In a culture of heightening awareness of the benefits of implementing pan-European supply deals, a number of leasing and fleet management firms as well as end-user fleets are considering the benefits of putting their own fast-fit and tyre agreements into practice.

Whilst the work involved in such agreements cannot be understated – as with any pan-European supply deal – there are significant operational and financial benefits at stake for those companies prepared to go down this route rather than using country-by-country deals or turning to dealerships.

And according to some of the companies in the marketplace there are a growing number of firms looking to capitalise on these benefits.

ATS Euromaster – part of the Euromaster Group, which is present in 16 European countries – reports increased recognition amongst fleets of the opportunities that pan-European deals offer.

Steve Bury, head of national car, says: ‘We’re beginning to see pan-European deals, but not on a widespread scale. The critical factor is fleet size. There are no hard and fast rules, but if you are operating a fleet of at least 10,000 vehicles split between two countries or more, then a pan-European tyre policy is perhaps an option.

‘Establishing a pan-European contract covering both the tyre manufacturer and service network is more complex. However, it’s beginning to be talked about with a small number of sizeable fleets in circumstances where they control their own tyre procurement and don’t bundle tyres into contract hire and leasing arrangements.

‘Network coverage is critical to making these agreements work, and that’s where the strength of the Euromaster Group really comes into its own. Recent expansions into Eastern Europe mean we now have operations in 16 countries, with well over 1,600 service centres. This provides unrivalled scope for fleets looking to adopt a single tyre service provider across multiple markets.’

He comments that for tyre manufacturers’ approvals, pan-European deals can be fairly straightforward.

‘Fleets may select one, two or three preferred tyre brands and then ask their local market operations to select a preference and appoint a local tyre supplier. We’ve been involved in a number of negotiations that have followed this process.’

But of course tyres are just one element of the whole service, maintenance and repair equation. As fast-fit firms such as Euromaster expand their SMR propositions to offer a cheaper, quicker and more convenient alternative to the equivalent franchise dealer networks and the block exemption regulations mean that customers are no longer tied into dealers to preserve their warranties, fleets can look at the benefits of using fast-fits to carry out wider SMR work.

‘Fleet managers and procurement officers are under increasing pressure to cut vehicle running costs and this means they must actively look at viable opportunities away from the franchised dealer network,’ says Mr Bury.

‘We’re already experiencing increased demand for SMR work from UK fleets, and have ramped up our offer considerably to meet demand. But it still leaves plenty of opportunities for fleets operating across Europe to reap the benefits of channelling all of their fast-fit requirements through a single European player such as Euromaster.’

Kwik-Fit Fleet has also reported a growth in pan-European tyre and fast-fits deals as fleets migrate over from using dealers and says that in addition to financial advantages there are wide operational benefits to be had from doing so.

The company is part of the Kwik Fit Group, owned by PAI, a leading European private equity firm with offices in Paris, London, Madrid and Milan. Kwik Fit operates from almost 2,000 service points across Europe and includes Kwik Fit Netherlands and Speedy in France.

Peter Lambert, Kwik-Fit Fleet sales director and European fleet business co-ordinator, says that the company is seeing growth from leveraging major UK accounts with contract hire and leasing companies and partly owner fleets which have a pan-European bias.

He comments: ‘In addition we have won significant business at a local level from fleets opting to use our outlets because of the quality of service and products we provide as opposed to franchise dealers.

‘Over the years Kwik-Fit Group has rolled out its highly successful UK fast-fit model to both France and the Netherlands so that the majority of services offered in our home marketplace are now replicated on the Continent.

‘Contract hire and leasing companies as well as end-user fleets on the Continent recognise that they can use our one-stop shop facilities for a comprehensive range of fast-fit services – tyres, exhausts, servicing and glass repair for example – instead of a dealer and with a saving of about 20%.

‘Not only does it mean lower prices but also, as a result of our online tyre management information service, it means that dealers do not remove tyres prematurely. In addition fast-fit work is carried out immediately with no appointment necessary, unlike with franchised dealers.’

So which criteria are fundamental when it comes to pan-European tyre and fast-fits deals?

Dave Crinson, fleet sales manager for the UK and Republic of Ireland for Michelin – which owns the Euromaster brand – says that there are a number of different parameters to consider when looking for a multinational tyre deal.

‘When you’re looking for a pan-European agreement you’re looking for a distributor that can support that deal – obviously one of the major things that you need is a pricing tariff that applies right across Europe and you also need to ensure that the clarity of information that you’re provided with is comprehensive with a single invoicing point.

‘Of course, coverage is also vital from a distribution point of view. Euromaster can provide this across most of all the major countries within Europe with some expansion into central Europe

However, as a growing number of fleets look to monitor their carbon footprints in order to enhance their CSR as well as reduce their costs, it’s also beneficial to look at environmental issues, according to Mr Crinson.

He says: ‘Whenever we receive a tender at Michelin – and we’re seeing a growing number of these on a pan-European level – we always include a comprehensive section on the environment, outlining our ISO 9001 credentials and all the benefits of using Michelin product. For instance, we have installed wind turbines at our Dundee factory that generate half the energy for tyre production, helping us work with fleets to help enhance their CSR profile. We also offer our Green X range of low rolling resistance tyres which includes the Energy Saver, these are very popular with fleets helping to reduce running costs, while respecting the environment and also giving better safety credentials.’

Mr Crinson also says that it’s important for fleets to look at the wider picture of total cost of ownership rather than outright pricing. He adds: ‘In a recent negotiation with a major leasing company they made a decision to give Michelin a larger percentage of their business based on the TCO of our products. Whether you looked at it in pence per mile or cost per year, our product was better value for money on a TCO basis and that’s what we want to instil back into the market again.’

Kwik-Fit meanwhile says that its sales proposition is based on products and services that are tailored to meet the needs of individual markets as well as being streamlined for global reporting.

Mr Lambert says: ‘The Kwik-Fit organisation’s independence – unlike its major competitors it is not owned by a tyre manufacturer – enables the company to offer a range of competitively priced products, particularly tyres, across all markets.

‘Products have to be adapted for each market and they must also take into account different tax regimes. But independence enables us to be cost-effective and deliver similar service levels across markets as we can mix and match our product offerings to meet different conditions.

‘Throughout the countries in which we operate we have rolled out common services – but in the language of the country – relating to databases, paperwork, marketing, fleet management reports and European driver packs.

‘Having a significant mobile offering has been a key factor in increasing our penetration of the UK fleet market in terms of service improvements and reducing vehicle downtime and that strategy is proving just as successful in France and the Netherlands.

‘We continue to work very closely with the major pan-European fleet and leasing providers to offer unique services and management information to enable them and their customers to operate more efficiently. Our business partners and our mutual customers are also looking for consistent service quality across markets and to leverage their buying power. We can deliver on both counts.’