SITA signs new deal for cost-saving tyres
Urban pick-up operations can damage tyres through kerbing.
Recycling and resource management company SITA UK is switching to Michelin tyres across its fleet of 1,400 vehicles in the wake of a ‘shared-risk’ pricing model developed by the tyre company.
Michelin secured the new deal by offering the customer its largest pence-per-vehicle-per-month deal with a ‘stop loss’ policy incorporated, on SITA’s fleet of vans, rigid trucks and tractor units.
The three-year package not only lowers the up-front cost of Michelin fitments to SITA but is also structured to give both companies a shared financial incentive to reduce tyre damage over the longer term, particularly in applications such as landfill sites and waste collections where damage is more likely to occur.
Michelin will assume financial responsibility for a proportion of any damage to SITA’s rubber while any damage beyond that will be the waste firm’s responsibility. The deal is structured around a policy used by Michelin and SITA France where it has already been proven to reduce costs.
SITA UK general manager for fleet, Paul Shipman, said: “This deal with Michelin not only lowers the initial cost to us but it also fits with our sustainability vision by giving us an added financial incentive to look after our tyres over the long term.”
SITA has specified XZU tyres for its urban operations where kerbing is common during kerbside pickups, and XZY fitments for various on/off-road operations such as landfill work, where front-and-rear-end loader trucks are operating regularly.