It isn’t uncommon these days to hear the phrase “it is a supply chain issue” when ordering parts, accessories and even clothing. If it isn’t blamed on Covid, it is Brexit, and if those two were not enough of a problem, there is then the microchip shortage, fuel prices, and the conflict in Ukraine.
I recently read a story about a well-known car manufacturer who was thinking about buying washing machines, as their microchips could be used as a replacement for the ones they can’t get. I’ve no idea if it is true – heck, it was on the Internet – but it demonstrates the scale of the issues.
Whether it is due to the changes to the supply chain causing manufacturers to reevaluate, the internet enabling a different way of supplying the goodies we crave, or the availability of white vans that deliver directly to your door, our motorcycling world has changed.
The Supply Chain
The model was a simple one. Trying to sell their products in every country was a logistical nightmare for a manufacturer, so they used an in-country distributor.
As the end-users, you and I would rarely see these people. The manufacturer supplies the distributor, who, in turn, supplies the products to the retailers.
To make it cost-effective, a distributor would take on several manufacturers so that the distribution sales rep could supply several products to the retail outlets.
In return for the distribution service, a distributor typically gets a territory or geographical region in which they are the sole distributor and, naturally, a heavily discounted price. This distributor puts a mark-up on the product and sells it to the retailer, who, in turn, gets a price break depending on the volume of the product they sell.
It is all very normal and isn’t limited to the motorcycle world. It is the same across most industries.
The Internet
There is a gentleman in Denver, Colorado, who makes a shim kit for the abhorrently awful Yamaha Tracer 9 GT seat. It is a great motorcycle, shame about the seat.
Joe Kelly (JK3D.us) is the manufacturer of the Seat Slope Kit, and Steve Downer (Printed Parts) is known for his brilliant Tracer 9GT GPS mount. Both these gentlemen are both supplying a niche market, and whereas their products are excellent, the volume they produce does not attract global distributors.
And that is where the Internet comes in. Five minutes on the Facebook page for the Tracer 9GT looking for GPS mounts, and I found Printed Parts. Follow a link to eBay, and two days later, I have the perfect GPS mounting solution for the Tracer.
The same is true for the seat solution. Denver is 4,685 miles from our office, yet we could find the seat slope kit and have it shipped to the door, with just a few mouse clicks. If this is true for niche products, more prominent manufacturers must be considering if a similar solution is possible for them.
Going Direct
Finding myself in need of some more Scottoiler FS365, I did what all self-respecting motorcyclists do and went to the SportsBikeShop website, only to discover they no longer stock FS365 or other Scottoiler products.
As much as it annoyed me to shop elsewhere, I soon discovered that other than existing stock at retailers, it appears that Scottoiler has adopted a direct sales model in the UK.
Why Scottoiler and other manufacturers are adopting this model is the subject of some debate. At face value, the easy answer is that the manufacturer increases their profits by removing the distributor and keeping the retail price the same.
With this change, comes increased costs for the manufacturer in shipping and customer care. Still, I’m sure someone in the accounts department did the cost-benefit calculation and decided they liked this idea, but I’m not convinced money is the only driver.
Retail outlets have a strong desire to sell you products. It is why they exist. If they do not have the products to sell – due to supply chain issues – they are just as annoyed as we are. The same is true for the distributor. They have a vested interest in having products to distribute.
With reduced manufacturing volumes and interruptions in the supply chain, I wonder if one of the major drivers isn’t that it is simpler to manage the reduced volumes directly with you and me rather than feed a distribution network with multiple retail outlets all asking for the same product.
Online Covid
During the covid lockdown, I was delivering prescriptions. The roads were almost empty. There was me, the police car that appeared to be parked in the same spot every day, and the army of delivery vans.
Within a few weeks, we had changed our shopping habits from visiting shops to doing everything online. Every retailer, even those selling motorcycles, switched to remote selling.
Did a year of selling exclusively online prove to manufacturers what was possible?
However we ended up here, the marketplace for motorcycles and their associated accessories has changed significantly. My local Yamaha dealer has no idea when official Yamaha coolant will be in stock, so I’ve been surfing the internet for anyone that has some.
When I find some, what is the betting that I can have it delivered to my door for less than the price of the petrol to fetch it from my dealer?
