Topic 6: ROAD FREIGHT TRANSPORT: VEHICLE SELECTION

Introduction
As with most of the decisions that have to be taken in physical distribution, there
are a number of aspects that need to be considered when trying to make the most
appropriate choice of vehicle for a vehicle fleet. Vehicle selection decisions
should not be made in isolation. It is essential that all the various aspects should
be considered together before any final conclusions are drawn

Objectives
Objectives by the end of this topic you should be able to:
 Explain the criteria for vehicle selection
 Describe the various vehicle body types


Learning activities

Learning Activity 6.1: Reading

Read the provided topic notes on road freight transport: vehicle selection
Learning Activity 6.2: Journal.
In 200 words summarize the legal factors to consider in vehicle selection. Post your
contribution in the provided journal.
Post your article in the journal provided
Learning Activity 6.3: Discussion
Discuss wider factors to consider in vehicle selection
Post your discussion in the provided discussion forum
Assessment
Topic Resources

URL Links
 Topic 6 Notes

There are three primary areas that need to be carefully assessed – efficiency, economy
and legality.

Efficiency, in this context, means the most effective way to do the job, based on a
number of important factors. The truck should be fit for purpose. These factors might
include:

• the nature of the operation, ie annual mileage, the terrain, climate, etc;

• the characteristics of the load, ie physical features, weight, etc;

• The specification of the vehicle, ie engine, gearbox, axle configuration, body, etc.
The area of economy is concerned with the purchase price and operating costs
of different choices of vehicle. There are a number of points that should be
taken into account. These should be analysed and compared with the costs and
performance of the various alternative vehicles. The main points concerning
economy are:

• the fixed cost of a vehicle, ie depreciation, licenses, insurance, etc;

• the variable cost of a vehicle, ie fuel, tyres, maintenance, etc;

• the residual value of a vehicle (some types of uncommon vehicle do not have good
resale values);

• the whole life costs of the vehicle, ie a calculation of the above cost over a given
life of the vehicle; utilization factors, ie fuel efficiency, other costs per
mile/kilometre, etc;

• Vehicle acquisition, ie outright purchase, contract hire, lease, etc.

• The third and final area for consideration in vehicle selection is that of legality. This
emphasizes the need to ensure that vehicles are selected and operated within
the existing transport legislation. Transport law is complicated and ever-
changing, so constant awareness is imperative. The major factors concern:
• operator’s licenses;

• construction and use regulations;

• weights and dimensions of vehicles;

• health and safety features, ie seatbelts, handrails, walkways, etc;

• mandatory environmental features, ie airbrake silencers, emission controls, etc.

• In this and the following two chapters, these various aspects are considered in some
detail. This chapter is concerned with those aspects of vehicle selection that
relate to the physical effectiveness of the vehicle for the particular job in hand.

Main vehicle types

There is a variety of vehicle types. It is important to be clear as to the precise

definition of each type, because these definitions are typically used throughout
the transport legislation laid down by different governments. The main types
described in this section reflect UK government definitions and are therefore
provided as examples. The motor vehicle is a mechanically propelled vehicle
intended for use on roads. Mechanical propulsion covers all those methods
that exclude the use of human or animal power. If a vehicle is driven by petrol
or diesel, by gas turbine, by electric battery or by steam generation, it is
classified as a motor vehicle. A goods vehicle is a vehicle or a trailer adapted
or constructed to carry a load. The term covers all such vehicles, but there are
also distinct definitions that relate to the different weights of goods vehicles. A
trailer is a goods vehicle that is drawn by a motor vehicle. There are two main
types of trailer: 1) a draw-bar trailer that has at least four wheels and actually
supports its load of its own accord; and 2) a semi-trailer, which is a trailer that
forms part of an articulated vehicle. This trailer does not support the load on
its wheels, but only when it is standing with the use of legs or jacks at one end.

• International operations also present some particular problems that need to be

taken into account. It is likely that all types of terrain maybe encountered –
 flat, hilly and mountainous. Clearly, distances will be very long. In addition, it
is important to minimize the likelihood of breakdowns occurring in remote
areas where it may be very expensive to complete repairs.

