Relationship Management Is Key To Managing Tire Supply Most Effectively

In a recent blog, David Nitzsche of AmeriQuest explains that while fleet owners cannot combat increased global demand for tires, they can manage their supply by establishing strong relationships with multiple tire suppliers.

Buffeted by rising tire prices caused by global environmental forces and the resulting product shortages, fleet owners and executives should take control of the situation by implementing an effective relationship management plan with multiple tire suppliers. David Nitzsche, Vice President, Supply Management, for AmeriQuest Transportation Services, said in a blog posting that taking a proactive approach to this "new normal" is the best way for fleets to improve the bottom line and keep trucks rolling.

"The first and maybe most important step they can take is to establish very strong supply agreements with multiple tire manufacturers," he said, adding that single sourcing can lead to a situation where one supplier can have the upper hand when supply gets tight. "When it does become necessary to turn to an alternate supplier, fleet executives well know that agreements aren't put into place quickly, with a typical negotiation with a new dealer taking potentially several months to complete.

"The best way to expand alliances with tier-one and tier-two manufacturers is by joining with other fleets in a network which enables buyers to leverage their buying power with other companies. The move to a multiple supply arrangement like this can help with shortage situations and help prevent a loss of pricing control," Nitzsche said.

By having collaborative alliances with suppliers, fleets can also take advantage of suppliers' depth of knowledge regarding tire specifications. Tire life can be extended and maintenance standardized and minimized by making the correct tire decision the first time.

Nitzsche also discussed how developing a solid retread strategy and running a well-defined tire maintenance program can both contribute significantly to an optimum tire supply management program. View the entire blog article here: