Continental Helps Fleet Customers Minimize Costs in Challenging Times

Continental is launching its LODC concept for fleet customers in parallel with the new generation of tires. Generation 5 starts with the Conti Hybrid HS5 for the steering axle and the Conti Hybrid HD5 for the drive axle.

• LODC approach takes a comprehensive look at operating costs
• Digital solutions, retreading and other advisory services are pooled together to generate clear added value for the customer
• Continental embraces a formula of long-lasting partnerships, transparency and sustainability

Hanover, Germany, November 22, 2022. A gloomy economic outlook, high fuel and AdBlue prices, disrupted supply chains and driver shortages mean that many transport and logistics companies are currently faced with huge economic challenges. In these times of crisis, Continental is offering its partners an innovative concept for bringing down fleet operating costs and keeping them low. The tire manufacturer’s recipe for cost efficiency is known as LODC, standing for Lowest Overall Driving Costs. It consists of a comprehensive consultancy approach that helps fleet customers minimize their tire-related operational costs. “At first glance, tires would only seem to make up around five percent of a truck’s total operating costs,” explains Ralf Benack, who is responsible for fleet solutions for the EMEA region at Continental. However, tires also have a significant impact on fuel, maintenance and repair costs, which account for over 27 percent of total costs. “This makes them a key cost lever, meaning LODC is a genuine success factor for fleet customers in tough times,” remarks Benack.

Ralf Benack is responsible for fleet solutions for the EMEA region at Continental.

Costs for commercial vehicle fleets in the spotlight

The vast majority of companies in the transport and logistics industry might consider ‘tough times’ to be something of an understatement. The Federal Association of Road Haulage, Logistics and Disposal (BGL) representing over 7,000 German firms referred to a “cost explosion” in its latest economic analysis. 92 percent of the 237 companies polled in a representative survey stated that their overall costs rose faster in the second quarter of 2022 than at any other time in the past 14 years. The October market update for Europe from Danish logistics giant Maersk also underlined the fact that the global economic situation and fragile supply chains were having a knock-on effect on road haulage, a sector it described as “already stretched” as a result of spiraling fuel prices and driver shortages.

Continental’s in-house expert highlights yet another challenge facing the industry – the European carbon tax on fossil fuels. “Various European and national regulations will force fleet operators to invest heavily in zero-emission vehicles if they wish to avoid toll charges and restrictions or benefit from incentives,” Benack points out, saying this means many companies are going to experience high cost pressures for the foreseeable future.

Ralf Benack explains the added value of the LODC concept for fleet customers.

LODC approach offers added value for the customer

With the LODC approach, the tire experts at Continental are seeking to work closely together with customers in order to minimize their costs – and that applies to fleets of any size and via a broad spectrum of individual solutions. “The basic premise is that our after-sales advice will provide fleet operators with clear added value, so they will want to work with us again in future,” says Benack. Optimum tire selection and data-driven servicing management resulting in tire checks at exactly the right time are just two of the aspects that generate added value. A 24/7 breakdown service and optimization of the customer’s ordering, administrative and invoicing processes are further key elements. 

The ContiConnect tire management solution provides real-time usage and status data on a fleet's tires.

Economy, environmental protection and safety in perfect harmony

The overall concept is collaborative in nature, meaning it is based on mutual trust and transparency. For instance, the fleet customer provides telemetry data, which Continental uses to derive proposals for cutting costs before rigorously implementing the measures together with the customer. “Rather than simply calculating the potential savings, we team up with our network of service partners to harness this potential and obtain concrete results,” continues fleet expert Benack. To fully capitalize on the available potential, a sound LifeCycle solution is needed complete with casing management and a high level of tire usage transparency based on digital solutions. Benack sums up the concept by saying: “We are the experts when it comes to tires, tire servicing, digitalization, data analysis and process mapping. So we are now using LODC to create a harmony of economy, environmental protection and safety.”

Starting with the tire, Continental's LODC concept takes a holistic look at a fleet's operating costs.

Retreaded tires: cutting costs and driving sustainability

Maximizing uptime is one way of boosting economy, environmental protection and safety. Intelligent digital solutions and smart sensor technology both inside and on the tires allow maintenance to be carried out at the right time and ensure the tires are always inflated to the correct pressure. This has the effect of extending tire life, reducing downtime and lowering fuel consumption. Retreaded tires using casings that have been specially designed for retreading are another cornerstone of the LODC concept. “They are completely safe and very durable, despite being far cheaper than new tires,” explains Ralf Benack. “The solutions we offer – i.e. hot-retreaded ContiRe or cold-retreaded ContiTread tires – enable fleets to reduce their tire costs by up to 40 percent.” He also flags up their plus points with regard to sustainability: “When retreading a tire, we are able to reuse around 70 percent of the original tire, saving raw materials, water and energy.”

Every fleet can optimize its operating costs and processes with the help of fleet management solutions from Continental. Further information can be found here.