumbing, and started the business with a second-hand van and a bag of tools. His vision, according to the company’s website, was “to remove the stigma associated with the plumbing industry: plumbers with bad workmanship, who turn up late, rip off the customer, drive rusty old vans, do not wear uniform and have bums hanging out of their trousers”. Following that vision has seen Pimlico Plumbers grow from a plumbing and heating business to a round-theclock property maintenance service, employing roofers, carpenters and electricians, as well as plumbers. Based in Lambeth, the business does more than 80,000 jobs a year and runs 162 identical Volkswagen Transporter Trendline 2.0 TDi 140hp models operating across greater and central London. The company added 17 new vans last year, and more will join this year, as the business continues to expand. Pimlico Plumbers purchases all its vehicles – it also uses 10 Volkswagen Golfs driven by estimators – and does all service, maintenance and repair work in its own workshop and bodyshop facilities, using franchised dealers for warranty-related jobs only. The company believes keeping its entire operation in-house contributes to its success. While image is important to Pimlico Plumbers, so is managing vehicle downtime. The company sets its own rules for service and maintenance, which ensure 12 ❚ Summer 2015 ❚ www.mydrivingbusiness.co.uk
all vans are in the workshop at least every 10-12 weeks, irrespective of mileage. Lusham, who joined the company just over a year ago, having run a small fleet of HGVs for almost nine years, says: “We cannot afford to have a vehicle off the road. Engineers are allocated a van and a set of guidelines for taking care of the vehicle.”
REDUCING VEHICLE DOWNTIME Those guidelines include keeping it in pristine condition inside and out, undertaking daily defect checks and ensuring any “dings and dents” are reported and repaired immediately in the bodyshop. A 12-strong team in the workshop and bodyshop is on hand 12 hours a day, six days a week, to undertake all servicing and remedial work, says Lusham. Pimlico Plumbers retains six vehicles in reserve to be used as spare vans. These are allocated to engineers, so service, maintenance and repair work does not interfere with schedules. “If necessary, we will take a van to an engineer’s location and swap it, so their work schedule is not impaired by the need for maintenance work. Clients expect Pimlico Plumbers to deliver a top-class service and don’t want excuses because a van was not available,” he says. Underlining how different the company’s vehicle strategy is from the norm, it still has a 1998-plate S-registered Transporter in daily use. “We don’t dispose of any vehicles; we just keep expanding the fleet to meet business requirements,” says Lusham, who believes the Transporter’s reliability further promotes the right image of the business. Engineers work exclusively for Pimlico Plumbers and live across greater London, taking their allocated van home with them each day. Collectively, the vehicles operate 260,000 miles a year, with a fuel bill of more than £1 million when fuel prices peaked last year. Lusham says despite the urban nature of the business, the company’s established diesel-only policy currently meets all requirements. Following the introduction of London’s low emission zone in February 2008, Pimlico Plumbers undertook remedial action to fit filters to ensure vans complied with the legislation. How the vehicles will comply with the ultra-low emission zone (ULEZ), which launches in central London on September 7, 2020, figures high on Lusham’s agenda The London mayor Boris Johnson and Transport
Using telematics has helped George Lusham reduce incidents of speeding and harsh acceleration
mydrivingbusiness.co.uk
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“Having telematics in vehicles, and the more robust licence-checking system, has resulted in tradesmen almost policing themselves when driving”
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for London have intentionally confirmed the emission standards five years in advance of its introduction to give businesses “sufficient warning and preparation time”. Non-compliant vehicles will still be able to drive in the zone but they will have to pay a daily charge of £12.50. Lusham is undecided about using electric vehicles to avoid the charge. He says: “Electric vans are a good idea in principle, but payload and range are an issue and, with our engineers living and working across London, more charging points are required. It is diesel for us at the moment, but that could change as technology advances.”
KEEPING COSTS DOWN Like all transport managers, cost reduction is crucial for Lusham, who says he is always looking for new vehicle suppliers to ensure he buys vans at the best price. “We always buy the same model and specification through the Volkswagen dealer network, and I always try to get the best price – the same applies for parts. Dealers will quote me a price and I will buy accordingly,” he says. Once acquired, many of the vans are fitted with personalised number plates, reinforcing the company’s image with customers, who frequently ask for tradesman by the registration of the van – BOG1, LOO3, GAS15, W4TER, F1USH and 701LET are just some examples – rather than by plumber name. All vans are fitted with telematics, enhancing Pimlico Plumbers’ occupational road risk policy, while also ensuring its operations team can monitor the location of tradesmen so new jobs can be allocated efficiently. Since joining the company, Lusham has strengthened its at-work safety policy via the Freight Transport Association’s driver licence-checking service, which is provided by the Licence Bureau. Licence checking was previously managed internally, but proved an administrative burden, with engineers having to attend in person for checks. “We have since uncovered a number of engineers with points on their licence, which they had not disclosed, although they were all entitled to drive. We have found that having telematics in vehicles, and the more robust licence-checking system, has resulted in tradesmen almost policing themselves when driving. “Evidence from maintenance and repair records would suggest they are driving more carefully and, from the data returns, I can see that incidents of speeding and harsh acceleration and braking are reduced. If engineers lose their licence, then they lose their job, so it is in their interests to drive within the law.” www.mydrivingbusiness.co.uk ❚ Summer 2015 ❚ 13
Don’t take a chance with driver safety Businesses of all sizes have a responsibility to their employees whilst they drive on business. With so many sides to your drivers’ safety, are you prepared to take a chance with the hidden risks? DriveSafe from Lombard Vehicle Solutions ofers a straightforward, practical and cost efective answer to help establish a lasting risk reduction programme. Protecting your drivers, business and ultimatly saving you cost. Security may be required and product fees may apply.
