A boost for the supply chain
The last few years in the bicycle industry have been quite turbulent. An almost meteoric rise was followed by major supply chain problems, and after the coronavirus pandemic, orders declined again. At bike-components, a bicycle retailer based in Würselen, Germany, the IT systems were unable to keep pace with the order situation. The company took countermeasures and, in collaboration with several partners, brought its supply chain processes up to date.
A look back at 2020: the coronavirus pandemic continues to spread across the globe, and Germany imposes the first of several lockdowns. At the same time, the weather is unbeatable, motivating many people to exercise outdoors in the fresh air while complying with the rules. Of course, this is best done with a brand-new bicycle – or one that has been fitted with new components to make it fit for the many tours. As a result of the pandemic, demand for bicycles skyrocketed and the industry underwent a profound transformation within a very short time. bc GmbH, which operates the online shop bike-components.de, also benefited from this development.
The company, based in Würselen, North Rhine-Westphalia, was founded in 1999 and supplies its customers with high-quality bicycle components – everything from brakes, shock absorbers and tyres to the right saddle. The company also offers complete bicycles, including racing bikes and e-bikes. Around 120 employees ensure that everything runs smoothly and that orders reach customers as quickly as possible. However, the turmoil caused by the pandemic presented bike-components with a major challenge: ‘Corona was a life-changing experience; we were inundated with orders,’ says Svenja Kohnke, Head of Project Management Procurement at the company. However, the IT systems did not initially grow in line with the order situation. ‘bike-components had an ERP system that it had programmed itself, which had grown over 25 years,’ explains Kohnke. Any requirements that were added over time were adapted by the in-house IT department. ‘Of course, such a system is only scalable to a limited extent,’ says Kohnke. For this reason, bike-components launched the comprehensive ‘bc Road-Gap’ project, in the course of which the entire backend was renewed. This includes a new ERP, merchandise management, pricing and product management system, as well as the SCM planning tool DISKOVER. During the three-year project, bike-components collaborated with several partners, including the management consultancy Abels & Kemmner.
Middleware as the foundation
The new IT system is based on middleware that can be upgraded in the future. This is important because conditions in the bicycle industry can continue to change dynamically. bike-components faced the challenge of defining the appropriate interfaces and gaining an overview of the product information. ‘At the start of the project, we sat down with the DISKOVER team and Abels & Kemmner for two days to define the interfaces,’ recalls Kohnke. Together, they had to discuss what information was needed for which systems and how the data exchange should work. This is because when the DISKOVER planning tool needs data, it has to send a request to the ERP system, even though the necessary information is actually available in product information management.
DISKOVER is software for optimising your own supply chain. The SCT GmbH platform has a modular structure, making it ideal for precisely supplementing supply chain management. DISKOVER offers functions for inventory management, sales and demand forecasting, sales and operations planning, and scheduling. The platform also enables comprehensive analysis, controlling, and detailed production planning. DISKOVER is supplemented by modern AI forecasts, which can be used to optimise safety stocks, for example. The software therefore makes it possible to identify market changes at an early stage, forecast demand more accurately and make quick scheduling decisions. This allows companies such as bike-components to remain competitive even in the dynamic market of the bicycle industry. Abels & Kemmner has now introduced DISKOVER to a large number of companies in various industries. To this end, the experts work closely with their customers, identify potential for action and accompany the introduction throughout the entire project period.
Data base as a challenge
A key task during the introduction was to provide the appropriate data base. ‘Creating the data structure for the first time was a major transfer task,’ recalls Svenja Kohnke. One of the challenges was the nature of the data. ‘To use DISKOVER properly, you need real data,’ says the project manager. This was achieved in collaboration with Abels & Kemmner and the other project partners. Whereas bike-components previously had no system-supported planning and scheduling, employees can now rely on the information provided by the solution. The days of long Excel lists in the company are now over, and the inadequate master data was also processed in the course of the project. The retailer’s supply chain has to deal with many different parameters. ‘It is possible that the same item comes from different suppliers,’ says Kohnke. In that case, it is possible that a gear system is sourced directly from the manufacturer in Asia, but it may also come from a wholesaler.
With the new system, planning and scheduling are now carried out in DISKOVER, and the planners implement their order proposals in the software. The platform calculates dynamic safety and reorder levels and provides comprehensive reporting.
Inventory successfully reduced
With the introduction of DISKOVER, bike-components has succeeded in significantly reducing inventory within the company. Svenja Kohnke recalls the period shortly after the coronavirus pandemic: ‘At times, we had very high inventory levels and the goods were no longer in demand,’ she explains. After an initial training phase, the system is now a central component of bike-components’ supply chain management. Everyone in Würselen is completely satisfied with how the project has progressed. ‘Our go-live was a complete success, but not all of the project tasks had been completed at the beginning,’ notes Kohnke. A follow-up project is therefore likely. In future, the retailer’s range of 70,000 items is set to grow significantly. Bike-components will then be able to offer its customers even better service – and thanks to DISKOVER and the optimised supply chain, the parts ordered will be on site in no time at all.
Svenja Kohnke
Head of Project Management Procurement at bike-components
