Zenith Hygiene Group case study

Vodafone Global M2MVodafone and TomTom enable Zenith Hygiene Group to slash fuel and insurance costs and transform driver productivity

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Vodafone and TomTom enable Zenith Hygiene Group to slash fuel and insurance costs and transform driver productivity Zenith Hygiene Group owns and runs a fleet of 61 trucks (120 vehicles

in all including cars and vans), delivering cleaning and hygiene

products to healthcare, hospitality and facilities management

customers across the UK. Faced with rising fuel and insurance costs,

along with a need to audit its environmental impact, the company

required a reliable tracking system. The TomTom Business Solutions’

tracking system, which uses Vodafone M2M SIMs, combined with

ecoPLUS fuel monitoring and navigation has helped cut fuel bills by

up to £10,000 a month, reduced accident rates and transformed driver

productivity.

Zenith Hygiene Group case study

“The minute the trucks left the depot we had no way of knowing where they were heading, or what the drivers were up to,” says Michael Rayner, Operations Director at Zenith Hygiene Group. “It was essential to the business that the vehicle fleet was being correctly managed to ensure that its capability and output was being maximised. This included the car fleet and the sales activity”

Michael Rayner’s issue was not micro-management. Fuel costs were up, accident rates were up and the business was facing insurance payouts of £214,000. The only available quote for insuring the Zenith fleet had risen from £170,000 to £250,000.

“Many insurance companies were reluctant to offer cover,” he says. “We needed a way to manage the process and show improvement.”

Prior to joining Zenith, Rayner had spent 24 years in the British Army. He was familiar with vehicle telematics, having being part of a team that developed a Telematics system that tracked tank movements in Kosovo. “My gut reaction was that we wanted a tracking solution to monitor vehicle activity he says. “It was when we started developing the User Requirements Document that we realised the full potential of some of the solutions that were assessed.”

The need

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Zenith chose TomTom Business Solutions’ fleet management solution, which features the Optidrive™ solution to profile and benchmark driver behaviour, which coupled with Active Driver feedback completes the loop by detectING aggressive cornering, speeding and heavy braking and informing drivers so they can improve their driving style. The core part of the solution in the vehicle is the TomTom LINK box, facilitated by Vodafone M2M SIMs, which sends data such as location messages every ten seconds, providing real-time updates to Zenith’s transport manager.

“We realised this was going to be far more than simply tracking. It’s a management tool and we needed a proper management structure,” says Michael Rayner. Information on driver behaviour is now analysed by Zenith’s transport manager, with poor drivers being targeted for retraining. This has been introduced in tandem with daily commercial vehicle checks and monthly car vehicle checks and the introduction of Depot Transport Supervisors to take responsibility for these elements taking place. “There is now a clear management line from myself to the transport manager to the depot to the driver,” says Michael Rayner.

The solution

The cost savings mean we have more money to invest in upgrading the fleet,” says Rayner, “and auditing the

environmental impact is now a vital component of new business tenders. Larger clients expect to check our

claims, and we can now prove it.

Michael Rayner, Operations Director, Zenith Hygiene Group

Zenith Hygiene Group case study

The system has helped reduce the number of driver incidents at one Zenith depot from 250 incidents per 100 miles to 15. “And we’ve done this in weeks, not months,” says Michael Rayner. “This has led to a reduction in the number of accidents: last year insurance claims amounted to £214,000, and this year it has reduced to £88,000.”

As a result, the annual insurance quote is down to £170,000 and Zenith has, once again, insurance companies vying for its business.

Michael Rayner says, rather than depressing drivers, the monitoring has improved morale: “Previously the drivers thought no one cared about them, and the high excess they had to pay. Now they can see the business is interested and that we can help make them better drivers.”

Improved driving has led to better fuel performance. More efficient driving techniques means Zenith has covered more miles with the same amount of fuel, saving an estimated £10,000 on fuel costs. “We drove more miles, for more customers, with the same amount of fuel,” says Rayner. “Business was up ten per cent last year, and we’re 11 per cent ahead of targets this year.”

Fuel economy on an average vehicle has soared from 26 mpg to 43 mpg in three months. TomTom’s ecoPLUS has allowed Zenith to manage their carbon footprint, which has resulted in a reduction in CO2 emissions from 33lbs to 24lbs per day.

“The cost savings mean we have more money to invest in upgrading the fleet,” says Rayner, “and auditing the environmental impact is now a vital component of new business tenders.

Larger clients expect to check our claims, and we can now prove it.”

The benefits

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Rayner says the TomTom WEBFLEET solution combined with the OptiDrive™ driver profiling tool have helped sell the concept of technology being a cost saver and service improver. “TomTom allows me to manage our operational costs, it shows the cost impact of any improvements. We estimate that we can reduce the costs of insurance claims even further, by giving our insurance broker access to the system to further reduce the time required to report and complete any insurance claims, which in turn helps reduce the insurance costs.”

Michael Rayner is currently costing up distance sensors for the front of vehicles and onboard cameras to reduce the incidents of property damage. He is confident these will recoup costs by delivering small improvements to performance and better customer service by keeping more vehicles on the road for longer and reducing the time spent on costly repairs.

To maintain focus on driver behaviour development Zenith will introduce an internal driver competition between depots. There will be a Driver of the Quarter cash prize for each depot, with finalists going through to Driver of the Year, this will give a potential maximum of £3,000 available to the best driver. At the same time, when drivers do have an accident, the amount of excess they have to pay will be determined by their annual OptiDrive rating: the better the rating, the lower the excess. “Accidents happen, but there are some things a driver can do. This will make them think about safety. This is not about punishing drivers, it’s continual driver improvement.”

The future

Accidents happen, but there are some things a driver can do. This will make them think about safety. This

is not about punishing drivers, it’s continual driver improvement.

Michael Rayner, Operations Director at Zenith Hygiene Group

Zenith Hygiene Group case study

Business needFaced with rising fuel and insurance costs, Zenith Hygiene Group needed to monitor its fleet of vehicles and improve driver performance.

SolutionTomTom OptiDrive, featuring Vodafone M2M SIMs, provides a real-time dashboard, national coverage and detailed analysis of driver behaviour.

Business benefitsWorking with Vodafone M2M solutions, TomTom/Zenith Hygiene Group’s services:

• Saved £10,000 each month on fleet fuel costs, and reduced CO2

emissions from 33lbs to 24lbs per day, thanks to improvements in driver style

• Cut the number of driver incidents from 250 per 100 miles to 15, reducing the accident rate and lowering the annual insurance costs

• Created a reliable audit for environmental impact, strengthening new business tenders and boosting the company’s green credentials

Executive summary

This solution has led to a reduction in the number of accidents: last year insurance claims amounted to £214,000, and this year it has reduced to £88,000.

Michael Rayner, Operations Director at Zenith Hygiene Group

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