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The start point for the best source of fleet information |
In the latest in our series of 'Focus On.' articles, Paul Barker asks big names among the leading fast-fit
and tyre operators for their views on a host of topics, ranging from the current state of the sector and where it will be in the near future, to the single most important piece of advice they would give fleet operators.
What is the biggest issue in the sector?
Dangerous tyres in circulation on both private and business vehicles are still a major problem. We have some centres in our network where nearly 90% of the tyres they are replacing have less than 1.6mm of tread remaining - meaning they are illegal when customers pull onto the forecourt. Tyres where the steel cords are visible is another problem.
How will the sector have progressed in three years' time?
Technological developments are happening faster now than at any time previously, and they are clearly going to play an increasingly important role for fleets and service providers.
We're already seeing the impact of tyre pressure monitoring systems through to telematics in our sector and, as we move forward, data will be at the forefront of everything our customers do, and everything we do.
What is the biggest mistake fleets make?
Currently, too few vehicle operators take advantage of routine fleet safety checks, carried out by true tyre experts. These inspections reinforce fleets' duty of care to their employees, and help ensure they are managing their fleet appropriately.
What one piece of advice would you give a fleet operator?
Work with your tyre service provider to explore all opportunities to drive efficiency savings for your business. You'll be amazed at what's possible.
Sum up your past 12 months in 24 words or less
The pace of change and development has been exciting, and very fast.
Preview your next 12 months in 24 words or less
Our focus will be on getting even closer to our customers than ever before.
What is the biggest issue in the sector?
Giving a cost-effective service that does not diminish the customer experience. Customers are more knowledgeable and demand better service. If they don't get it, they will tell everyone about it through social media. The motor sector needs to keep up with the leaps being taken in other sectors.
How will the sector have progressed in three years' time?
I expect to see closer alignment of the retail and fleet proposition, especially as switched-on customers become accustomed to the ease and simplicity of using the internet for ordering their tyres.
What is the biggest mistake fleets make?
Sticking with their existing service provider and business model, and so not adapting to their customers' changing requirements.
What one piece of advice would you give a fleet operator?
Consider working with nimbler, smaller operators who can give you a great service tailored to your requirements. Develop a proposition together and be willing to take a collaborative risk, or else you may find yourself offering the same old service to your customers.
Sum up your past 12 months in 24 words or less
Exciting! We have launched a new fleet platform, and have seen big interest from big and small fleets. It's all to play for.
Preview your next 12 months in 24 words or less
Carefully choosing our partners and markets to avoid spreading ourselves too thinly, and thereby continuing to deliver the price and service our customers expect.
What is the biggest issue in the sector?
Tyre maintenance is a big concern. The latest (2013) figures from VOSA showed 89% of vans checked were overweight. Add the almost 50% first-time MOT test failure rate for vans between 3.0 and 3.5 tonnes, and it's clear that many users do not have an appropriate maintenance schedule.
How will the sector have progressed in three years' time?
Given the strong increases in the van sector, Continental predicts that the 'one size fits all' approach will not work in the future. With vans being used for so many different applications, the tyre industry needs to offer specific tyres for specific applications, similar to the truck side of the business.
What is the biggest mistake fleets make?
Viewing tyres as a commodity product and so not seeing their value in terms of cost savings and safety. For example, while having the right tyres for the job is essential, using two sets of tyres to match the season - summer and winter - is an extremely cost-efficient option. As well as providing the optimum product for the conditions, a combination of two sets of tyres can also lead to significantly higher tyre life. A common misconception is that a winter tyre is solely for use in freezing, snowy conditions when, in fact, it is more effective than a standard tyre as soon as temperatures drop to 7°C and below.
What one piece of advice would you give a fleet operator?
Ensure your drivers are aware of basic tyre maintenance, such as the minimum tread depth, what visual checks to carry out and how to correctly adjust tyre pressure to support the weight of heavy loads.
The benefits of these simple, regular checks are better fuel efficiency, improved safety, longer tyre life and a reduction in potential downtime due to tyre failure.
Sum up your past 12 months in 24 words or less
The successful launch of the Van Contact 100/200 tyres into the marketplace, with OE fitment now standard on all major marques.
Preview your next 12 months in 24 words or less
Highlighting the benefits of winter tyres with the launch of the Van Contact Winter tyre.
What is the biggest issue in the sector?
One of the biggest challenges is the budgetary demands fleet operators are facing. Increasingly, fleet operators are under pressure to reduce their budgets, and tyres seem like an obvious place to make an impact on company spend. However, they still have a duty of care to their drivers.
Fleet operators have to negotiate the right deal for them, which will balance the company's financial needs against their safety and duty of care obligations. One of the most important responsibilities for us as a tyre manufacturer is to educate fleet operators about product performance versus price, and clearly demonstrate to them the benefits of fitting a premium tyre.
How will the sector have progressed in three years' time?
Five years ago people thought that cars would need to get smaller to be more fuel efficient, but now OEMs are bringing out large cars that are as fuel efficient as smaller ones.
