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Updated: July 8th, 2008 05:26 PM GMT-05:00

Tire Program Slashes Expenses

Thanks to a partnership with Goodyear, Rodman Companies erased $152,000 in tire acquisition and service costs from its balance sheet.
With a transportation fleet of roughly 120 medium- and heavy-duty trucks and 100 trailers, tire-related costs were a major expense for Rodman Companies.

Just a few years ago, Rod Vilhauer and Barry Rich, owners of Rodman Companies based in Frisco, TX, had nothing to smile about when it came to tire acquisition and service costs. As one of the company's highest transportation expenses, these costs were a moving target.

Today, things have changed. After implementing a new tire program developed by Goodyear and its service subsidiary, Wingfoot Commercial Tire, Rodman has erased $152,000 off its balance sheet.

Rodman Companies operates an on-road fleet of about 120 medium- and heavy-duty trucks and 100 trailers, hauling permitted loads from 84,000 to 300,000 lbs. on trips up to 600 miles. According to Shawn Schneider, manager of process improvement, as of November 2007, it had saved 26% on its cost per-mile for the transportation fleet vs. November 2006. With transportation costs that fluctuate month to month, Schneider expects the cost per-mile for 2007 to come in at 40% less compared to 2006.

Tire costs were reduced by, among other things, using new Goodyear tires and retreads when possible; getting more miles from a new set of tires before removal via routine inspections, pressure checks and air-ups; and increasing retreadability by identifying conditions under which tires would be pulled for retreading.

The means for cost control
Rodman Companies builds subdivisions, malls, golf courses and other building projects, mostly in urban areas. Because it operates excavation, utilities, paving, landscaping and power and communications divisions, it is a turnkey operation that often does all work associated with a construction project. That's why it operates a large, diversely equipped truck and trailer fleet and about 900 pieces of other heavy equipment.

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