Training puts transport company on road to success

Citation

(2011), "Training puts transport company on road to success", Industrial and Commercial Training, Vol. 43 No. 4. https://doi.org/10.1108/ict.2011.03743daa.003

Training puts transport company on road to success

Article Type: Notes and news From: Industrial and Commercial Training, Volume 43, Issue 3

A UK road-haulage company that designed a training plan for all levels of employee has managed to meet key profit targets despite high fuel prices.

PS Transport transports temperature-controlled and ambient goods and general cargoes. It operates throughout the UK. Customers include blue-chip manufacturers as well as brokers and importers.

The company had undergone significant staff changes. A director has been promoted to managing director, a new transport manager has been brought it and several drivers have been replaced. On top of this, in the previous two financial years the company had only achieved break-even and a 1 per cent profit margin. A three-year strategy was developed to turn the company around.

Year-on-year profit targets were set as well as targets to boost working capital. There were also targets to keep accident costs below £10,000 and to reduce fuel costs by £10,000. The company also sought to reduce payment days from debtors. Training was needed at all levels of the company in order to carry out the strategy. A program was developed that was tailored to individual needs.

The new managing director received bespoke training covering strategic planning and people management. He also received on-line mentoring.

The transport manager had previously been involved in transport but immediately before taking this role had worked in retail for two years. Certain aspects of knowledge needed refreshing, while others needed developing. He had comprehensive on-the-job training, and attended a series of one-day courses. These included a briefing on transport legislation and training on road safety to enable him to deliver in-house presentations on this topic.

Drivers were put through an external one-day course on driving safely and efficiently. They also received bi-monthly safety briefs, developed internally to be specific to the organization.

The accounts assistant, who had no experience of dealing with credit control or the new VAT scheme, received on-the-job training from a consultant to improve accounting systems. She also attended regular meetings with the managing director to discuss credit control.

The training has resulted in a recorded reduction in fuel usage of between 12 per cent and 55 per cent, an overall increase in average miles per gallon, vehicle accident costs reduced from £28,000 to £3,800, insurance premiums reduced by 50 per cent, the introduction of a new VAT scheme that has increased working capital by around £13,000 and the development of positive relationships with customers that have resulted in a constant payment pattern. In addition, the firm retained its Investor in People status.

Richard Ellis, Managing Director, said: “The training program has provided links directly to specific targets in the business plan aimed at increasing operational efficiency and reducing risk, therefore affecting profitability. An intangible of the program is that it has created the opportunity for staff to make a contribution to the success of the company and has helped to gain support for the achievement of our aims.”

The company won a UK National Training Award.