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Procurement Market Intelligence Report

Heavy-Duty OTR Tires
Sourcing Guide & Market Trends

Comprehensive intelligence for making smart purchasing decisions

Learn about actual and potential costs

How much should I pay for Heavy-Duty OTR Tires?

What is the average price of Heavy-Duty OTR Tires?

This procurement report includes pricing information to help you purchase Heavy-Duty OTR Tires. Our analysts provide a benchmark price and a price range based on key pricing factors to help you understand what you should be paying for this specific product or service. To see the average price for this and hundreds of other products and services, subscribe to ProcurementIQ.

Has the price of Heavy-Duty OTR Tires been rising or falling?

Analysts look at market data from the previous three years to determine an overall price trend. You can use the recent price trends to help you understand price volatility and plan your budget.

I’m not ready to purchase Heavy-Duty OTR Tires yet. Will I pay more if I wait too long?

We forecast the next three years of price movements by looking at factors likely to affect the market's supply chain, such as inputs, demand and competition. You can then use the price forecast to figure out the best time to purchase.

What other costs are associated with purchasing Heavy-Duty OTR Tires?

Our analysts calculate the total cost of ownership and assign a level of low, moderate or high, depending on things like customization, integration and installation. Use this information to budget for Heavy-Duty OTR Tires with a reduced risk of unexpected costs.

See how we display average pricing information, trends and market data.

Find the vendor to meet your needs

Where can I purchase ?

Market share concentration in the heavy-duty OTR tires market is high, with the top four suppliers generating about 55.0% of total market revenue. There are roughly 1,200 total suppliers of heavy-duty OTR tires. Tire manufacturing requires high capital investment and specialized knowledge. There is also a high degree of brand... Subscribe to learn more.

Questions to ask potential suppliers

How can I gain leverage during negotiations?

Experience and Expertise

How long have you provided these products to your longest-tenured client?

What qualifications does your staff have and what measures do you take to keep those qualifications up to date?

What industry do you most commonly supply this product for?

To what extent will ordering multiple products from your firm allow me to save on costs?

What is your repeat business rate for businesses in my industry and how does that compare to your overall rates?

Supply Chain Risk

Over the past three years, what percentage of your revenue has been dedicated to raw input materials? How has that changed?

Has the availability of raw materials tightened due to the coronavirus outbreak?

Over the past three years, what percentage of your revenue has been dedicated to labor?

How have fluctuations in input prices affected the prices of your products during the past three years?

How do you mitigate sudden price increases in raw materials?

When input prices rise, how much of the cost is absorbed by you and how much is passed onto buyers?

How, if at all, has your supply chain been affected by import tariffs levied in 2018?

Regulation

How do you manage regulatory change? Do you have regulation advisers or methods to track regulation?

How have changing regulations influenced your pricing now and how will the changes affect prices over the life our proposed agreement?

What ongoing training procedures do you provide for your staff?

Have you ever been found to be noncompliant with regulatory frameworks?

Amid widespread health concerns during the COVID-19 pandemic, what contingency plans are in place to mitigate risk to your clients and employees? Do you offer clients any flexible exceptions, such as contract suspensions?

Order Fulfillment

What systems do you have in place to monitor incoming orders and outgoing shipments?

Do you have a dedicated shipping department? If so, how many employees are dedicated to shipping?

Do you use electronic inventory tracking?

How do you deal with shipping errors or damaged goods? How quickly can you remedy the situation if shipment issues arise

Do you have an alternate shipping supplier ready as a backup?

How has the pandemic affected your distribution capabilities?

Supply Chain Risk

Have supply chain issues affected your operations in the past? If so, how were your prices and inventory affected?

Are any of your major brands vertically integrated with raw material suppliers? Has this provided any protection from price spikes?

How far in advance do you purchase tires? How long, on average, does a tire stay in your inventory?

How many brands do you currently carry? Are you able to purchase from different manufacturers to reduce the impact of a price spike?

Do you source materials with a high exposure to market disruptions resulting from the pandemic? How are you coping with these disruptions?

Delivery Timeliness

How do you ensure timely shipping? What is your average shipping time?

Do you offer expedited shipping? How much does this service cost?

How many steps are involved from order submission to shipment?

How long have you been using your current shipping supplier? Have you had any issues with them in the past?

Warranty

Do your tires come with a factory warranty? If so, what are the terms and coverage of the warranty?

Do you offer an extended warranty? If so, how much does it cost and what are the terms?

How long does warranty fulfillment take? Does redeeming the warranty require extensive paperwork?

What circumstances will void the warranty?

Quality Control

Do you perform an inspection on your incoming shipments? How often do you find defective products?

Do your products undergo testing by the manufacturer? If so, what tests are performed?

Do you seek out the newest technology and highest-quality OTR tires for your inventory?

Have you had any product recalls? How do you deal with recalls?

Support Services

Do you provide any in-house or on-site support or consultation services? If so, how much do they cost and what is their scope?

If you provide related services, are they offered during the entire life of the tire or just at the time of purchase?

If you do not provide support services, do you have a working relationship with a consulting or support specialist that you can recommend?

Do you offer related products and services such as tools, parts or installation?

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Key elements for every RFP

What should my RFP include?

Project Budget

Buyers should state their total budget.

If buyers require an ongoing supply contract, buyers should provide their monthly and annual budget.

Buyers should provide a breakdown of their budget by item, listing individual budgets for specific products being requested.

Buyers should state whether their budget includes additional costs such as shipping costs.

Selection Criteria

Buyers should assess the immediate availability of the products being requested.

Buyers should consider reviews from previous clients.

The price of the tires being requested should be considered.

Buyers should assess the level of quality from each supplier. Buyers can consult the Quality Control section of this report for further information.

Project Schedule

Buyers should provide a list of key dates that pertain to the RFP process, such as the final dates to ask questions and submit bids.

Buyers should provide a list of key milestones that will occur throughout the contract period, such as the date of the first shipment.

If an ongoing supply contract is being provided, buyers should state the frequency of shipments.

Evaluate major factors to mitigate risk

How risky is the supply chain?

High risk in the heavy-duty OTR tire supply chain mainly stems from the market's dependence on raw materials such as natural rubber, steel and petroleum. Furthermore, the key buying industries tend to be highly cyclical and unstable, resulting in fluctuating demand for OTR tires. These risk factors can cause price... Subscribe to learn more.

HIGH

MEDIUM

LOW