Best Value for Cannock Chase Council

In addition to the benefits of purchasing diesel in bulk, many councils are now taking advantage of more sophisticated computer-based systems to monitor fuel usage and achieve further economies. The data can be sorted and analysed to manage fleet costs, benchmark new vehicles and improve on storage security.

For the Contract Services Department of Cannock Chase Council, the upgrade to a more modern fuel monitoring system has also helped in winning a valuable contract for providing refuse collection services for the district.

This council uses a Merridale Auditor FX dispenser control unit, installed as part of a major refurbishment of the fuel storage facilities at its main depot in Hawks Green, Cannock. Developed by MIS Fuel Monitoring of Wolverhampton, the Merridale system is a popular choice with municipal authorities. Over the last two years some 30 systems have been supplied to council depots throughout the UK.

The Cannock Chase authority covers a mainly rural district with two urban areas, Rugeley on one side and Cannock, Heath Hayes and Norton Canes located on the south side of the Chase parkland. The council operates a mixed fleet of 100 vehicles and with fuel consumption of around 4.5 thousand litres a week, the annual fuel bill runs to £100K.

A half of the council's fleet is made up of LDV Pilot and Vauxhall Combo vans and light tippers for building maintenance. The highway maintenance section operates tippers, gritters, road rollers and compressors. The council also operates a range of sweepers and a drain clearance tanker. The latest additions are eight refuse vehicles, purchased following the award of the contract for the council's domestic waste collection services.

This contract was previously out-sourced to a private contractor. "A decisive factor in winning this back was having a clear understanding of the costs involved in operating these vehicles," explains direct works manager David Parker. "Refuse vehicles are extremely fuel hungry. In operation they spend most of the time either idling or moving in first gear and they also use various power take-offs for lifting bins, compacting the load and tipping."

"The use of private contractors has underlined the need for delivering value for money. By investing in better information technology we have been able to turn the tables by taking advantage of our own workforce and local resources to offer a more competitive service".

As well as fuel consumption being a crucial factor, David Parker puts the success of the in-house bid down to the fact that the council's vehicles do not have to travel long distances to the tip. "The Merridale Auditor equipment allows us to measure fuel consumption and can therefore keep an eye on the main element of our operating costs."

Information from the Merridale Auditor is downloaded weekly into the Council's overall cost management system. Fuel usage data is combined with workshop servicing and other out-goings such as labour costs and insurance to provide a complete record of the cost of operating all of its vehicles.

Another benefit provided by the Merridale system is the facility to sort vehicle records so as well as managing costs on a departmental basis, reports can be created showing the cost performance for different types of vehicle, across all departments.

Most of the vehicles are allocated to one or two specific drivers so this information is useful in showing who is getting the best fuel consumption, and of equal importance it also highlights any anomalies. If not just bad practice in driving style, these could indicate unauthorised fuelling or possible maintenance problems. The reports also provide an objective assessment to assist in the future procurement of new vehicles.

"Whilst our maxim is to seek best value rather than the lowest price, you have got to be sure of your information to understand it. The Merridale system provides the flexibility we need in producing fleet management reports," says David Parker.