One of the most contentious aspects of vehicle asset management is around end of contract fair wear and tear but it needn’t be that way according to Nick Chadaway, managing director of vehicle movement specialists, DMN.
Fair wear and tear occurs when normal usage causes deterioration to a vehicle over the duration of a contract – that’s the simple explanation.
The BVRLA’s Fair Wear and Tear Guide is the industry standard and does a very good job of setting out the factors to consider.
Some operators choose to produce their own guidelines.
Either way, the key lies in communication with the fleet or consumer customer in the case of a PCP in the first instance and subsequent adherence to the standards set.
This is where consistency, efficiency and the training and skill of the vehicle inspector comes into play.
Disputes and resolutions
Supporting the case in point, during the first half of 2019, the BVRLA’s Alternative Dispute Resolution (ADR) service handled 1,317 complaint cases.
As in previous years, damage was the main reason for customer complaints, with common areas of contention relating to who is liable for causing the damage and whether damage should be deemed as fair wear and tear incurred during the length of the contract.
Amanda Brandon BVRLA head of operations, said, ‘It is extremely important for members to document everything when it comes to the condition of vehicles and the logging of any existing or new damage.’
The key principles
With any inspection, the overriding principle is to remove the subjectivity from the inspection process and ensure operations work transparently and in harmony, offering peace of mind to the end-user and security to the vehicle owner.
A detailed, process-driven inspection ensures that any vehicles delivered or collected to the end-user are ‘as expected’ with no surprises or unexpected complications smoothing the entire supply chain process and adding value.
Immediate removal from site of an inspected vehicle, following a customer’s sign off, is also another key component of providing them with a defining level of service as well as removal of ‘doubt’ from the process.
Behavioural psychology
These types of service provision play on the principles of behavioural psychology, proactively enhancing customer interactions and building brand recognition that decreases the chance of any contested agreements.
Deployment of technology, as in any business sector today, across all elements of the inspection process is a must in order to assist the process, to garner that all-important customer trust and create value.
However, one very important factor I have not referred to and, for me, is arguably the most critical is the human side of business.
People are still a company’s greatest asset and those carrying out vehicle inspections are ultimately the ‘face’ of the vehicle asset management business.
Well trained, well presented and, generally, friendly natured personnel help to make vehicle inspection a positive touch point for the asset manager’s brand – the aim for any service provision, especially one where the supplier has such little opportunity to directly ‘impress’ the driver customer.
For a consumer with a PCP deal from a broker the end of contract inspection process may be new to them and this will be the first time they have had contact with the broker after the initial vehicle delivery.
If they know what are signing for and why there should be no further customers issues to manage for the asset owner.
A good consumer experience is likely to encourage a repeat order for a new car, a bad experience means the consumer may well look to a new provider for their next car and share their pain points with family and friends thus further penalising the asset owner’s business.
The complexity of vehicle inspections is clearly far more than just arguing over wear and tear, in fact it’s quite the opposite.
As an asset owner get it right and it can be part of a great customer journey and add value to their business.
Get it wrong and you are forever dealing with dissatisfied customers and layering in costs to your business.
The choice truly is yours.
Can your dealership support online sales ?
/in DMN LogisticsWith dealer forecourts set to remain closed for the current time the shift to online sales is increasing. This brings challenges with it, but also opportunity.
Going forward we are likely to see more operating models where the first time a buyer will see the physical vehicle they have purchased is when it arrives on their doorstep. You may even have taken their existing vehicle as a part exchange. There are ways that technology can be utilised in real-time to help confirm vehicles conditions and manage expectations.
There are some things that will need to be a given : ensure a safe hand over following all social distancing policies, and ensure that all clients are delighted with the product and process. You can track a £5 delivery from Amazon to your doorstep with regular messaging updates in case of changes / delays, this should be an essential part of any vehicle delivery service too. You need to be happy that the vehicle was delivered to the right place at the right time and have an early view on the condition of any part exchange vehicle that you have agreed.
Here is how we are doing it at DMN :
Collection from your location
Social Distancing
Vehicle Delivery
Part Exchange Process
Prove of delivery and collection location
Collection & Delivery – Social distancing and safe working – Updated June 2020
/in UncategorizedWe’ve introduced the following working instructions to help keep our workforce and clients safe at the point of collection and delivery, we thought it would be good to share them with you.