• Vehicles undertaking international operations need to be very powerful and

very reliable. Such vehicles tend to represent the expensive end of the goods vehicle
market. With the relaxa- tion of trade and political barriers in Europe, North America
and other continents, this category of operation has become significantly more
important.

• As we have seen when vehicles are being selected, many factors need to be
taken into consideration

• before any choices are made. Prior to selecting a specific type of vehicle, it is
worth making a checklist of the requirements that the operation demands. The
following list is not exhaustive but does serve to illustrate the potential complexity
involved:

•
• Product characteristics:

– size;

– weight;

– unitization;

– susceptibility to damage;

– hazardous;

– frozen;

– liquid;

– powder;

– hygiene requirements (food);

 – live animals.

• Method of loading or delivery:

– by fork-lift truck;

– by manual handling;

– by overhead gantry (height limitations);

– by straddle carrier (containers);

– from the side, rear, front, top or bottom (oil tankers).

Restrictions at the point of delivery or loading:

– narrow roads;

– low bridges;

– weight restrictions;

– night-time restrictions because of noise;

– lack of material handling equipment;

– low or limited building access.

Terrain to be covered:

– motorways;

– urban roads;

– low-quality rural roads, lanes or graded roads;

– mountainous;

– flat geography;

– extremes of temperature: extreme heat or cold.

Fuel type:

– diesel;

– petrol;

– LPG;

– natural gas (CNG or LNG).

Vehicle configuration:

– articulated tractor and trailer;

– two-, three- or four-axle rigid vehicle;

– draw-bar combination;

– small goods vehicle.

Body types:

– curtain-sided;

– platform;

– skeletal suitable for carrying containers, demountable bodies or

swap-bodies;

– van bodies;

– tankers;

– tipping body;

– RoadRailers suitable for use as rail wagons;

– bulk carriers.

Legal requirements:

– gross vehicle weight limits;

 – vehicle dimensions;

– mandatory equipment;

– vehicle licences;

– insurances.

Vehicle economy:

– fuel consumption;

– tyre wear;

– whole life costs;

– residual values;

– ease of maintenance;

– availability of manufacturer’s support and spare parts.

Drivers’ cab types:

– sleeper;

– day cab;

– crew carrier.

Ancillary equipment required:

– self-loading cranes;

– blower units;

h ydraulic equipment;

– refrigeration systems;

– fork-lifts carried with the vehicle;

 – tail-lifts;

– fire extinguishers;

– load winching systems.

Vehicle security:

– locks;

– alarms;

– sealing devices;

– tracking devices using satellites, GSM or GPS.

This list may appear to be lengthy, but it is by no means exhaustive.

These days, vehicle manufactures are able to use computing power to
aid the decision-making process. They can feed the details of vehicle
dimensions, weights and terrain into computerized models, which then
produce anticipated performance figures for the proposed vehicle.
These might include the ability of the vehicle to turn in a given area,
potential fuel economy for different-sized engines and driveline
combinations and potential axle loading under different load situations.

The wider implications of vehicle selection

There are several additional points that should be considered when

choosing a vehicle. Some of these are clearly associated with those factors and
features that have already been discussed, some reflect quite clearly the wider
implications of vehicle selection, and others show how it is possible to use knowledge
and experience to help in decision making. These associated factors can be
summarized as follows.

Is there a proven model or make of vehicle that is known from

experience will be good at the job in question? This knowledge may be obtained from
looking at other vehicle operating centres and their fleets from within the same
company, or it may be available from studying similar types of operation that are
undertaken by other companies, or by reference to the trade press.

Also, it may be possible to assess the reliability of certain models and

types of engine, as well as other vehicle components, by analysing the history of
similar vehicles. Thus, various measures of performance can be produced and studied
to give useful data on fuel economy, breakdowns, cost of maintenance and other
useful information. Where information is not available from

own-company records, it is still possible to use a variety of published

data, which are available from the commercial press and other sources. Some
companies now use fleet management computer packages to provide this historical
information.

