Lead Time Is Our Biggest Problem
FRIEDRICHSHAFEN, Germany – The meeting on bringing parts production back to Europe which was held today at Eurobike, saw an outspoken Accell Group COO Jeroen Snijders Blok. He said: “The current situation is not sustainable. Next to shortened lead times, we need more flexibility.”
Today’s meeting on lean production and bringing parts production back to Europe was open to all industry members. And they came in big numbers. Even to such extent that interested industry peers stood outside the packed room.
Future of bike industry in Europe
That the interest for this meeting was so big has all to do with the topic of the meeting; the future of the bike industry in Europe. That future is troubled by long lead times. “Up to six months, not even counting then the six to seven weeks that the needed components are at sea. This is not sustainable. We have a seasonal product for which we are hardly able to do a proper forecast. This must change,” pleaded Accell COO Snijders Blok.
Analysis of Accell’s facility in Hungary
To initiate that change Accell Group and Decathlon joint forces. However, to create more supply chain flexibility by bringing parts production back to Europe the two companies need more support. The meeting today was intended to bring together some 25 interested companies. They are asked to join a 2-day workshop in September. There an analysis of Accell Group’s facility in Hungary will be presented.
That analysis has already taken place and Porsche Consulting will discuss the results at the 2-day workshop. One of the findings of the analysis was that only 42% of all the parts used in production at Accell’s Hunland factory are delivered on time. This brings about a lot of waiting time in assembly.
Much more findings and possible solutions will be presented at the workshop: “Future vision on supply chain and collaboration between bike makers and suppliers.” The workshop will take place on 22 and 23 September. But a second workshop is planned for later this year as the meeting today caused that the workshop for 22 and 23 September is already fully booked.