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Tel.: 0844 600 9012
Lombard Vehicle Solutions is a contract hire and fleet management product provided by ALD Automotive Ltd, trading as Lombard Vehicle Solutions, Oakwood Park, Lodge Causeway, Fishponds, Bristol BS16 3JA. ALD Automotive is registered in England No. 987418.
■ BROADER VIE W
LE ADERSHIP
Adapting to individual styles aids the ability to influence as a leader
Influence is the key to successful leadership Business analyst and consultant Stephen Archer outlines nine guiding principles to influence others and bring about change to Sarah Tooze
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eadership has changed significantly over the past 20 years, according to Stephen Archer, founding partner of UK business strategy and leadership consultancy, Spring Partnerships. “The default position of ‘I work for this organisation and I am going to respect my boss’ is pretty much gone,” he says. That means that leaders, or people who wish to bring about change in an organisation, need to be good at influencing people. Archer adds: “Kenneth Blanchard in his book ‘The one minute manager’ made this important statement: ‘The key to successful leadership today is influence not authority’.” So how do leaders, at all levels, positively influence people in such a way that they follow willingly, rather than complying because the leader is in a position of authority? Archer has nine guiding principals to achieve this:
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UNDERSTAND RESISTANCE TO CHANGE If you want to influence something, and you want to make a change, inevitably there will be resistance, according to Archer.
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People need to understand the benefits of change Stephen Archer
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“There is resistance to change if people don’t understand that there is a risk to not changing and they don’t understand the benefits of making the change,” he says. “It sounds obvious, but it gets overlooked. They need to understand the consequences of not doing something, and then they need to feel that it is personally worth supporting that cause.” ADAPT TO INDIVIDUAL PERSONALITY STYLES Consider the personality profile of the person you are talking to. Archer suggests there are generally four types of people you deal with in business: ■ Analytical – these people are systematic, accurate, structured and logical. “They can support things that are truly routed in facts,” Archer says. ■ Amiable – these people are dependable, easy-going and sensitive. “You will have a short conversation with an amiable person because they will say ‘I get it’ or ‘I don’t get it’,” Archer says. ■ Expressive – these people are outgoing, creative and social. “You get a lot of passion and emotion from them,” Archer says. ■ Driver – these people are direct and results-orientated. “The most effective blend is an amiable trying to influence a driver and vice versa,” Archer says. “However,
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■ BROADER VIE W
LE ADERSHIP
■ A B O U T S T EP H EN A RCH ER Stephen Archer has consulted for CEOs, boards and senior management of FTSE 100 and multinational companies, including Nestle, GE Healthcare, Disney, KPMG, Carlsberg and Oracle among others. He has a degree in business marketing from Coventry University and founded his first company, Archer Young Marketing (AYM), in 1990. He was managing director of AYM until 2000. AYM was sold to his management via a management buyout (MBO) in autumn 2000. The business employed 40 people at December 2000 and turned over circa £7million per annum, serving clients such as Carphone Warehouse, Novartis, Gillette, AstraZeneca, Ericsson, Volkswagen and Amersham Pharmacia Biotech. Archer went on to found Spring Partnerships, a communications, leadership development and conference company, in 2003. Between 2005 and 2009 he was also trustee and communications director of the Cutty Sark charitable trust. He is a member of the Chartered Institute of Marketing and the Institute of Directors.
the reality is we all have those four components in us. You have to recognise that and adapt to it.”
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DEVELOP PERSONAL POWER Archer suggests that there are two types of power vested in anyone in an organisation: positional and personal. He argues that personal power is more effective than the power you use through your position. “We have to forget the position we’re in,” he says. “It’s got to be personal, how you relate to other people and how you engage other people.”
personality types managers have to deal with in business
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APPEAL TO EMOTION People need to be “emotionally comfortable” about making a decision. “If they are forced to do something they are
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STRESS THE BENEFITS RATHER THAN FEATURES “It amazes me how often I hear people talking about the features of something,” Archer says. “Everything we do, if we’re going to influence, has to be about benefits not features.” That’s because people respond to ‘why’ – the benefits of change, rather than the ‘what’, according to Archer.
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PERSIST Influence requires tenacity, persistence and consistency, according to Archer. “None of this is a one shot win,” Archer says. “You have to keep going and keep going and keep going.” He suggests that influencers may have to repeat the subject a number of times to a number of people in a number of ways. They will have to network with interested and disinterested parties. “Influencers need to take the rejections,” he says. “But every effort helps to nudge the change.”
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Less responsive, task-oriented
Less assertive, slower-paced
ADAPT YOUR MESSAGE FOR THE AUDIENCE “Once you have listened, once you’ve understood, once you have got a feeling for how that person sees things, then you adapt your message and how you communicate that message to that person,” Archer says. This means that you might need to have more figures and graphs or to be more emotional. Some people will want the detail and others will focus on a higher-level view. “Adapt the way you communicate your aspirations, the risk, the change you want to do, to that person through the tools that you use in communication,” he says.
BE TRUE TO YOURSELF “If you are pushing something but you’re not that authentic about it, if you are not true to yourself, that will be detected and resisted,” Archer says. “Real, from the heart, expressiveness will usually get a positive response.”
