The global tire industry is expected to grow steadily over the next few years with the increasing focus on fuel efficiency and growing demand for low-rolling-resistance tires by governments across the globe. Additionally, stringent environmental regulations and increasing consumer preference for eco-friendly tires are expected to the boost the growth of the tire industry across the globe. However, according to SpendEdge’s competitive pricing specialists, the increasing pressure to reduce cost, achieve shortened order-to-delivery cycles, and ensure a highly efficient logistics network to distribute tires are some of the major reasons for the sluggish growth of the industry.
As a result of such challenges, tire manufacturers have started opting for competitive pricing studies to evaluate the factors influencing the pricing landscape of the industry. Moreover, SpendEdge’s competitive pricing solutions help tire manufacturers assess the on-going pricing trends and fluctuations in the market space.
The Procurement Pain Point and Insights Offered
A global tire manufacturer wanted to gain insights into the value chain cost analysis and estimate the cost structure of the competitors. This would help them enhance their pricing strategies in the coming years. The client also wanted to evaluate the aspects influencing the pricing landscape in this market space.
To cater to the category requirements of the client, the competitive pricing specialists at SpendEdge followed a two-step research methodology, which included primary and secondary research coupled with qualitative and quantitative data collection procedures to address the issues of the client.
During the course of this competitive pricing study, the tire manufacturer was able to assess their supply chain capabilities and compare the level of competence in the market space. Additionally, the client effectively reduced costs across the supply chain as they discovered their significant areas of spend.
Fundamental questions answered in this competitive pricing study include
This competitive pricing engagement helped the tire manufacturer evaluate the prevailing factors influencing pricing landscape in the market space. Moreover, the flexible modeling tool suggested by SpendEdge also helped the client gauge pricing strategies under fluctuating market conditions.