Where do Tyres Come From?
In decoding a global supply chain, tyres follow a specific blueprint of manufacturing and distribution, with little room for flexibility. The tyre industry is driven by demand. We are putting more cars on the road every day due to rapid urbanization and as a result, the demand for tyres increases. But where do tyres come from?
The supply network is involved in supplying raw materials, natural and synthetic rubber, and chemicals. The formation of the rubber compound is involved in production management, faced with challenges of oil prices, fluctuations in raw materials and exchange rates. Production is interconnected and involves design of commercial and passenger wheels (for example tread design), quality testing, logistics, manufacturing, sales and more. Transportation and distribution are the final steps to get the product to aftermarket sales or an automotive manufacture.
If you live in Australia, your tyres will come from overseas. Chances are your tyres are made in the USA, Korea, Thailand, China, Russia, Mexico, or Japan. A single tyre brand may design a tyre in one country. They can then outsource to multiple factories across several different countries. The materials of the rubber compound can come from a large list of countries.
All tyres are made in a factory and involve a long list of processes. These processes include but are not limited to, Ply, Beads, Belt, Sidewall, Tread, Storing and Packing.
Distribution and transportation costs can be cut in half if the tyre dealership orders direct from and overseas manufacture. However, if a smaller dealership does not want to order in large quantities or does not have space or a warehouse, they may order from a distribution center in Australia. This means shorter wait times and usually the same day or next day delivery.
Where do Tyres Come From? Image via Pinterest.