ANALYTICALS
DRIVERS
Adapting to styles
AMIABLES
EXPRESSIVES
More responsive, relationship-oriented
More assertive, faster-paced
BE A GOOD LISTENER The most effective influencers are very good listeners, according to Archer. “You need to understand how people perceive the current situation,” he says. “You have to listen. If you are not listening they feel disenfranchised. The power of listening is enormous, you have to do it or you will not get that influence.” He suggests that one of the most powerful influencers, although he had a powerful position, is former US President Bill Clinton because of his ability to listen. “You will hear people who met Clinton say, ‘I felt like I was the most important person in the world when he was with me’ because he looked at that person and listened,” Archer says. “He just listened and reflected.”
uncomfortable with, you get resistance and then you get unrest or demotivation among people,” Archer says. “Decisions all involve emotion. The human is emotional. You have to appeal that. You have to read people and understand them, speak to them at their emotional level.”
n Special rep ort
fuel
cut your fuel bill and avoid fraud Selecting the right fuel card can result in signiďŹ cant savings for your business. use our guide to help you get the best deal
Advertisement feature
Keeping on top of tax changes How a few key elements can help ensure your business vehicles are the most tax-effective ones for the job
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his year’s Budget may have brought some comfort for small business owners, thanks to promises to digitise tax returns and overhaul business rates, but it also throws in a bit of a nasty surprise when it comes to running business vehicles. On the one hand, the announcement of a freeze in fuel duty rates is very welcome, particularly as fuel costs remain a significant overhead for small businesses despite the recent fall in prices. But the news that Benefit in Kind tax rates for business cars are to go up by 3% for 2019/20 could effectively negate any cost savings for businesses in the future. However, by adopting a more structured approach to the CO2 emissions output of vehicles, small business owners and managers can make sure they are not only running the best tool for the job but also the most tax-effective. For many SMEs, this can mean rethinking the criteria on which to base business vehicle selection. Many businesses still choose vehicles based on their purchase price or P11D banding – but this doesn’t provide an accurate picture of a vehicle’s true costs while it is being run. Instead, by turning to wholelife costs, SMEs can make sure they are not left in the dark when it comes to vital taxation and environmental parameters. The term ‘wholelife cost’ refers to the total cost of running a vehicle over its life and takes into account every aspect that affects the overall cost of a business vehicle. This not only includes lease or purchase costs but also insurance, depreciation, servicing and maintenance – and fuel and taxation. Comparing vehicles using wholelife costs will provide a far more accurate snapshot of their total costs. For example, two vehicles with a similar purchase or lease price can have wildly differing wholelife costs. In the current climate, businesses may well find it prudent to rethink their funding
“Specialist advice can help businesses avoid costly mistakes as a result of the latest Budget changes”
methods and whether they lease or buy vehicles – what may have been the best option over years may well prove to be less effective now. There are a number of important points to consider before making such an evaluation. Vehicle purchase and leasing bring pros and cons and the decision as to which route to go down will depend on a number of different factors. Outright purchase is often used to obtain business vehicles and brings benefits including being able to treat the vehicle completely as your own and deciding how and when you want to get rid of it with no contractual obligations. However, the main downside to this is the impact to the business cash flow, which can often be better tied up elsewhere. For many businesses, this has been a key reason for looking at using contract hire. Contract hire enables SMEs to retain cash as working capital to invest in their core areas and also enables them to benefit from accurate cash flow forecasting through fixed business vehicle payments.
To find out more, contact Lombard Vehicle Solutions on 0117 908 6490 or visit www.lombardvehiclesolutions.co.uk Lombard Vehicle Solutions is the contract hire and fleet management product provided by ALD Automotive. Registered address: Oakwood Park, Lodge Causeway, Fishponds, Bristol BS16 3JA
An added benefit of contract hire is never having to worry about depreciation or the hassle of disposing of vehicles. One more major advantage is that vehicle maintenance may be covered in the agreement, providing reassurance on what is often a volatile expense. In fact, contract hire can offer a vital asset for small businesses by providing access to fleet professionals, management data and fleet administration. However, contract hire does mean you are signed up to a fixed monthly rental for a set period, which can bring cost implications if you exceed the contracted vehicle mileage or want to terminate early. When it comes to changing your business vehicle strategy, it can make sense to turn to a fleet specialist such as Lombard Vehicle Solutions to provide advice using specialist software for the financial modelling. Such advice can identify the most cost-effective funding mechanisms and the most costeffective vehicles, helping businesses avoid costly mistakes as a result of the latest Budget changes – as well as future ones.
■ FUEL
FUEL C ARDS
Are you getting the best fuel card deal? Competition is fierce in the fuel card market, with launches from established fuel card providers and newcomers, so it’s time to review whether you have the best deal. Sarah Tooze reports.
