Poundland Demands Performance

It is not surprising that Poundland has selected Merridale diesel pumps and fuel management software, for the company's main UK distribution centre is located near Wolverhampton, in the same neighbourhood as the head office of MIS Fuel Monitoring.

Merridale fuel dispensing equipment was installed as part of the facilities of the main warehouse in Willenhall when it was built in 2000. The fuelling point supports a fleet of 54 delivery vehicles, comprising Volvo articulated units and rigids. These are augmented by rental vehicles during busy seasons. During the Christmas build up period there can be up to 100 vehicles operating a daily service, replenishing the company's chain of stores in England, Scotland and Wales.

Poundland's success has been built on a combination of value for money, variety and the use of leading-edge technology, a winning formula which has so far, enabled the company to achieve 'rapid, yet carefully controlled growth'. By the end of 2005 the company aims to have over 150 stores and a sales turnover in the region of £245 million.

"In many respects, the proximity of Merridale support facilities is fairly academic as the equipment is well proven and provides reliable day-to-day service," says Fleet Manager, Robert Parkes. "I do know that if I should have any problems, I can just pick up the phone and the response is immediate. And that's how it should be, irrespective of where our suppliers are located."

As a rule Poundland drivers are assigned specific vehicles on a 24 hour basis, to drive and take care of. According to Robert Parkes, this policy helps to develop a sense of pride in keeping the vehicles clean as well as professionalism on the road.

Each of the vehicles has a smart key which enables the driver to access the fuel pump. All transactions are then recorded by the Merridale Auditor control unit and details passed the office software for analysis and production of management reports.

Fuel usage data is used for various management functions ranging from accounts reconciliation to performance analysis. Transportation is a key element of the logistics operation and with vehicles averaging around 120,000 kilometres a year, fuel represents a significant part of the overall operating costs.

Says Robert Parkes: "Our management demand a lot of information. Every Monday morning I pull off all the previous week's Merridale reports showing mileages, what our vehicles are doing and how they are performing, and how much it is costing us."

"MPG figures are used to assess driver performance," adds Robert Parks. "This has become more important with the introduction of the Working Time Directive. We need to keep an eye on how the drivers are operating the vehicles. It follows that their skills as drivers will have an impact on the cost of fuel. Fuel has become more expensive, so if we have a driver below par on average MPG performance, we will need to take a closer look and maybe change his style of driving."

This use of technology in fuel management as well as the development of professional standards is consistent with the company's overall strategy for using technology to improve business performance. This strategy has resulted in providing management controls which are considered by many to be superior to those employed by other retailers.