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February
                      2013




Fuel Efficient Driver Training
Programme
Results & Reflections




New Zealand Post Group: New Zealand Post Limited.
Who are we?
              New Zealand Post Group
              Courierpost
              ─   Nationwide Coverage from Kaitaia to Invercargill
              ─   Overnight Express
              ─   2-3 Day Standard Mail and Economy Courier
              ─   Print Products (newspapers and magazines)
              ─   13.95 Million Km travelled per annum (55,000Km per
                  day)
              RuralPost
              ─   Nation-wide service to rural New Zealand, 99.89% of
                  the network receives 5 or 6 day a week delivery with
                  the remaining delivery points receiving a 1 - 3 day a
                  week service.
              ─   Services include delivery of letters, parcels, private
                  bags, couriers and circulars.
              ─   Pick-up service for outgoing mail and prepaid courier
                  and parcel items.




         2                  Fuel Efficient Driver Training Programme
Background to Sustainability at Post
 NZ Post has an overall commitment to Corporate Sustainability

 We achieved a 16.1% reduction on our 2007-08 baseline, and are now pursuing a further
 2% per year

 Emissions from our fleet account for over 75% of this baseline so fuel reductions are a
 significant focus

 Established Action Groups to focus on identifying and implementing initiatives to reduce
 environmental impact
 ─ Energy & Waste, achieved 20% reductions between 2007-12
 ─ Transport, achieved 10% reductions between 2007-12


 Transport Action Group has led out this Training programme as part of its initiatives




                           3                                  Fuel Efficient Driver Training Programme
Our Fleet
 Fleet composition:
 ─   ~120 Trucks
 ─   ~900 Vans
 ─   ~300 mixed cars
 ─   ~350 assorted vehicles inc. forklifts, corporate
     vehicles
 ─   ~200 motorbikes


 Delivery Services are generally contracted to
 owner-drivers
 ─   Fuel part of contract payment package
 Vehicle standards and rollover obligations in
 place
 Sales fleets generally hybrid vehicles owned by
 NZ Post Group




                                     4                  Fuel Efficient Driver Training Programme
Driver Training Programme
Development
 Driver behaviour identified as a major variable in
 fuel efficiency of our fleet


 Trailed a range of programmes, challenges with
 cost and uptake


 Decided to develop our own offering – same
 content, unique delivery


 Initial focus of Long Haul Courier (120 drivers)
 ─   B-Trains & 6 Wheelers




                                5                     Fuel Efficient Driver Training Programme
Our Programme
                Network of Eight driver trainers in place to
                deliver programme nationwide
                Supporting material developed and learning
                outcomes in place to ensure consistency
                between trainers
                Trainers are all contracted owner/drivers – more
                reputability
                Effectively compulsory for Transport fleet
                contractors
                Trainers were engaged in the development of
                resources and the general approach – built
                ownership
                Made to suit the needs of the trainers by being
                adaptable
                A centralised administration approach allows
                tracking of results across the fleet




         6                     Fuel Efficient Driver Training Programme
Format & Delivery
 On-the-road training model with some classroom instruction
 Takes about ½ day
 General format:
 ─ Pre-training test drive
 ─ Training/coaching/classroom session
 ─ Post-training test drive
 Can accommodate groups
 One-on-one approach seen as valuable by participants
 Backed up with take-home resources and tip-sheets




                       7                            Fuel Efficient Driver Training Programme
Challenges & Mitigation
 Fuel efficient driving challenges in general
 ─   Tight operating windows
        Demonstrations that F/E is not necessarily slower
 ─   “Not my fuel”
        Reminding O/D’s that they pay for fuel
 ─   Degree of control over contractors/ subcontractors
 ─   Poor road conditions in some areas


 Programme specific challenges
 ─   Uptake
        Individual contact from Senior Managers
 ─   “Don’t teach me how to suck eggs”
        Driver trainers were carefully selected
 ─   Communicating success
        Exploring league tables or similar competitions
 ─   Rural Post challenge of delivering training
     economically across a spread-out group of people




                                         8                   Fuel Efficient Driver Training Programme
Results
 Approx 50 drivers have completed training since October
 ─ Aiming for 120 by end FY 11/12


 Day of training reductions between 3% and 40% after training, average 20%
 reduction in fuel use


 Sustained reductions around 5% across fleet

 We estimated a reduction potential of 5%, so we are on track

 Have generated interest in other parts of our business e.g. sales




                         9                            Fuel Efficient Driver Training Programme
Next steps
 Complete all 120 heavy truck drivers
 Roll out a similar programme to RuralPost
 ─ Self-learning based due to geographic
     spread
 ─ Focus on high ROI drivers
 ─ Huge variance in run length, focus on high
     Km’s
 ─ Estimated 50 RP drivers to start
 Opportunity to add Fuel Efficiency into other
 training packages
 Consider some re-training in cases of poor
 performance




