Project: key Performance Indicator (KPI) Syrveys in the Food and Drink Sector

Reference: LP0604

Last update: 11/02/2010 15:59:21

Objectives

Sustainable distribution: a strategy published in 1999 updated by The Future of Transport White Paper July 2004. It includes the following extracts about the Government's key aims for the freight industry which are to facilitate the continuing development of a competitive and efficient freight sector, while reducing the impact that moving freight has on congestion and the environment.

Sustainable freight transport that:
. focuses on approaches which offer the best outcomes for our economy, society and the environment.

And respecting the environment:
. by keeping the environmental impacts of new and existing transport infrastructure to a minimum, ensuring that mitigation measures are implemented to a high standard;
. working across government to ensure that we can deliver carbon savings in line with our domestic and international commitments and reduce the impact of other emissions which pollute the environment;
. reducing the impact of all forms of transport, including encouraging the development, introduction and take- up of new vehicle technologies and fuels;
. ensuring that the noise impacts of transport are reduced and mitigated;


Key Performance Indicators (KPIs)
The DfT has a policy to undertake periodic surveys of different logistics sectors stemming from Sustainable Distribution - A strategy (1999). The objective is to pool data from many different fleets to give the industry visibility of the range of achievements for key indicators across the sector. Industry stakeholders agree what indicators can be serviced and used to improve business performance. The reason for this policy is to help managers invest their time and capital resources in those areas of their business where they are less competitive. Some may use the average or upper quartile as a benchmark to aim for. Some businesses will contribute data from multiple fleets or operating sites in which case they will be able to review those fleets and understand why the indicators varied and then be able to replicate the best practice.
(cont)

The policy is needed because industry wide surveys indicate high levels of empty running and low utilisation by weight. No data exists for utilisation by volume. In the previous survey in the food sector if each fleet involved had achieved at least the average fuel
consumption they would have saved an average 5%. A large truck used around 30,000 litres per year and emits 21 tonnes of carbon.

The policy objective is to help operators better specify their trucks for fuel efficiency, to better manage their freight operation to maximise the load factor by both weight and volume and to better manage the vehicles time. Time management and vehicle utilisation improve the efficiency of the whole supply chain from supplier to customer, reduce risks due to delays and can reduce congestion. These factors all make an important contribution to the governments' objectives.

Description

The Department for Transport (DfT) is funding surveys to measure Key Performance Indicators (KPIs) and business reviews in the food and drinks distribution sectors. The benefits of the surveys, the development of the KPIs, the subsequent publication of the results, and business reviews are to provide operators with baseline performance figures against which their own operations can be measured. The performance benchmarking will highlight opportunities for improvements in operational efficiency and help to reduce environmental impact. Vehicle fill, time utilisation, empty running, fuel consumption, and deviation from schedule are going to be measured in the KPI surveys along with other measures, which will be agreed by the industry. It is free to participants to take part in the surveys.

Contractor(s)

SCALA Consulting
Bramleigh House, Birkby Hall Road, Huddersfield, HD2 2XD

Contract details

Cost to the Department: £410,177.00

Actual start date: 04 September 2006

Expected completion date: 01 April 2009