Fu elc ar d
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ntil last year, if you wanted a fuel card that was accepted at the majority of filling stations, including supermarket forecourts, you had one choice: Allstar. But in March last year, the credit card company Barclaycard entered the £6.5 billion fuel card market, teaming up with mileage capture provider The Miles Consultancy (TMC) to launch Fuel+. The Fuel+ card is accepted by all filling stations that take Visa cards – more than 8,000 in the UK – and can also be used overseas. The convenience this offers drivers, combined with TMC’s micro-audit, are the key reasons to consider Fuel+, according to John Bostock, accounts development director global commercial payments at Barclaycard Business Solutions. TMC’s audit takes data from the card and its own mileage capture portal and uses it to identify issues in usage and mileage claims. Thirty companies that trialled the system saw savings of up to 25% on their fuel spend. All have continued to use the card. TMC charges £3 per month per card, but guarantees to refund twice that amount if a customer doesn’t make a saving in the first year compared with its current arrangement. Businesses may face a monthly charge of up to £2 per card from Barclaycard dependent on fuel spend. Allstar, meanwhile, charges an administration fee (negotiated with the customer) for every transaction. It has recently expanded its offering. As well as being able to pay for glass, tyres and the M6 toll, businesses can now use their Allstar card to pay for service, maintenance and repair. Allstar is promising discounts of up to 20%, depending on the level of labour or parts involved,
mydrivingbusiness.co.uk ❚ Summer 2015 ❚ 19
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FUEL C ARDS
■ CA SAN SE STU D Y: D EXP WICH RES S S an d w T h e ca ich Exp Service rds are supp ress is (ppl) b lie s saving y using invoice and a single d by Fuel Ca up a ra t h e r rd weekly co v e r s than a Shell fixed p to 4p per lit VAT-co E a re rice fu p ump ll refue x p r ess Martin mplian e p ll l v r in c ic e a h g e D r ic d fo car d. rury, le t a u to m directo atically s, with paym r all Sandwic r, says Sandwich Ex h e b n y direc t T h e ga : “M a n p r ess m m in cate a d e t agin rin an means p between fi debit. elemen g and fuel re g costs is cr aging lling up u p to t itical pr es en t for a w a c o we ek redit. n t busine o n th e s of int d paying ss like s a significan road erest-f S an d w o ur s , c t “O u r S . ree ic o ns t a n t hell fue eServic h Express m ly regula es facil a k e s rly pay l cards mean full use ity, wh invoicin up th prices, ich of g regard to 4ppl less at we interne and 24/ 7 ac includes pa the le t h perless co u n t ss o f w t. an p um “As a b a cce s s h p “Admin via sec our fix onus, being ere the drive ur e notifie r s re fu ed dies easier istration is s d e e l. n l price e a ch F o r e al h e o m w ,” u c s ay s D h quick riday o f o r th e lp in ca k e e p r ur y t ra c f er co sh fl ow plannin ming week After t k of paper in , “and not h and is a aving t g.” he low v o ic e s er o is b en e fi t is the diesel costs wonderful. ,t s which also he implicity of r he biggest e lps wit h cash claiming VAT flow.” ,
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compared with the retail cost of the work. The network of garages and service centres where the Allstar fuel card can be used to pay for SMR costs will start at about 4,000, but it is expected to grow to 9,000 before the end of the year – about 50% of the UK’s existing network, including dealerships and independents. Allstar says the new service will provide managers with simplified administration and increased cost control, as they will be able to manage both their fuel and maintenance costs in a combined Allstar/HM Revenue and Customs (HMRC)-approved VAT invoice. “This is a ground-breaking service,” says Peter Bridgen, managing director of Fleetcor, Allstar’s parent company. “Allstar has the biggest and most convenient site network in the UK and we’re now going to add 9,000 service, maintenance and repair sites. It is another step towards making Fleetcor, and the Allstar fuel card, a total payment solution.” Allstar also offers the Allstar Premier Programme, which combines the Allstar card (pump price) and Allstar Discount Diesel card (fixed weekly price) for use in the discount diesel network with savings of up to 4p per litre (ppl). Companies receive one invoice and one data report covering transactions for both cards. Business Mileage Monitor software is free to all new customers. In February, BP launched a new mileage capture service, which is available to all customers supplied directly by BP Fuel Cards, as part of plans to advance its fuel card offer. The new online solution, provided by Mileage Count, 20 ❚ Summer 2015 ❚ mydrivingbusiness.co.uk
£6.5bn
Value of UK’s annual fuel card market
4p per litre – a realistic target for savings from fuel cards
uses GPS technology, including GPS dongle and smartphone applications, to track journeys. UK Fuels, meanwhile, has launched four cards, aimed at different vehicle types: Fuelplus for locally operated cars and vans; Truckone for HGV, LGV and coaches; BunkerPlus for hauliers; and Fleetone for car and vans. It has also launched a telematics service, Kinesis, which fully integrates fuel card and telematics data to improve overall cost control. The standard charge is £12.50 a month per vehicle plus a one-off £50 charge to buy the telematics unit or a £3 a month per vehicle rental fee. There are other new entrants to the fuel card market for businesses to consider. Specialist oil trading company Portland launched its fixed price fuel card last year. Unlike other providers, it gives customers the chance to fix the price of fuel for up to a year rather than using a weekly fixed price. Some companies with thousands of vehicles already take this approach as it offers budgeting certainty. Portland has made this option available to businesses with any number of vehicles. The drawback is that if the price drops significantly from the figure the customer has fixed at, it will lose money. Conversely, if fuel prices rise, the customer will gain. The card can be used at the UK Fuel Network (1,500 sites), including branches of Morrisons and Tesco. There is no fee other than for replacement cards. Fleetmate, which also launched last year, offers wide network coverage (more than 7,000 sites) but at a fixed
A smartphone app enables drivers to locate the nearest fuel forecourt. The card is chip and pin-enabled and there are no transaction fees or charges for damaged or replacement cards Other suppliers have diversified into the fuel card market. Both RAC and Kwik Fit offer fuel cards, with the latter making a range of services available to purchase on the card. There is no network service charge, no charge for replacement cards and no transaction, monthly or annual fees. Applying for the RAC fuel card entitles companies to join the RAC Business Club free of charge. This provides benefits including a range of management information, such as vehicle and driver reports. There is a £10 annual fee per car but no transaction charges. Whichever card your business opts for, driver behaviour – both in terms of how efficiently they drive and where they fill up – shouldn’t be overlooked as that could generate the biggest saving.
price, unlike Allstar and Fuel+ which are both pump price cards. Customers using under 15,000 litres a month face a 0.5% admin fee and replacement card fees. The UK’s first charity fuel card, which makes a donation to charity for every litre of fuel purchased, was launched by Professional Charity Services (PCS) last year. It costs £5 a year per card and operates in a similar way to most cards available. PCS has joined forces with Shell, which will rebate between 1.75ppl and 3.05ppl to individual charities. The rebate will depend on the volume of fuel purchased collectively by users of the charity-specific fuel cards. Up to 90% of the rebate goes to the charity, with 10% to PCS. It is available at more than 4,000 Shell sites and partner sites operated by Esso, Texaco, Total, Gulf and Gleaner. Each card is available displaying the name and logo of the user’s chosen charity. Companies also benefit from a range of fuel management tools and consolidated reporting available through Shell Fuel Cards.
