Cutting Over a Million Annually
Michelin has recently unveiled its groundbreaking research titled “Unlocking the Power of TCO: A Fleet Manager’s Guide to Efficiency and Sustainability.” This initiative aims to inspire South African transporters to operate more efficient and sustainable fleets. For instance, a fleet of 50 trucks could save R1,331,050 annually by upgrading from grade B to grade A tyres with low rolling resistance.
Transport operators in South Africa face numerous challenges, including rising fuel costs, load shedding, safety concerns, and various logistics issues. Many, particularly small to medium-sized operators, have yet to consider how to run fleets that are both efficient and sustainable.
Currently, transport owners often manage operating costs in isolation. By evaluating expenses related to fuel, driver salaries, maintenance, truck purchases or rentals, and tyre costs separately, they miss how these components interconnect and impact one another. According to Charl Lensley, B2B director for Michelin’s truck and bus division, this fragmented approach hinders the potential for cost reductions and enhanced sustainability.
For example, fuel consumption constitutes about 30% of a transport operator’s operating costs, while salaries account for 25%. Many operators may not realize that selecting the right tyres, which only represent about 5% of operating costs, can significantly lower fuel consumption and reduce downtime due to breakdowns.
Fleet owners typically calculate cost per kilometre (CPK) to optimize tyre expenses, often choosing durable tyres that can be regrooved or retreaded. However, this method can be impractical for accurately measuring the overall impact of tyres on fleet operations.
One effective strategy for reducing fuel consumption is to invest in quality tyres with low rolling resistance. For instance, if a transporter can decrease rolling resistance by 1 kg/t for a 40-ton truck, they can save over two litres of fuel for every 100 km driven.
Michelin’s suite of products and services also enables transporters to monitor their carbon emissions through advanced systems that provide real-time data insights. This information empowers fleet operators to make smarter, more informed decisions that support sustainability and efficiency.
As the Carbon Tax looms, it becomes crucial for fleet operators, particularly smaller ones facing financial pressure, to manage their operating costs intelligently and sustainably. “We are helping transporters solve tomorrow’s problems today,” concludes Charl.