For many hauliers the phrase ‘management of risk’ means driver training and claims analysis. This means that for these companies, they are failing to consider and mitigate risks that could seriously impact their business.
“You don’t concentrate on risks. You concentrate on results. No risk is too great to
prevent the necessary job from getting done.”
Chuck Yeager
A common sales objection when conducting health checks, reviewing duty of care and compliance to legislation is whether the costs in terms of resource and financials associated in making drivers and vehicles safer is justifiable and to what level.
So let’s go back to basics and understand the need – haulage operation managers develop risk management strategies to secure the fundamentals of their business model, safeguard business assets; reduce liability and the associated financial cost of risk. This also allows them to meet their legal and regulatory requirements.
Regardless of the size of haulage company, all share many common hazards. Risk management involves their identification and evaluation through to controlling and managing out risk, with subsequent reviews to stay on track. Risks include:
- Financials
- Contracts
- Health & Safety
- Public Safety
- Environment
- Driving at work
These risks bring with them the associated cost implications, which includes:
- Increased insurance premiums
- Reduced disposal value
- Replacement vehicle costs
- Administration expenses
- Damage to brand
- Staff morale
It is a truism, for many, especially the smaller haulier, following a serious accident or claim, they many never recover their business operations.
This illustrates the importance of having the right management of risk structure, controls and best practice in place.
The use of effective risk management helps haulage companies provide improved information to make informed decisions. It enables better asset management and enhances the perception of your company amongst stakeholders, employees, customers and industry watchers.
By being proactive, you can offset potential disasters and the associated injuries, fatalities and damage in terms of efficiency, reputation, business disruption and the related financials that impacts your bottom line.
eDrive guides haulage companies through the risk management process, closing the loop in the identification, evaluation and effective management of risk. Simon Murray, Sales & Marketing Director says “technology plays a key role in enabling change and finding the right balance amongst risk, cost and value across the business”. He went on to say “eDrive’s role is to provide the advice, tools and support that meets high standards of operational excellence, customer service and support that reinforces the benefits of managing a safe fleet by adopting a sound management of risk ethos throughout the haulage business”.
So having looked at the risks and cost implications, we need to understand the benefits:
- Maximise the use of high value fleet assets
- Savings in fuel bills
- Use fleet information to drive efficiencies in operations and business decision making
- Lower maintenance and tyre wear
- Shorter driver and vehicle down-times
- Track vehicles in real time
- Reduction in disruption to delivery schedules
- Reduction in accidents and claims
- Minimise environmental impact by lowering emissions through improved maintenance
- Lower insurance premiums
- Protection of brand and build greater trust in the market
- Increase customer satisfaction through improved delivery performance
Long gone are the days when fleet managers were dependent on physical inventories and paper based systems for data. Today, thanks to technology control can be optimised around key business processes, harnessing automated versus manual controls. By continuously reviewing and monitoring KPIs, haulage companies can improve their performance, turn risk into results that allows better decision making, reduce exposure to negative events, create and sustain competitive advantage.
Ireland
For further information, please contact eDrive on 051 470100
About the Author: admin
