3T reveals “game changing” just-in-time B2B bike ordering
It’s a given that everyone in the cycle industry understands there are vast overstocks in the market at the moment and also that long lead times have played their part in exacerbating the problem. It can be difficult (to put it mildly) to estimate how the world economy will be doing – and how much of the overstocks will be worked through – by this time next year, for instance. Good luck, purchasers.
One bike manufacturer is looking to shake that now traditional model up. 3T is to give bike retailers the chance to make “just-in-time” last minute decisions on model, size, colour and spec of bike for its Italian-made carbon range. Dealers will have to reserve production capacity a year ahead, but won’t have to take a punt on popular colours, specs, etc.
‘Pre-season programs haven’t worked for retailers for a long time,” said Rene Wiertz, CEO at 3T. “Long lead times combined with uncertain demand creates overstock, discounting and cash flow challenges throughout the entire industry. 3T in-house carbon production offers the retailer maximum flexibility. Overstock, missed sales and margin-eroding discounts are history.”
With the new programme, retailers are no longer required to pre-order 3T’s Made-in-Italy models and guess the exact specification and colour long in advance. Instead, dealers can reserve production capacity for the next 12 months, and can take the final decision on which model, colour, size and specification they like to receive six weeks before delivery. Arguably that six week lag will be justifiable in a retailer/customer conversation when talk turns to ‘customising’ bikes to their preferences (to a point), not unlike the automotive industry – a sector that has just-in-time delivery more typically in the context of manufacture, eg in terms of components for production lines.
“This is the great advantage of our filament winding + RTM technology,” adds Gerard Vroomen, 3T Head of Design. “Because we store the raw materials of fibres and resins at the factory, it doesn’t matter to us if the retailer decides at the last moment to change a Strada into a Racemax. We change the winder programme, change the filament spools and plug in a different mould.”
Luca Mongodi, partner at U turn investments, said: “This is the reason why we invested last November in 3T. 3T is changing the game of the bike industry, and we are happy to be able to accelerate this fundamental change with our investment in the in-house carbon factory and bike assembly and creating sustainable jobs in Italy.”
3T’s new production slot reservation program is valid for all bikes made in Italy. All 3T models will be available in “Italia” versions by Q4 of 2023. The production capacity available for 2024 is 5,000 units, and 3T continues to expand this capacity rapidly.
