XPO Logistics has awarded a major contract to Michelin solutions. The leading provider of transport and logistics solutions around the world has been contracted to provide XPO Logistics with a bespoke tyre management solution to be used across 80% of their European fleet. The agreement that has been signed will last for 3 years and cover the majority of a 17,000-strong fleet of vehicles.
This agreement is considered to be one of the largest and most complex commercial vehicle tyre contracts to be agreed upon in this sector. Michelin were awarded this contract following a thorough and competitive tender process.
Offered to XPO Logistics, the EFFITIRES™ tyre management solution, which will be an extension of the long-standing business relationship between Michelin solutions and XPO. Before this new three-year contract was agreed, Michelin completed a 9,000-vehicle contract which offered maintenance and support for around 90% of XPO’s French-based fleet as well as all of the truck and trailers used by the logistics company in Poland and Romania. Extending the contract to include most of the European fleet illustrates the excellent service offered by Michelin in the past and the good business relationship that has developed.
A main part of this new contract was that the partnership was altered in order to accommodate XPO Logistics’ network of workshops across the region in order to fit and service the fleet’s tyres. The new agreement will see Michelin solutions take responsibility for the entire of the French fleet as well as 2,300 assets in use by the logistics company across the UK as well as 200 in Portugal and 50 in Luxembourg.
The EFFITIRES™ will see Michelin co-ordinate the tyre safety inspection of every asset in the fleet. It is thought that the tyres will be inspected at least every 60 days. XPO works to supply essential supply chain solutions to a number of the most successful companies in the world, therefore, it is great news the Michelin Solutions have been awarded the contract extension.