TRUCTYRE PPK MILEAGE CONTRACTS
Fleet Tyre Maintenance based on PPK: Pence Per Kilometre
Tructyre Fleet Management Ltd have been managing P.P.K. contracts for over ten years and currently have in excess of 50,000 running wheels per calendar month, from small fleets with five vehicles to large National fleets with in excess of 300. From Operations as diverse as Waste Management to Bus & Coach.The following questions most operators ask when looking at P.P.K.
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Fleet Tyre Maintenance Knowledge
What is a P.P.K. Contract
Basically, the benefit of P.P.K. is you only pay for what the customer uses, which is based on the vehicles kilometres. If they have a known kilometre budget, they can forecast ahead offering fixed costs, which assists cash flow and overheads.
P.P.K. is used widely in Europe with large fleets, and in the UK the largest fleet on P.P.K. is Wincanton Transport Group.
What Input Does the Customer Have?
It is imperative a customer has input to the P.P.K. policy, because it’s based on “Best Practice”. A policy is derived from selecting the best tyre for the application, and related service procedures, which can only be based on the customers operation, and the fact they’re the ‘O’ licence holder.
How Is PPK Administrated?
We will e-mail or fax each location at month end for the vehicle tachograph readings. Once in receipt, the customer will have one invoice with all costs broken down by vehicle. This obviously reduces a lot of administration costs and manages their costs.
What Happens to Current Equipment?
This is based on the same principles as new vehicles, but usually the tyres on average are usually 50% worn in any case, so the asset value is held in the vehicles bank.
Length of PPK Contract
For all fleet tyre contracts on PPK the customer would be contracted for a minimum of three years.
What Are The Hidden Costs in PPK?
The only area that is rechargeable is malicious damage that exceeds a percentage of the contract value or theft. The value would be based on the same basis as takeover millimetres remaining. Damage can be charged separately or insured.
What Rate Will the Customer Have?
The rate is based on the Fleet Profile form
See more information on PPK contracts and download our mileage contract form
To see further PPK information and to view and print an initial enquiry form outlining details of your fleet tyre management requirements - click here