                             10                  Fuel Efficient Driver Training Programme
End




      Questions are welcome, or email:
        tom.croskery@nzpost.co.nz


            11                Fuel Efficient Driver Training Programme

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Fuel efficient driver training NZ Post

  • 1. February 2013 Fuel Efficient Driver Training Programme Results & Reflections New Zealand Post Group: New Zealand Post Limited.
  • 2. Who are we? New Zealand Post Group Courierpost ─ Nationwide Coverage from Kaitaia to Invercargill ─ Overnight Express ─ 2-3 Day Standard Mail and Economy Courier ─ Print Products (newspapers and magazines) ─ 13.95 Million Km travelled per annum (55,000Km per day) RuralPost ─ Nation-wide service to rural New Zealand, 99.89% of the network receives 5 or 6 day a week delivery with the remaining delivery points receiving a 1 - 3 day a week service. ─ Services include delivery of letters, parcels, private bags, couriers and circulars. ─ Pick-up service for outgoing mail and prepaid courier and parcel items. 2 Fuel Efficient Driver Training Programme
  • 3. Background to Sustainability at Post NZ Post has an overall commitment to Corporate Sustainability We achieved a 16.1% reduction on our 2007-08 baseline, and are now pursuing a further 2% per year Emissions from our fleet account for over 75% of this baseline so fuel reductions are a significant focus Established Action Groups to focus on identifying and implementing initiatives to reduce environmental impact ─ Energy & Waste, achieved 20% reductions between 2007-12 ─ Transport, achieved 10% reductions between 2007-12 Transport Action Group has led out this Training programme as part of its initiatives 3 Fuel Efficient Driver Training Programme
  • 4. Our Fleet Fleet composition: ─ ~120 Trucks ─ ~900 Vans ─ ~300 mixed cars ─ ~350 assorted vehicles inc. forklifts, corporate vehicles ─ ~200 motorbikes Delivery Services are generally contracted to owner-drivers ─ Fuel part of contract payment package Vehicle standards and rollover obligations in place Sales fleets generally hybrid vehicles owned by NZ Post Group 4 Fuel Efficient Driver Training Programme
  • 5. Driver Training Programme Development Driver behaviour identified as a major variable in fuel efficiency of our fleet Trailed a range of programmes, challenges with cost and uptake Decided to develop our own offering – same content, unique delivery Initial focus of Long Haul Courier (120 drivers) ─ B-Trains & 6 Wheelers 5 Fuel Efficient Driver Training Programme
  • 6. Our Programme Network of Eight driver trainers in place to deliver programme nationwide Supporting material developed and learning outcomes in place to ensure consistency between trainers Trainers are all contracted owner/drivers – more reputability Effectively compulsory for Transport fleet contractors Trainers were engaged in the development of resources and the general approach – built ownership Made to suit the needs of the trainers by being adaptable A centralised administration approach allows tracking of results across the fleet 6 Fuel Efficient Driver Training Programme
  • 7. Format & Delivery On-the-road training model with some classroom instruction Takes about ½ day General format: ─ Pre-training test drive ─ Training/coaching/classroom session ─ Post-training test drive Can accommodate groups One-on-one approach seen as valuable by participants Backed up with take-home resources and tip-sheets 7 Fuel Efficient Driver Training Programme
  • 8. Challenges & Mitigation Fuel efficient driving challenges in general ─ Tight operating windows  Demonstrations that F/E is not necessarily slower ─ “Not my fuel”  Reminding O/D’s that they pay for fuel ─ Degree of control over contractors/ subcontractors ─ Poor road conditions in some areas Programme specific challenges ─ Uptake  Individual contact from Senior Managers ─ “Don’t teach me how to suck eggs”  Driver trainers were carefully selected ─ Communicating success  Exploring league tables or similar competitions ─ Rural Post challenge of delivering training economically across a spread-out group of people 8 Fuel Efficient Driver Training Programme
  • 9. Results Approx 50 drivers have completed training since October ─ Aiming for 120 by end FY 11/12 Day of training reductions between 3% and 40% after training, average 20% reduction in fuel use Sustained reductions around 5% across fleet We estimated a reduction potential of 5%, so we are on track Have generated interest in other parts of our business e.g. sales 9 Fuel Efficient Driver Training Programme
  • 10. Next steps Complete all 120 heavy truck drivers Roll out a similar programme to RuralPost ─ Self-learning based due to geographic spread ─ Focus on high ROI drivers ─ Huge variance in run length, focus on high Km’s ─ Estimated 50 RP drivers to start Opportunity to add Fuel Efficiency into other training packages Consider some re-training in cases of poor performance 10 Fuel Efficient Driver Training Programme
  • 11. End Questions are welcome, or email: tom.croskery@nzpost.co.nz 11 Fuel Efficient Driver Training Programme