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W H ER E D O YO U R V EH I C L E S O P ER AT E ?
The first step is to research fuel usage areas. Whether your vehicles operate nationally or are concentrated in certain regions will have a big bearing on your fuel card choice. Consider whether you need European coverage as some fuel cards are UK-only. AllStar and Fuel+ have the widest UK coverage. Oil companies, such as Shell and BP, have smaller UK networks, but also have partner sites. If drivers use set routes and there are fuel stations en route, a restricted network could work. Ask any potential providers to help map out their sites in relation to where your vehicles operate or check coverage maps on their websites. Route deviation is important because if the driver has to leave their route to fill up you can soon wipe out any savings per litre. Fuel card providers may also help drivers to identify their nearest sites. This could be sites nearest their home postcode, office location or route.
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W H AT T Y P E O F FUEL CARD DO YO U N EED?
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Be careful about any provider’s claim to be eight to 10 pence per litre cheaper than the national average. The national fuel price takes into account everything – including motorway service stations, which can skew the figures. A more realistic saving may be up to 4ppl. Which type of card will deliver the best savings may depend on where drivers fill up – for example, if they need to use motorway service stations, it will probably be cheaper to use a fixed price fuel card. However, if they regularly fill up at supermarket forecourts, then a pump price fuel card may be cheaper.
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Operating more than one fuel card can bring greater coverage. However, the downside of a two-card system is the increased administration it will bring due to having two lots of reporting and terms and conditions. It is also potentially confusing for drivers to remember which card to use where unless there are clear guidelines. For these reasons, many businesses are not convinced that having more than one card is the right solution. Rather than having individual fuel cards from different providers it may be worth approaching a fuel card reseller that offers a number of different brands. This approach has worked for Grant Handling (see panel, page 22). A fuel card reseller should be able to offerd combined reporting and a consolidated invoice, helping to reduce the administration burden.
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W H AT R EP O RT IN G / M A N AG EM EN T IN FO R M AT I O N IS AVA I L A B L E ? At a basic level, the fuel card company should provide a report on the dates of the fuel card transactions, the amount of fuel dispensed as well as the vehicle registration and mileage (if the drivers provided the latter to the cashier at the fuel station). More sophisticated systems may include carbon footprint reporting. Consider how user-friendly the reporting is and how up to date it is. Exception reporting should be available to avoid the need to trawl through reams of data. Providers may be prepared to work with you to meet your reporting needs. For example, if you would like your reports to be broken down into areas or divisions, ask the fuel card provider if they can do this for you. If they can’t, another provider might.
H OW G O O D IS M I L E AG E CAPTURE?
If drivers need to reimburse the company for private mileage and the vehicles are not fitted with telematics, a robust mileage capture system will be important. Some providers offer a dedicated mileage capture software as an additional charge or as part of the service. AllStar, for example, has Business Mileage Monitor (BMM) with three levels of functionality: basic BMM, enhanced BMM and GPS BMM. The latter is a dongle, which can be inserted into a USB port or cigarette lighter for GPS mileage tracking. ▲
You could opt for a fixed price fuel card, which means fuel is bought at a weekly fixed price, based on the average of the previous week’s wholesale diesel price (often referred to as Platts price), plus a handling fee of one or two pence per litre. With a single-brand fixed price fuel card, drivers buy at Platts price at that brand’s forecourts, but may pay pump price elsewhere. This type of card can’t be used at supermarket forecourts. With a multi-brand fixed price fuel card, it’s possible to use supermarket forecourts. The alternative to fixed pricing is a pump price fuel card. The AllStar card, for example, can be used at more than 8,000 sites nationwide, whereas a fixed price card may have a network of 1,0002,000 sites. It’s worth considering if you want “more than just a fuel card”, says Peter Lambert, fleet director at Kwik Fit. Its Drive fuel card can be used at all Kwik Fit centres and for breakdown recovery.
W H AT SAV IN G S C A N YO U E XP EC T ?
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SH O U L D YO U O P ER AT E MORE THAN O N E C A R D?
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■ 12 S T EP S TO CH O O SIN G T H E RI G H T F U E L C A R D
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WILL THE FUEL CARD DATA / R EP O RT IN G IN T EG R AT E W I T H OT H ER S YS T EMS?
Check that the file provided by the fuel card supplier is compatible with your vehicle management software. Ideally, you should be able to upload a number of data sets (such as telematics data and fuel card data) into your vehicle management software to build up a complete picture of your vehicles and drivers. If not, the software provider will need to write a file.
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H OW W I L L T H E ACCO U N T B E M A N AG ED?
Find out whether the company will give you an account manager and how much you can manage yourself online. With Shell’s online system, for example, a customer is able to login and order a card or set up a cost centre themselves. Also consider what online access drivers might have.
W H AT SEC U RI T Y M E A SU R E S A R E IN P L ACE ?
Providers should alert you if there are any suspicious transactions. Check whether you can set the parameters. For example, you may specify that you want to be alerted about a certain number of fill-ups per day on the same card. Other security measures include being able to block the card and set a total spending limit. Check whether the card is PIN-protected and whether cards are registered to individual vehicles and/or drivers.
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C A N YO U D O A PI LOT S CH EM E ?
