Tag: Tire Manufacturer


Supply Chain Management Solution Helps a Specialty Tire Manufacturer Reduce Plant Inventory By 15%

Overview of the Specialty Tire Industry

Specialty tires are typically designed for specific weather conditions or specific vehicles. Most of the companies in this space produce specialty tires as one of their main product lines along with other product lines such as passenger car tires, truck tires, etc. The increasing mechanization of agriculture, industrialization, technology advancements, winter tire legislations, and air traffic are some of the key factors that are expected to drive the growth of the specialty tires industry over the next couple of years.request free proposal Additionally, the increasing market for retreading of tires is anticipated to fuel the market’s growth. However, several factors are expected to influence the growth of the specialty tires industry. These factors include:

  • Size proliferation: Today’s specialty tires manufacturers must have higher inventory sizes, and brands than ever before as no single manufacturer has all the sizes and patterns needed to supply according to the market’s demands. Also, manufacturers who do have most of the sizes don’t necessarily have the required competitive pricing for all items; so, it becomes essential for companies to carry multiple brands in multiple tiers.
  • Direct competition from manufacturers: As markets have evolved, so have the manufacturers’ approach in the marketplace. Specialty tire manufacturers are no longer predominantly dependent on their wholesale distributors. Today, all major manufacturers have direct dealer marketing programs that allow them to ensure that their marketing funds, special price incentives, etc. reach their intended targets — the consumer. This structure integrates the manufacturers into the supply chain and allows them to improve the sales of their products.

Many such factors are compelling specialty tire manufacturers to leverage the use of robust supply chain management solutions.

The Business Challenge and Journey

The client, a leading specialty tire manufacturer with business units spread across the globe, wanted to develop and implement a centralized logistics network for their procurement activities. The client also wanted to streamline their supplier and carrier operations for improved performance and accountability. Moreover, the primary aim of the client was to gain real-time supply chain and financial visibility.

SpendEdge’s supply chain management experts developed a robust market research approach to help the client transform their logistics operations to a centralized network design. The approach included primary and secondary research coupled with qualitative and quantitative data collection methodology.

During the course of the supply chain management engagement, the specialty tire manufacturing client trained their suppliers on a uniform set of logistics technologies and procedures. Stringent carrier requirements and a carrier rating system were implemented to measure carrier performance. Additionally, the client implemented advanced logistics management technologies and strict accountability procedures to gain real-time visibility of delivery status, routing schedules, and productivity.

Key questions answered in this supply chain management engagement

The Results

With the help of SpendEdge’s supply chain management solution, the specialty tire manufacturing client centralized their company’s logistics operations. This helped them increase both efficiency and visibility throughout the network, as well as reduce supply chain costs. Furthermore, the client established origin distribution centers (ODCs) and consolidated shipments to plants. This helped them reduced plant inventory by 15%.

To know more about our supply chain management solutions

request free proposal


Top 5 Leading Tire Manufacturers in the World

The tire is the most crucial component in an automobile. It not only lets the vehicle move but also affects fuel efficiency, vehicle load, acceleration and breaking, shock absorption, and vehicle performance. Modifying tread patterns on the tire such as streamlining ribs, blocks, and lugs can hugely affect the fuel efficiency of the vehicle. Different tires are used depending on vehicle type and end use. It can broadly be categorized into passenger tires, light truck tires, bus tires, specialty tires, and competition tires. The recent procurement market intelligence report published by SpendEdge ascertains the global tires market to be worth $166.6 billion. The report also attributes the market growth to rising sales of passenger vehicles and light and medium trucks mostly in APAC region due to a rise in disposable income. The report also analyzes that tire manufacturer across the world will benefit because of a dip in the global fuel prices which will increase the average number of miles driven per car resulting in growth of the replacement tires market.


Top 5 Tire Manufacturers


Bridgestone is a Japanese automotive part maker and the largest manufacturer of tires in the world. The company manufactures motorcycle tires, commercial tires, specialty tires, and other products including a conveyor belt, hydraulic hose, marine fender, EVA panels, and ultra-high purity fine ceramics. On October 24, 2017, Bridgestone announced that it was awarded global leader for its sustainable water management and it has been added to the year’s Water A list by CDP. The company reported revenues of $28.64 billion in the financial year of 2016. The company sells its products in across 150 countries.


MICHELIN or SCA Compagnie Générale des Établissements Michelin is a French company that manufactures and sells tires for automobiles, heavy-duty trucks, motorcycles, bicycles, and airplanes. It is the second largest tire manufacturer in the world with annual revenues of $23.12 billion in 2016. The company is also popular for Michelin stars which award restaurants for its excellence. The brand is well known by its mascot Michelin man. On November 13, 2017, the tire manufacturer announced the acquisition of PTG and Téléflow which deals with tire pressure control systems. The acquisition will help end-users to adapt and monitor tire pressures according to conditions and terrain.

Continue reading to know more about tire manufacturers or request a seven-day free trial below

banner SE (2)


Competitive Pricing Study Helps Tire Manufacturers Evaluate Factors Influencing the Pricing Landscape

Category Overview

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.request free proposal

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

competitive pricingBusiness Outcome

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.

To know more about our competitive pricing solutions

request free proposal

procurement risks

Supply Chain Analysis on the Tire Industry Helps a Client Reduce Costs

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.

Engagement Overview

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. banner SE (2)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.

Key Findings

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


Request free proposal