Current Issues

Regular Industry Development Updates, Opinions and Talking Points relating to Manufacturing, the Supply Chain and Logistics.

Compliance Management – it’s time for joined up thinking

25-Mar-2019
Compliance Management – it’s time for joined up thinking
Transport Operators’ compliance requirements can be hugely time consuming. Yet not only is the manual process of downloading and accessing tachograph data inefficient, companies are also unable to maximise use of this data to rapidly highlight and address key operational problems.

How long does it take to identify unaccounted mileage of a vehicle – and how long to evaluate the cause? Does the business have any idea of the number of drivers with nine or more penalty points – and the potential risk associated with driver shortage if they are banned? Is there any way of spotting a spike in penalties – and if so, taking early action such training and awareness or modifying delivering schedules?

Digital technology, including telematics, provides the chance to fundamentally transform compliance. Automated remote download of tachograph data not only removes the day to day burden, enabling operators to focus on more productive activities, but critically provides early visibility of potential problems. As Andrew Tavener, Head of Marketing, Descartes UK, explains, a joined-up approach to compliance data not only transforms the overhead but provides insight that can deliver additional efficiencies throughout the business.

Business pressures
Over the past few years Transport Operators have invested in digital technology to improve operations. Telematics, for example, combined with intelligent algorithms have enabled operators to achieve the route optimisation that has become essential to meet evolving customer demands. Real-time vehicle visibility has delivered new levels of business agility, providing operators with the chance to reroute vehicles on the fly in response to a raft of issues such as unexpected delays or new deliveries or pick-ups.

In contrast, however, to this highly slick and efficient operation, Transport Managers are still burdened by an incredibly manual compliance overhead. Manual downloads of tachograph data - every 90 days or sooner for vehicle unit data and 28 days or sooner for driver card data, are both time consuming and disruptive. Operators can spend 30 minutes per vehicle each week downloading tachograph data. Given the route optimisation process has to include drivers’ hours compliance and the pressure on driver resources – and the spike in driver wages – this unproductive time is both frustrating and expensive.

Clearly the compliance model has to change. Rather than manually downloading VU tachograph or driver card data, this information can now be automatically downloaded remotely via installed telematics devices. In addition to the obvious time savings associated with this automatic and remote download model, digital access to this data opens the door to a far smarter approach to compliance management.

Rapid Insight
Typically, the data routinely collected to ensure Transport Operators remain compliant is under-utilised. Managers spend time cross referencing vehicle and driver data in a bid to resolve unaccounted distance; but otherwise information is often collected and locked away. From paper-based vehicle safety checks onwards, this information is only pulled out again should an incident occur that requires verification.

Yet this data offers huge potential value to any company. Combining digital tachograph analysis and reporting, driving licence and driver CPC verification with the DVLA plus digital driver vehicle safety checks, all in one location, transforms the way this data can be used – for both compliance and operational processes.

The first step is to increase the frequency of tachograph data downloads – with remote, automated download via telematics, tachograph and driver card data can now be downloaded every day the vehicle is used. With the addition of a mobile app to support manual vehicle safety checks, operators can both ease the enforcement process and create a deeper compliance information resource. Drivers can be prompted to follow the required checks, ensuring the correct process is followed; an audit trail provided through location and timestamps; while the ability to attach photographs enables drivers to highlight any areas of concern.

With a single source of compliance data, companies can leverage automation to move from reactive to proactive management by exception. For example, automated processes for analysing vehicle and driver tachograph data ensures any unaccounted distance is immediately flagged to the Transport Manager. This ability to quickly identify and remedy such issues is far more effective than the current model of reactively addressing a problem that has been occurring for up to three months. A proactive, exception led approach can also be applied to vehicle safety checks – Transport Managers can easily see if the expected number, location and duration of vehicle checks, has not been recorded.

Driver Management
Similar benefits can be achieved with proactive driver compliance. For example, drivers incurring penalty points create a significant level of business risk – especially when nine out of ten drivers admit they would not automatically inform their employers. The status of a driver’s licence has a number of implications, from potentially invalidating insurance to reputational damage, especially if a driver has been pulled over for using a mobile phone or dangerous driving. Furthermore, given the estimated 50,000 shortfall in qualified HGV drivers, Transport Managers need a way to identify those drivers at risk of being banned, and mitigate the potential risk of driver shortage within the business.

With a smart approach to compliance management, operators can ensure drivers’ licenses are routinely checked to ensure penalty point information is up to date. However, there is no need to treat all drivers the same: the value comes from leveraging this data to focus activity on those drivers that cause the biggest problems or are at the most risk of being banned. Setting up a risk profile for each driver will determine the frequency of checks - a driver with nine points should clearly prompt more attention – a monthly check, for example - than one with zero to three points, who could be checked just twice a year.

