Holding onto the
RUBBER

Tyres have always been a significant cost centre in commercial vehicle fleet operations. It makes sense then that resourceful tyre management is imperative for any operator.

In the decade since tyre management solutions were first introduced to South Africa, the range and level of service packages available in the market has increased dramatically.

This has resulted in the introduction of a variety of manual and computer driven programmes designed to assist fleet operators with in-house tyre management procedures. They range from old-style cardex and tyre branding systems to sophisticated computerised structures which may or may not require tyre tracking devices such as microchips embedded into the tyres themselves.

While these 'off-the-shelf' systems have varying levels of proficiency, they still require operational expertise and management from the fleet operator which is either not always forthcoming or even available.

With their inherent knowledge and expertise, tyre suppliers and distributors have come to the fore in this critical area of fleet management. Heavily supported through up-to-date software systems, they provide trained personnel to monitor and manage all facets of tyre utilisation. Suppliers also enjoy the additional advantage of having nation-wide outlets and mobile service capabilities thereby boosting customer support. 

Immediate observable benefits for operators are improved CPK figures, better cost control and the elimination of tyre inventories. Add to this a reduction in the number of blow-outs and premature tyre failures and it is obvious that outsourcing this area of your business deserves serious deliberation.

In spite of these seemingly obvious advantages, fleet operators are not standing in line to sign away control over their tyres. According to Maxiprest Tyre Leasing general manager Dave Mills, it takes a good deal of effort to persuade fleet operators that outsourcing control of the tyres makes sound economic sense.

"Initially our customers are quite suspicious," he says. "We have to overcome this and convince them that the benefits are real and tangible." Mills adds that there appears to be a lot of emotion involved in making a decision to outsource. "When it gets down to it, I would say it is 85% emotion and 15% common sense."

As the trend towards outsourcing increases, it is not just ancillary and small to medium sized operators with smaller pools of management expertise at their disposal who are benefiting from outsourcing. Mills says a growing number of larger professional trucking companies with plenty of management skills have found themselves wanting when it comes to controlling and managing tyres.

"Quite simply, most commercial vehicle fleet managers do not have the time or the focus required to sustain a dedicated tyre management system," Mills says.

"A typical scenario will see management getting all excited about tyre costs and how to manage them and the next week, they suddenly get hit by another problem and tyres are put on the back burner. They also lack the time to undertake comprehensive tyre audits. Over the years, I have seen lots of tests and studies initiated by various trucking companies but few are actually completed.

He says another thing many transport companies do is spend a great deal of time and effort horse trading to try get the best deal on tyres. "This is all very well but they forget that the real savings are in the management of the tyres, not the up front purchase price."

Another common problem Mills keeps running into is the fact many operators have no idea what their real operating costs are.

"It is astonishing that so many fleet operators are unable to identify and regulate actual costs," says Mills. "They may have an idea of the up-front cost of tyres but they certainly cannot tell you what the reality is on the ground and they get a big surprise once you start producing the real figures."

Looking into the future, Mills predicts that over the next five years, there is a distinct possibility that the price of new tyres could double to what they are today. If this happens, a set of new tyres for a 26-wheel rig will set you back R100 000. Not the type of investment to take lightly.

Perhaps the time is coming when fleet operators will start managing their businesses with 85% common sense and only 15% emotion instead of, as Mills says, the other way round.