We were contacted by a distributor who was facing challenges with Class 2 driver retention and recruitment, as well as utilisation of their vehicles and running costs. We were asked to help them understand the issues they were facing and find solutions that would improve retention, efficiency and reduce their cost to serve.
Solution delivered:
To start, the Moorgate Management team spent time with the owners to owners to understand their concerns. We examined the data regarding their driver retention, vehicle utilisation and running costs to understand both where the business was currently, and what the key cost drivers were.
We then spent time speaking with the drivers themselves, listening to their daily ‘toolbox talks’ and getting a better understanding of their day-to-day working experiences. We were present at their vehicle checks at the beginning of the day and accompanied them on their scheduled runs, listening to their issues and talking to their customers while they were unloading.
Time was also spent with the transport and warehouse teams, to understand how the runs were scheduled, what the stock picking procedures were, and how the vehicles were loaded and checked.
Based on our work, the owners introduced salary banding for all their drivers, not just the Class 2 team, and implemented training and performance review plans along with lead generation incentive schemes. This was introduced to quickly retain and cement the hearts and minds of the drivers by offering them a career, not just a job.
In addition, existing drivers were involved in the evaluation and training of potential new drivers through a new ‘buddy system’, and were consulted when the time came to replace trucks and cranes, so that their experience was clearly valued and recognised by the owner and they could provide their opinions on the specification of new trucks and cranes.
To address vehicle utilisation and running costs, the owners implemented a new team dynamic by engaging drivers, warehouse and yard teams in weekly team briefings, explaining how the deliveries were performing and rewarding them as a team for utilisation and customer satisfaction.
As part of this, scheduling processes were revised so that drivers were engaged in route planning (the owner did not yet want to embrace telematics), and warehouse processes changed to have tickets picked and ready to load before vehicles returned to the yard, reducing loading time.
Results achieved:
After our recommendations were implemented, the owners saw a significant reduction in the turnover of Class 2 drivers. They were also able to benefit from referrals of potential new candidates when it came to recruitment, because their drivers were proud of where they worked and happy to refer potential colleagues, as well as being rewarded for it.
The company also introduced dynamic updates so that customers were kept updated on estimated delivery times where traffic issues occurred and delivery schedules changed. The utilisation of vehicles, planned servicing, tyre replacement and fuel costs all saw a reduction in underlying monthly run rate costs as a result of our input, based upon the renegotiations and tracking of actual costs.
If you would like to talk to us, informally and in confidence, to understand how we can help you and develop your business, please contact info@moorgatemanagement.com or call Chris Maityard on 07767 291379.