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Linglong Improves Supply Chain Performance

Linglong Supply Chain Performance

The Covid-19 pandemic has caused unprecedented disruptions to the global tyre supply chain.

Linglong Drives  Post-Pandemic Growth through Building Supply Chain Resilience

European Tyre and Rubber Manufacturers’ Association states in its report that the Original Equipment Manufacturing (OEM) segments recorded a 23 per cent decrease for consumer tyres and 18 per cent for Trucks by the fourth quarter of 2020, amongst the most severely impacted sector during Covid.  However, this situation is set to change.  Based on a survey from Smithers, the global tyre trade volume is expected to rebound from the disruptions caused by COVID-19 at an average annual growth rate of 3.6 per cent up till 2026.

Linglong Tire has managed to weather the market downturn due to the implementation of its global sales strategy, underscoring its commitment to continuous digital innovation, upstream and downstream investment, and continuously expanding its production capacity.  The partnership with Tencent Cloud in a bid to improve the service quality and efficiency of the factory saw its licensed dealers integrating online and offline sales systems and connecting to the Tencent Cloud platform, further improving manufacturing efficiency and productivity.

Catapulting growth and strengthening aftermarket support with digitalisation

The tyre industry has been operating traditionally for decades, delivering products to dealers and customers through a standardised process. The data used for financial forecasting are often inconsistent and incomplete. Manufacturing, marketing, customers, and supply chains often operate in silos and lack transparency, making the order-taking easily susceptible to supply chain disruptions. These problems have prompted Linglong to upgrade by integrating the Internet of Things (IoT), cloud computing and analytics, AI and machine learning into the manufacturing facilities and processes.

As part of its retail strategy to enable the digitisation of distribution channels and enhanced customer loyalty, Linglong has launched its proprietary innovative retail platform that ensures greater supply chain transparency, from inventory and sales to maintenance. This helps manufacturers to streamline inventory management throughout the entire manufacturing process by automating the task of tracking individual tyres.

The manufacturing efficiency and after-market support are further improved by incorporating predictive algorithms and data analytics into the supply management system, making it easier to predict when the retreading services will be needed. In line with the digital implementation, Linglong has opened six customer-centric service stations in Yantai to serve sedan, truck and bus customers, enabling real-time customer data analysis. The WeChat Mini Programme incorporated in the marketing system provides free services such as tyre insurance, promotional offers, and roadside assistance to registered users.

With nearly 38,000 stores registered on its digital system, Linglong’s smart retail system has successfully achieved more robust dealer and customer engagement, customer-acquisition efficiency, and improved digital experience for all stakeholders on the entire value chain.

With the upgraded digital retail system and enhanced customer purchase and after-market experience, Linglong Tire’s resilient operating system and supply chain are poised to stand the test and pave a strong foundation for further growth ahead in its quest for global expansion.

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