Today’s tire retailers expect top-notch service from the distributors competing for their business.

At first glance, the entire tire supply chain seems simple enough to understand. Tires are made all over the world, and then through a variety of importers and distributors, they find their way into local tire stores where they’re sold and installed on customers’ vehicles.

Dig a bit deeper, however, and you soon discover that this vast network is complex and that a lot of behind-the-scenes effort goes into making everything run smoothly. Everyone in this supply chain has to do their part in order for everyone to succeed.

Mutual trust

The key to success, says David Pulla, Interim President, Dynamic Tire is trust. “Having a strong working relationship is crucial to success for both retailers and suppliers,” he explains. “Successful working relationships are built on mutual trust. When both parties trust each other, it fosters effective communication, collaboration, and problem-solving. It allows for transparency in dealings, ensures commitments are honoured, and creates a foundation for long-term partnerships. At Dynamic Tire, we understand the importance of trust in business relationships and consider it the pillar of our foundation, emphasizing the value of trust in all interactions with our partners.”

Trust is key when times are good, and according to Leif Ellefsen, Executive Vice President, Growth and Strategic Partnerships at Unimax it’s even more important when times are difficult.

“If you look at just the last three to five years,” Ellefsen explains, “with all the disturbances in the supply chain, including the pandemic and the war in Ukraine, it’s very important that these relationships be strong. If they’re not, then when these kinds of situations arise, it’s just not manageable. When we look at the global picture, it’s always easier to go through disturbances like we’ve seen when the relationship with our partners is strong.”

Strong business relationships are only possible when all parties are willing and able to communicate effectively and openly. “Communication is key at all levels,” Ellefsen adds. “I’m in contact monthly with leaders of all our suppliers and all management teams. We discuss everything from purchasing, pricing, marketing, sales, operational logistics and more.”

Working with retailers

Here in Canada, we have two distinct tire seasons: winter and the rest of the year. This means that everyone in the supply chain needs to know what they’re going to need months in advance. Retailers need to order their stock months before consumers rush in to buy tires every spring and fall. This means distributors need to plan ahead so that they can place their orders with their suppliers as well.

“We need to have very good communication with each of our suppliers,” Ellefsen explains. “With all the disturbances in the supply chain, we need to be ready months in advance.”

Retailers, on the other hand, need suppliers they can rely on. “They need us to have the tires in stock when those tires are needed,” Ellefsen adds. “If we don’t have the tires they’re looking for, then they’re going to go see the competition.”

No tire distributor wants to lose business. That’s why they strive to build great relationships with the retailers who buy from them. However, there’s more to a great relationship than having the right tires in stock whenever a retailer needs them.

“Retailers are after a partner who can provide quality product and selection, as well as reliability in supply chain operations, excellent support and service, innovation in product development, marketing assistance, sustainability initiatives, and flexibility in meeting their specific needs,” explains Dynamic Tire’s Pulla. “By offering these key elements, we can forge strong partnerships with our retailers, driving mutual success in a competitive market landscape.”

Avoiding friction

Even the best business relationships can sour sometimes. In order to minimize misunderstandings, both suppliers and retailers must do their part to minimize friction.

“A partnership is built on a foundation of trust, support, and transparency,” Pulla adds. “By upholding these principles, we can cultivate a mutually beneficial partnership that thrives on shared values, common goals, and a commitment to success.”

That said, Pulla admits that price and product availability are common friction points. Even so, both parties can do their part to assure a better business partnership moving forward.

“Maintaining effective forecasting practices, being aware of inventory levels, and closely monitoring sell-out rates can help both parties align their supply and demand more efficiently,” Pulla says. “Proactive communication and collaboration in these areas can help mitigate friction points and foster a strong relationship.”

Making the cut

Leif Ellefsen from Unimax understands the way retailers work, and he knows that distributors need to compete to make the cut as the go-to supplier for each retailer’s needs.

“Retailers rate us as their first or second or third supplier,” he says. So, in addition to offering the right programs, he adds, distributors also strive to offer the best service.

“If they order tires from us through our website,” he explains, “we will deliver them within two to three hours. We have 30 warehouses across the country, and if you’re located in the city where we have a warehouse, then we can get your order out to you in that amount of time.”

Retailers that are further away, however, may have two deliveries a day, or just one a day. “In major cities,” he adds, “we’re delivering three or four times a day to each customer.”

In the end, an effective and efficient supply chain depends on communication, planning and the kind of service tire retailers need and expect in order to succeed in today’s demanding market.

“Our customers want to know that when they push ‘Enter’ on their computers when they place an order, that it will be delivered on time,” Ellefsen concludes. “And if we’re not performing 52 weeks a year, that’s a risk, because our customers want the same kind of experience they get when they’re shopping on Amazon. In other words, they want to be sure that they’ll get the right item at the right price, delivered as expected.”