IHS Markit Customer Recognition (CR): What are the strategic business goals of this organization?
Truskowski: The strategic business goals set out for the executive management team of this global tire manufacturer was to grow profitably in North America; return to historical profits in Latin America and Europe; and to grow in Asia, specifically China.
CR: What information challenges does this organization face to achieve its goals?
Truskowski: The information challenges this organization faced in meeting their strategic objectives is at getting an appreciation of costs, their customers and their competition. In reviewing how cost is important, two-thirds of the price of a tire is directly influenced by oil, so understanding the ebbs and flows of oil prices today and into the future directly impacts their business operations. Secondly, in understanding their customer, their client base is built of passenger vehicles, commercial trucks, agriculture and farm equipment, as well as various specialty tires for motor cross, motorcycles and racing. So, having a diverse portfolio and product line and understanding those industry trends and market influences that will support their business across . . . maintaining an iconic brand across each vehicle segment. And then, lastly, the competition. Having an appreciation of what opportunities and what target opportunities they have into the future, as well as protecting their local markets. For example, this manufacturer's primary market is North America; however, over 60 million tires are imported into the US annually. And having an appreciation of who their competition is that's entering that market to understand price and placement, to make them successful into the future.
CR: How are they working with IHS Markit to address those challenges?
Truskowski: This organization is partnered with IHS Markit to better understand, truly, a story from wells to wheels; getting an appreciation of oil prices; that's influence on chemicals; the chemical cost associated with manufacturing of a tire; and then lastly, how it ties into the number of tires as well as the market sizing for not only original equipment tires, but the replacement business. In addition, this organization relies on Maritime and Trade information to better understand the competition. Over 60 million tires are imported into the US annually, and having a better picture of those products influences their future product line-up and pricing strategy.
CR: What results has the organization achieved by working with IHS Markit?
Truskowski: This organization has made significant strides towards meeting their organizational goals this year. For example, by utilizing chemical as well as oil information, they have visibility and clarity into the cost of manufacturing a tire. Additionally, in working with Automotive, they have a better picture of their customers and understanding future tire, as well as tire fitment per vehicle. Lastly, from a competitive standpoint, having a better picture of their competition's fitness per vehicle and selectively targeting those for future business award. And why that's important is to be able to have future success in the replacement market.
Over 60 million tires are imported into the US annually. And having an appreciation of who their competition is…[helps them] understand price and placement, to make them successful into the future.