PPK and Budget Accounts

At Lodge tyre we can offer various flexible invoicing methods and bespoke service and supply packages to suit the customer’s needs.

From the traditional ‘pay as you go accounts’ to a fully inclusive ‘budget account’ with fixed costs per month over a set contract period. All of our contract packages can be specifically built around each individual customer’s requirements. The following sections will attempt to explain these methods in greater detail.

Pay as you go (paygo)

PAYGO is the traditional way of purchasing tyres and the associated services. The customer pays for items as and when they are needed on a regular account basis. Lodge Tyres would fleet check the trucks free of charge on a monthly basis and provide full management reporting as and when needed. We would manage the fleet proactively ensuring that all tyre life is optimised whilst still ensuring that down time and costs are kept to a minimum. For larger fleets we would offer the following invoice route:

Invoicing and Reporting Procedures
One invoice is created, which is broken down fully and presented for discussion on a monthly basis at an operational level. Any operational difficulties from either party can be discussed on a two way basis. A Quarterly Report is produced and presented to the customer including aggregate costs, performance, KPI Reporting and any further areas for improvement from either side. An Annual Report would also be presented with management information and costs for annual benchmarking purposes. Any invoicing method can be arranged to suit the customer but generally we would offer a consolidated centrally billed singular invoice which would be presented on a monthly basis including a copy of every advice note and broken down by department, cost centre or however it is requested. This would be presented in a hard bound copy to be kept for VOSA inspections or for whatever purpose it may be needed and also in an electronic format. All of the subsequent information can also be accessed from our secure website protected with your own layered passwords for confidentiality:

  • Monthly consolidated invoice drilled down into specific costs per individual vehicle.
  • Full Pricing Schedule
  • Spreadsheet updated monthly showing all costs accruing per vehicle, by depot, by vehicle type, vehicle configuration, etc.
  • Spreadsheet updated monthly showing all remaining tread depths and pressures.
  • Monthly defect list and exception list of vehicles not caught during the month.
  • Spreadsheet updated monthly showing all test and evaluation tyres together with PPK costs
  • Copy of all Quarterly and Annual Reports to date.
  • Copy of Casing and repair log showing a full audit trail of all tyres removed and all of the tyres refitted to the fleet.
  • Any other bespoke reporting deemed necessary by either party

Fixed price per kilometre (PPK)

PPK accounts offer the customer a fixed price per type of vehicle on their fleet which is calculated on a monthly basis to the exact mileage and is calculated with the customer’s operational circumstances in mind. This type of account is popular with larger regional and national fleets who may find it difficult to manage their tyre asset in-house due to the logistics and difficulty in control. PPK contracts include a tailored service level agreement which sets out the parameters for both customer and supplier. The fleets remaining tread depths are recorded at the start of the contract and then again at the end where an adjustment can be made either way. These accounts take away much of the hassle incurred in buying tyres and services on a daily basis and allows the end user to concentrate on their own core competences.

P.P.K. tyre contract covers all elements of running a tyre programme including:

  • Tyres – Premium Brands, i.e. Bandag, Bridgestone, Continental, Dunlop, Goodyear, Michelin, Vaculug, etc.
  • Service/Maintenance
  • Inspections
  • Breakdowns and Repairs
  • Labour
  • Ancillary components – valves, valve extensions
  • General admin and reporting
  • Damage (negotiable)

Budget accounts

Budget accounts are similar to PPK accounts in that they let the end user outsource their tyres completely for us to manage. These are ideal for small regional fleets that want a fixed monthly cost for their tyres and associated services. We base the cost on historical purchases and mileages whilst ensuring that the optimal tyre is fitted for the vehicle operational usage.

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