You can see our full Driver briefing document here
We aim to get the automotive industry moving again but in a safe and responsible manner so if you require support email moves@dmnlogistics.co.uk or call us on 0203 3971981
Single vehicle road driven movements and the challenge of social distancing
/in UncategorizedLIke so many others, we are putting the safety of all our team and customers first and this presents us with the challenge of social distancing in an environment that relies on working closely together. What does this mean in practice?
Before the start of the COVID-19 pandemic it was a common sight to see maybe 4 or 5 “Trade Plate” drivers using a hire-car or in a minibus to get from previous delivery point to the next collection. This is no longer acceptable or indeed safe.
We have spent a long time working on methods of operation, best practice and technology to support our team and practice safe contact with each other and our Customers. We have created specific work instructions, started to distribute PPE and amend our systems to ensure we can constantly practice and enforce our message as we return to more normal trading. We will need to minimise risk by not using multi occupancy hire cars, taking precautions when on public transport (when it absolutely has to be used !) and following Government advice on vehicle sharing by ensuring maximum distance between driver and any single passenger. These measures will be the same as you will see in many operations across the service industry, and the team will be observing any specific local instructions at collection or delivery points.
We want to get the automotive industry moving again but in a safe and responsible manner. We are phasing our operation back in during May so that we can test, assess and refine all of our working practices. If you require support email moves@dmnlogistics.co.uk in the first instance and one of our team will be in touch.
DMN advises fleets to plug end of contract cost leakage
/in DMN LogisticsDMN has advised fleet operators to stop making the same end of contract cost mistakes by implementing simple processes that focus on five key areas.
With a decade of first-hand experience based on tens of thousands of contract-hire and personal leasing defleet inspections and collections, DMN is encouraging fleet operators to implement some simple processes for drivers to cover off the five most common end of contract mistakes:
Spare keys
Drivers typically put the spare key in a ‘safe place’ never to be seen again. Ensure your driver has the spare key ready. A missing spare key can incur a charge from £250 upwards.
Vehicle cleanliness
End-of-life inspections are now being aborted due to the car not being clean. A charge of £45 is commonplace. Ensure that the car is presented in a clean condition.
Updated service book
If the car has a service book ensure this in the car, check the service schedule is up to date and the dealer stamp is in place prior to any inspection.
Tyre inflation kit readiness
Increasing numbers of cars now include a tyre inflation kit rather than a spare wheel. Make sure it is replaced, if used or missing, or face a charge of up to £120 for a full kit including the compressor.
Parcel shelf installation
That weekend adventure or trip to the household waste recycling centre often results in the driver forgetting to refit the parcel shelf. Doing so can cost upwards of £100 on hand-back.
According to DMN, the five leakage points are typical of the unnecessary costs incurred by fleet operators daily – something DMN believes is avoidable with heightened awareness and a little bit of forward planning.
“These five key areas are nothing revolutionary yet continue to plague fleet operators with unnecessary hassle and costly end of contract outlays,” explained Nick Chadaway, managing director of DMN.
“With a little bit of foresight, and some simple processes in place, these leakages can soon be plugged and, ultimately, will save businesses vast sums of money and alleviate individual driver stress.’
DMN is advising fleet operators that one of the first areas to update is the company car driver handbook and highlight the five basic cost leakage points as those requiring ongoing consideration throughout the life of the vehicle.
On top of this, DMN is recommending fleets introduce a pre- end of contract inspection to help control hand-back costs.
“An inspection, about two months out from end of contract gives the fleet operator additional insight as to any potential additional costs but also allows time to make an informed decision on the necessary course of action, and to ensure they have the usual suspects covered off,” explained Nick.
He continued, “With replacement cycles continuing to lengthen, averaging from 37 to 42 months depending on sources, these type of end of lease challenges are only set to get increasingly complex for fleet operators so implementing change now will start to stem the flow for the future.”
