Elevate Cycles Bicycle Supply Headwind
- Posted on
- By Chris Pitts
Bicycle Supply update
Just a bit of an update on the bicycle and bicycle part supply chain struggles for all shops.
The information on the 2022 lineups will be released soon for the full range of bikes from our suppliers. As always, Some of our manufacturers of high-end bikes are available. If interested, please give us a call.
Below is some insight from one of our suppliers that best describes the current hurdles.
Situation 1
Headwind: Shimano Malaysia is still closed due to the government solutions to severe C-19 breakout. We have no choice but to wait. This impacts all component groups below SLX and 105.
Situation 2
Headwind: Container shortage is very real, recent fire in the port of Shanghai has shut down the transport of hazardous containers(E-Bike), we have thousands of E-Bike completed with the challenge to book containers. We are working on solutions now, but this has not been solved. Standard containers are in short supply, space on container ships is overbooked, and manpower from origin to our warehouse is experiencing a severe shortage due to the volume of all kinds of freight. We are paying premium fees(above and beyond) to secure containers, overpaying is the only path to secure what standard containers can be reserved at this time.
Situation 3
Headwind: All sub-suppliers are reducing production lines as a result of raw material shortages and manpower challenges, this is the result of C-19. In this country, we have the world’s best vaccine circumstance. The South East Asia area, the capital of bike supplier production does not. This is an issue we need to remain patient with as governments manage the spread of C-19 and vaccine disbursement. Some markets are in an unhealthy way with little access to vaccines.
Situation 4
Headwind: The ability to sub-specification parts is very difficult because all sub-suppliers have tremendous lead times (and less output) as a result of the prior notations.
Situation 5:
No cycling brand is more aggressive (or positioned) to procure your backorders. Be very clear; this is a consumer good issue that impacts all.