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OUR BID for YOUR ACCOUNT

OUR BID for YOUR ACCOUNT. Presented by Marc Harding (Director) and Paul Dunwell (Business Development). What is Driving Logistics trying to achieve with this presentation?. We need to introduce ourselves and explain what makes us different

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OUR BID for YOUR ACCOUNT

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  1. OUR BID for YOUR ACCOUNT Presented by Marc Harding (Director) and Paul Dunwell (Business Development)

  2. What is Driving Logistics trying to achieve with this presentation? • We need to introduce ourselves and explain what makes us different • We want to show you why any decision to use us would be a good one • We want to demonstrate why repeated annual renewals over almost a decade have always been in our clients’ best interests • We want to give you all of the information you need to justify the decision you now have to make, whatever that decision might be • We want to provide detail to which managers throughout your organisation can refer in respect of other opportunities Please note that this PowerPoint presentation is enclosed in the disk-based pack that you’ll be given today. It is accompanied by all of the materials submitted as part of our bid.

  3. Who are we? • Driving Logistics was established in October 2001 • It’s part of a group, Elect Recruitment, which employs over 300 people • Driving Logistics is a dedicated driving agency which supplies qualified and experienced LGV drivers, as well as those for both 3.5 ton and 7.5 ton vehicles, and drivers’ mates • Our staff have almost 30 years’ experience within the transport and logistics industry • It is a member of the Recruitment and Employment Confederation (REC) • It is a member of the Freight Transport Association (FTA) • We’re registered directly with the Criminal Records Bureau (CRB) • Very unusually, we are able to have checks run on the Police National Computer (PNC) • We are an Equal Opportunity Employer • Driving Logistics is a diverse company and we have formally ‘made the pledge’ to remain so

  4. Who’s who? Elect Recruitment’s company structure Marc HardingDIRECTOR Ashley FarebrotherDIRECTOR   Paul DunwellBUSINESS DEVELOPMENT Louise PowellPA Zena JonesPA Samantha RichardsonOFFICE MANAGER     Marc Eldridge SEN DRIVING CONSULTANT Christina Lyford SEN SOCIAL CONSULTANT Samantha Slattery SEN CHILDCARE CONSULTANT Nicola Hardy ADMINISTRATIVE ASSISTANT Mark Gilham ONSITE EXEC Ron Gilham DRIVING SUPPORT Cathy McPherson HEAD of PAYROLL Craig Randall NIGHT CONSULTANT  Denotes shareholder

  5. The Driving Logistics structure in development Marc HardingDIRECTOR Ashley FarebrotherDIRECTOR   Paul DunwellBUSINESS DEVELOPMENT Louise PowellPA Zena JonesPA Marc Eldridge SENIOR DRIVING CONSULTANT  Samantha RichardsonOFFICE MANAGER New AppointmentAREA MANAGER New AppointmentAREA MANAGER  Mark Gilham ONSITE EXEC Ron Gilham DRIVING SUPPORT New Appointment ONSITE EXECUTIVE /ASSESSOR New Appointment ONSITE EXECUTIVE / ASSESSOR New Appointment ONSITE EXECUTIVE / ASSESSOR New Appointment ONSITE EXECUTIVE /ASSESSOR Craig Randall NIGHT CONSULTANT New Appointment COVER ASSISTANT New Appointment COVER ASSISTANT New Appointment COVER ASSISTANT New Appointment COVER ASSISTANT  Denotes shareholder

  6. Where are we? • We operate from Eastcote in Middlesex • This enables us to comfortably service clients, on a daily basis, across a huge geographical swathe of the South of England • Plans are in hand for satellite outposts that could be governed in part by your needs but, wherever it is warranted, we can and will provide 24/7 onsite consultants absolutely anywhere in the UK

  7. LGV 1 LGV 2 7.5 ton 3.5 ton Drivers’ mates What do we do? Working with clients to generate optimal logistical solutions, we provide qualified and vetted staff in the following categories: • We are genuinely contactable 24 hours a day and 365 days a year • This is ideally suited to clients who themselves need to be responsive to JiT needs • We employ dedicated night-shift consultants • We source temporary, ongoing and permanent qualified drivers • We supply drivers to cover holidays, unforeseen sickness and volume increases • We offer a temp-to-perm facility for 10 to 13 weeks • We provide both sole supplier and master vendor facilities • We run onsite services including instruction and testing

  8. What are our key unique selling points? • Our driver retention is excellent so clients see the same faces time and time again • All of our drivers are fully uniformed • We have very strict vetting procedures (which we’re going to outline later) • Our drivers are taught and tested on geography and driving hour regulations • We use identification cards, if required, to enhance security • We work closely with clients to ensure we supply the right driver or mate with the right qualifications, attitude, experience and professionalism • Our drivers all have digital tachograph card experience • We deploy a dedicated consultant to look after each account • All of our consultants come from a transport and logistics background

