Michelin + Sumitomo distribution=NTW

[FordFocus]

http://www.moderntiredealer.com/news/727937/a-jumbo-joint-venture-michelin-and-sumitomo-s-tbc I'm very surprised

 

[CKN]

This way you avoid duplicate costs. Two companies with separate distribution channels-now can share the costs for the same distribution channel. For example-For many years in Southern California two rival newspapers decided to use the same trucks to deliver their newspapers. Before they had two vehicles covering the same routes-now one vehicle does. Same principal.

 

[CapriRacer]

Originally Posted By: CKN

This way you avoid duplicate costs. Two companies with separate distribution channels-now can share the costs for the same distribution channel. For example-For many years in Southern California two rival newspapers decided to use the same trucks to deliver their newspapers. Before they had two vehicles covering the same routes-now one vehicle does. Same principal.

Actually, it's more than just the sharing of distribution channels. TBC is a wholly owned retail outlet of Sumitomo with 2400 stores and 59 distribution centers. The fact that Sumitomo only has one factory in the US is what, to me, makes this interesting. By contrast Michelin owns the retail outlet TCi (Tire Centers) with only 85 retail stores. Plus, they have 4 factories in the US. So the joint venture is more about Michelin acquiring priority access to a retail outlet, rather than just the sharing of a distribution system. Plus this also means that other retail outlets will have quicker access to Michelin products. I think the idea that ANY retail store could have ANY Michelin tire available in 24 hours is really appealing. I expect more of this sort of thing - tire manufacturers acquiring retail outlets and consolidating distribution systems. The only thing that doesn't make sense about this is the wide variety of brands.

 

[nthach]

AFAIK, Sumitomo by way of TBC has the biggest distribution outside of Wal-Mart and Costco by means of Big O Tires/Midas and a few others. I didn't know Michelin owned a distributorship, I was under the impression that retailers with enough clout *cough* Costco *cough* or a dealership via Tire Rack's OEM side(Honda) or Dealer Tire(Toyota) ordered Michelin or other brands directly from their warehouses.