“There is no reason why a company cannot run more than one account/card in parallel,” says Peter Lambert. “This will allow them to trial different providers to see which works best for them.” You could carry out a six-month trial with some of your business vehicles on a fixed price fuel card and keep the remaining vehicles with the existing fuel card provider on a pump price fuel card. One organisation has chosen to do a pilot in one of the toughest areas, where the least group scheme forecourts are available with the theory being that if they the new fuel card works there it should work elsewhere.
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■ C A SE S T U DY: G R A N T H A N D L IN G While most businesses opt for a single fuel card provider, fork lift truck company Grant Handling is saving up to 4p per litre from a multi-card approach. The Fuelcard People, part of The Fuelcard Group, supplies Grant Handling with a variety of fuel cards from its range. These include BP, Esso and Texaco and are issued according to individual drivers’ refuelling needs. Most drivers use Diesel Direct, which gives access to a nationwide network of more than 1,900 forecourts, including supermarkets and motorway services. Mark Sheldon, financial director at Grant Handling, says: “Operating our mixed fleet of 109 vehicles cost-effectively means using quality diesel and petrol, bought as cheaply as possible. “When our previous fuel card supplier began levying a £2 network fee on every refuelling transaction, that was going to add thousands to our costs so we re-examined the market. “We found a better option, without hidden extras, in The Fuelcard People. As prices fluctuate, its combination of service, savings and security is always competitive. “We know where we stand with The Fuelcard People. Week after week, we save up to 4p per litre on national average pump prices and we do not have to scour the weekly invoice for hidden extras. “If we ever need anything, we call our dedicated account manager, Susan, who sorts everything out quickly and efficiently. “Our key priority is price, but personal service also matters. Who wants to sit in a call centre queue, waiting to talk to a random stranger?”
W H AT A R E T H E PAY M EN T/ CR ED I T T ER MS?
Find out how often you will be billed. It may be weekly, fortnightly or monthly. Both Kwik Fit Drive and the RAC Business Club fuel cards offer up to 45 days’ credit. An RAC spokesman says: “This is a significant bonus and helps SMEs manage cashflow.”
The Fuelcard People supplies Grant Handling with a variety of fuel cards
■ W H AT A R E T H E A LT ER N AT I V E S?
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W H AT A R E T H E T ER MS A N D CO N D I T I O NS? Check whether there are any fees. Providers may charge a monthly or annual fee, while there may also be costs per transaction or for card replacement. Providers that don’t charge fees may build the cost into their profit margins
instead. Check whether you are tied into a contract. This is unusual but there may be a one-month notice period. Also consider whether an offer seems too good to be true. A fuel card broker offered one business a very low rate, but it couldn’t guarantee that it would remain competitive. The company decided not to take up the offer as it was suspicious that after three or four months the rate would go up.
For more best practice advice on fuel, visit mydrivingbusiness.co.uk/fuel To compare regional variations in fuel costs, see our average fuel price table at mydrivingbusiness.co.uk/fuel-prices
22 ❚ Summer 2015 ❚ mydrivingbusiness.co.uk
Aside from the new launches, there are number of well-established fuel cards to consider. Oil companies Shell and BP both have pump and fixed price fuel cards and the size of their network is bolstered by a number of partners. BP’s sites include Total and Texaco, while Shell partners with Esso, for example. You could also consider going to a fuel card reseller, such as the Fuelcard Company, the Fuel Card People or UK Fuels. They offer fixed price, pump price and bunker price fuel cards. FleetCor, which owns the Fuelcard Company as well as Allstar and Keyfuels, says if a business’s priority is price, then a multi-card option through a single provider can be the answer. A fuelcard reseller will offer a consolidated invoice, which will reduce administration.
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Protect your business from fuel theft and fraud Employers need to reduce the threat of crime all the way up the chain – from the pump to the expenses claim. Ben Rooth reports
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uel theft and fraud have long been a scourge of many employers’ lives. Crimes range from employees filling a jerry can to over-claiming on mileage, to more complex types of criminal behaviour perpetrated by third parties. These may involve using stolen fuel cards, card copying or falsified and hijacked fuel accounts. Indeed, the annual cost of fuel fraud and crime to companies is estimated to be hundreds of millions of pounds. However, fuel card companies are leading the fight against fraud and crime. Over the past few years, PIN protection and real-time authorisation, which allows stolen cards to be blocked rapidly, have become their first line of defence.
mydrivingbusiness.co.uk ❚ Summer 2015 ❚ 23
FUEL C ARDS
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In addition, card companies are implementing a range of anti-fraud techniques that are constantly evolving to keep up with the criminals. These include everything from online systems for crime detection to dedicated teams of anti-fraud experts. When asked how businesses should protect themselves against fuel crime and fraud, Derrick Wright, Shell’s security and compliance manager, says: “The first and most important step to take is actually the most straightforward: take the security of the fuel card’s PIN code just as seriously as you do for your personal cards. “Unfortunately, this is not always the case, which can make life incredibly easy for criminals. On the plus side, it also means that just by helping drivers and staff learn to ensure security of their fuel card PIN, you could eliminate a large number of fraud cases virtually overnight.” Wright believes that businesses should also encourage drivers to fill up at stations with comprehensive on-site security measures, in particular CCTV. “This is a serious deterrent to fraud because of its success in identifying and, ultimately, catching perpetrators. There are also more complex types of criminal behaviour, including card copying, falsified or hijacked accounts and abuse of genuine fuel cards, which require hi-tech anti-fraud solutions to minimise impact.” Allstar has launched EMV chip-and-pin fuel cards to replace the magnetic strip fuel card and increase the security of purchases. Last year, the Barclaycard Fuel+ card was launched in association with The Miles Consultancy (TMC). Paul Jackson, managing director of TMC, says fuel cards are adopting increasingly sophisticated techniques to battle fraud. “It’s vital to be able to shut down a fuel
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Take the security of your fuel cards just as seriously as you do for your personal cards Derrick Wright, security and compliance manager, Shell
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■ Q U E S T I O NS TO A SK YO U R F U E L C A R D P ROV ID ER
Is it possible to block fuel cards?