In selecting a vehicle, it is important to be aware of the need to

undertake maintenance and repairs. If a vehicle operating centre has its own
maintenance facilities available then this is not a big problem. The likely difficulties
can and do arise for companies that do not have their own facilities and discover that
the nearest dealer or maintenance facility with appropriately trained mechanics for
their make of truck is situated at a great distance from the operating centre. With the
new levels of vehicle technology, it is becoming increasingly difficult for own-
maintenance facilities to justify the investment in the necessary equipment needed to
maintain these modern vehicles. Manufacturers’ geographical spread and level of
support have major implications for vehicle selection and should be carefully studied
before a choice is made.

One area that is difficult to cater for, but must nevertheless be borne in
mind, is that of likely future transport legislation that might affect the choice of
vehicle. There are a number of factors that may be of importance, such as the
construction and use regulations, drivers’ hours, maximum vehicle weights,
environmental issues, and new levels of vehicle technology.

Another point concerns drivers: it should be remembered that it is

drivers who have to work with the vehicles every day of their working lives. They
will understand many of the particular operational problems involved with the work
that they have to do, and they will undoubtedly have an opinion on the ‘best’ type of
vehicle from their point of view. It makes good sense to listen to this viewpoint. At
least, it is important to consider the safety and comfort of drivers at work.

The final factor for which allowance must be made is, in many ways,
one of the most important. It has been emphasized that there is a need to balance a
variety of operational and economic aspects to ensure that the truck is efficiently run.
Another vital factor to take into account is that, as well as loading at the distribution
centre or warehouse and travelling legally on the roads, the vehicle also has to access
the delivery points. Thus, the accessibility at the delivery interface is a very important
consideration. It is essential to be able to provide a vehicle that is fit for purpose.

Vehicle acquisition

It has been shown that the process of vehicle selection is one that
requires a good deal of thought and analysis to ensure that the most suitable vehicles
are acquired. Having deter- mined the vehicle requirements, the next task is to
ascertain the most appropriate means of acquiring the vehicle. There are several
options available – outright purchase, rental, lease or contract hire. Vehicles may also
be acquired by outsourcing the whole operation to a third-party contractor. Indeed it is
often when large numbers of vehicles need to be acquired and large amounts of
capital have to be approved that outsourcing is considered.

The traditional means of vehicle acquisition is that of outright

purchase. This gives the operator unqualified use and possession, together with the
choice of when and how to dispose of the vehicle. Discounts for cash may well be
available, and possibly tax allowances for capital purchases. A major problem is
likely to be the lack of capital available for purchases of this nature. Other ways of
obtaining finance include bank overdrafts, bank loans, hire purchase and lease
purchase. These have a clear cost associated with them and in some countries capital
expenditure may be set against tax. Investing capital in rapidly depreciating assets
such as vehicles rather than in other investments with higher rates of return is a major
concern for business managers. This has helped fuel the trend towards outsourcing
transport operations to third-party providers.

The leasing of vehicles is a popular alternative. Here, operators do not

actually own the vehicles. With fixed-term leasing, operators make regular payments
over an agreed period and have full use of the vehicles. The payment covers the cost
of borrowing the capital (to purchase the vehicle) and may cover maintenance if
required. Finance leasing means that operators cover the full cost of the vehicle over
the leasing period and so may be given the option of extending the period of use at a
significantly lower lease cost. The main advantages of leasing are that the standing
(fixed) cost of vehicles is known and that the company does not use its own capital to
purchase the vehicle; the disadvantage is that operators must keep the vehicles for a
prescribed period during which time operational requirements may alter. In addition,
accounting practice in the UK (SSAP 21) means that vehicles acquired on finance
leases have to be shown in the balance sheet, so the rate of return on capital employed
is reduced.

Owing to the changes in accounting practice previously mentioned, the

contract hire of vehicles has become a much more attractive option. Contract hire
arrangements can vary from the supply of the vehicle alone, through maintenance,
insurance and drivers to the provision of a complete distribution service. Thus, there
has been a rapid growth in third-party distribution companies offering a variety of
services. The financial advantages of contract hire include the release of capital and
the easier, more predictable costing of operations.

Vehicles may also be acquired via rental agreements. The vehicle does
not become the user’s property, but can be operated as required. Agreements may
include maintenance and driver. Costs are generally higher than for the other
alternatives, but rental periods are often very short-term, allowing the user greater
flexibility, particularly providing the means to accom- modate temporary peaks of
demand. Costs are predictable and can be treated as variable for specific jobs.

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