The rise of online retailers and the increasing number of stores carrying too much stock will create another supply chain crisis.
99 Bikes, which is based in Brisbane, has been experiencing a prolonged supply chain hold-up, which it has been able to resolve through ordering in advance.
Before the coronavirus pandemic, Pedal Group usually ordered its products several months in advance.
Due to the prolonged lead time, some products may not sell well in the long run. As a result, the company has to place orders for more inventory than it can use.
The impact of the pandemic on retailers globally is expected to be severe. This is another sign of the supply chain’s difficulties caused by the outbreak.
Despite the impact of the pandemic, the company would still be able to maintain its profitability through lean times and by taking on more inventory.
The company’s profit jumped by almost 40 percent in the last financial year.
Pedal Group has about 800 staff and about 60 stores in Australia and New Zeland.
The company’s profit growth was mainly attributed to the jump in demand for cycling products during the COVID-19 lockdowns.
Due to the huge increase in sales, Pedal Group was able to lower its storage and finance costs.
The company’s sales grew by 61 percent to $321 million in the last financial year. Its expenses were also pushed up by a 54 percent increase in wages.
Electric mountain bikes were among the popular products during the company’s.
Despite not taking on JobKeeper, the company accepted a government subsidy worth over $3.4 million.
Many stores such as Onceit have also seen strong tight supplies. You will can save on your purchase from Onceit with a Onceit coupon.