Page 18 - CTB N8 - 2014-04

FLEET MANAGEMENT
Reducing Fleet Costs with Effective Tyre Management: How the Premium Manufacturers are Dealing with the Communication Challenge
The premium tyre manufacturers have always made efforts to explain that buying budget new tyres is a false economy – that you always get what you pay for. However, in recent times it has become clear that the emphasis of their approach to the market has switched from a PPK approach to one of Total Cost of Ownership. This was particularly apparent at the recent IAA in Hanover where most of the leading players focused on products, systems or associated
of fuel management, with the company’s Effifuel having a major profile at the show.
The new focus on “Total Cost of Ownership”, or TCO is it is often known, is based on the fact that although pure tyre costs make up less than 10% of total running costs of a commercial vehicle fleet, the tyres themselves and the way they are managed can effect up to 40% of the costs, with the importance of fuel management coming in for particular scrutiny.
TCO but these are mostly operators with whom the manufacturers have direct contact. There is also a large middle ground of medium-sized who still follow a PPK concept and a rump of budget oriented customers (often small fleets or owner-drivers who buy only on price.
The aim of the premium tyre manufacturers is to move the balance of these groupings upmarket – in other words their goal is to switch some of the PPK
oriented group over to TCO and some of the price oriented users over to PPK.
At the same time the premium manufacturers are realising that they need to communicate more effectively with those at the bottom end of the scale, that they have lost contact with smaller operators and have therefore, at least in part, lost the ability to
influence them. They have realised that they cannot rely on the distribution trade to get their message across effectively, so they have seen the need to invest more heavily in fleet support programmes and trained personnel to deal directly with end users.
As a result there has been an increased focus on leaflets aimed at fleets helping to manage their costs better – part of the increased effort to communicate with people they have not traditionally communicated direct with.
So what points are key? What are the main points the manufacturers wish to pass on to fleet managers?
Michelin’s leaflet “Save Money with Tyre Management” focuses on four main areas – wheel alignment, air pressures, regrooving and removal tread depth. The company also produced an in-depth brochure entitled “10 things you need to know about vehicle running costs”. This deals with the points made in the first leaflet but also
goes deeper into issues such as advanced driver training, the benefits of switching engine oils and the fitment of aerodynamic kits, thereby emphasising the fact that the premium tyre manufacturers are now no longer selling just tyres – they are selling “efficient mobility”.
The most important and obvious area that comes under focus is the subject of tyre pressures. Premium manufacturers are keen to point out that the benefits of buying premium tyres can be negated if tyres are not run at the correct pressures. It is therefore in their interests to make sure that they help their clients manage this as much as they can. Tyres that are 10% under- inflated, a scenario which is by no means uncommon, suffer a 1.5% reduction in fuel efficiency. In their leaflet “10 things you need to know about vehicle running costs, Michelin provide a sample scenario with two hypothetical fleets, the first (Fleet A) being a fleet of a hundred 6 x 2 tractor units and tri-axle trailers and the second (FleetB)afleetoffifty4x2 rigids. Each fleet is assumed to be driving 130,000 km per annum. A 10% under-inflation, says Michelin, would result in extra fuel costs of £23,819 per annum in Fleet A and £6503 in Fleet B. For 20% under-inflation, the impact would would be much higher – more than twice as much. The solution, of course, is to invest in a series of monthly tyre pressure checks via an external service provider.
Even if just slightly underinflated, the flexing of a tyre increases significantly, shortening the tyre life. On average, commercial vehicles on the road are approximately 12 percent underinflated. In the majority of cases this is gradual, and is the cause of more than 90% of all punctures. However, if the pressure in the tyre is too high, this increases wear or makes the tyre wear unevenly, which also results in the tyre having to be replaced prematurely. Low tyre service
Michelin has produced several brochures helping fleets improve fleet running costs
divisions of their companies, which aimed to provide a comprehensive tyre management service to fleet customers, with the dual aim of making the value of premium tyres clearer to the end user, whilst simultaneously making sure the major players had more direct access to the consumer and therefore more influence over him. Bridgestone, for example launched the latest version of their Total Tyre Care package at the show, Continental focused on key innovations such as ContiPressureCheck whilst Michelin stressed the importance
At a time when budget tyres are becoming ever cheaper and the companies supplying mid range tyres and quality retreads have become more sophisticated in providing complete fleet management packages, the premium tyre manufacturers have had to become more sophisticated and thorough themselves in arguing the superior value provided by their premium quality, premium cost tyres.
At present there is a core of mainly larger national fleets who fully understand the concept of
Alfredo Maia of Transmaia Transporte is using Continental’s ContiPressureCheck System
18 Commercial Tyre Business