K&M Tire Inc. is in a strong position as it enters 2025, says Cheryl Gossard, the company’s president. She explains why in this MTD exclusive.
MTD: Can you bring us up to speed on K&M Tire's activities in 2024?
Gossard: 2024 has been an exciting year for us at K&M Tire. Our mission is all about continuous improvement in all ways and that is something we really take to heart. This year, that has included moving into several larger warehouses to accommodate our growth so that we can take care of our customers even better than ever before.
We also wrapped up a multi-year project to implement a warehouse management system, which allows us to stock more tires in our existing warehouses with the same amount of space. This system drives improved efficiency for our K&M team and improved accuracy for our family of customers. For us, this project has been incredibly important because it was a win-win for our team and our customers.
We are also in the beginning phases of incorporating a new purchasing and inventory management system, which gives us a quicker reaction time to supply changes and sales demand while working with our tire manufacturer partners even more effectively. The goal is to be better at ordering and stocking the right tires, so we have them when and where our customers need them.
As K&M Tire continues to grow, it has become more important than ever before that we keep our entire team engaged and on the same page. As a result, this year we began a new internal initiative that we call ‘K&M On the Road’ this year. Along with our operations leadership team and representatives from several key areas of our business, I have invested a significant amount of time visiting all of our locations.
This has been instrumental in getting to know our team members better, obtaining critical feedback from them and increasing their knowledge of the benefits we have to offer. We grilled out, played yard games, tested their knowledge and most importantly, it was a chance for us to really listen and connect with our teammates face to face. Because it was so successful, we intend to continue this initiative into 2025.
Most recently, we closed on our acquisition of K&W Tire. (Editor’s note: K&M Tire announced its acquisition of Lancaster, Pa.-based K&W Tire this past September. The deal gave K&M Tire six distribution centers throughout New England.) Founded in 1951 and servicing 13 states, we are proud to continue their legacy of offering a high level of service to our customers.
MTD: What's your take on the general state of the wholesale tire distribution channel in the U.S. as the year winds down?
Gossard: As we enter our 55th year in business, we are cautiously optimistic about the state of the industry in 2025. Although we certainly expect some headwinds, we also recognize that times like these represent an opportunity for us to double down on improving our processes and investing in our people so that we can continue to offer industry-leading service to our customers.
MTD: As you mentioned, K&M Tire made a major acquisition this past September when it acquired K&W Tire, which has six distribution centers throughout New England. Why was K&W an attractive acquisition and why is New England an important market for K&M Tire?
Gossard: We are incredibly proud to welcome the K&W team and customers to the K&M Tire family. From a business and cultural perspective, we felt like it was a great fit and that has turned out to be the case. We are especially interested in markets where there is a high demand for all tire segments that we carry. Our goal is to be a one-stop shop for our customers where we can supply them with all of their tire needs, ranging from lawn & garden, PLT, truck, ag and even small OTR and mining tires. We are always on the look-out for growth opportunities and we are proud to service our customers in all of our geographic markets.
MTD: Are you looking to acquire more wholesalers in the northeastern part of the U.S.?
Gossard: For us, the bottom line is that we continue to focus on serving our family of customers well. The growth is certainly exciting and we are always looking for the right opportunities. But for us, growing organically with a brand new warehouse or growing through acquisition are simply byproducts of taking great care of our customers. That has been and always will be our number one focus at K&M Tire.
MTD: Are there other parts of the U.S. where K&M doesn't currently have a presence that you want to be in?
Gossard: We have made nearly two dozen acquisitions over the past couple of decades and in many different markets. And each time, we look for great opportunities with great people who are focused on taking great care of customers. For us, geography is secondary. But as I said earlier, we are always on the look-out for the right growth opportunities and look at each one to see if it makes sense for us. We are not in the business of acquiring companies to reach a certain number of locations. We are in the business of serving people and when there is an opportunity, our first step is to consider if it fits geographically, culturally and economically. If it passes that first round of testing, then there are many other things we consider, which include factors such as timing, stress load on our current team, brands, associate dealer programs and logistics.
MTD: When we last talked in January 2024, you mentioned that K&M Tire was in the process of ‘leveling up’ its customer service capabilities, including adding regional program managers, researching and eventually deploying new supply chain software and other initiatives. Can you bring us up to speed on what's been accomplished in these areas?
Gossard: Our company theme for 2024 is Level Up, which has included several internal initiatives aimed at providing higher levels of service to our customers. We now have a team of five dedicated Regional Programs Managers who work alongside our outside sales team and are focused on helping our customers to maximize their tire program earnings.
We also wrapped up the implementation of our new warehouse management system and we are in the beginning stages of rolling out a brand new inventory management system. We are intentionally rolling these out slowly and thoroughly testing as we go.
In addition to these items, we have been working on enhancing the functionality of our online ordering portal called Weblink. We rolled out phase 1 of these enhancements earlier this year and phase 2 is currently in testing with a January 1, 2025, roll out target. These investments represent the passion and commitment we have for our family of customers.
MTD: What can we expect to see from K&M Tire as we head into 2025?
Gossard: 2025 marks our 55th year in business and today our team is more passionate and driven than ever before. Our ultimate goal is to be the leading and most trusted tire distribution partner everywhere we do business. Our focus is on continuous improvement in all areas of our business. From intentionally developing and training our team to improving our internal systems and processes, K&M Tire is focused and dedicated to being better each and every day because making our customers the most important people in our business isn’t just our number-one value - it’s the K&M motto and our guiding principle.
At K&M, we exist to improve the lives of others. This includes our team, our customers, and the communities where we are located. I’ll be the first to say that we have opportunities and work to do. Being the leading and the most trusted isn’t a destination, but a journey. We are continuing to gain momentum and it’s an exciting time to be part of the K&M Tire family.
