Continental Tires adopting segmentation strategy
Continental Tires adopting segmentation strategy to enhance customer service and increase revenues : German manufacturer Continental Tires, has selected solutions from the JDA Manufacturing Planning Suite to help it transform its global supply chain operations. As part of the company’s SCM 2.0 transformation, Continental Tires is looking to employ different supply chain strategies to serve its different customers and channels based on their value to the business. Continental Tires will be deploying a global solution footprint from JDAs’ supply chain planning solutions. This integrated solution suite offering is united through the JDA® Platform which also is a key facilitator for the integration to the SAP ERP landscape at Continental Tires.
With sales of €33.3 billion in 2013, Continental is among the leading tire manufacturer and automotive suppliers worldwide. Its Tires division has 73 locations in 42 countries. The division produces tires under the brand names of Continental, Uniroyal, Semperit, General Tire, Viking, Gislaved, Euzkadi, Sime Tyres, Barum, Mabor and Matador. By adopting a segmented supply chain approach, Continental Tires will be able to offer differentiated services to its various customer segments. This will enable Continental Tires to better meet variable customer demand, while also enabling it to execute customer orders in a much more profitable manner. It also helps Continental build a lean supply chain from production all through distribution, agile enough to address current demand and supply variability challenges.
“As a global business we must cater to a wide range of customer needs and we see a high performing supply chain as a key competitive differentiator. For instance, we are now serving more tire replacement providers than ever before, all of which have different demand patterns. Understanding these customers and being able to serve them effectively is a critical element of our SCM 2.0 initiative as we look to further grow our business,” said Marc Schürer, head of global tire logistics, Continental Tires. “JDA has a clear understanding of how our business is evolving. JDA’s solutions, combined with its experience in both manufacturing and retail, made it the obvious choice when it came to selecting a partner to help us transform our supply chain operations.”
“A one-size-fits-all supply chain is no longer sustainable in today’s consumer connected business environment. Manufacturers need the tools to effectively analyze, plan and monitor their end-to-end supply chain, so that they can deliver a differentiated and beneficial service to individual customer segments,” said Mark Morgan, regional vice president, EMEA, JDA Software. “Continental Tires supply chain performance has been integral to its business success; therefore we are delighted to be helping the company on the next stage of its transformational journey.”
JDA Software is the leading provider of supply chain, manufacturing planning, retail planning, store operations and collaborative category management solutions. JDA’s innovative solutions and unmatched industry expertise help companies streamline their supply chain, optimize inventory, labor and customer service levels, and deliver increased profits. As a result, JDA’s solutions have become the industry standard for more than 4,000 of the world’s leading retailers, manufacturers and distributors.
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