ORLANDO, Fla. (Feb. 6, 2004)—Goodyear today announced a package of initiatives aimed at improving both its supply to dealers and the strength of its brands.
First, Goodyear will implement OTIFNE (On Time, In Full, No Errors) this year to “raise the bar” on fill rates, said Jon Rich, president of North American Tire, during the tire maker´s national dealer conference in Orlando. With the program, Goodyear will give dealers a ship-to promise date.
“No longer will orders go into the endless black hole of back orders,” Mr. Rich told dealers. “So we´re making dramatic improvements in our supply chain.”
Jack Winterton, vice president of replacement tire sales for North American Tire, said Goodyear also will begin stocking according to sales volume per SKU, which also is aimed at improving fill rates. “This is a dramatic change,” he said.
Also, Goodyear plans to spend 40 percent more on marketing this year to build brand strength. Advertising for the Asssurance line alone will cost more than $50 million, officials said.
Other marketing initiatives will include the continuation of national dealer promotions, leveraging Goodyear´s 50-year relationship with NASCAR, repairing the California blimp and supplying Wrangler-branded tires to the NASCAR Craftsman Truck Series.
Finally, Goodyear also is developing a pilot program to build a Web-based dealer feedback form. Details for the Voice of the Customer project still are being worked out, but Mr. Winterton said the pilot likely will be launched in April.