UK Skills / Case Studies

Small Employer category Award

PS Transport

In 2006, following an organisational restructure, PS Transport announced its mission to be widely recognised as a highly professional company and to maintain its reputation as an excellent service provider. In order to achieve this, and to ensure continued financial success, it designed a training plan for all levels of employee. The outcome was that this helped ensure key profit targets were met boosting the company’s net worth despite a backdrop of the highest ever fuel prices.

PS Transport is a road haulage company that transports temperature controlled and ambient goods and general cargoes. It operates throughout the UK and customers include several blue chip manufacturers as well as brokers and importers.

In late 2006 there was a large scale change in staffing. A director was promoted to managing director, a new transport manager was introduced into the business, and several driving staff were replaced. On top of this, in the previous two financial years the company had only achieved breakeven and a 1% profit margin. A three year strategy was developed to turn the company around.

Year on year gross and net profit targets were set as well as targets to boost working capital. To achieve this targets were set to maintain accident costs below £10,000, to reduce fuel costs by £10000 and to trial VAT cash accounting and to reduce payment days from debtors. Training was needed at all levels of the company in order to carry out the strategy. A programme was developed that was tailored to individual needs.

To support the new MD in his move to a leadership role, he received bespoke training covering strategic planning and people management topics. This course was extended to nine sessions and from April 2007 he also received on-line mentoring.

The transport manager had previously been involved in transport but immediately prior to taking this role had worked in retail for two years. Certain aspects of knowledge needed refreshing, whilst others needed developing. He had comprehensive on the job training, as well as attending a series of one day courses. These included a briefing on transport legislation, best practice and training on road safety to enable delivery of in house presentations therefore contributing to the development of a safety culture.

To further boost the safety culture and to help adapt their behaviour to focus on efficiency drivers were put through an external one day driving course, as well as receiving bi-monthly safety briefs developed internally to be specific to the organisation.

Finally, the accounts assistant had no previous experience of dealing with credit control or the new VAT scheme. She received on the job training from a consultant to improve accounting systems, as well as regular, on-going meetings with the MD to discuss credit control.

The training has resulted in many business benefits, including a recorded reduction in fuel usage of between 12% and 55%, an overall increase in average mpg, vehicle accident costs reduced from £28,000 to £3,800, insurance premiums reduced by 50%, introduction of a new VAT scheme which has substantially improved working capital by approx £13,000 and the development of positive relationships with customers that has resulted in a constant payment pattern. In addition the firm retained its Investor in People status in November 2008, receiving very positive feedback. The ultimate result is that the company maintained breakeven in 2007 and then subsequently exceeded the gross profit target by 2% and achieved its net profit target in 2008.

Mr Richard Ellis, managing director at PS Transport, comments: “The training programme has provided links directly to specific targets in the business plan aimed at increasing operational efficiency and reducing risk, therefore impacting on profitability. An intangible of the programme is it has created the opportunity for staff to make a contribution to the success of the company and helped to gain support for the achievement of our aims.”

PS Transport has taken the Skills Pledge.

ENDS

Entry name: PS Transport
Entry no: 90863
Location: Estate Road No4, South Humberside Ind Estate, Grimsby, South Humberside, DN31 2TB
Region: Yorkshire and Humberside

For further information contact: 
Antonia Lee 020 7429 2825 / Kate Moloughney 020 7429 2827 
antonia.lee@ukskills.org.uk
kate.moloughney@ukskills.org.uk