Money not safety talks to boards of directors
Boards of directors understand money, which is increasingly the tack used by fleet decisionmakers to justify why their employer should put in place a comprehensive occupational road risk management policy...
Paul Gallemore estimates that it takes a return on sales of £2,312 to replace a broken wing mirror
While, directors often turn a blind eye to the moral and legal obligations surrounding at-work driver safety, companies that have successfully introduced safe-driving initiatives frequently say that it is the financial savings that clinch the go-ahead from the board.
Wolseley, the UK’s leading distributor of plumbing and heating products, is championing the Government’s ‘Driving for Better Business’ initiative, which is managed by RoadSafe. When highlighting the safe driving solutions it has introduced, the company uses one simple calculation to encourage other corporates to follow its lead – the case of the broken wing mirror.
Many companies put wing mirror damage in the ‘accidents will happen’ category. However, Wolseley has calculated that to replace a damaged wing mirror will cost £185 – mirror glass/ backing £80; labour to fit glass £25; travel to and from workshop £40 (60 minutes); waiting for the repairs £40 (60 minutes) – and that excludes costs associated with employee lost time, replacement vehicles and late deliveries.
As a result of a broken wing mirror incident, Wolseley has calculated that the additional revenue required to generate £185 at a return on sales of 8% is £2,312.
Paul Gallemore, head of health, safety and environment at Wolseley, said: “The cost of road crashes is huge and this simple example and calculation should highlight to all companies the importance of risk reduction. In many cases, businesses must generate huge increases in sales to pay for costs associated with vehicle damage.”
Wolseley operates a 6,000- vehicle fleet split almost equally between cars and commercial vehicles. In total the company has 7,500 drivers (case study RoadSafe: winter 2006).
Mr Gallemore said: “With one of the largest vehicle fleets in the UK, we recognise the importance of demonstrating best practice in approaches to road safety and we are delighted to be involved in ‘Driving for Better Business’ campaign.
“Our role as a ‘business champion’ will involve participating at RoadSafe’s workshops and presenting at various conferences throughout the year to take the road safety message to industry and encourage others in our market sector to adopt similar policies.”