Local suppliers' service levels

Much has been said lately about the issue of parralel and grey imports of cycling products in South Africa.

Grey/parralel imports happens when the local agents are bypassed by the end user. Eg me ordering a crank from an online store based in USA.

Also at the moment there is a furore about apparent price fixing agreements between retailers and suppliers.

The reason there are grey imports into SA is because local cyclists can get parts cheaper if they bypass the local supply chain. A wider range of products is also now available to the discerning buyer. With most of the overseas online stores offering free shipping if orders are above a certain threshold, groups of people have been combining orders into bulk orders to make use of the free shipping service. The downside to this is that the local supplier is under no obligation to help you if you have warrantee issues with products.

This has led to local suppliers feeling the pinch as sales that would have gone through them have bypassed them and the LBS. So bike shops have also seen a drop in their profits.

The only recourse suppliers and LBS have is to increase service levels and reduce profit margins.

I bought a proprietary wheelset about a month ago. Shortly there after I rode into a hole and consequently the front wheel is a write off.

And here my problems started. The local supplier couldn't supply me with a new rim. They assured my LBS that I will have to buy a wheel and that they have stock.

I put in an insurance claim for a new wheel after recieving a quote. The insurance approved and paid out the quote in less than a week (kudos to Santam) and I instructed my LBS to order the wheel.

The following day my LBS phoned me to say they are unable to get me a wheel. Apparently the supplier has a discrepancy between what they have on their system and what they have in stock. They couldn't find the wheel in their warehouse.

I now have to wait at least 6 weeks as the supplier needs to order it for me from overseas.

The LBS has been brilliant throughout the whole episode and can only be commended for their service, but they have been let down by their supplier.

The reality is that the only reason I didnt take my money overseas or even to one of the local online stores is because the insurance payed the claim directly into their account. If it was paid out to me I would have ordered a different wheel from an online supplier where I would have been able to afford it.

I honestly think the distribution chain in SA is based on an archaic business model. Some of the stores and suppliers have opened their eyes to this and adapted to the changing market.

Unfortunately the supplier for my wheel is letting down the stores and tarnishing the view I have of our suppliers in SA.

The main reason I didnt order overseas was because I wanted the peace of mind offered by having backup for my wheels if something went wrong.

Unfortunately for the LBS I will shop around on the internet from now on.

Oh, and I can't see myself buying any proprietary items again. If the parts arent interchangeable and readily available you can be held for ransom by the local suppliers. Not cool.

Fortunately I have a spare wheelset so my riding hasn't been affected and I will still be riding myself silly this weekend at Eselfontein.

Happy trails everyone.

Philip

edit: 30 Aug 2010
Malan Cycle Addiction has come to the rescue and is building me a lekker front wheel that will be stronger than the fulcrum wheels and only weighs 830gr. I can't to get my hands on it and to make it dirty...