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Messingschlager To Improve Speed To Market Service

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BAUNACH, Germany – Messingschlager represents and imports products from a large number of part makers from Taiwan and other Asian countries. What is the company’s position in the industry development to enhance speed to market by bringing more production back to Europe or arrange just-in-time deliveries with part makers?

Messingschlager To Improve Speed To Market Service
“We have the experience of over 90 years, what is important in a partnership with the Asian market,” says Dennis Schömburg, Manager Director of Messingschlager GmbH. – Photo Bike Europe

“There are some OEMs that want to expand to Europe or relocate the production from Asia,” says Dennis Schömburg, Manager Director of Messingschlager GmbH. “Only very rarely these brands increase their production capacity on their local markets. And if they do, they are used to deal with the cultural differences and different ideas on how to do business between Asians and Europeans. Also exchange rates or customs problems are to be eliminated. Thanks to our long-term experience our main strength is to deal with these issues. We have the experience of over 90 years, what is important in a partnership with the Asian market.”

‘A worry-free and trouble-free operation’

Schömburg continues, “In the past decades a lot of bicycle-knowledge has been exported which has greatly improved the quality of products that are produced in Taiwan. Together with the increasing average price of products made in Taiwan the quality is improving. No wonder that about 90% of all bicycles and bicycles accessories for the European and US market are now made in the Far East. ‘Made in Taiwan’ has become a quality mark and that is to our benefit. We can provide a worry-free and trouble-free operation between manufacturers and brands also because we are able to deliver throughout Europe within the shortest time. We already play an important role to ensure just-in-time deliveries and our intention is to improve this service.”

In cooperation with Asian suppliers

“Europe is certainly one of our core markets, but in fact we operate globally in over 70 countries. Especially we are on an expansion course in South Asia, or South America. We serve over 2,000 customers with more than 25 brands with a focus on the after-market. But a large part of our effort is the OEM market and we want to develop this even further. Regardless how we cooperate with these Asian suppliers, we can offer them nearly always a good solution for their distribution issues, including just-in-time deliveries. A key factor to distinguish Messingschlager’s business model is that this service is free for our customers. We even guarantee the price regardless the period of time the goods are stored. A major advantage for our customers when looking at the exchange rate fluctuations or raw material prices.”

Controversy

Messingschlager closely watches the development on bringing production back to Europe. “We see this trend but also a controversy,” says Dennis Schömburg. “Presumably some companies are able to increase their speed to market, but only to a certain extend in regards to production time and delivery. Still many of their component suppliers are located in Asia, so locating a factory in Europe is not fixing the issue alone. But this is only one side of the coin. From our experience the Asian companies are unbeatable when it comes to development time of new product concepts or line extensions. So this partly eliminates the time saved on shorter delivery ways.”

‘We buy in very large quantities’

“We still have to see whether this will be profitable and can meet the quality and cost requirements of our customers. The lack of availability are direct results of production in Asia. Our warehouse in central Europe is very helpful to solve this problem too. We deliver at short notice and sometimes even for a lower prices than at the manufacturer directly, because we buy in very large quantities when prices are down on all levels – like manufacture prices, energy costs, sea cargo, exchange rates, etc..” Today Messingschlager’s warehouse measures 70,000 square meters providing 20,000 docking positions. “We are currently discussing how much to expand our warehouse to facilitate our growth but I expect we will start the construction by the end of this year,” says Dennis Schömburg.

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