www.benchmarks.dk
English Summary
The primary objective of www.benchmarks.dk is to promote the market driven development of and demand for more environmental friendly transport solutions. This has now been made possible, because all carriers of freight transport by road can follow up and improve their performance through a free and anonymous tool targeted at the trade.
www.benchmarks.dk has been adjusted to the real world of road freight haulage of today and the other tools available for the road freight haulage sector. Through development and testing of the system it has become evident, that the tool has to meet several demands of the users. Partly there is a need for a system, which strengthens the management of environment and economy in the firms, partly some firms wish to be able to use the data for marketing purposes.
Both wishes support the overall target from the initiating actors, being to promote environmental sound transport in the firms and hence also financial performances. For external documentation there is focus on the diesel consumption and environmental status of the vehicle fleet. This is in accordance with the demand from the transport buyers, constantly seeking management and improvements in environmental issues.
The basis for an efficient benchmarking is that the participating firms have the same starting point for the benchmarking. If the firms or the divisions are not comparable, there will be a degradation of incitement and no improvements will occur.
Therefore the project gives great effort to securing a high degree of identification. This applies both internally and externally. Internally the services to be measured must be recognizable, which is not possible if benchmark is done on export haulage and refuge collection jumbled together. Externally it is also important to know what one compares to, after all the term lorry covers a number of different vehicles ranging from 3,500 to 48,000 kg allowed total weight.
The identification is secured by defining a benchmark unit as a "group" instead of a firm. A group may consist of 1 to an infinite number of vehicles with the same profile. A profile is a description of the group in four significant areas:
 | Transport type:
| ||||||||||
| Type of freight: |
| Full loads |
| Part loads |
| General cargo (carrier) |
| Haulage of contractors' supplies (including industrial refuge) |
| Refuse collection – garbage |
| Refuse collection – sewage |
| Special transports (heavy and/or voluminous) |
| Mixed |
| Truck |
| Truck + trailer |
| Tractor unit (not fixed combination) |
| Tractor unit + semi-trailer (fixed combination) |
| Mixed |
| 3,500 – 10,000 kg |
| 10,001 – 19,000 kg |
| 19,001 – 26,000 kg |
| 26,001 – 36,000 kg |
| 36,001 – 42,000 kg |
| more than 42,001 kg |
| Miscellaneous. |
These categories total a number of 1,400 possible profiles. It is thus possible to come close enough to cover one's own conception. At the same time the graduation is not so detailed, that each profile covers only one or a few firms, which would make the benchmarking almost impossible.
If a profile has an insufficient number of firms for benchmarking, the user should opt out categories and for example benchmark on other transport types instead of e.g. part loads only.
The transport firms’ incentive for benchmarking with others on environment is obvious. The fuel cost is a major entry for all types of freight haulage by road.
As an example a lorry, which carries out national haulage, can cover about 80,000 km per year with an average of 2.65 km per l. This amounts to a diesel consumption of approx. 30,000 l, which adds to an annual cost of kr. 150,000. If the fuel consumption could be improved by only 5 % to 2.78 km per l, it would save kr. 7,500 per lorry per year.
Such savings, of course, give reason to interest, also without benchmarking, but it may be difficult to follow up significantly on the consumption figures. This is due to the fact that the consumption varies, depending on weather conditions, destinations, weight of cargo, time limits etc., which again is weakening the statement of the calculations. With www.benchmarks.dk it is possible to create a clearer picture by removing the seasonal variation from the results. A firm that was placed well in its group in the 3rd quarter of the year should be well placed in the 4th quarter, regardless of changes in level.
For environmental benchmarking it is compulsory to register the diesel consumption and the number of km covered in the quarter. In this regard it is possible to benchmark on key figures for:
| Energy efficiency (number of km covered per litre diesel) |
| CO2 emission |
| Average euro norm |
| Use of particle filters in percentages. |
| Average capacity utilisation in percentages |
| Number of km covered per vehicle |
| Transport with empty load in percentages |
If there is a need for further calculation of NOx, CO, HC and particles, data for load and euro norm per vehicle must be stated. This degree of specification is likely to scare away the customers and we therefore refer to the free calculation model "Beregn miljødata" (Calculate environmental data) on http://www.transit.dk.
When the firm has access to benchmarking on environmental data, it will at the same time have access to the finance module. Benchmarking of financial data is both a mirror of the financial benefits of environmental transport and an independent incentive for participating with data. The comparison is concentrated on operating data and ends before overhead costs and financial entries. The financial entries and the ownership relations are very individual and without connection to environmental consequences, and it makes no sense to compare firms on this basis. Furthermore it is difficult, in a consistent manner, to disperse the overhead costs on the different groups participating in the benchmarking.
It has therefore been made possible to benchmark on the following entries:
| Transport turnover (exclusive of external haulers) |
| Transport costs (total) |
| Drivers' wages and attached expenses |
| Diesel and diesel charges/-tax |
| Trip expenses including road toll |
| Other trip expenses |
| Contribution margin 1 |
| Repair and maintenance |
| Tyre costs |
| Tax on motor vehicles according to weight and road toll |
| Insurance - third party/covering loss or damage to the car + CMR/carriers responsibility. |
| Other truck related costs |
| Contribution margin 2 |
| Coefficient of utilisation (time) |
| Km covered. |
The comparison of the individual entries may take place in relation to km covered, hours used, or by the individual vehicle. In relation to city distribution, the essential on the bottom line is often expenses and income per hour while regarding export the performances calculated in km are counted in. Insurance is paid per vehicle and may be compared on that level, e.g. for price negotiations.
It is expected that the presentation of the tool at hauler seminars etc. will result in a general improvement of the accountancy discipline. Participation in benchmarking may at an early stage point at areas where things are going badly. At the same time follow up is secured each quarter instead of only when the annual report is finished and things may have been on a wrong track for a long time.
It is especially an advantage for companies transporting their own goods, and haulers who are not members of the trade organisations and thus informed from there. When participating in benchmarks they will be able to estimate the consequences and give the customers documentation on this already after a quarter, when there are changes from outside, e.g. increasing charges or new agreements with the unions.
Operation and marketing of the system Year 1
With www.benchmarks.dk a tool that is generally accessible has been formed. It is, however, also obvious that a tool for comparison is only of any value, when there are enough firms to benchmark with.
The system has its own homepage and it requires only little company information to participate. It is not possible to be completely anonymous, e.g. by using alias in the system, because there would be no way to carry out control and correction. The company information is used for identification of the users when controlling benchmark data. The auditor and consultancy firm KPMG is in charge of the control of data and they are bound to observe professional silence concerning any information that may come to their knowledge carrying out this control. The procedure has been introduced in order to secure a high data standard, eliminating keying errors and misunderstandings. The user will be informed directly from KPMG, if anything needs investigation or explanation, and no one else will ever have knowledge of the enquiry.
The registration also requires information of e-mail address. At the end of each period the users receive e-mails with the information that the benchmarking has been concluded for the given quarter. At the same time the users are asked to type data for the next quarter.
Danish Transport and Logistics Association (DTL), Danish Trade Association of International Transport (ITD) and FDE Accounting Service will promote the use of the system to their members. It is planned to promote www.benchmarks.dk more broadly with the aim to make the system useful to non-members as well.
The Web-department of ITD is responsible for operating the system.