Deliveries Slow
Bike Europe • July 11, 2024
The delivery problems at Shimano
TESSENDERLO, Belgium - The delivery problems at Shimano Benelux have arisen since warehousing and distribution was outsourced to logistics service provider Kühne+Nagel in 2023. Although Shimano did not give any reasons for the delivery problem, sources indicate that the 'mismatch' between both IT systems is the main cause of the problems.
The issue mainly impacts IBDs who might have to wait for weeks without knowing when the goods will be delivered. Lead-times have now increased to more than six weeks. IBDs across Europe are hit and it relates to both Shimano branded products as well as the brands handled by Shimano Benelux.
“The lead-time problem also concerns parts that should be in stock, but are not delivered,” told an IBD who wishes to remain anonymous, to Bike Europe’s sister magazine Tweewieler. “In the meantime, we have to hold the repairs, without being able to tell the customer when the bicycle will be ready. This is annoying for us and annoying for the customer.”
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Deliveries from warehouse in France
“This year we are facing serious logistical challenges at our newly started warehouse operations, which are subcontracted by Kühne+Nagel in Belgium,” confirms Shimano communications manager Kim Edwards. “This results in longer lead-times times and a lower service quality of deliveries.”
“Once the problems surfaced earlier this year, Shimano took immediate action. We started delivering from another Shimano warehouse in France,” says Edwards. This was intended to alleviate logistical problems and shorten lead-times as much as possible. “We recently scaled up capacity again in France. Although many actions have been taken by Shimano and Kühne+Nagel in recent months, Kühne+Nagel‘s performance in Belgium is only slowly improving.”
Outsourcing warehouse and logistics
The Swiss logistics service provider Kühne+Nagel provides warehousing and distribution for companies that want to outsource these activities. In 2022, Shimano decided to join forces with the company, resulting in the closure of the warehouse in Nunspeet, the Netherlands. The Shimano inventory was moved to the Kühne+Nagel warehouse in Tessenderlo, Belgium. In total all Shimano products occupy 20,000m2 in an existing e-fulfillment hub of the logistics service provider.
“We are proud to help Shimano to meet the growing demand for bicycle parts through an automated, highly flexible storage solution,” said Kühne+Nagel Executive Vice President Contract Logistics Gianfranco Sgro when the contract with Shimano was signed. Shimano's decision to move its inventory to Kühne+Nagel also meant that the Japanese company could no longer access the products in the warehouse themselves.
Sharing delivery status
To keep dealers informed, Shimano informs them about the most current lead times through various channels. Edwards: “Lead times vary per item and per warehouse. Stock availability in both warehouses is regularly shared with our customers through our customer platforms, newsletters and sales representatives. The delivery times shown on the MyShimano website are currently as accurate as possible. The lead times per country are adjusted weekly.”
We expect order lead times to decrease rapidly”
“We expect order lead times to decrease rapidly,” says Edwards. “As soon as we have more information about this, we will share this with our customers. We are in close contact with Kühne+Nagel on what steps they will take to improve service levels. We are doing everything we can to achieve major performance improvements as quickly as possible. We apologise for the delays and temporary inability to provide our usual adequate service.”
Declining turnover Kühne+Nagel
For Kühne+Nagel 2023 turned out to be a challenging year, as its net turnover decreased by approximately 40%. The operating result before taxes halved to €2 billion. The company runs operations in over a hundred countries and has 1,300 offices. In an effort to improve efficiency and increase profits, the logistics service provider is adapting its organisation, eliminating regional management levels and allowing country organisations to report directly to headquarters. According to Kühne+Nagel, the reason for the reorganisation is the sharp decline in sea and air freight rates and the weakening global economy.
The May Flyer Double 100 (also known as the SWRC May Flyer) is a long-standing cycling sportive in the UK. It is organised by the South Western Road Club (SWRC) and has been running for over 25 years. The "Double 100" refers to the event's signature offering of two distinct route options for participants: The Flyer: A 100-kilometre (approx. 62-mile) route that meanders through the North Downs and Surrey Hills. The Flyer Challenge: A 100-mile (approx. 162-kilometre) route that crosses the North Downs into West Sussex and back. Event Details Next Event Date: Sunday, 17th May 2026. Start/Finish Location: Cobham Village Hall, Surrey. Terrain: Scenic but challenging, featuring notable climbs like Staple Lane, Pitch Hill, and Combe Bottom. Entry: Limited to 500 riders, with registration typically available through platforms like SiEntries. Charity: All profits from the event are donated to local charities. https://www.swrc.org.uk/may-flyer/about-the-may-flyer
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