Michelin US Navy Supply Agreement Extended
The supply agreement Michelin has operated with the US Navy since 2000 has been extended with the exercising of a second five-year option. The tyre maker will thus continue supplying 100 per cent of the Navy’s aircraft tyres around the world, including those required by deployed aircraft carriers. In announcing the extension of its supply contract, Michelin says its management of the Navy’s tyre performance-based logistics (PBL) program has eliminated backorders, reduced the Navy wholesale tyre inventory and reduced retail allowances by two-thirds, or nearly $2 million. Michelin states it has also reduced logistics response times, resulting in 99 per cent on-time (in four days or less) delivery anywhere in the world.
“It’s an honour to have this opportunity to serve our men and women in uniform,” said Brett Carnes, director of military sales, Michelin Aircraft Tire Company, Inc. “Our goal is to make sure they have the support they need to carry out their duties, both here and abroad. We appreciate the indispensable help of our logistics partner Lockheed Martin in carrying out this mission.”
Michelin also has a similar contract with the Defense Logistics Agency, known as the Aircraft Tire Privatization (ATPI), to supply aircraft tyres to the US Air force, the US Army, and some allied foreign militaries. The ATPI programme is approximately two and one-half times larger than the Navy’s programme in terms of tyre volumes; for this Michelin maintains a global on-time delivery rate of 98.7 per cent.