Company: American Tire Distributors
Nomination Submitted by: Jackson Spalding
Company Description: American Tire Distributors (ATD) is one of the largest independent suppliers of tires to the replacement tire market. It operates more than 115 distribution centers serving approximately 80,000 customers across the U.S. and offers an unsurpassed breadth and depth of inventory, frequent delivery, and value-added services. ATD employs approximately 4,500 associates.
Nomination Category: Company / Organization Categories
Nomination Sub Category: Company of the Year - Automotive & Transport Equipment - Large
 Nomination Title: American Tire Distributors
- Which will you submit for your nomination in this category, a video of up to five (5) minutes in length about the achievements of the nominated organization since January 1 2022, OR written answers to the questions for this category? (Choose one):
Written answers to the questions
- If you are submitting a video of up to five (5) minutes in length, provide the URL of the nominated video here, OR attach it to your entry via the "Add Attachments, Videos, or Links to This Entry" link above, through which you may also upload a copy of your video.
- If you are providing written answers for your submission, you must provide an answer to this first question: Briefly describe the nominated organization: its history and past performance (up to 200 words):
Total 137 words used.
American Tire Distributors (ATD) is one of the largest independent suppliers of tires to the replacement tire market. It operates more than 113 distribution centers serving approximately 80,000 customers across the U.S. The company offers an unsurpassed breadth and depth of inventory, frequent delivery, and value-added services to tire and automotive service customers. American Tire Distributors employs approximately 4,500 associates across its network.
In 2023, rising oil prices, rubber demand, overseas transportation costs, and continuing consolidation contributed to another disruptive year of low and unstable supply distribution for the tire industry. The U.S. Tire Manufacturers Association has experienced an unprecedented 15 straight months of a down economy. Despite these rough waters, ATD found new ways to navigate the way forward, pulling share from a constrained market and setting ourselves up for future success.
- If you are providing written answers for your submission, you must provide an answer to this second question: Outline the organization's achievements since the beginning of 2022 that you wish to bring to the judges' attention (up to 250 words):
Total 230 words used.
One of the major highlights of the year was the introduction of Radius, our centralized marketplace catering to the auto aftermarket, unveiled in October at the Specialty Equipment Market Association (SEMA) show in Las Vegas. This groundbreaking initiative promises not only heightened visibility and efficiency for our retail clientele but also opens up new revenue streams for ATD.
Additionally, we executed a series of effective strategies aimed at enhancing ATD's productivity. First, we focused on optimizing inventory management and demand forecasting, utilizing AI to tailor stocking levels to align better with customer demands. We also solidified exclusive partnerships with Bridgestone and Firestone to bolster our distribution economics. On the service front, we substantially improved our on-time delivery performance year-over-year, elevating it from 82% to an impressive 98%. Concurrently, we diligently managed costs, significantly reducing the price of international shipping containers from $25 per tire to just $3 per tire—a crucial maneuver amid the current volatile supply chain landscape.
Leveraging predictive analytics, we strategically redesigned ATD's distribution network to maximize our operational footprint, enhance asset utilization, curb expenses, and facilitate our overarching vision of evolving into a multi-channel, multi-fulfillment resource for the automotive aftermarket. This initiative, termed the "Network of the Now," promises to yield further efficiencies, particularly as the number of SKUs continues to expand with the continuous introduction of new vehicle models and tire specifications into the market.
- If you are providing written answers for your submission, you must provide an answer to this third question: Explain why the achievements you have highlighted are unique or significant. If possible compare the achievements to the performance of other players in your industry and/or to the organization's past performance (up to 250 words):
Total 246 words used.
ATD remains dedicated to advancing commercialization strategies aimed at elevating our overall operational performance. Our FLX/FWD third-party logistics (3PL) division experienced growth, with ATD now serving as a licensed provider for One Rail, facilitating product deliveries for major big-box retailers. Additionally, we have broadened our tire recycling service, fostering revenue generation through partnerships with 500 retailers that, thanks to ATD, are now actively participating in the circular tire economy.
Looking ahead to our ambitious environmental objectives, we have devised a robust, multi-faceted approach for success. The electrification of our fleet is progressing, and collaborations with landlords to implement solar initiatives in select buildings are underway. We are actively engaged in regulatory advocacy, supporting more widespread adoption of our tire recycling model by state agencies, and aligning our compliance efforts with the Task Force for Climate-Related Financial Disclosures. Moreover, we are procuring renewable energy through virtual power purchase agreements as needed.
Underpinning these advancements is a steadfast commitment to our workforce, which is integral to our success. In 2023, we enhanced our Total Rewards program and effectively managed medical costs for our associates, investing millions to ensure accessible and affordable benefits for our field personnel. We intensified training efforts, with a particular emphasis on enhancing customer service skills and promoting workplace safety. Furthermore, our efforts to cultivate a workplace of distinction garnered both local and national recognition.
In today's business landscape, agility and resilience are paramount, and at ATD, we embody these principles in our daily operations.
- You have the option to answer this final question: Reference any attachments of supporting materials throughout this nomination and how they provide evidence of the claims you have made in this nomination (up to 250 words):
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