The Business Challenge
A leading tire industry player wanted to effectively reduce costs across the supply chain. Additionally, the client wanted to evaluate their supply chain capabilities and compare efficiencies to that of their competitors in the tire industry. They also wanted to identify the major areas of spend across the supply chain and office locations.
To cater to the specific category requirements of the client, the supply chain analysis experts at SpendEdge followed a comprehensive 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 supply chain analysis engagement, the tire industry client was able to evaluate their supply chain capabilities and compare efficiencies to that of their competitors. Additionally, the client discovered their major areas of spend across the supply chain and office locations. This helped them effectively reduce costs.
The supply chain analysis engagement helped the tire company to effectively reduce costs across the supply chain. Additionally, the client gained insights on several cost components, which helped them increase their overall profitability.
Tire Industry Analysis
The global tire industry is expected to proliferate due to the strong focus on fuel efficiency and increasing demand for low-rolling-resistance tires. Additionally, the introduction of stringent environmental regulations and growing consumer preference for eco-friendly tires will spur the growth of the tire industry across the globe.
However, according to SpendEdge’s supply chain analysis experts, the increasing pressure to manage shortened order-to-delivery cycles, reduce cost, and rising need ensure a highly efficient logistics network to distribute tires are some of the major challenges that the tire industry faces. Consequently, to retain their foothold in this market space, major players from the tire industry have started adopting supply chain analysis studies to reduce costs and ensure a highly efficient logistics network to cater to their customers.
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