Getting More Mileage Out of Tire Supplier Relationships

While it’s true that outsourcing tire procurement and maintenance can reduce a shop’s workload, fleets must effectively oversee their tire vendors to maximize the benefits of these partnerships.

“Tires are often among the top expenses for most fleets,” said Christopher Foster, director of North American fleet management services at Holman (www.holman.com). “It’s critically important to have a program that’s based on your specific operating applications, pricing structure, and the ability of the dealer to stock and maintain the tires you actually need.”

A strategic tire supplier can assist with reducing procurement costs, improving vehicle availability and offering valuable insights to boost fleet performance. Utilities may opt for a comprehensive tire management provider or choose to focus on procurement and emergency repairs to supplement in-house capabilities.

At Tucson Electric Power (TEP), fleet services supervisor Pete J. Cox oversees a fleet of 1,100 vehicles ranging from golf carts to a 175-ton crane. The utility has a five-year contract with a national tire provider that functions as an extension of the maintenance team. The vendor stocks an on-site TEP tire room with the most used sizes and delivers specialty tires as quickly as possible.

TEP’s recent contract rebid resulted in another five-year agreement with their preferred vendor that builds on past usage with a small buffer for volatile costs, like those caused by the summer monsoon season.

Tailoring Contracts and Budgets to Fleet Needs
Understanding the operating environment for each fleet vehicle is key to setting realistic budget expectations. Outfitting on-road light-duty trucks with high-mileage tires is often cost-effective, while off-road vehicles operating in harsh terrain may be better served with less expensive options, as their tires are more likely to sustain damage.

“There’s a good chance the tires will get punctured before they wear out, so you’re typically not going to put a 60,000-mile light-duty tire on that vehicle,” Foster said.

Fleet managers should ideally strike a balance between cost and performance. For instance, when assessing tires for purchase, Cox weighs the savings from lower-cost Tier Three tires against possible performance shortcomings. A tire that doesn’t wear well in the field could end up costing significantly more than the amount saved on the initial purchase, especially if the tires fail often.

“Service calls can cost more than the better tire would have cost, especially if you’re blowing two or three tires,” Cox said. “The better tire would have performed well, and you wouldn’t have had any service calls. You get what you pay for.”

Brad Pritekel, fleet supervisor for Colorado Springs Utilities (CSU), emphasized the value of inventory forecasting, sharing that he aims to stock frequently used tire sizes to minimize downtime. “When the unit comes in, we want the right tire on hand so we can have the crew back in business within an hour.”

CSU’s tire supplier conducts annual inspections to forecast replacement needs and ensure that even infrequently used trailers don’t fall into disrepair. One of the utility’s previous vendors did not keep up with inspections and replacements on little-used equipment, which turned out to be a costly choice. According to Pritekel, “We had several months with pretty heavy expenditures on trailers that hadn’t been touched in quite some time.”

Service Expectations and Performance Management
Tire vendors must be able to reliably respond to roadside service requests, especially in challenging environments.

“One of our main expectations is being at the top of the priority list when we have road calls because some of our work is out in the boondocks, and the vendor must have the capability to make sure that our service calls are done in a timely manner,” Cox said.

Vendors often perform routine inspections – weekly, in TEP’s case – checking tire inflation and tread depth and scheduling necessary replacements. Fleets should regularly review service-level agreements (SLAs) to ensure vendors deliver as promised, with contingency plans if they fall short.

Building Stronger Relationships
Long-term fleet/vendor relationships are built on trust and collaboration, not just pricing. Cox said TEP’s tire vendor goes above and beyond, passing on manufacturer discounts and maintaining close contact with fleet teams to track needs and repurpose used tires.

In addition, the tire company representative is on-site several times a day. He tracks tire wear and dates and will repurpose tires with remaining useful life, moving them from active units to those that see less mileage.

Now, Cox noted, “We’re not buying as many new tires by repurposing the tires we’ve already paid for.”

Despite a strong relationship with their tire vendor, however, prudent utility fleet managers also have a backup plan in place. For example, CSU’s parts supplier serves as an alternative tire supplier when needed. Foster recommended “having at least two suppliers in case one provider can’t fill all your needs, but make sure they can adhere to your guidelines and expectations across your footprint.”

In summary, utility fleet managers should select strategic tire vendors who understand their unique operating needs, partner with them to develop tailored budgets and contracts, hold vendors to clear service expectations, and foster long-term, mutually beneficial relationships – with backup plans in place to ensure the fleet is always ready to roll.

About the Author: Gary L. Wollenhaupt is a Colorado Springs-based freelance writer who covers the transportation, energy and technology sectors for a variety of publications and companies.