Sometimes Change is a Good Thing

After 28 years in the tyres business Peter Harries has been appointed as the new managing director of the UK’s largest wholesale group, Group Tyre (UK) Ltd. For Harries, the appointment represents something of a step change from the manufacturer-based positions he enjoyed at Cooper Avon for the vast majority of his career. Tyres & Accessories met with the new managing director as he settled in to his new role at Group.

Prior to joining Group Tyre, Harries spent six years as sales director of Cooper Tire & Rubber Europe. Before this he spent more than two decades in a range of positions with Avon Tyres and Cooper Tire. “I am very excited to be joining Group, a company which I have always admired,” Harries told Tyres & Accessories, adding that he has joined the company at a significant point. “There is a lot of change in tyre industry,” he commented.

So what’s the plan from here on in? “I am here to develop strategy and structure and to drive the business forward to higher sales and deeper penetration,” said Harries, adding that there is “a lot of scope for growth.” Group Tyre and its members have achieved some impressive results over the last decade and a half, and recent performance has been no different. Harries is confident that Group turnover (which will reach £234 million this year) will continue to grow. There are also said to be five and 10 year plans in the works, but the new managing director was less willing to give details of those away.

When T&A caught up with Harries he had just returned from a fact-finding visit to some of Group Tyre’s manufacturer supplier partners in the Far East. Chinese product recalls had been and gone from the headlines, as had speculation about the increasing cost of Far Eastern products. “It seem like the price of all Chinese products, not just tyres, is increasing,” Harries observed. He believes Group Tyre currently has a strong portfolio of products. In addition to all the best-known premium brands, these include Marangoni, Maxxis and Federal-produced brands to name just a few. But with raw material costs remaining there is continued pressure on prices, especially at the budget end of the spectrum. In light of this, Harries refused to rule-out the possibility of bringing in further additional exclusive brands in the future.

Returning to the subject of Far Eastern tyres, Harries pointed out that it is difficult to tar all with the same brush and that even within China quality varies from impressive to distinctly unimpressive. Recalling his recent visit to Maxxis’ Thailand production facility, he remarked of his surprise at the level of technology and machinery. “No doubt it is a high quality product,” he said.
For him there is a world of difference between Taiwanese producers and mainland China’s former state-owned production companies. Quality really varies from manufacturer to manufacturer. Taiwan is all about “choice,” Harries, explained, adding that: “Maxxis and Federal are both important suppliers for Group Tyre.”

‘National Strength, Local Service”

The continuing and wide proliferation of tyres sizes simply increases the need for wholesalers with a fast and flexible delivery approach, something that Group is the best at actually delivering, says Harries. They offer same-day delivery in 98 per cent of cases and next day delivery to the rest. “Don’t forget the company is the 2007 National Wholesaler of the Year TAFF award winner,” added Harries.

When T&A visited the Group Tyre HQ, Harries remarked that he was absorbing the details involved in running the complex operations that Group Tyre represents, but made it clear that he is a firm believer that good business is not dissimilar to family: “It is all about strong relationships with the business stakeholders – wholesalers, manufacturers and suppliers. And this brings success to all of us.” And as a result, Harries also believes the supply chain can be a win-win-win relationship with all parties for mutual success.

Prior to Peter Harries’ appointment, Group Tyre had been run by its former chairman, John Church, until he stepped down on 1 April 2006 due to health reasons. In the interim Larry Cross (coordinating director), Karl Naylor, (director of commercial operations) and John Dunleavy (financial controller) took responsibility for maintain continuity. But now that his feet are under the desk at Group Tyre, there is no looking back for Harries. Ask him about his time with Cooper Avon and he will tell you that he “enjoyed every minute of it.” But in the next breath he’ll add that he is “very excited about Group.”