In addition to enabling firms to keep track of ‘at risk’ drivers, this insight can also identify trends in driver activity. If there is a sudden spike in speeding penalties or drivers’ hours infringements, what is the issue? Are drivers not being allocated enough time to make deliveries or is there a culture that needs to be addressed through training? A Transport Operator with a large number of drivers on nine points is clearly at risk of driver shortage and can be proactive in addressing this potential problem.

Conclusion
Telematics information has without doubt become an essential component of Transport Operators’ push towards more agile and efficient business. The ability to extend the value of this model by remotely transmitting tachograph and driver card data enables operators to address the resource draining compliance overhead. However, while the time saving of automated remote download of tachograph data is compelling, it is the ability to focus on the exceptions, rather than the compliant operations, that transforms the burden and enables businesses to drive additional value from this compliance data

Johannes Panzer
Head of Industry Strategy for Ecommerce, Descartes Systems UK
Is digitisation the key to preventing cross-border landed costs from disrupting international ecommerce?
Richard Seel
Managing Director Supply Chain & Logistics, Delaware
Meeting the Challenge of Supply Chain Efficiency – How Manufacturers Can Achieve their Goals
Olivier Binet
Managing Director International Markets, InPost
How to build sustainability into last mile deliveries
Ron Volpe
Global Vice President Apps Business Development, Tradeshift
Under-Pressure Retailers Turn to D2C to Level the Playing Field
Craig Summers
UK Managing Director, Manhattan Associates
Margin Erosion is turning the spotlight on the Warehouse
Simon Runc
Principal Visual Analyst, Atheon Analytics
Unlocking the Value in Data
Steve Purvis
Operations Director, Bis Henderson Space
Brexit Uncertainty Highlights Need for Flexible Logistics Strategy
Alan Gunner
Business Development Director, Adjuno
Starting at the source: achieving a sustainable supply chain
Craig Summers
UK Managing Director, Manhattan Associates
Conquering Connected Commerce
Mark Jolley
EMEA Manufacturing, Transport & Logistics Solutions Sales Lead, Zebra Technologies
Augmented Reality is becoming a Retail Reality
Craig Summers
UK Managing Director, Manhattan Associates
The Cost of Doing Nothing
Sam Ireland
International Marketing Manager, Loftware
Are You Navigating Global UDI Compliance?
Stephen Cameron
Business Development Director, SWRnewstar
How the Resource and Waste Strategy Can Empower Industry
Georgia Leybourne
Senior Director International Marketing, Manhattan Associates
Are we embracing the profit potential of the over 50s?
Jon Moody
Chief Executive Officer, SSG Insight
The Future of Supply Chain Management
David Luttenberger
Global Packaging Director, Mintel
Mintel announces top global packaging trends for 2019 and beyond
Stephen Cameron
Business Development Director, SWRnewstar
Primark's move to 100 per cent sustainably sourced cotton should be commended
Marc Corriveau
Account Manager, Loftware
Changes in packaging result in ROI for F&B products
John Perry
Managing Director, SCALA
Why an extension is best for British businesses
David Jinks MILT
Head of Consumer Research, ParcelHero
Booking a courier? No printer required, says ParcelCompare
Graham Parker
CEO, Gravity Supply Chain Solutions
Mitigating The Risks Of Trade Wars And Tariffs
Sam Ireland
International Marketing Manager, Loftware
How Brexit Will Impact Supply Chain Labeling?
Sid Holian
Managing Director, Bis Henderson Consulting
Three critical steps to a hi-tech, agile supply chain
Manu Tyagi
Associate Partner, Retail and Consumer Goods, Infosys Consulting
M&S and Ocado have signed a £750 million deal to take M&S groceries into the home delivery market
Olivier Frère
Serialisaton Expert, Zetes
Understanding the Tobacco Products Directive
Paul Heiden
Senior Vice President of Product Management, Ultimaker
6 overlooked benefits of 3D printing for your supply chain
Dave Locke
EMEA Chief Technology Officer, WWT
Merged pharmaceutical firms seek fast-track route to savings
Johannes Panzer
Head of Industry Strategy for Ecommerce, Descartes
How to make international ecommerce transparent, efficient and cost-effective
Craig Summers
UK Managing Director, Manhattan Associates
Putting the WOW in the checkout experience
Richard Parfect
Fund Manager, Seneca Investment Managers
The cessation of Airbus A380 production
John Perry
Managing Director, SCALA
What next for British business?
Chris Jones
EVP Marketing & Services, Descartes
5 Key Logistics Trends and Technology Implications for 2019
Craig Summers
UK Managing Director, Manhattan Associates
What is the Checkout of the Future?
Andres Richter
CEO, Priority Software
UK Manufacturing: The Productivity Conundrum
Martin Meacock
Director, Product Management, Descartes
Brexit: only 10 weeks to implement if changes are ultimately needed
John Perry
Managing Director, SCALA
What does May's defeat mean for the supply chain?
Martin Meacock
Director, Product Management, Descartes
Get Ready for CDS