Costin Says Tyre Change Key to Turnaround
West Midlands-based Costin Logistics, formerly AE Costin Haulage, has adopted a pence per kilometre (PPK) tyre contract in conjunction with Michelin and ATS Euromaster, as part of the company’s turnaround strategy. The PPK structured deal – which is traditionally more common with larger 3PLs – sees Costin Logistics’ fleet of commercial vehicles adopt a fully managed tyre policy whereby the company only pay for the kilometres used on tyres, but without the up front cost of outright purchase. This replaces a rudimentary policy of buying the cheapest rubber, managed internally, with the company holding its own tyre stock.
Craig Bunker, who purchased AE Costin in 2007 through his role as a Managing Director of Key3 Partners, a specialist transport turnaround consultancy, says: “The previous tyre policy was a completely false economy demonstrating the common mistake of focusing on price rather than the overall cost, as it often pays to buy quality.”
The Costin Logistics fleet ranges from 7.5 tonne rigids to maximum weight artics which are used for nationwide logistics, with services ranging from single pallets to full loads, hazardous goods and bespoke logistics operations.