The complexity of vehicle inspections
/in DMN LogisticsOne of the most contentious aspects of vehicle asset management is around end of contract fair wear and tear but it needn’t be that way according to Nick Chadaway, managing director of vehicle movement specialists, DMN.
Fair wear and tear occurs when normal usage causes deterioration to a vehicle over the duration of a contract – that’s the simple explanation.
The BVRLA’s Fair Wear and Tear Guide is the industry standard and does a very good job of setting out the factors to consider.
Some operators choose to produce their own guidelines.
Either way, the key lies in communication with the fleet or consumer customer in the case of a PCP in the first instance and subsequent adherence to the standards set.
This is where consistency, efficiency and the training and skill of the vehicle inspector comes into play.
Disputes and resolutions
Supporting the case in point, during the first half of 2019, the BVRLA’s Alternative Dispute Resolution (ADR) service handled 1,317 complaint cases.
As in previous years, damage was the main reason for customer complaints, with common areas of contention relating to who is liable for causing the damage and whether damage should be deemed as fair wear and tear incurred during the length of the contract.
Amanda Brandon BVRLA head of operations, said, ‘It is extremely important for members to document everything when it comes to the condition of vehicles and the logging of any existing or new damage.’
The key principles
With any inspection, the overriding principle is to remove the subjectivity from the inspection process and ensure operations work transparently and in harmony, offering peace of mind to the end-user and security to the vehicle owner.
A detailed, process-driven inspection ensures that any vehicles delivered or collected to the end-user are ‘as expected’ with no surprises or unexpected complications smoothing the entire supply chain process and adding value.
Immediate removal from site of an inspected vehicle, following a customer’s sign off, is also another key component of providing them with a defining level of service as well as removal of ‘doubt’ from the process.
Behavioural psychology
These types of service provision play on the principles of behavioural psychology, proactively enhancing customer interactions and building brand recognition that decreases the chance of any contested agreements.
Deployment of technology, as in any business sector today, across all elements of the inspection process is a must in order to assist the process, to garner that all-important customer trust and create value.
However, one very important factor I have not referred to and, for me, is arguably the most critical is the human side of business.
People are still a company’s greatest asset and those carrying out vehicle inspections are ultimately the ‘face’ of the vehicle asset management business.
Well trained, well presented and, generally, friendly natured personnel help to make vehicle inspection a positive touch point for the asset manager’s brand – the aim for any service provision, especially one where the supplier has such little opportunity to directly ‘impress’ the driver customer.
For a consumer with a PCP deal from a broker the end of contract inspection process may be new to them and this will be the first time they have had contact with the broker after the initial vehicle delivery.
If they know what are signing for and why there should be no further customers issues to manage for the asset owner.
A good consumer experience is likely to encourage a repeat order for a new car, a bad experience means the consumer may well look to a new provider for their next car and share their pain points with family and friends thus further penalising the asset owner’s business.
The complexity of vehicle inspections is clearly far more than just arguing over wear and tear, in fact it’s quite the opposite.
As an asset owner get it right and it can be part of a great customer journey and add value to their business.
Get it wrong and you are forever dealing with dissatisfied customers and layering in costs to your business.
The choice truly is yours.
Local businesses team up to create Peaky Blinders masterpiece for motor industry fundraiser
/in DMN LogisticsTwo Digbeth based businesses have teamed up to produce a mobile, Birmingham-centric masterpiece in support of automotive charity, BEN.
The ‘Peaky Blinders’ themed car, based on the hit BBC drama by the same name, saw Digbeth based vehicle movement specialists DMN team up with local graffiti artist, Panda from GraffitiArtist.com to create a true tour de force.
Partnership approach
The partnership has seen a 2005 Saab 9-3 Sport, with 168,000 miles on the clock, converted into a mobile work of art which will take on a four-day, 2,000-mile road trip from Saturday 5 to Tuesday 8 October 2019 in aid of motor industry charity – Ben.
DMN – the vehicle movement people – will be taking part in Bangers4Ben, the annual, multi-day road trip supported by Car Dealer magazine. The event sees 50 teams purchase a car for less than £750, paint or decal the car accordingly and, having completed the rally, sell the car at auction to raise money for the charity.
