Case Studies
Palmer & Harvey McLane Ltd
MORR Award Winners 2003
Profile
- Retail distribution company
- 1400 vehicles – circa 60% LGV
- 40 million kms per annum
- 2 million drops per annum
- Significant growth by acquisition and contract success
- 30 different cost centres/depots throughout the UK
- Non-conventionally insured – through choice
No measurement = no management
It is important that all available data is collated, as this is the foundation to successful risk management and is invaluable in terms of future incident reduction.
- Insurers records
- Client maintained records up to 2002 – now broker maintained – all losses reported.
- Post loss discussion information
- Accident investigation data
- Data obtained from the driver feedback scheme
- Key Performance Indicators (KPIs)
It is essential to have consistency in the way in which data is measured by way of a ‘key performance indicator’.
The chosen indicator in this case is ACCIDENT FREQUENCY which is the ratio of the number of incidents to the number of vehicles.
Secondary targets of total claims cost and loss ratio are also monitored.
Why Accident Frequency?
- Allows for easy comparison across cost centres/depots
- Enables accurate benchmarking within the group
- Reflects the fluctuation in vehicle numbers
- Can be compared to National Statistics to a greater extent than other indicators.
Data Analysis
A full statistical analysis is undertaken of all available data.
The data is presented by way of a quarterly risk management review report which identifies any trends and priorities and puts forward recommendation towards risk reduction.
Report Contents
- Overall group results and impact on bottom line profit
- Individual cost centre/depot results ~ comparison table
- Progress against targets and KPI’s including year on year comparisons
- Detailed information regarding proximate cause of loss
- Details of any significant losses in excess of £10,000 and/or loss investigations undertaken
- Details of claims reporting delay
Individual branch reports are produced summarising headline group data plus details of:
- individual branch profit/loss results
- cause of loss - individual cost centre/depot specific
- drivers involved in two or more incidents
- the effect of agency drivers and branch dependency
- details of claims reporting delay
How are the reports used?
- To set short and long term objectives and standards
- To monitor performance against targets
- To further improve and develop performance
- To ensure the effectiveness of interventions undertaken enabling modifications to be made
- To address problems at an early stage - e.g. Agency drivers or issues due to contract acquisition
Action Planning Meetings
These are held on a quarterly basis, and are attended by the Group Transport Manager, Regional and local management, driver representatives, brokers and consultants.
The meetings are designed to derive maximum feedback and commitment throughout the group at all levels - which is ESSENTIAL for a successful risk management strategy.
Interventions Undertaken
- Induction and appraisal training extended to include computer based driver assessments
- Bespoke training package for each cost centre/depot at basic and advanced level plus post-loss where required
- Appointment of Driver Assessors at each cost centre/depot
- Modifications undertaken to vehicle specifications - e.g. proximity meters
- Driver feedback scheme implemented
Results
Recognition
Having won RoSPA Gold Awards in 2001 and 2002 - in 2003 Palmer and Harvey McLane Ltd were the first winners of the RoSPA award for managing occupational road risk.
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RoSPA is a registered charity: Registered Charity No: 207823 Patron: Her Majesty the Queen RoSPA Head Office: Edgbaston Park, 353 Bristol Road, Edgbaston, Birmingham B5 7ST, UK |
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