The Center for Business Analytics is pleased to recognize SimpleTire as an honoree of the 2023 Drexel LeBow Analytics 50 Awards. Read more about how SimpleTire used analytics to solve a business challenge.
Submitter
Adley Amzovski, Vice President, Analytics
Company
SimpleTire
Industry
Technology, Tires
Business Challenge
Confronted with the challenges of the pandemic and supply chain disruptions, SimpleTire, an online tire tech platform, needed to strike a balance between maintaining its business margins and ensuring prompt deliveries — particularly in an industry traditionally dominated by physical stores. The company’s answer was a groundbreaking performance index powered by machine learning.
Analytics Solution
The performance index ranks suppliers for each order based on their predicted delivery performance. By integrating historical data, static variables and carrier-related metrics, the model can select the most efficient supplier for each order. The model seamlessly fits into the existing infrastructure; operates in several modes, such as velocity, margin and customer satisfaction; and self-adjusts daily with new data.
Impact
The results have been extraordinary. Deliveries for distances under 100 miles improved by 2 percent, with only a minimal impact on margins. Customer satisfaction greatly benefited, with on-time deliveries well above industry standards, arriving either on the same day or the next at well above 90 percent. This boost in service level has driven higher conversion rates and increased customer lifetime value, clearly demonstrating a growing trust in SimpleTire’s online services.