Automotive industry charity
‘We are delighted to be supporting Ben – the automotive industry’s very own charity,’ said Nick Chadaway, managing director, DMN. ‘We are very proud of our roots here in Birmingham, which continues to play a leading role in the UK’s automotive sector, and by commissioning local graffiti supremo, Panda from GraffitiArtist.com, to manage our ‘look’ we have captured that just perfectly. The result is simply incredible.’
Panda commented, ‘It was pleasure working with Nick and the crew at DMN. Nick has supported the street art scene in Digbeth for the past two years through sponsoring a couple of artists at the High-Vis Street Culture Festival. DMN gets the whole vibe of Digbeth and are true team players – much love to them.’
Vehicle movements
DMN manages all kinds of vehicle movements on a local, regional and national basis for vehicle owners, fleet operators and sales outlets. To help support DMN’s fundraising efforts, visit: https://www.justgiving.com/fundraising/dmn
Ben is an independent charity and dedicated partner to the automotive industry, providing support for life for automotive people and their family dependents.
DMN enhances workplace wellbeing with the help of The Inspire Group
/in DMN LogisticsDMN, the vehicle movement people, has held the first of its inhouse workplace wellbeing programmes designed to inspire, engage and empower its workforce.
The programme, operated by The Inspire Group, saw DMN people engaged in a two-day programme of team building and activity courtesy of Inspire team coaches Steve Clarke, Alex Howard and Ryan Westley.
The Inspire Group exists to inspire sport, engage people and empower communities.
Business driven by people, supported by technology
‘We engaged with The Inspire Group to continue to develop our primary business assets – our people,’ explained DMN managing director, Nick Chadaway. ‘We are a business driven by people, supported by technology and ensuring we optimise both these areas within our business is crucial to our success.
‘We are working with The Inspire Group to help ensure our people are inspired, engaged and empowered as we continue to evolve in order to grow and meet our changing client requirements.’
‘We have received some great feedback from both the team at The Inspire Group and our team here in Birmingham and are excited to put into practice the learning and feedback which we have gained from the process.
Engage, inspire and empower
Steve Clarke, director at The Inspire Group, said, ‘We had a brilliant two days with the team at DMN, delivering the first of our workplace wellbeing assessments and look forward to continuing to work with them as part of our business engage, inspire and empower programme.’
Birmingham based DMN provides vehicle suppliers and fleet operators, throughout the UK, with all their vehicle inspection and movement needs.
Streamlined vehicle inspection services adding £500 per vehicle into the fleet owner supply chain
/in UncategorizedA new breed of streamlined vehicle inspection services is estimated to be adding in excess of £500 per vehicle to the fleet owner supply chain according to DMN.
DMN – the vehicle movement people – has calculated that for every fleet vehicle it processes using its new Inspect & Collect service, it could potentially be adding £500 back into the value chain for fleet operators. The value creation stems from a combination of accurate insight, consistent methodologies and real time data management.
End of vehicle lease costs
With end of lease repair costs in the region of £300 per vehicle; delayed vehicle collection costing upwards of £10 per day; and a near £300 premium on vehicles sold at the first time of offering at auction – vehicle inspection and collection services have a vital role to play in stemming leakage from the fleet owner value chain.
‘Time is money when it comes to vehicle asset management,’ explained DMN managing director, Nick Chadaway. ‘We understand that the biggest challenge for fleet owners is the speed it takes to get the vehicle inspected from the end user, collected and then delivered into the auction or remarketing site. This has real cost of anywhere between £10 – £30 a day attached, depending on the type of vehicle, meaning it could be costing businesses anywhere between £300 to £1,000 per month.’
Vehicle damage accurately recorded and processed
Nick continued, ‘The other major challenge is ensuring vehicle damage is accurately recorded and processed, in order that excess costs can be charged to the driver. Typical damage such as a couple of scuffed alloy wheels, and a small dent repair, could cost anywhere in the region of £300 to rectify highlighting just how key accurate and transparent inspections need to be.’
And with 75% of major fleet and leasing company returning stock sold through auction, Nick also points to the National Association of Motor Auctions (NAMA) insight which suggests there is a £289 premium on the value of vehicles sold at the first time of offering, reinforcing the need for accurate, speedy and transparent processes.
