As the economic slowdown takes hold Grouptyre, the UK’s leading independent tyre wholesaler, is committed to supporting manufacturers and meeting the needs of independent retailers, national account customers and franchised dealerships by improving service levels and adding value throughout the supply chain.
Wholesalers play a key role
Manufacturers produce in batches and since they cannot afford to hold all the products they manufacture in stock at all times for on-demand orders, they require a buffer to smooth availability peaks and troughs. Meanwhile, retailers have neither the space nor the financial muscle to carry all suppliers’ products in stock for on-demand orders, yet require a readily available supply of the tyres they do not stock, along with a fast and frequent delivery service, to secure consumer sales.
Since wholesalers support both manufacturers and retailers – by providing this buffer stock to ensure consistent availability and by delivering increased service levels so that retail outlets have access to the products they need to service their customers’ requirements – Grouptyre believes they have an increasingly important role to play, so long as they support the supply chain and their activities add value rather than increase the price consumers pay.
Grouptyre’s proactive approach to meeting the needs of its suppliers and customers is to establish supply chain partnerships. By working in three-way agreements it can help manufacturers achieve their brand strategies with retailers/consumers and this, in turn, helps to increase a brand’s market share and generate increased profit opportunities for retail outlets.
Working in partnership with manufacturers and retailers
In the past, wholesalers had a reputation for seeing tyres as a commodity and were not interested in brands: they bought on the strength of the deals available, held large stocks of these items – on which they could make good profits – and only sold what they had in stock.
Now, consolidation of the market has led to the growth of the dealership channel, the buy out of independents or their development into chains and centralised purchasing by national accounts, while service level agreements are becoming more commonplace as customers demand a consistency of service and competitive pricing.
“We recognise that in today’s business environment a wholesaler must buy what its customers need to sell and hold wide stocks to cover the entire market, and that’s why we are working in partnership with manufacturers – to help them achieve their brand goals – and with retailers to help them meet their sales and operational targets,” says Grouptyre’s director of commercial operations Karl Naylor.
Unrivalled product availability and deliveries at a competitive price Grouptyre, which has updated its corporate identity as part of its evolution into a national brand, is comprised of 13 regional wholesale and distribution companies which work together to meet retailers’ requirements by focusing on unrivalled product availability and delivery service, at a competitive price.
Since the Grouptyre network of 33 wholesale locations carries over one million tyres – representing a value of £50m – Grouptyre can supply all the major brands plus several value and margin brands while also specialising in rare/slow moving niche products such as UHP and 4×4 tyres.
Grouptyre’s national, multiple same-day to on-demand delivery service involves a fleet of 350 vans leaving its distribution centres an average of three times a day, so retailers can be confident of satisfying their customers’ needs because they can obtain tyres they do not stock quickly and easily. The broad product portfolio and market leading delivery service combine with a competitive, market reflective pricing policy, which allows retailers to maximise profit margins while remaining competitive so that they can grow their businesses.
A complete, ‘one stop’ service
Adopting a ‘National strength, Local service’ approach, Grouptyre offers a complete ‘one stop’ service delivered at the local level by its 13 highly successful member companies. Each operates within a defined territory to cover the whole of the UK and combines the benefits of local market understanding with a dedicated, knowledgeable team to achieve success through high service levels.
As a national supply chain partner Grouptyre has the benefit of centrally co-ordinated pricing and administration, a competitive pricing structure – thanks to its huge buying power – and consistent sales and marketing support activity.
“Wholesalers have become critical to tyre retailing operations – even those of the large national chains and prestige dealer networks – because of their ability to hold the width of stock needed to cover all eventualities and deliver the correct tyres on time, plus they are playing an increasingly important role in helping manufacturers develop and deliver their brand strategies,” adds Karl Naylor.
“By improving service levels throughout our business and working in partnership with manufacturers and retailers we aim to add value within the supply chain which will benefit all of us in the long term by helping consumers make an informed choice.”
Supporting Tyre Safety Month
Grouptyre is a full member of TyreSafe, the not for profit, non commercial organisation set up to raise awareness of the dangers of defective and worn tyres, and is throwing its weight behind this year’s Tyre Safety Month.
All Grouptyre member companies are promoting their involvement with the campaign, which puts the spotlight on the safety and economic issues associated with driving with incorrect tyre pressures. In addition to utilising the promotional materials available from TyreSafe, Grouptyre will be raising awareness of the initiative and encouraging its customers to offer consumers free tyre safety checks – not only during Tyre Safety Month, but all year round. Free checks are available from those Grouptyre members operating retail outlets.
For further information on Grouptyre and its members visit the members page.