  9. Why are we tough to beat? • We are a professional driving agency – as distinct from fly-by-night amateurs • We have a nucleus of clients that ensures drivers stay with us, so our driver retention is excellent • Our drivers are fully uniformed • Over 85% of our drivers have undergone strict driving assessments • We attract the best due to the client-base with which we deal • We are a fully audited company • Our office staff have three decades’ experience in the transport Industry • Our drivers are very flexible • We can cover shift patterns round the clock i.e. 24 hours a day • We use experienced drivers with outstanding driving records • We use punctual drivers • Our client retention is over 98% • Our drivers have worked in almost every industry moving FMCG (i.e. fast-moving consumable goods) • Our drivers should give you peace of mind • We comprehensively vet, use, and accept responsibility for using second tier suppliers

  10. Whom do we serve? These are just a few examples.

  11. Lead Vendor Rates National Supplier Rates Regional Rates Master Vendor / Onsite Rates These rates are applied when a client allocates at least 60% of a temporary driver requirement These rates are offered to large national clients with multiple sites. Once client turnover exceeds certain thresholds, a healthy return is credited These rates are offered to clients with whom we work closely on a regular basis. The rates are very competitive and relate to the area of supply These rates mirror the lead vendor rates but include service level agreements (SLAs) and further cost-savings to the client What do we charge? Our charge rates have always been very competitive and are split as follows: On request we can, of course, provide specific figures which we have readily at hand.

  12. What if things go wrong? We’re well-insured. Our cover is as follows: Thankfully claims are a very rare eventuality! But, more importantly, we readily and promptly accept responsibility where very clearly we ought to do so. It’s important to realise that, in the job we do, things will invariably go wrong. So honesty, transparency and responsibility are important. Yet so too is an ability to deal with any crisis quickly and intelligently so that the damage, costs and inconvenience to our clients are all minimised.

  13. Can we be trusted to screen drivers responsibly? • We ensure that all candidates are registered face-to-face beside their photo ID • We insist on 5 years’ checkable history • We obtain 2 work references from previous employers • We want to see utility bills to prove residence • We require NI cards and / or P45s and P60s • We ask for passports and visas • We need birth certificates • We demand proof of leave to remain and work in the UK • We inspect all of the relevant border documentation for East and West Europeans and others • We make PNC checks (one of our clients requires this but all benefit as drivers are shared) • Where document originals are not available, copies are properly verified with the issuing authority

  14. Manual handling First Aid EU driving hours and rest breaks Working Time Directive (WTD) regulations Digital tachograph use and procedures CPC modules Driving competence Infringement training Health and safety Environmental awareness Customer service Do we train drivers? Yes. And we test them too. On our premises and/or our clients’. This programme is already well-established but developing to incorporate all of the following areas:

  15. Why do drivers want to work for us? Our drivers tend to stay with us long-term because they’re contented. There are many reasons for this that include: • Work consistency • A regular wage all year round • Work with many leading logistical companies, supermarkets and well-established high street retail outlets – so variety and interest • We work with the best brands including European market-leaders • Stakeholder pension schemes • Driving assessments and training • We provide free financial advice from a professional financial advisor (IFA) • We issue full uniforms • They are treated as full-time employees or subcontractors • We can offer accommodation • We pay good competitive rates

  16. What about other evidence of our professionalism? We freely provide details of policies and other proofs relating to the following: • Our approach to environmental concerns including briefs to drivers – see policy statement • Our ISO 14001 accreditation – we’ve met with BSI Management Systems UK to organise this • BS EN ISO Quality Management Standard Requirements – due to pass by 10th December 2010 • Our disability policy – see policy statement • Our corporate responsibility policy – see policy statement • Information on our subcontractor (2nd tier supplier) screening – see copy of our form • Our disciplinary procedures – see comprehensive document • Our driver advice on manual handling / lifting – see the easy-to-read guidance we provide • Our ethical trading policy – see policy statement • Our equal opportunities policy – see policy statement • Our quality systems policy – see policy statement • Documents we give drivers to explain regulations on driver hours and rest break regulations – see comprehensive documents • Our interview process and screening system – see documents giving a comprehensive explanation • Tachograph procedures, training, testing and capture sheets – see documents giving a comprehensive explanation You’ll find copies of all of these documents within the materials you’ll receive today. What all of them show is that Driving Logistics is seriously attentive to the need to reflect its professionalism in its materials. Everything is clearly written to be simple to understand. But, more importantly, nothing is there simply as a paper exercise. Our goals are all easily-achievable with a little effort and this makes it a simple matter to get all of our personnel – consultants and drivers alike – to work to achieve them.

