Depending on company size, maybe you were already approached by manufacturers or dealers to enter into a PPK (price per kilometer) tyre contract.
A PPK tyre contract means that you will no longer buy tyres the traditional way, but pay a fixed rate per kilometer, regardless of how many tyres you change. The supplier will perform all the operations needed, including mounting new tyres.
If you are facing this challenge, there are several things you should consider apart of the obvious advantages:
- Entering a PPK contract is limiting your buying/ negotiations options for the contractual period
- Operational constrains imposed by the supplier may interfere in a negative way with your activity
- You are no longer in control of the performance of tyres and you loose information about performance
- Tyre park valuation is not in your control
- The service level is difficult to be monitored and measured
- The potential benefits coming from optimization goes to the supplier
These elements have to be analyzed internally before entering into discussions with the supplier. Because, what can be a very good idea now, may represent a serious problem in 2 years time.
We are always available to help you with the evaluation process for your options.