Manufacturing Capability – Meeting Global Standards
Customer Profile: A leading tire distributor in the USA
Problem: The customer was looking for a reliable and experienced company to design and develop products that were priced attractively and that adhered to their stringent quality standards and processes. The customer was seeking comfort as to the quality standards of manufacturing in the factory we proposed.
Solution: Omni invited the customer to conduct an external audit of the factory we proposed to manufacture the products. This exhaustive audit was conducted by Smithers, the leading tire testing consulting firm in the world, and brought to light a number of areas for improvement.
Using Omni’s experience and technical expertise, we resolved the concerns raised within two months. Smithers was again invited for a second audit. With all the corrective and preventive measures in place, the factory successfully cleared the audit and the client was ready to launch the product made at that manufacturing facility.
Furthermore, at the request of our customer, we conducted product tests on a number of parameters such as ride & handling, dry & wet braking, noise, mileage, rolling resistance, oven aging and endurance. Those tire tests were conducted against tier 1 and tier 2 competitors like Michelin, Cooper, GT, Hankook and Nitto. Our tires passed all the tests and were found to be comparable to the sample in most of the test parameters, despite being priced at a more affordable level.
Result: Today we are manufacturing a huge number of tires for this customer.
Distribution and Warehousing Capability – Secondary Supply of Tires in the US
Customer Profile: A Leading Tire Distributor in the US
Problem: The distributor was often losing customers due to non availability of a desired pattern or size that was not readily available in their inventory. Placing an order and receiving the requested size would typically take 2 months as it would be shipped in a container from Omni’s manufacturing units outside the US. This wait period was too long for an end user and he would often choose an alternative brand than having to wait for 2 months to receive his desired size/pattern. This resulted in a loss of sale for the distributor.
Solution: Omni looked closely at the supply chain limitations that was causing this distributor to loose customers and it was evident that we had to come up with an alternate to container loads. It was decided that we would leverage our local warehousing capabilities in the US and maintain a secondary supply of tires there. Omni over the last year and a half has acquired 29 mixing warehouses with close to a million sq.ft of space spread across Montana, Utah, Nevada, California, Colorado, Arizona, New Mexico and Texas in the mid west and south west of the US. Leveraging this strength, we started shipping tires directly from the manufacturing units and started storing a secondary supply in our US warehouses. This enabled the distributor to get the desired sizes of tires directly from a warehouse near to their location within 3 days rather than wait for 2 months for a container.
Result: The overall advantage for the distributor was:
• If a desired size/pattern was not in the distributors inventory he did not have to wait 2 months to receive it in a container
• This secondary supply massively reduced shipment time and made stock available within a period of 3 days
• There was a significant reduction in loss of customers due to non availability of tires which led to an increase in sales
The distributor now has renewed confidence in Omni’s ability to think innovatively and provide solutions to problems, and wants to strengthen business ties business with us.