  17. What does the future hold? The forthcoming time and attendance system shown in the diagram below sends texts and emails to our consultants, at all hours of the day and night, and demonstrate if a driver is not where exactly they’re supposed to be, i.e. on duty, on time. The system also generates a wealth of real-time data and financial information which can be utilised by all manner of management information systems as required by our clients. GPRS Terminalwith fingerprintreader and display GPRS Network GPRS Terminal with iButton fob Firewall Server with PBLattendancesoftware Remote worker The system can automatically calculate shift patterns for all charge rates, saving you accounting time (or the cost of it) as a client. Furthermore WTD compliance can be calculated weekly.

  18. Can we deliver more for less? Yes. Expansion of the provision with any established client may essentially be fourfold and be for a price reduction rather than an increase. This expansion will benefit clients financially and operationally, and would include: • The appointment of a dedicated onsite assessor who will deal full-time with the day-to-day running of the business. Our appointments are ideal for this kind of role as they get along with all staff, live locally and would introduce various cost-saving measures to the client. • The already-phenomenal record of retention which sets us apart can be improved upon by consolidating business with us. There would be fewer failed delivery costs, fewer accidents, fewer late deliveries, fewer infringements, fewer induction and education costs, and a reduced requirement for a vehicle and fuel to be provided for assessments. • We aim for the continued development of existing arrangements to induct, assess, educate and re-educate agency drivers, when driving infringements are issued, free of charge. • Where justified we can organise the implementation of a new time and attendance system with automated financial reports. This saves client accounting time and provides useful management information. • More cost savings are possible. Where clients utilise us at multiple sites we are able to make savings – in the form of reductions – from which they’d all benefit.

  19. What does this mean in real terms on your site? Driving Logistics have built up solid partnerships with all of our clients and we offer them ‘Master-Vendor’ / ‘On-Site Lead-Vendor’ products. These products reduce our client costs for the following reasons: • We assess agency drivers free of charge. • We educate agency drivers free of charge. • We re-educate agency drivers when driving infringements are issued free of charge. • We induct all agency drivers onsite and free of charge. • Onsite staff deal with all related transport issues and queries, thus reducing clients’ staff working time. • Onsite staff check in all agency staff, thereby reducing client working time. • Onsite staff tackle driving infringements, immediately reducing clients’ managerial and administrative time. • Our driving assessor spot-checks all drivers regarding EU driving regulations and WTD, so reducing management time. • Onsite staff reconcile all tachograph returns, reducing administration within the Transport Department. • Onsite staff can be allocated additional administration duties subject to agreement. • Time and attendance systems can be implemented with automated financial reports saving client accounting time. • Various payment methods - such as umbrella payments - can be introduced to clients, reducing hourly rates.

  20. Why have one of our men on your site? The improved service he’d deliver, designed to reduce your administrative burden as well as demands on its management time, would involve the following: • Interviewing and assessing new drivers. • Inducting drivers onsite. • Educating drivers on the WTD as well as EU hours and other regulations, then making spot-checks on the same. • Booking agency drivers into shifts. • Building relationships with agency drivers as well as with your employees. • Educating and assessing your core drivers, including in respect of CPC. • Dealing with all related transport issues and queries. • Checking in all agency staff. • Tackling driving infringements. • Reconciling all tachograph returns. • Accepting additional administration duties subject to agreement.

  21. How could we improve on already-excellent driver retention? Clearly Driving Logistics is already in an unassailable position in respect of driver retention. And this is not a statistic that’s only of academic interest because driver retention has a whole raft of benefits and cost-saving implications. But we’re going to reinforce our already-exemplary practice by the following in measures, all of which are incentives that are going to be telegraphed to our drivers in order to help them understand and contribute to what we’re trying to achieve: • Drivers who prove their loyalty will be increasingly offered their choice of assignments • All drivers whose attendance and punctuality record for the previous month is 100%, and who have not been the subject of any complaint during that time, will be entered into a well-publicized monthly prize-draw for a family getaway in the UK • Once a year the 12 monthly winners will all be entered into a further draw with a substantial prize - a family getaway overseas - as the reward for the ultimate ‘Driver of the Year’ • We will organise flattering local media coverage for the ‘Driver of the Year’ in his or her home town • Any driver who performs for a full year without complaint and without absence or lateness will be given an end-of-year bonus • We’ll run parallel loyalty, performance and bonus schemes for each geographical area as we expand our area of operations so the rewards are not too thin-on-the-ground

  22. Can we prove that driver retention is critical?Yes. Here’s an example with one of our clients. The tables here show that various contracts cannot offer our drivers full-time work. Therefore we need to place our drivers more than one client to retain them. Retention is crucial to the outstanding service that we provide.