True enabler in reducing frictional cost
‘Inspect & Collect is a true enabler in reducing frictional cost within the fleet owner supply chain and helping to streamline what has traditionally been a dysfunctional series of loosely linked events,’ said Nick.
‘The reality is that £500 per vehicle is a modest value to place on a process which is becoming increasingly important for vehicle asset managers as the leasing market continues to grow and competition advances.’
Seamless vehicle inspection and collection
DMN’s Inspect & Collect service, which uses the company’s MIVIS real time automotive solutions App, offers a seamless vehicle inspection and collection solution to fleet operators across the UK. The App allows DMN trained personnel to image any vehicle damage, obtain a signature at the point of inspection and immediately remove a vehicle from the client’s location in one seamless transaction. The service includes a real time, fully configurable damage and charge matrix, and ensures all inspections are date, time stamped and geotagged.
DMN revs up for Bangers4Ben charity fundraiser
/in DMN LogisticsDMN is gearing up to help support the automotive industry’s independent charity – Ben – by taking part in this year’s Bangers4Ben fundraising road trip.
Bangers4Ben is a three-day, charity road trip fundraiser which takes place from 5-8 October 2019 and this year heads to France. The event, which is backed by Car Dealer Magazine, sees entrants from across the automotive industry pay an entry fee; purchase a car for less than £750; paint or decal the car to their taste; select suitable fancy dress; and, having completed the rally, sell the car at auction to raise money for Ben.
DMN’s ‘pride and joy’ for the event is a 2005/06 Saab 93 diesel with 167,000 miles on the clock. According to Gary Xuereb, inspections and sales director at DMN and driver for the event the Saab was a ‘real bargain and is perfect for the occasion’.
Bangers4Ben is an important event for Ben as funds raised help provide support for life for automotive people and their family dependents.
DMN introduces MIVIS V3 – the most powerful real-time automotive solutions App
/in DMN LogisticsDMN, the vehicle movement people, has introduced the most powerful version of its real-time automotive solutions App – MIVIS V3 – across its workforce.
MIVIS is a real-time automotive solutions App, designed to enhance communication and visibility across automotive operations. Web based and configurable across third party platforms, MIVIS offers immediate access to data – giving user’s transparency in real-time of each vehicle being inspected, collected or delivered.
Tailored to client’s requirements
Built from the ground up by DMN’s in-house development team, the robust, powerful and scalable solution can be tailored to each client’s specific requirements, no matter how complex.
MIVIS provides a multitude of functions to simplify the vehicle management process, including driver appraisals and fully-costed vehicle inspections.
Functionality is driven by process controls that guide the user, to ensure that a consistent approach is followed – providing reliable, uniformed and quality data.
All MIVIS information is available in real-time to ensure informed decisions can be made immediately, helping to enhance logistic efficiencies – adding value across the whole supply chain.
Inspect & Collect
Gary Xuereb, inspections and sales director at DMN said, ‘MIVIS sits at the very core of our newly formed Inspections and Customer Solutions division, and is the technology powering our Inspect & Collect service.
‘The real-time connectivity and tailored functionality of MIVIS provides a truly dynamic solution to assist businesses and fleet operators with their vehicle asset management portfolios, enhancing efficiencies and, ultimately, cost controls.’
Since launching MIVIS V3, DMN has already noted sizable developments across the business; from raised service levels, improved operational efficiencies and complete visibility – all due to real-time access to quality information. The seamless inclusion of Inspect & Collect has not only brought new business to DMN but also strengthened existing relationships by offering a competitive, inclusive service.
Automotive solutions
As the default solution for vehicle movements, the standard functions of MIVIS can be applied across other automotive solutions such as driver safety checks, compound inspections, post-repair audits, grey fleet checks, driver mileage, upstream remarketing and vehicle condition status.
MIVIS V3 features movement tracking; damage capture; vehicle imaging; costings; electronic signature capture; and geotagged inspection and appraisal for robust asset auditing.
To find out how MIVIS can support your automotive solutions, please contact Gary Xuereb on 02033 971 981 or email gary.xuereb@dmnlogistics.co.uk.