Is it a chipand-pin fuel card?
Do you audit mileages?
How can I monitor fuel consumption and spend?
How will I be alerted to suspicious transactions e.g. by email?
Can I register cards with specific vehicles, drivers or both?
What alerts can be set up e.g. card spend alert?
Do you offer a mileage capture system?
Do you employ any anti-fraud experts?
card quickly as the thief will try to use it repeatedly in the time available to them,” he says. “We’ve designed the Fuel+ system to recognise unusual transaction patterns and block the card. “A mileage audit capability is also very important, as this continually monitors transactions and mileage reports for tell-tale discrepancies. We use a process called Micro Audit to spot potential unauthorised fills or siphoning.” Businesses should ensure their fuel cards include an exception reporting function to identify – and alert – when suspicious transactions take place. These alerts can be set to highlight fuel being drawn at strange times or in strange locations. A key indicator is usually much larger volumes being drawn. UK Fuels’s Velocity account management system will send text or email alerts to notify of any abnormal activity, so the card can be immediately stopped before any further transactions occur. Steve Clarke, marketing manager of the Fuelcard People, agrees with the importance of alerts. “For some organisations, it’s highly effective to have alerts set if they operate a fleet of small vehicles and there’s suddenly a fuel transaction for substantially more than has normally taken place,” he says. “I also think that it needs to be an easy and quick process for companies to cancel cards. “We provide an online system, which means that they can be cancelled the moment someone leaves that organisation or any suspicious activity is identified.” Jackson says businesses should be aware of an external fraud known as the ‘four-card trick’. This is where fraudsters offer to sell motorists what they claim are prepaid fuel cards for a bargain price. “The cards are actually skimmed clones of live fuel cards, but the usage instructions given to the buyer are designed to minimise the chance of transactions showing up as suspicious immediately,” explains Jackson. “Unless the business is very alert or the card company’s security systems are especially watertight, the scam may cost hundreds of pounds before the cards are blocked.” Some cards, such as Fuel+, run a number of posttransaction checks to protect customers against these scams, including automatic comparisons of fuel economy, pence per mile and range against manufacturer data for each vehicle held on TMC’s system. “Multiple fill-ups on the same day, geographically impossible fill-ups or a major deviation from the driver’s normal usage pattern automatically alert us to take action,” says Jackson.
FIGHTING FRAUD USING TELEMETRY
How quickly can criminal behaviour be identified?
How do I cancel a card?
24 ❚ Summer 2015 ❚ mydrivingbusiness.co.uk
Can an individual transaction limit, card limit/ merchant restrictions and account limit be set?
Telemetry is now frequently used in conjunction with fuel cards to further reduce the risk of theft and fraud. Employers can check the actual mileage, as tracked by telematics, and compare this with the amount of fuel being drawn on the fuel card. Telemetry can also identify when a fuel card is used in a different location to the specified vehicle or driver. Leasing company ALD Automotive, which installs its own telematics system, ProFleet2, in its vehicles, has
conversation and share the data on a first-warning basis on the understanding that the employee would be closely monitored in the future to ensure that this unfortunate scenario would not reoccur,” he says. Steve Pope, fleet services manager at Morrison Plant and Fleet Services, uses Masternaut in conjunction with the Allstar fuel card. He believes that this provides his organisation with the best insight into fuel use across its 1,500 LCVs and HGVs. “It’s only when you have knowledge of how vehicles are used that you can identify the anomalies,” says Pope. “We’d previously found that some drivers either didn’t add mileage data when they filled up or they accidentally provided incorrect data. The telematics now means that I’m provided with accurate data throughout this process. “The fuel card analyses fuel data by vehicle type and then it flags it if there are any anomalies which would subsequently prompt a conversation with the colleague or their line manager.”
DEALING WITH DISCREPANCIES The way fuel card companies handle evidence of discrepancies in fuel purchases or mileage claims depends on the policy that has been agreed with the customer. In some cases, they inform the customer directly so that an internal investigation can be carried out. In others, they contact the individual directly and ask them for guidance regarding any discrepancy. Jackson says employers need to be mindful of creating an “explosive HR situation” when speaking to staff about potential fraud. “What you do and who you first approach depends on what you think is going on and the culture and structure of your organisation,” he says. “If you suspect a card has been stolen, contact the card provider immediately, followed by the driver or manager responsible for the card to check whether it’s missing. “If you suspect someone in the organisation is abusing their card or expenses, get hold of as much evidence as you can by way of transaction reports, expense claims and receipts and double- and triple-check them before querying the matter with the user, their manager or HR. “There may be an honest explanation and accusing an employee of dishonesty, or even implying it, can spark an explosive HR situation.”
