99 Bikes stocks up to deal with next phase of supply chain crisis

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The bicycle retailer, partly owned by Flight Centre, is predicting new hurdles in the supply chain as the CEO announces his resignation.

This inventory lumpiness is due to supply chain hold-ups being so prolonged that Brisbane-basedGraham Turner, left, and Matt Turner, co-owners with Flight Centre and staff in Pedal Group.Before the COVID-19 pandemic, Pedal Group would order goods three months to six months ahead for its stores and wholesale division, which stocks gear from $4230 electric bicycles to $74 helmets.

He expected other retailers to be affected. The prediction is another indication of pandemic fallout, with supply chains and logistics globally clogged up on deliveries of items from laboratory supplies to car parts. , and Flight Centre itself , with 15.82 per cent owned by people including staff, according to Flight Centre accounts. It has 800 staff and almost 60 stores in Australia and New Zealand.. Mr Turner said the business had early on predicted a jump in demand, while some other sellers had not, so they struggled later in obtaining supply.Pedal Group had turned over far more stock than normal, leading to relative savings on storage and finance costs compared to sales revenue.

 

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