Peloton’s Supply Chain Can’t Peddle Fast Enough

Peloton’s Supply Chain Can’t Peddle Fast Enough

February 11, 2021

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 Continue reading

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VW Partners with Amazon Web Services

VW Partners with Amazon Web Services

Volkswagen (VW) is in partnership with Amazon Web Services to link more than 120 VW factories to 1,500 suppliers and 30,000 plants worldwide via a cloud-based software and data portal.

The “industrial cloud” digitizes factory processes from stamping to painting to maintenance.  Supplier partners use an app store approach to share and contribute software applications.  Amazon provides support services, including data analytics and computing.


Video Spotlight: VW and Amazon team up to create an industrial cloud (Mar 28, 2019, Arirang News)


This post is based on the IT News article, VW sees Amazon-built ‘industrial cloud’ as future B2B marketplace, by Paul Lienert, July 24, 2020, and the YouTube video in the Spotlight. Image source: Shutterstock / vectorfusionart

Discussion Questions:

1.  What are the strategic implications of VW’s industrial cloud?

Guidance: The industrial cloud integrates VW factories with its suppliers and plants to digitize processes and improve supplier relationships.  The cloud technology better positions VW to compete on responsiveness, quality, and flexibility.

2. What role does VW’s industrial cloud play in its supply chain operation?

Guidance: The industrial cloud enables VW to address the barriers to integration of suppliers by sharing data Continue reading

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