DSV Announces Savings on Operational Tyre Costs

One of the main findings from the field test was the 28% reduction in DSV’s breakdown compared between Q1 of 2016 and Q1 of 2017.
After DSV completed its field test of 500 trailers with Ultra-Seal early 2016, the company has now filled 3500 trailers, out of its total fleet of more than 8500 trailers, with Ultra-Seal.

But after filling only about 40% of its fleet, DSV has already seen a significant reduction in tyre costs and overall operational costs. DSV is expecting to complete the filling of all its trailers by 2019. Furthermore, all new trailers that are purchased are equipped with Ultra-Seal right from the factory, so those trailers can also benefit from optimal tyre use.

After one year of trailer operation without any maintenance, DSV has experienced a tyre pressure loss of less than 5% on all tyres treated with Ultra-Seal and an average mileage of 180,000 km per tyre on all rear axles, extending tyre life with 38% compared to mileage indications from premium tyre brands.

In Q1 2017, DSV, therefore, replaced 900 fewer worn-out tyres in its operations compared to Q1 2016. Using 900 fewer tyres with an average price of €300.00 each, Ultra-Seal is claimed to have saved DSV €270,000.00 in Q1 2017. Additionally, the entire DSV fleet suffered from 872 fewer tyre-related incidents in Q1 2017 compared to the same period in 2016. DSV has seen a sizeable reduction in the need to use external breakdown services, because punctures are sealed in tyres treated with Ultra-Seal, allowing them to maintain their air pressure and to make the trip home to DSV’s own workshops in the Netherlands and in Scandinavia. This keeps the costs associated with repair services to a minimum. In the first Quarter of 2016, DSV suffered from 650 breakdowns, whereas in Q1 2017 DSV experienced 468 breakdowns, accounting for a decrease of 28% in the overall use of external breakdown services. A tyre breakdown costs DSV an average of €528.00, which means that the company saved €96,096.00 in Q1 2017.

About the author

Richard Wilson is the deputy editor for Commercial Tyre Business. Since 2015, Richard has worked as a correspondent for all of the titles across the Valebridge Publications Ltd Group namely: Retreading Business, Tyre & Rubber Recycling, The Tyreman and Truck and Bus News. Richard has worked on/off from the age of 16 for the company and whilst gaining a Bachelor's Degree in Spanish and Business Studies at Coventry University, he developed his writing skills at the University paper and more recently writing his own independent blog.

Contact: richard.wilson@retreadingbusiness.com

Phone: (44) 1270 668 718

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