Improving Productivity and Service in Depot Businesses: How Haulage, 3PL, and Service Companies Can Increase Quality and Customer Satisfaction PDF
Preview Improving Productivity and Service in Depot Businesses: How Haulage, 3PL, and Service Companies Can Increase Quality and Customer Satisfaction
Endorsements “This practical guide to Improving Productivity and Service in Depot Businesses is a must read for any operations manager want- ing to improve their professional skills. Colin is undoubtedly the most accomplished operations leader I have ever worked with, and his guide is full of practical tips and tools to help hone and enhance operational management expertise.” David Taylor-Smith, MBE, FRGS, Portfolio Chairman, and Former FTSE 100 Board Director “The author enables you to clearly understand straightforward methodologies that can be applied piecemeal or holistically, and which will improve operational efficiency. Having applied some of the techniques referenced in the book, I recommend this book and the content.” Warren Edmondson, CEO, The Safegroup Ltd., UK “I worked with Colin on a successful business turnaround imple- menting some of the principles included in this book; the project was a success, and the business continues to perform well.” Aiden Harper, BA. M.MUS. MD Ireland “Improvig Productivity and Services in Depot Businesses provides invaluable tried and tested methodologies and practical tools and techniques. Applied correctly they have the ability to transform the performance of a business. The benefits gained from managing non-productive hours were transformational for the business I man- aged. The techniques described in the operating rhythm (drum- beat) chapter are applicable in any business and is something I still utilise at an executive level.” Kevin O’Connor, MBA, CEO “I had the opportunity to work with Colin on an important opera- tional project in Colombia, we applied some of the principles presented in the book and achieved strong results. This book is a must for any professional or student working in operations.” Claudio Enrique Pita Garcia, University of Politecnico Grancolumbiano, Columbia Contents Contents Improving Productivity and Service in Depot Businesses This book is specifically for working operations managers across the broad range of business types that deploy fleet and product via a myriad of service types. It is applicable to businesses with small medium to large fleets in haulage, 3PL, and any service business operating a depot structure. The book is less about theoretical concepts – although specific references point to theories including Lean, continuous improvement, net promoter score, and balanced scorecard – but is essentially a practical guide applying worked examples and generic templates regarding the core ten activities that are critical to achieving service and profit expectation in any depot, route-based business deploying fleet. Every working manager – front-line to COO – will identify with and grasp that these are fundamental areas and that, if improvement can be sustained, will deliver better service to customers and enhanced profit in both local and business levels. The key areas examined are: ◾ People management ◾ Fleet management ◾ Route scheduling ◾ Optimisation of non-productive (on-depot) time ◾ Driver debrief ◾ Customer service and complaint management and measurement ◾ Key performance indicators ◾ The operating rhythm ◾ Continuous improvement Improving Productivity and Service in Depot Businesses How Haulage, 3PL, and Service Companies Can Increase Quality and Customer Satisfaction Colin Woodland First published 2023 by Routledge 605 Third Avenue, New York, NY 10158 and by Routledge 4 Park Square, Milton Park, Abingdon, Oxon, OX14 4RN Routledge is an imprint of the Taylor & Francis Group, an informa business © 2023 Colin Woodland The right of Colin Woodland to be identified as author of this work has been asserted by him in accordance with sec- tions 77 and 78 of the Copyright, Designs and Patents Act 1988. All rights reserved. No part of this book may be reprinted or reproduced or utilised in any form or by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying and recording, or in any infor- mation storage or retrieval system, without permission in writing from the publishers. Trademark notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identification and explanation without intent to infringe. ISBN: 978-1-032-34782-0 (hbk) ISBN: 978-1-032-34781-3 (pbk) ISBN: 978-1-003-32382-2 (ebk) DOI: 10.4324/9781003323822 Typeset in Garamond by Deanta Global Publishing Services, Chennai, India Contents Preface ........................................................................................................ix Acknowledgements ...................................................................................xi About the Author ....................................................................................xiii 1 People Management .....................................................................1 Introduction .................................................................................................1 Guideline Management Principles ..............................................................2 Managing Holiday Planning .......................................................................9 Sickness and Absence Management .........................................................16 Employee Attrition ....................................................................................20 Partial Management Control .....................................................................23 Betterment .............................................................................................23 Fundamental Working Conditions ........................................................23 Dismissal ................................................................................................24 Full Management Control .........................................................................24 Financial Reward ...................................................................................24 Lack of Skills .....................................................................................26 Management Culture .........................................................................27 Driving Skills .....................................................................................28 The Role Is Too Physically Demanding ............................................29 Return-To-Work (RTW) Interview ............................................................29 Driver Debrief ...........................................................................................32 Conducting Disciplinaries .........................................................................33 Calculating Driver Resource .....................................................................37 Notes ..........................................................................................................41 2 Fleet Management ......................................................................43 Introduction ...............................................................................................43 Calculating the Fleet Size ..........................................................................44 v vi ◾ Contents