Nationwide Tire Distributor


Situation

With multiple acquisitions in the last three years this company is the largest privately-owned distributor of replacement tires in the US with 83 distributions centers serving 37 states.  The company has 2,500 employees and has recently filed with the SEC to go public.

Challenges

The company is owned by a private-equity firm with intense focus on cost-containment, while maintaining an affordable and attractive health benefit program to a blue collar and white collar work force. 

Actions

Craford worked with the client to design a self-funded health care benefit program, cost structure, and contribution strategy that:  fit the company's culture, maximizes program participation, minimizes financial risk exposure, continues to be competitive for employee recruitment and retention purposes and consistently beats cost trends.

Results

While competitors in their space saw health and welfare costs increase, Craford was able to hold costs steady from 2005-2009.