Custom Chrome Downsizes Distribution Centers
April 28, 2006
Filed under Uncategorized
Custom Chrome, Inc. plans to consolidate its current network of six distribution centers to three facilities in an effort to dramatically improve fill rates and service for its dealers, company officials announced.
Custom Chrome says the move is one part in a series of strategic actions designed to reduce overall costs and refocus on the core business of distributing aftermarket and replacement parts for motorcycles.
Officials say the change in distribution center structure will reduce multi-box delivery by 75 percent, improve primary fill rates by 60 percent, and allow Custom Chrome to manage its inventory investment more efficiently while also improving in-stock parts and service delivery.
“The DC consolidation will allow us to better stock our warehouses with the everyday parts our dealers need,” said John J. Lott, president and CEO of Custom Chrome’s parent, Global Motorsport Group, Inc.
Lott said Custom Chrome’s dealer base asked the company to improve its product availability and service delivery. “By repositioning Custom Chrome for growth, we are better able to invest in the product dealers need to run their businesses profitably,” he said.
In a related move, Custom Chrome also plans to end offering standardized bike kits to re-focus on providing parts used to customize motorcycles – including rolling chassis packages and components.
“The transformation of the bike kit offering will allow us to better meet the needs of the market by offering more choices to dealers and consumers,” said Steve Veltri, Senior Vice President of Custom Chrome. “We have had a lot of success with bike kits, but feel we have a bigger opportunity to meet the needs of the market by not dictating the components that make up the bike.
“Custom Chrome needs to be Custom Chrome, we are going to focus on stocking the shop, creating cool parts, and providing great service.”
Global Motorsport Group, Inc., designs, manufactures, markets, and distributes aftermarket motorcycle parts and accessories as Custom Chrome, Santee, Custom Chrome Europe, Custom Chrome Far East and Motorcycle Stuff. To learn more, visit www.customchrome.com or www.motorcyclestuff.com.