Organisational Design ...............................................................................48 The Head of Fleet .....................................................................................51 The Two Sides of Fleet Organisational Design ........................................52 Internal Stakeholders .............................................................................52 External Stakeholders ............................................................................55 FTA (Logistics UK) ....................................................................................55 Breakdown and Recovery .....................................................................55 Telematics ..................................................................................................57 Is Telematics Worth Implementing? ......................................................57 What Is Telematics? ...............................................................................60 Other Factors to Consider .....................................................................60 Defect and Accident Reporting .................................................................61 Defect Reporting and Management ......................................................61 Weekly Vehicle Check ...........................................................................63 Accident Management ...........................................................................64 Period Senior Accident Review .................................................................68 Ancillary Devices That Aid Accident Reduction ......................................70 Fleet KPIs (Key Performance Indicators) ..................................................71 Fleet: Challenging “Perceived Wisdom” ...................................................71 Double-Shifting .....................................................................................73 Enhanced Vehicle Design .....................................................................75 Cubic and Weight Capacity ...................................................................76 Weight Capacity .....................................................................................76 Insurance and Weight Capacity ............................................................77 Electric vs. Hydrogen Engine ...................................................................77 Vehicle Replacement .................................................................................79 Fuel Management ......................................................................................82 Notes ..........................................................................................................83 3 Route Scheduling .......................................................................85 Introduction ...............................................................................................85 Organisational Design ...............................................................................89 Which Organisational Model Is Best? .......................................................94 Planner Renumeration and Training ........................................................94 Manual vs. Software and Which Package? ...............................................96 Do Not Blame the Scheduling Software, without First Examining Business Data Integrity .............................................................................99 Scheduling Principles ..............................................................................100 Proof of Concept .................................................................................100 Contents ◾ vii The Planner and Software Interface ...................................................101 Driver Start Time .................................................................................102 Setting SMVs (Standard Minute Values) for Customer On-Site Time .......................................................................................102 Two Methods of Deploying Scheduling Software .................................103 Validating Route Efficiency .................................................................104 “Miss” Notification ...............................................................................108 Depot Strategic Modelling ..................................................................108 Rationalising the Depot Network ...........................................................111 Retention Payments .................................................................................115 Notes ........................................................................................................116 4 Minimising Non-Productive Hours ..........................................117 Introduction .............................................................................................117 Minimising On-Depot Time (Non-Productive Time) .............................118 Why Is This Important?.......................................................................118 Start of Day GtG Time ............................................................................121 GtG Metrics .........................................................................................128 Avoid Returning to Depot to Take a Break ........................................133 5 Driver Debrief ..........................................................................135 Introduction .............................................................................................135 Essential Output from the Debrief Process ............................................137 Other Debrief Related Benefits ...............................................................139 How Long Should Debrief Take? ............................................................139 Who Should Conduct the Debrief? .........................................................140 HGV Tachograph Analysis ......................................................................140 Note .........................................................................................................141 6 Customer Service .....................................................................143 Introduction .............................................................................................143 Notes ........................................................................................................146 7 Managing Complaints ..............................................................147 Introduction .............................................................................................147 Notes ........................................................................................................153 8 KPIs, the Balance Scorecard, and Basic Financial Models ......155 Introduction .............................................................................................155 Balance Scorecard ...................................................................................160 Basic Depot “Trading” (Periodic Financial Review) ...............................161 Notes ........................................................................................................165
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