XPO extends Michelin contract to UK, Portugal and Luxembourg
Michelin solutions has been awarded a major contract with XPO Logistics, a leading global provider of transport and logistics solutions, to provide a tailored tyre management solution across nearly 80 per cent of its 17,000-strong European fleet. The tyre maker notes that the three-year agreement represents one of the largest and most complex commercial vehicle tyre contracts in the sector.
The Effitires tyre management solution extends a long-standing business relationship between Michelin solutions and XPO Logistics. Whilst the previous 9,000-vehicle contract covered close to 90 per cent of the French-based fleet, plus all truck and trailer assets in Poland and Romania, the new agreement sees Michelin solutions’ share increased to more than 13,000 assets. This includes taking responsibility for 100 per cent of the French fleet, whilst also adding 2,300 new assets in the UK, 200 in Portugal and 50 in Luxembourg.
“Michelin solutions is recognised within XPO as being a strategic-level supplier that supports our long-term business goals,” comments Luis Angel Gomez, managing director–transport, XPO Logistics Europe. “Their solutions are creative, flexible and proactive. This contract extension is our recognition of a job well done, and we’re confident that their solution will help to unlock even greater efficiencies over the next three years.”
Key to the contract was tailoring the partnership to use XPO Logistics’ network of workshops to fit and service tyres. The bespoke arrangement means XPO Logistics benefits from the support of Michelin solutions’ price-per-kilometre invoicing structure, expert fleet administration and established management reporting – whilst also making use of capacity and skills which exist within the customer’s own workshop network.
“XPO Logistics is a prestigious customer, providing pivotal supply chain solutions to some of the most successful companies in the world – naturally we’re delighted to be renewing and expanding our close collaboration,” shares Agostino Mazzocchi, sales director Europe at Michelin solutions. “Tyre management and performance can have a huge impact on fleet efficiency and therefore structuring the right contract for XPO’s European operations was paramount. We offered a proven track record working with XPO in three major European countries, and the new scope extends our relationship further.”
The Effitires contract will see Michelin solutions coordinate tyre safety inspections across every asset in the fleet at least every 60 days. Michelin solutions will also provide detailed fleet tyre management reports tracking key trends, including breakdowns per million kilometres, roadside rapid response times, and incidences of damaged tyres.
Michelin solutions is fitting a range of Michelin truck tyres across XPO Logistics’ fleet, which comprises predominantly rigid trucks, high-volume drawbar vehicles, tractor units and trailers.