Cooper Tire & Rubber Co. can point to a long history of success in selling its products to the automotive aftermarket. But the company had little experience in modeling its North American distribution network. All that changed recently, when Cooper decided it was time to bring some rigorous analysis to the way it made and stored product across the continent.
Cooper had done a small amount of internal network modeling, but the staff that was involved had moved on to other assignments. Now it wanted to make the process “an ongoing exercise,” says Robert A. Sager, manager of supply chain research and design. For consulting expertise, Cooper turned to Atlanta-headquartered Chainalytics LLC.
With little in the way of past efforts, Cooper was forced to start from scratch. Partnering with Chainalytics, it looked at every corner of the North American network-where and how product was stored, and what levels were required to serve customers.
Cooper, which serves only the replacement market, has four production plants, each with a warehouse attached, in addition to six straight distribution centers strategically located around the country. (It fills in with contract warehousing during peak sales seasons.) The company makes a mix of product, including both house brands and private labels for major retailers.
