SITA UK SWITCHES ENTIRE FLEET TO MICHELIN CITING INNOVATIVE SHARED-RISK PRICING
Stoke-on-Trent – November 20, 2012
Recycling and resource management company SITA UK is switching to Michelin tyres across its fleet of 1,400 vehicles thanks to an innovative shared-risk pricing model developed by Michelin.
Michelin secured the new deal over the incumbent provider by offering SITA UK its largest ever pence-per-vehicle-per-month deal with a ‘stop loss’ policy incorporated, on SITA UK’s extensive fleet of vans, rigid trucks and tractor units.
The three-year deal not only lowers the up-front cost of Michelin fitments to SITA UK, it is also structured to give both companies a shared financial incentive to reduce tyre damage over the longer term, particularly when it comes to SITA UK’s operations on landfill sites and in waste collections where tyre damage is more likely to occur.
Michelin will assume financial responsibility for a proportion of any damage to SITA UK’s rubber, and any damage beyond that will be SITA UK’s responsibility. The deal is structured around a policy used successfully by Michelin and SITA France, where it has already proven to reduce SITA France’s tyre costs.
“Our company’s vision is to live in a society where there is no more waste; a society where waste materials are reused, recycled or recovered,” says SITA UK General Manager for Fleet Paul Shipman. “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 UK will fit a variety of Michelin products, depending on its vehicles’ uses. It has specified Michelin XZU tyres for urban operations where kerbing is common during kerbside pickups, and Michelin’s XZY fitments for on/off-road operations such as landfill work, where its front-and-rear-end loader trucks are operating regularly.
“We always valued Michelin’s Four Lives policy and will be fitting a combination of Michelin new, Remix and Encore tyres across the fleet for longevity,” Shipman says.
Service will be provided in the UK by a mix of independent Michelin Certified Centres and ATS Euromaster.
Dedicated to the improvement of sustainable mobility, Michelin designs, manufactures and sells tyres for every type of vehicle, including aircraft, bicycles, cars, earthmoving machines, farm equipment, trucks and motorcycles. Michelin employs 115,000 people, has sales organisations in more than 170 countries and operates 69 production sites in 18 countries throughout five continents. The Company also publishes travel guides, hotel and restaurant guides, maps and road atlases and offers electronic mobility support services on ViaMichelin.com. Research and development is undertaken in technology centres in Asia, Europe and North America.
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