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.
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.
DMN targets future growth as it develops expertise and evolves to meet changing client requirements
/in DMN LogisticsVehicle movement specialists, DMN is targeting future growth by developing its core business philosophy of ‘driven by people, supported by technology’ as it responds to changing customer needs.
Under the leadership of managing director Nick Chadaway, DMN has made a series of changes across its business including refining and enhancing its service offerings of: vehicle movements; Inspect & Collect; outsourced staff solutions; and MIVIS – the company’s vehicle movement and inspection solutions app.
Enhanced solutions
The refreshed impetus has already seen DMN enhance its solution provisions to clients across the UK including BT Fleet, Fleet Assist and Royal Mail.
A key focus for the business has been the development of its Inspect & Collect service which continues to elevate the levels of consistency and professionalism within the field of vehicle inspections and collections.
Utilising skilled staff and powered by a consistent technology driven processes, Inspect & Collect ensures all vehicles are inspected to either BVRLA or a customer’s own standards. The service ensures any vehicle damage is imaged, a signature is obtained at the point of inspection in order to minimise any potential disputes and, more importantly, the vehicle is immediately removed from the client’s location in one seamless transaction.
The service is supported by DMN’s own digital systems App – MIVIS which provides real time vehicle tracking, damage capture, vehicle imaging and electronic signature capabilities.
Refreshed business focus
‘It really is an exciting time for us as a business right now,’ explained DMN managing director, Nick Chadaway. ‘Our refreshed business focus has allowed us to improve our core provisions of quality service, high calibre personnel and intelligent technology. This is providing us with a sound footing on which to deliver enhanced services in both the physical and digital space with data a key driver in providing automotive insight to current and future potential partners.’
The ‘one stop shop’ for vehicle movement needs, DMN is currently undergoing a major recruitment drive to cater for the increased demand for its Inspect & Collect and outsourced staff solutions as part of its planned future growth.
To find out more, visit: https://www.dmnfleetservices.co.uk/careers/
DMN Logistics pushes growth pedal to the metal
/in DMN LogisticsA Birmingham logistics specialist is gearing up for record growth following significant investment in new premises, vehicles and branding.
DMN Logistics, which offers a range of vehicle logistics services including collection and delivery, storage, maintenance and specialist driver recruitment, has acquired two new premises in the Digbeth area of the city spanning over 16,000 square feet to house its head office and vehicle storage functions.
The company, which employs 50 people in Birmingham and a further 155 nationwide and handles over 65,000 vehicle deliveries annually, has also made significant investments in its covered vehicle transportation offering, acquiring 5 new car trailers for transporting prestige marques and electric vehicles.
These developments, coupled with further investments in fresh company branding, a new customer mobile app and website, put the £4.9 million turnover business firmly on track for record double digit growth this year as it looks to build on its top 5 positioning within the UK vehicle logistics market.
Commenting on the news, Nick Chadaway, managing director of the company, says:
“From relatively humble beginnings in 2010, we have steadily grown the business year on year and gained a solid reputation as a trusted supplier to commercial vehicle users the length of the UK. We set out our stall as a people-focussed operation from day one and this philosophy continues to serve the business well to this day, helping us retain prized blue-chip clients such at BT Fleet and CAT UK.
“Looking ahead, we see growing demand for our covered vehicle transport service, especially given the rise to prominence of electric vehicles and will be actively focussing on developing our driver services offering as more and more customers opt to rent drivers for their fleets on a short-term basis.”
DMN Logistics serves over 110 commercial clients nationwide, offering vehicle collection and delivery services from Aberdeen to Zennor. For further information, visit www.dmnfleetservices.co.uk.
Look after employees as well as customers
/in DMN LogisticsI came across an article recently that showed the automotive sector is now bottom of the league table for customer service, below insurance and utility companies. The article also showed that honesty is the most valued trait in the way a company deals with customers, cited as a top three trait by 50% of people, followed by efficiency (48%) and reliability (44%).
One of the biggest mistakes lots of businesses make is not being both customer and employee centric. If you look after your employees, they will look after your customers.
Being slow to respond to web, email and phone enquiries is certain to give potential customers a bad impression. Ignoring customers is a cardinal sin. So everyone that touches a customer should be trained to respond quickly to all enquiries.
It may seem trivial, but when you consider that 85% of consumers that don’t have a call answered will never call back, and three quarters won’t leave an answerphone message either (I certainly won’t !).
A well trained, and engaged employee will go the extra mile to respond to all enquiries and shine for your business – we have lots of them here at DMN !
Social Media – Business use?
/in Social MediaWe’ve been using Social Media for DMN Logistics for around 4 years, and we’ve really enjoyed some of the campaigns and feedback we’ve received through the various platforms. We have a modest amount of followers, but I thought I’d do some research into just how big the reach is on these rapidly expanding sites, and see if we are doing it right ?
Facebook – 1.13 billion daily active users, more than 50% of which are mobile only. They add 500,000 new users every day, that’s 6 new profiles per second !
In the business world, 50 million small businesses have active pages, and 3 million of these are paying for advertising. 75% of brands on Facebook promote their posts (promote = pay for Facebook to display their posts to users that may not ordinarily see them)
Twitter – 100 million daily active users, 82% of which are using mobiles to access. 44% of accounts created left before they were ever used.
On the business side of things, 130000 businesses advertise actively on Twitter, with 83% of big business engaging with their customers this way.
Linkedin – (Facebook for grown-ups) has 470 million active users, with 25% using the site monthly. 1 of every 3 professionals on the planet is on LinkedIn. There are over 4 million company pages which drive more traffic to blogs and websites than Facebook and Twitter combined. 87% of recruiters use LinkedIn in the recruiting process. 87% !
What does all this mean ? It means that we’re off to start advertising on LinkedIn to find some more of the best possible staff and drivers for our business ! (And we’re going to Facebook to see that video of the angry sheep…).