case logistics
CASE A3
Atlas Tire and Rubber Company1
Executive Summary
Faced with financial and competitive challenges in 200X, Atlas Tire and Rubber Company’s new CEO developed a strategic plan that included an initiative to build industry leading supply chain management capabilities. As the organization strives to establish a “superior supply chain” in the U.S. tire division, numerous internal changes have been made. Over the last three years, the organization has built a hierarchy of collaborative teams to develop and implement strategies that drive cost, time, and complexity out of the supply chain.
Introduction
Atlas faced significant financial challenges at the outset of 200X. Founded in 1905, the company was in the midst of a severe downturn. In the prior two years, consecutive losses were posted for the first time in company history.
Atlas moved aggressively to reinvigorate profits, but the positive impacts of rationalized operations, noncore business divestitures, and international expansion were largely offset by new challenges. Competition from low-priced import tires, industry consolidation, and a sales slump in the U.S. automotive industry made it impossible for Atlas to gain traction, especially in its flagship U.S. tire division. As Atlas’s debt level grew, the stock price tumbled to a 20-year low, and its credit rating was cut to junk-bond status.
A major transformation was needed to bring Atlas back to a level of performance befitting one of the most recognizable brand names in the world. A key change was the promotion of Walter V. Harrison to the position chief executive officer in June 200X.
Harrison joined Atlas three years earlier as president and chief operating officer after a
20-year career with International Container.
Harrison quickly embarked upon on a new direction for the company. His vision of transforming Atlas into a market-focused, cost-competitive company represented a significant departure from the manufacturing orientation that had defined
Atlas Tire and Rubber Company1
Executive Summary
Faced with financial and competitive challenges in 200X, Atlas Tire and Rubber Company’s new CEO developed a strategic plan that included an initiative to build industry leading supply chain management capabilities. As the organization strives to establish a “superior supply chain” in the U.S. tire division, numerous internal changes have been made. Over the last three years, the organization has built a hierarchy of collaborative teams to develop and implement strategies that drive cost, time, and complexity out of the supply chain.
Introduction
Atlas faced significant financial challenges at the outset of 200X. Founded in 1905, the company was in the midst of a severe downturn. In the prior two years, consecutive losses were posted for the first time in company history.
Atlas moved aggressively to reinvigorate profits, but the positive impacts of rationalized operations, noncore business divestitures, and international expansion were largely offset by new challenges. Competition from low-priced import tires, industry consolidation, and a sales slump in the U.S. automotive industry made it impossible for Atlas to gain traction, especially in its flagship U.S. tire division. As Atlas’s debt level grew, the stock price tumbled to a 20-year low, and its credit rating was cut to junk-bond status.
A major transformation was needed to bring Atlas back to a level of performance befitting one of the most recognizable brand names in the world. A key change was the promotion of Walter V. Harrison to the position chief executive officer in June 200X.
Harrison joined Atlas three years earlier as president and chief operating officer after a
20-year career with International Container.
Harrison quickly embarked upon on a new direction for the company. His vision of transforming Atlas into a market-focused, cost-competitive company represented a significant departure from the manufacturing orientation that had defined