Improving customer services and supply chain management

Nokian Tyres was founded in 1904 and has since then manufactured tyres for all types of vehicles. With a focus on developing tyres especially designed for Nordic conditions, they offer added value to their clients and consumers. Their main market is in the Nordics or other areas with similar weather and road conditions, and where the different seasons create demanding and varying conditions for usage. The tyre business is season driven, with intense demand during summer and especially at winter, which is their high season.

This requires not only high efficiency in the production line but also a smooth logistic flow, and an ability to serve clients with information on their goods. This was a constant challenge for Nokian during a long time. And although they delivered top quality tyres, their logistic deficiencies affected their brand in a negative way, making customers perceive them as a low quality supplier. On top of that they also suffered from storage problems. In 2005, when the Swedish subsidiary of Nokian Tyres shifted their old ERP and changed carriers, they also decided to invest in a solution that would help improve their customer services. They engaged United Logistics Group to install their Logistic Management System, DCIX.

"Since United Logistics Group was the only supplier with a solution that was right for us it was an easy choice, says Björn Stegfeldt, Logistics Manager at Nokian Tyres in Sweden. With strong customer orientation as well as an awareness and understanding of our needs, we instantly established a good working relationship with ULG."

Once the system was implemented, it only took one season for Nokian Tyres to turn everything around. With the new system, they could provide customers with a notification service, announcing delivery status of goods. It also gave Nokian enhanced control over their supply chain, with better visibility through the whole chain. Customer services could keep track of goods and answer questions about its whereabouts as well as dates for delivery. Additionally, the system offered greater flexibility for planning, making it easier for Nokian to adjust and optimize their supply chain. Serving customers with exact information on track and trace of their goods, added the customer value that was needed to considerably improve Nokian’s customer services and their reputation. This also showed clearly in a customer survey, executed a while after implementing the changes. The customer grading of Nokian significantly increased, indicating much happier customers.

Further, with an optimized and transparent supply chain came increased volumes. And, since Nokian now could offer delivery notifications, they were able to avoid a lot of trouble during delivery, which meant they did not end up in compensation discussions. This made it possible for them to keep prices at initial levels when negotiating, giving Nokian co-workers improved self-confidence and added value for their shareholders. The Nokian brand had turned into a first class supplier of tyres.

"We are very pleased with the system and with ULG as a partner, says Björn. They supplied us with a system that radically increased our market value. They’re also a stable and reliable supplier and we only have positive experiences from working with them."

The Logistic Management System from United Logistics Group is today a fundamental part of the daily operations at Nokian Tyres in Sweden, Finland and Norway. It is a necessary ingredient for running their business and all employees work with the system on a daily basis.


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