Case Study: Digital Transformation of Haulage Sector in the UK - GVL Management Ltd

Operators of goods vehicles 3.5 tonnes+ require a licence issued by Office of the Traffic Commissioner (OTC). There are over 4million+ vans currently requiring licensing and this is forecast to grow exponentially. Unlike the HGV sector, the van market is unregulated, with no requirement for appropriate training; and a lack of understanding of the root cause of non-compliance. The entire van sector requires a move to wide-ranging and robust professionalisation. The strategic aim of GVL Management Ltd is to establish the company as the leading consultancy and influencer in the Van Sector; informing policy and partnering with professional bodies.

Established in 2014, GVL Management Ltd (https://goodsvehiclelicence.co.uk) is a leading transport consultancy and an approved auditor for the Driver and Vehicle Standards Agency (DVSA) Earned Recognition Scheme. Revenue is generated through the provision of expert advice, consultancy and guidance on the key aspects of transport management with focus on the holders of a Restricted Operator Licence for whom transport is not their main business (e.g. scaffolders, builders). Over the six years since start-up the company has grown from nothing to 3,000 clients. The past year has seen exceptional growth for the company with turnover rising from 500k to 901k. Currently GVL benefits from B2B sales; regular clients requiring annual audits as part of their undertakings issued by Traffic Commissioner, but also new clients - who come to the company for various audit requirements e.g. an order by the Traffic Commissioner or for a pre-audit, when a company is applying for FORS accreditation.

GVL is currently reliant on and paying license fees to a third party for their auditing software, which isan excel spreadsheet with limited capability, to support audits and generate reports. The developer charges GVL a fee when the company needs to contract auditors; as a result, GVL is paying both auditor and software owner.The reliance on one system/one developer is a considerable risk. In a sector heavily reliant on paper-based processes, there is no other equivalent audit software package on the market. GVL is looking to digital transformation in order to develop a sector disruptive management information system (named as 'Fleet Friend' ^TM ), which will enable end-user self-audit, initiation of compliance processes, and training materials. The desiredFleet Friend system is expected to be able to:

• manage and deliver vehicle auditing in a systematic, consistent way;
• retain information in one place with easy access;
• offer high-level usability for the end user;
• produce suitable compliance and audit report;
• provide support of evidence-informed self-audit and relevant consumer training materials.

The route to market for the new product would be through both B2B and B2C. The development of Fleet Friend will enable the company to sell directly to third party consumers such as sub-contractors and auditors who would like to carry audits for their own clients. GVL currently benefits from an established relationship with customers and sub-contractors and by adding a new technology as part of its services, will be able to extend those networks to different industry associations such as Scaffolding Association,Builders Association and Waste trade association (where GVL is an associate member). Using the platform of different organisations and associations will provide the leverage to introduce Fleet Friend to a larger scale of trades related to those organisations.

However, GVL lacks knowledge of the implementation, development and impact of digital business practices and the use of management information systems. As a result, the company is unable to specify, scope or developFleet Friend systemthat combines maintenance and licence evaluation audit with end-user compliance. As a result, GVL hires you as a digital transformation consultant to help them understand organisational digital transformation and produce implementation roadmap of the transformation process with evidence-based and data-driven decision-makinginformation system.

Review GVL's current business situation external environment contains:

1. Political factor
2. Economic factor
3. Social factor
4. Technological factor
5. Legal factor
6. Environmental factor

Answer rating: 100% (QA)

Political Factor The haulage sector in the UK is highly regulated by the Office of the Traffic Commissioner OTC which issues licenses to operators of ... View the full answer