  23. Can we prove this statistically? Yes. Here’s a further example. • In this example the client’s operations have always ordered a huge percentage of drivers on an ad hoc basis. Many orders are placed within 24 hours but the majority of orders are placed the same day. This late ordering process has always been very difficult to manage as we never know the client’s volumes until the morning. i.e. we could be requested to supply 3 drivers the same day or this could increase to 15 drivers. Even with this extremely difficult supply process, Driving Logistics continues to hit our targets and it has been incredibly rare to provide an inadequate response to such open orders. • The above statistics, we feel, are phenomenal bearing in mind the ad hoc ordering level - which is 48.08% of the client’s total requirement. Furthermore this individual client cannot offer many drivers regular work 5 days a week so Driving Logistics must employ its drivers else where to retain them. This exemplary retention of drivers within London and the whole of Middlesex is the only reason we can fulfil our targets. • We feel there is no rival agency that can compete with our retention/service records within our area of operations; this has proven to be the case due to our leading market share of supplying HGV 1 and HGV 2 drivers.

  24. Just how competitive can we be? You decide! These are the PAYE rates we plan to charge you.

  25. Just how competitive can we be? And these would be the UMBRELLA rates.

  26. From your perspective, what would aSWOT analysis of a Driving Logistics bid look like?

  27. Is there a risk we ought to talk about? You’ve seen that we’ve done a SWOT analysis from your perspective. So, like you, we think about threats as well as strengths, weaknesses and opportunities. And we do have one big concern. You very rightly want a great price. Indeed you might be tempted to run bids as if they were auctions. That has its dangers and it’s worth emphasising them as follows: • During the recession many staffing and recruitment agencies have gone out of business. This is essentially not so much about the need for their staff (because short-term obligations to employees have their attractions). It’s about turnover for enterprises that have the double-whammy of a labour-and-capital-intensive business and almost always have to use factoring services to cover the wages they pay up-front to workers who live hand-to-mouth. Banks simply don’t want to extend the credit that they have done traditionally. • The last thing that you want is to find that, one grim morning, many of the drivers you were expecting have been told not to come to work because they can’t be paid. That wouldn’t create chaos for a single day. And whoever made the hire decision in respect of the agency concerned would obviously have some explaining to do. • Our greatest strength, and from whence much of our value-adding service is derived, is retention. Everybody knows that familiar drivers have benefits that cannot easily be costed but they certainly have a value. And that retention happens because we self-evidently pay our drivers well. But we pay them properly because we’re not greedy and we can afford to do so. • We share our drivers. Most of them wouldn’t just drive for you. And the benefits of that include the fact that other clients mean they’re all police-checked. So you have a very tangible share in benefits that needs to be reflected in costs. • On some shifts for some clients we already lose money. But we cannot afford, as a viable enterprise which has trodden a sensible path from which we and clients alike have benefited for almost a decade, to lose money on too many shifts. Clients who put us in that position ultimately have to be as expendable as we would be as suppliers if we overcharged. • At the same time, drivers deployed to work for any client who have to be paid less to ensure we still have a margin are going to not want assignments with such a labour-user. They’d rather work elsewhere. • The real danger is that a client who forces us to pare our costs to the bone has the effect of forcing us to generally depress the wages of all of our workers. That would clearly erode our general retention, and we’d haemorrhage drivers to other agencies that don’t provide the same professional service (training, testing etc). This would impact on the great service which we provide to all clients and, clearly, it would undermine our workforce to the point that our profits and the company’s very viability. • Finally, all of this relates to enterprise. We all get out of bed in the morning to earn a crust. If a well-run enterprise becomes essentially unprofitable then the sensible entrepreneur looks for better ways to invest his time, effort and capital.

  28. How can we summarize our bid? • Driving Logistics recognises that, where an opportunity to bid arises from a review of an already long-standing contractual arrangement, this a reflection of the potential client’s sound management and a commendable embracement of contemporary best-practice. • Where we’re bidding for work with an existing client, we welcome the opportunity to consolidate our long-standing relationship. • We realise that during the current economic crisis no suppliers should enjoy an unquestionable security of tenure. • Driving Logistics ought to be in a powerful position because we’re a trusted supplier that would undoubtedly hit the ground running. This is reassuring for new clients. • The attractions of rival suppliers might evaporate when it came to delivery on promises. And, of course, any marginal advantages can easily be undermined by the creeping and insidious costs of change management. • Driving Logistics and many of its existing clients have grown together, in unison, and there’s clearly a measure of interdependence and symbiosis. • The SWOT analysis has explained our very proactive, constructive and ambitious approach to winning and retaining business. • We commend our bid to you and earnestly hope that ours will be a long and mutually-rewarding partnership! • Our last word? Set us any challenge and we’ll rise to it. That’s why ‘logistics’ is, literally but in every sense, our middle name! Are there any questions? We’d like to start by asking you one. Can anyone here think of a single reason why we shouldn’t be working with you?

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