Peloton’s Supply Chain Can’t Peddle Fast Enough

February 11, 2021
Peloton’s Supply Chain Can’t Peddle Fast Enough

Delivery delays for Peloton’s exercise bikes have threatened the company’s market leader position.

Since the lockdown in March 2020 due to the pandemic, demand for Peloton’s exercise bikes and treadmills has surged.  However, with the shipping delays at ports from overseas manufacturers, Pelton is struggling to make timely deliveries, amidst order cancellations and requests for refunds.

Video Spotlight: Peloton tops earnings expectations, warns of supply issues due to uptick in sales amid coronavirus (Nov 6, 2020, Yahoo Finance)

This post is based on New York Post article, Peloton customers are canceling their orders after months-long waits, by Nicolas Vega, November 24, 2020; the Freight Waves article, COVID broke Peloton’s supply chain – can $100M fix it?, by Brian Straight, February 6, 2021; and the YouTube video in the Spotlight. Image source: SolStock/Getty Images

Discussion Questions:

1. Comment on the importance of accurate forecasting for Peloton’s supply chain.

Guidance: Peloton’s inability to accurately predict shipping delays from overseas manufacturers has caused product shortages that lead to missed deliveries and poor customer service.

2.  How are Peloton’s supplier sourcing policies relevant to the current shortage?

Guidance: Peloton sourced its bikes and treadmills solely from overseas manufacturers whose inability to make timely deliveries has caused a ripple effect down Peloton’s supply chain, resulting in order cancellations and customer dissatisfaction.


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