Taipei Cycle Marks Urgent Need for More Flexibility
TAIPEI, Taiwan – The last week held Taipei International Cycle Show has made abundantly clear that the bike sector’s top priority at the moment is at creating more flexibility throughout the entire supply chain. As forecast orders from dealers continue to decrease more flexibility is needed to tailor production to demand.
Increased flexibility of each player in the supply chain – from component manufacturer, importer/distributor to bike makers – is hard and fast needed. In particular in view of dwindling forecast orders from dealers.
This is an ongoing trend that looks to be there to stay. It creates problems at many bike suppliers. In particular as they have no clear indication on what the fast movers in their delivery programs are going to be and what parts in what quantities they need to order.
Adjusting orders for parts for ModelYear programs that have been presented to dealers is also becoming a bigger gamble every year for bike suppliers. Again because dealers order bikes later and later. This trend holds especially true for European countries where the economic crisis hits hard. It results in dealers barely getting credit from banks to finance inventories.
Prominent insiders point to flexibility need
During the last week held Taipei International Cycle Show which was visited by all the major players in the industry, several insiders pointed to the urgent need for more flexibility. The most prominent among them was René Takens, President of the European bicycle industry association COLIBI and CEO of Accell Group.
At a cocktail party organized by Bike Europe on the occasion of the launch of the radically redesigned magazine – René Takens digged deeper into the urgent need for more flexibility in a short speech. He did this after he was presented the first issue of the revamped Bike Europe by editor Jack Oortwijn.
Biggest challenge facing bike sector
René Takens said: “We need to give top priority in becoming more flexible in the coming years. This will enable all of us to tailor production better to dealers’ and end consumers’ demand and to be able to respond faster to dealer orders. Each player in our sector will need to focus on this matter. Creating more flexibility throughout the supply chain cannot be brought about from one day to another, but it is the biggest challenge the bike sector is currently faced with.”