Www.celesio.comApril 2011, CCEA1 Geoff Wright Fleet Services Manager.

April 2011, CCEA1 www.celesio.com

Geoff Wright Fleet Services Manager

www.celesio.com

Contents :

● Celesio Group UK

● The Fleet

● Achievements in 2012

● Focus for 2013

● Summary

www.celesio.com

Celesio Group (UK)

National wholesale centre's 1600 retail stores Full UK Coverage

Twice Daily Deliveries 6 days per week 4th emergency service

60mins+ lead time 20,000 W'sale deliveries per day 16,000 home deliveries per day

Highly regulated sector Ambient and fridge lines Home Office and MHRA approved

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UK Fleet

Large goods vehicles All with onboard technology, Innovative temperature controlled environment

Commercial van fleet Revolutionary “pharma van” technology.

Car fleet Safe & environmentally focused car fleet, utilising two leading manufacturers maximising modern technology, through a WLC model

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Car policy

We drive the Celesio AG Pan European Car policy

The policy drives safety and efficiency from two leading manufacturers brands

Focus on Ncap, minimising the CO2 emissions & whole life costs

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Celesio key transportation drivers

Transportation is a Critical part of the Celesio UK

Value Chain

Ensuring we offer the most

attractive solutions for

all our drivers

Transportation can be a

significant point of

difference

Need to Mitigate

significant and continual cost

increase pressures

Desire to ensure we

operating our fleet in the

most environmentally

responsible way

Putting people at the heart of Transportation strategy and it’s execution

Creating a long term

Transportation strategy that

has the whole organisations support and

buy in.

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Achievements in 2012

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The magnificent 7

The UK’s largest SAFED, NVQ, and accredited driver training programme (EiPD)

1.3million product miles taken off the road

First business in the UK to be awarded & retain FTA Van Excellence

Delivered a 5% reduction in our car, 10% in LCV & 5% in HGV accidents

Maintained the 2011 MPG fuel improvement across our LCV Fleet

Implemented a new car policy, which included NCAP, Co2, and WLC

Industry leading product integrity with our new ‘Pharma Van’

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Car policy improvements

● Major car fleet policy review in 2012

● New policy focuses on Whole Life Cost (WLC), Co2 and NCAP (using market leading models)

● Reduced average fleet list Co2 by 10% during 2012

● Implemented multi-leasing benchmarking model to drive enhanced value & Competition

● Implemented a Just Add Fuel – Supplier Partnership Forum

● Creates partnership approach to fleet management

● 100% compliance to our online risk management system

● Automated DVLA checks / Grey Fleet management

● Risk assessment modules / online training

● Be-spoke licence checking to address high risk drivers

● Review licence history against claims experience

● Focus on incident aversion rather than accident management

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Fleet Strategy

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Risk management● On line risk assessment across the whole fleet, (focusing in on the identified risk drivers)● Be-spoke training to address the areas of risk ● Identification of repeat offenders with a strict disciplinary process● Winter tyre program continues on entire LCV ● Delivered 5% Car, 10% LCV, & 5% HGV reduction in accidents● Developed a program for the Grey fleet● New car fleet policy ensuring that N-cap safety was at the front of our decision process● Commercial van is the leading N-cap rated light commercial (Fleet News January 2013)

Achieved in an environment that is driven by Industry increase in 3 rd party & legal costs

No of Accidents 2011 vs 2012

0

20

40

60

80

100

120

140

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

2011

2012

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Continues focus on CO2 reduction

Working in partnership with our leasing

provider we have had a 5 year plan to

reduce our emissions without adversely

affecting the model choice to our drivers.

The move to a whole life cost model for leasing

ensures the CO2 focus continues, and keeps the

program on schedule

Embracing the latest engine technology supplied by

our leading manufacturers

We are currently average of 129gms and

aiming to below 120gms by 2013

CO2

0

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010 2011 2012

CO2

0

20

40

60

80

100

120

140

160

180

2007 2008 2009 2010 2011 2012

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Environmental responsibility

● Following the 2011 SAFED training programme, we have maintained our focus with a relentless focus on MPG performance

● Increasing our Aerodynamic trailers fleet to 60% , & the further scheduling efficiencies taking additional miles off the road, with both the Van & LGV fleets.

● Program of works to consolidate the LGV deliveries across the different operations● Our LCV van fleet MPG performance focus in 2012, maintained our saving eliminating

over 1,100 tonnes of Co2.

AAH Van Fleet MPG

29.50

30.00

30.50

31.00

31.50

32.00

32.50

Jan-11

Feb-11

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Dec-12

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Grey fleet management

Identified as a major area of risk

● Program designed to identify were the company was at risk

● Removed where ever possible the use of own vehicles

● Working with our manufacturer partners to operate an innovative pool car system

● Where we have to use grey fleet we ensure all drivers are educated in the correct policy requirement, have correct business insurance, with a robust audit process to ensure compliance.

● Greater control & route planning of our Home deliveries has seen a consolidation of delivery routes onto our Lloyds home delivery fleet

● Robust expense claims process and management

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Focus for 2013

Operating costs● Fuel cost continue to be a key focus on both fuel cards & our bulk fuel purchase● Use of industry data to ensure we procure fuel effectively● Continuation of the focus on our driver training program (EiPD) with all new drivers going through

the program ● Having maintained the MPG performance throughout 2012 we will continue with the positive PR in

this area● Use of ‘Black Box’ technology● Upgrading of all of our bunkered fuel management systems to kiss-key technology

Legislation changes● Using our contacts and membership of key industry associations keep abreast of changes that

could or will influence our business

De-hire● This is an area for high focus in 2013 with our drivers being challenged to manage their vehicles

appropriately, we have wrapped this up into our strap line-:

De-hire is a consequence of behaviour

Being able to adapt the operation of our fleet to meet both the Government and customer demandsBeing able to adapt the operation of our fleet to meet both the Government and customer demands

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Summary

Our role has been to place fleet and distribution at the heart of our organisation● We have strived to ensure the entire organisation has converged around this priority● This convergence has made a significant step change in our approach and our results● Delivering significant results & achievements in developing enhanced:

● Safety● Efficiency ● Environmental advancements● Driver professional development● Service and Operational Excellence● Fleet management● Customer satisfaction & loyalty

● We have raised the bar for service excellence because most importantly we believe;

“Its not just what we do that is important to us,

it is the way in which we do things”

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Thank you for your time & attention