Kirkby Tyres’ brief was clear, they wanted to experience next stage supply chain excellence, from adopting different procurement strategies to realising the wonders of logistics technology.
Reducing cost centres and maintaining a competitive edge was the key focus when reviewing their supplier base and buying terms.
Kirkby Tyres historically purchased product including all freight costs (CIF), which lead to an often arduous and difficult analysis task when attempting to segment raw material and logistics prices.
This meant that ultimately cost savings were not passed downstream.
After agreeing a staged implementation process, it was clear that switching terms to Free on Board (FOB) would yield significant cost benefits in renegotiating unit costs to exclude logistics.
Their past procurement arrangements hid production problems, transit times were variable, not fixed, and communication was retrospective, so attempting to ascertain when stock was available to sell in advance was difficult.
Siting an end-to-end visibility portal, from supplier booking through to distribution centre arrival, delivered immediate supply chain certainty and exact data to start forecasting accurately on ‘due date’ criteria. In essence, this meant they could collate lead times with anticipated customer demand so that available stock always matched their order book.
Warrant Group re-designed Kirkby Tyres’ goods-in process to ease product flow and enhance warehouse operations and the benefits have been self-evident across the whole business.
On-time delivery performance was re-engineered by the use of local ports and a hand picked dedicated sub-contractor saw a huge reduction in wasted labour and unexpected haulage delays.
On board performance improved 100% under an intense and complex batch manufacturing environment with Warrant Group cementing unit price stability by negotiating year-long validity deals with a preferred carrier basket.
Certainty on service and cost has led to significant organic growth as Kirkby Tyres’ sourcing patterns mature across several territories.
IT integration between Kirkby Tyres’ system and Warrant Group’s Ingot Portal reduced unecessary data entry and gave enhanced visibility down to SKU level providing finer grain control of the supply chain.
Our solution was simple but effective, design and deliver something that fits and works for Kirkby Tyres. Creating simplicity takes considerable innovative logistics thinking which is our passion.
Kirkby Tyres now control every aspect of their supply chain and they are reaping the rewards of having a service provider that really cares and understands their business.