created a function called Fuel Monitor. “This uses telematics to monitor the amount of fuel that’s purchased against the miles driven,” says Rhys Harrhy, ProFleet2 development consultant. “Consequently, this can swiftly identify whether there’s any disparity between what’s put into the tank and the distance travelled.” Graham Gordon, director, corporate marketing at telematics company Masternaut, adds: “Telematics gives the whole picture of what’s going on. This means that there is zero danger of transcription errors when presenting fuel cards. “The technology can also cross-reference the location of where the fuel card is used against the location of a vehicle, highlighting discrepancies.” Gordon adds there’s frequently a deterrent effect when it comes to fuel fraud when employees are aware that telemetry is in place. “If suspicion fell on an employee for whom things weren’t adding up, we’d advise having a full and frank
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For more information on effective fuel management, visit mydrivingbusiness.co.uk/ fuel
There may be an honest explanation. Accusing an employee of dishonesty, or even implying it, can spark an explosive HR situation Paul Jackson, managing director, TMC
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■ C ARS
Coming soon... We take a look at what manufacturers have in the pipeline FORD EDGE ON SALE: Summer 2015 PRICE: Starting from less than £30,000 (estimated) CO2: 149g/km WHAT’S NEW: Ford will complete its SUV line-up this summer with the Mondeo-based Edge, a five-seat car that offers space to rival utility vehicles a class above, according to the manufacturer. Sitting above the mid-size Kuga (based on the Focus) and compact Ecosport (Fiesta), the Edge will showcase new technologies: adaptive steering, active noise cancellation and front split-view camera, which makes restricted visibility junctions or parking spaces easier to negotiate. Engines will be limited to two 2.0-litre diesels: a 188hp entry-level and a more powerful 207hp version. Expect the Mondeo’s 1.6-litre diesel to follow.
KIA SPORTSPACE/OPTIMA
NISSAN SWAY CONCEPT
ON SALE: Saloon in December 2015; Sportswagon TBC PRICE: TBC CO2: TBC WHAT’S NEW: The Kia Sportspace concept car shows the way to the D-sector Optima, which will be launched later this year. The Optima will be available first as a saloon, but a production version of the estate concept car is likely to follow in 2016 – the first Optima estate to be sold in the UK – although a final decision has yet to be taken. Kia UK president and chief executive Paul Philpott said feedback from the market will be taken into consideration before making a decision, although he “would like a wagon version of the Optima”. “When you remove rental from the D-segment, which is mostly saloons, the balance is largely wagon body styles,” he said. While the saloon has been designed more for the American and Korean markets, the concept estate styling is focused on the European markets, where there is greater demand. “We have more input into the design of this product,” Philpott explained. “It’s about combining aspirational design and the function of an estate, like the SUV segment. That’s what this car should do.” ON SALE: 2016 PRICE: N/A CO2: Below 90g/km WHAT’S NEW: Unveiled by Nissan at this year’s Geneva Motor Show, this striking concept car is set to become the next-generation Micra when the vehicle is replaced next year. The evolution of the Sway is in keeping with the manufacturer’s track record for producing unconventional cars in traditionally conventional sectors – the Juke and Qashqai crossovers, for example. The three-door concept car has, said Nissan, been designed to “shake up the conservative B-segment hatchback sector”. Jim Wright, Nissan Motor (GB) managing director, said: “It hints at a future new B-segment offering. “The design is very different – it’s about being innovative.”
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TOYOTA AVENSIS
ON SALE: September 2015 PRICE: TBC CO2: From 108g/km WHAT’S NEW: The latest incarnation of the Toyota Avensis will be available with two new, more efficient diesel engines when it goes on sale in September as both saloon and estate. The 112hp 1.6-litre diesel will effectively replace the 2.0-litre diesel and cuts CO2 emissions by 11g/km to 108g/km, with fuel efficiency of 69mpg. Meanwhile, the 2.2-litre diesel will be dropped in favour of a higher output Euro 6-compliant 2.0-litre diesel, an engine designed in cooperation with BMW. CO2 emissions will fall by 24g/km to 119g/ km, while fuel efficiency improves to 63mpg, assisted by stop-start. Both engines have extended service intervals to 20,000km (12,500 miles), with Toyota forecasting a 20% reduction in servicing costs over three years/60,000 miles. Although not officially an ‘all-new’ model, the D-sector family car shares only the side panels with the current version, according to Neil Broad, general manager, Toyota and Lexus fleet and remarketing. It is 40mm longer than the current Avensis, improving interior space, while the front showcases the company’s new family face with new LED lamp technology and a lower, enlarged grille.
MITSUBISHI L200 ON SALE: September 2015 PRICE: £18,000 excluding VAT (estimated) CO2: 174g/km (double-cab) WHAT’S NEW: Mitsubishi’s new pick-up truck will make its debut in the UK this September, with orders open from July. Using a new platform, the vehicle promises class-leading technology, fuel efficiency and refinement. A new 2.4-litre diesel engine, with a choice of two power outputs, will help double-cab versions achieve 42mpg on the combined cycle and CO2 emissions of 186g/km. It will feature new technology, including a driver’s knee airbag and lane departure warning, and come with six-speed manual transmission as standard. Prices will be announced closer to launch, but are expected to be slightly higher than the outgoing model, which will run alongside the L200 for another year. Single-cab and club-cab versions of the new truck will arrive in 2016, so any businesses that don’t need a doublecab may choose the current version. Lance Bradley, managing director of Mitsubishi UK, said: “The current model still has the best four-wheel drive system on the market, and we think it’s the best value for money.”
HYUNDAI TUCSON ON SALE: September 2015 PRICE: N/A CO2: N/A WHAT’S NEW: Hyundai is to put the brake on the number of sport utility vehicles it supplies to rental companies. The company registered more than 66,500 units of the ix35 to fleets last year and expects its more upmarket Tucson replacement to be equally successful. However, moves to restrict rental numbers should pay dividends with improved residual values, according to Hyundai Motor UK head of fleet Martin Wilson. “This car will win instant traction, because it represents a step change and takes us into a different sales area,” he said. “We’re looking to achieve better residuals and want the Tucson to give us the edge in this respect, as we seek to be more competitive in PCP offerings, salary sacrifice schemes and other key business areas. “We have a good balance at present, but I think that moving more cars into buyback rentals will improve our level of control.” Visually more impressive than the ix35, the Tucson comes with high levels of standard specification and two- or four-wheel drive.
mydrivingbusiness.co.uk ❚ Summer 2015 ❚ 27
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