As a tyre manufacturer, we have to constantly innovate to make sure that we are producing tyres that provide low rolling resistance, and therefore enhanced efficiency without compromising any of the other important performance factors of a tyre.
What is the biggest mistake fleets make?
The biggest mistake that a fleet can make would be not understanding and investigating the performance capabilities of the tyres they are purchasing.
Tyres are much more than big, black, round bits of rubber. There are many performance and technology differences between products and brands, and this should be carefully thought about, and investigated, during the tyre selection process.
What one piece of advice would you give a fleet operator?
By having the right pressure, and by doing regular checks on their tyres, operators could save a lot of money. In some cases it might be necessary to offer incentives to fleet drivers to maintain their tyres efficiently, and encourage participation.
After all, the cost to the company of the incentive is likely to be a lot less than replacing a tyre, which could be used for a lot longer if it had been maintained correctly, or the cost of an accident caused by tyre neglect.
Sum up your past 12 months in 24 words or less
The last year has been about focusing on what the customer needs, and delivering this.
Preview your next 12 months in 24 words or less
Goodyear Dunlop will continue to drive the sector's awareness of the value offered by premium tyres versus budget tyres, and educate fleet operators accordingly.
What is the biggest issue in the sector?
The culture of company car and van drivers calling into fast-fit centres expecting tyres to be replaced immediately needs to change to one of appointments being made, so improving customer and business efficiency. In 1997, just 19 tyre sizes accounted for up to 90% of company car tyre fitments.
Today, 120 tyre sizes account for 90% of fitment, with the remaining 10% comprising an astonishing 1030 sizes. However, more than 80% of company car and van drivers call in speculatively to Kwik-Fit centres asking for worn out or damaged tyres to be replaced.
Given the growing proliferation of tyre sizes, the challenge of fitting the correct brand on the driver's first visit is huge.
How will the sector have progressed in three years' time?
Drivers already book appointments for vehicle servicing and MoT tests, and that will increasingly apply to tyre replacement. Kwik-Fit has 1.4 million vehicles on tyre management for a wide range of fleet customers. For those customers, a fleet web booking service is currently under development.
What is the biggest mistake fleets make?
Too often, fleets do not discuss their requirements with their supplier. Owing to the necessity for
fleet operators to ensure the appropriate brand and size of tyre is readily available, it is critical they discuss the issue with their chosen supplier. It should have wide network coverage and the ability to stock a wide range of tyres, as well as restock on a rapid basis.
What one piece of advice would you give a fleet operator?
Having decided on their fast-fit partner, fleet operators should provide details of their fleet, and their tyre policy in respect of brand preferences and repair-replacement strategy, and vehicle location.
This will enable the chosen supplier to keep a supply of tyres - according to size and brand - in stock. Such a strategy enhances fleet operating efficiencies, and eliminates the possibility of drivers making a second visit to a centre for tyre replacement.
Sum up your past 12 months in 24 words or less
Kwik-Fit has made huge progress in further improving customer service, notably with the launch of 'We care', a strategy that underscores the lifetime relationship with clients.
Preview your next 12 months in 24 words or less
Further customer service improvements will form our core activity, alongside growth of mechanical work with the expansion of the Kwik-Fit Plus network.
What is the biggest issue in the sector?
The last few years have seen volatility within the fleet tyre replacement market, making the task of forecasting tyre usage a somewhat challenging task. Since the recession, we've seen large swing changes in vehicle mileages, length of contracts and ultimately tyre usage which, in turn, impacts upon tyre replacement schedules.
How will the sector have progressed in three years' time?
No one expects to get an appointment with a doctor or dentist immediately, unless it's an emergency, and drivers would always expect to book ahead for an MoT or vehicle service.
It is my firm belief that people need to start thinking of tyres in this way too, and I expect to see this develop over the coming years.
At the same time, we will see tyre manufacturers and suppliers getting the right tyre to the right place in the fastest possible time, through advances in logistics and the technical ability to liaise with the fleet driver directly.
What is the biggest mistake fleets make?
While not applicable to every fleet, it's important to consider the total cost of ownership when defining a tyre policy. Just like anything in life, we can sometimes be attracted by a cheaper product at the point of purchase only to sacrifice other performance criteria and ultimately spend more over a longer period of time.
Adopting a 'spend-to-save' mentality with tyres can deliver multiple benefits including increased mileage performance, better damage resistance and optimised fuel efficiency.
What one piece of advice would you give a fleet operator?
I'd urge drivers to pre-book their tyre replacement fitting, just as they would a scheduled maintenance service or MoT. It's unrealistic to think that every tyre dealer will have every single tyre line in stock, given the diversity of products on the market today. Indeed, many tyre centres have not increased in size, meaning the space for tyre stock may have decreased as centres expand their offering to include additional services.
Sum up your past 12 months in 24 words or less
Vehicle registrations in the fleet sector have continued to grow as the economy recovers and vehicle manufacturers push attractive offers into the market.
Preview your next 12 months in 24 words or less
More fleets will migrate to Michelin CrossClimate tyres - the first ever summer tyres with winter certification. They're a true game changer.
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