The people BUSINESS
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Hauliers who have won the Investors in People badge report cost savings, accident reductions and productivity increases. Should sceptical operators now accept that quality standards are worth more than a certificate on the boardroom wall?
In recent years, the cleverer companies in the haulage industry have realised that what makes them successful is not their vehicle fleet but their people and the standard of their customer service.
With over 800,000 people currently employed in the industry, it is these people's skills which make or break their companies' profits. While total quality systems management—embodied first in the 1355750 quality standard and, more recently, in the ISO 9002 standard—attracted many haulage companies in the mid-1980s, attention has now shifted towards the people.orientated standards such as Investors In People (TIP) and national vocational qualifications (NVC)s).
"Quality management systems, such as ISO 9002, are not as popular as they once were," says Barry Young, managing director of haulage training and consultants RTT Training Services of Ipswich. RTT achieved the ISO 9002 standard five years ago and offers hau hers practical help with their management systems to make sure that, as Young says: "The right things happen and things happen right."
According to Young: "The ISO 9002 procedures cover every aspect of the business except financial accounting. It can take a company around six months to achieve it."
The 11P standard can take about the same time to attain and, as its name suggests, it relates more to people's performance than the systems-based ISO 9002. At the heart of HP is the national quality standard for effective investment in the training and development of employees to achieve business goals.
HP provides a framework for improving business performance and competitiveness, through a planned approach to setting and communicating business objectives and training people to meet these aims. The idea is to produce people who are motivated and able to do what their organisation requires of them.
Benchmark Drawing on the experience of some of the UK's most successful organisations, both large and small, lip also provides a benchmark of good practice against which a company can audit its policies and practice in staff training.
Alan Jones. managing director of TNT Express, says: "Our people have the knowledge and we all have the commitment to give the customer the best level of service they can get. In 10 years' time, if you are not an HP, you won't be a serious player."
Phillip Gate, managing director of Sadler Tankers, says: "HP has meant that everyone in the company is thinking along the same lines; pride in the job and first for quality, safety and standards," he says. "HP supports our mission to be the best in the industry." TIP, along with NVQs, comprise part of the sector targets for the road haulage and distribution industry. These targets are an extension of the Government's national education and training targets and are intended to help individual sectors to focus on their needs.
In haulage, the sector targets project is being co-ordinated by the Road Haulage & Distribution Training Council, which is itself currently working towards IIP status.
Ian I Ietherington, RHDTC business development manager, says: "In this industry, especially logistics and contract distribution, people are central to the running of the business. So it's not surprising that according to Investors UK, which sets the standards for 1113 in this country, the number of companies committed to IIP has more than doubled in the last six months."
As the industry's training organisation, lead body and proposed national training organisation, the RHDTC is undertaking an information and signposting role with regard to IIP. According to Hetherington, it will be playing a pivotal role in developing quality standards for the industry and these will include IIP At a recent meeting between Michael HeseRine and representatives of the road haulage and distribution industry, led by Rebecca Jenkins, managing director of Lane Group, and including RHDTC officials, the deputy Prime Minister emphasised the importance which the Government places on firms achieving IIP. It is even rumoured that other countries, such as Holland, are about to follow the UK's lead and adopt the standard.
Typically, achieving the TIP standard costs around 0,000. However, depending on the amount of consultancy and assessment services an organisation needs—as opposed to the amount of work which can be done inhouse these costs could be a lot more.
The RHDTC operates a telephone hotline (01923 858484) to deal with enquiries about HP, NVQs and other initiatives such as the young LGV driver-training scheme. It says that companies are favouring a "do-it-yourself, with minimal consultancy help" approach to achieving TIP Sadler Tankers, TNT Express and a number of businesses within TDG, such as Linkman Tankers, Beck & Pollitzer and Pinnacle Storage, are among the growing number of companies which claim to be reaping real benefits.
Sadler's includes the TIP badge, along with other quality marks, on its tanker fleet, believing that this sends an important signal to customers, staff and the driving public.
The company also believes that working towards and achieving the IIP standard has had an impact in key cost areas such as wages cost per mile, fuel and tyre costs, maintenance costs per mile and waste and consumption, all of which now show continuing marked improvements. Staff are reaping the benefits of increased productivity in higher earnings and many of them have achieved NVQs. TNT's experience is similar, with reductions in lost time accidents, blameworthy highway accidents, invoice queries, credit notes, staff turnover, absenteeism and sickness; increases in volumes and market share; and the company now claims an on-time delivery record of around 98%.
Since achieving HP status, Beck & Pollitzer also reports improvements in fuel consumption, maintenance, health and safety incidents and staff turnover. Personnel manager Daniella King says: "Working through HP has undoubtedly helped us in our aim to exceed customers' expectations."
Derbyshire-based warehousing and distribution company Pinnacle Storage achieved LIP status in 1994 and takes particular pride that picking inaccuracy across its 120-acre site is now usually below 0.1%. Contracts manager Max Bilhous says: "Our customers want a 100% service. Only through our people can we deliver it."
0 by Bob Little