PROVIDING TRACTION TO KIRKBY TYRES SUPPLY CHAIN

PROVIDING TRACTION TO
KIRKBY TYRES SUPPLY CHAIN
Kirkby Tyres had maintained the same sales and operational planning
strategy for several years and acknowledged that it was necessary
for a fresh approach that focussed on joining up their supply chain,
in essence, from end-to-end.
Utilising Warrant Group’s systems architecture for visibility, adopting
a different approach to procurement terms and wholesale changes
to goods-in planning, has created a lean and agile supply chain for
Kirkby Tyres, one that can flex with their customer requirements.
“WE HAVE DEALT WITH WARRANT GROUP FOR OVER TWO YEARS NOW
AND THEY HAVE SIGNIFICANTLY CHANGED OUR OPERATION BY DESIGNING
INTELLIGENCE LEAD SOLUTIONS.
“THEY FIT OUR BUSINESS, AND THEIR SOLUTIONS WORK FOR OUR PEOPLE.
WARRANT GROUP’S SUPPLY CHAIN TEAM NEVER STAND STILL AND PROVIDE
CONTINUOUS IMPROVEMENT INITIATIVES TIME AND TIME AGAIN.
KEY ACHIEVEMENTS
• Changed buying terms to provide
better cost control and savings for
the customer
• Negotiated longer validity contract
rates, countering volatility in the sea
freight market and giving stability
to unit prices
• Introduced use of feeder port closer
to centre of activity
• Provided end-to-end visibility of
supply chain via the Ingot portal
• Re-designed goods-in process to
ease product flow
• IT Integration for SKU level visibility
• Streamlined the documentation
process
“THEY CREATE CERTAINTY FOR OUR BUSINESS WHICH, IN TURN, ENABLES US
TO PROVIDE A FANTASTIC CUSTOMER SERVICE EXPERIENCE.”
- DAVE DORRITY, MANAGING DIRECTOR, KIRKBY TYRES
INNOVATIVE LOGISTICS THINKING
WWW.WARRANT-GROUP.COM
CHALLENGE
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.
SOLUTION
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.
INNOVATIVE LOGISTICS THINKING
WWW.WARRANT-GROUP.COM