Giant Loop, based in Bend, Oregon, produces and designs high-performance motorcycle soft luggage and packing systems for on and off road adventure, sport, and motorcycle riding. Founded in 2008, Giant Loop has expanded horizons to serve a worldwide community of riders. Continually improving each design, Giant Loop products undergo rigorous prototype testing in demanding off-road conditions.
As the company grew, challenges such as inventory and production management and cash flow also grew. In 2014, with increased product lines, Giant Loop’s inventory forecasting system and long lead times frequently left them with excess inventory of slower turning items and shortages of popular items.
2014 also brought high international customer demand for Giant Loop. However, the strong US dollar against foreign currencies made it difficult to compete in the Europe and other international markets. So while domestic sales continued to grow, these gains were offset by the slow down in export sales, creating a negative cash flow situation as Giant Loop entered the downside of its seasonal sales cycle.
To combat the inventory challenge, Giant Loop worked with OMEP to implement a “pull” supply chain/inventory management system. Historical data was initially used to populate the system, and the new system helped better indicate when additional inventory needed to be ordered to replace what was being sold. This learning system adjusts to match customer demand, allowing Giant Loop to focus on reducing lead times and batch sizes and manage inventory to match the motorcycle industry’s seasonality.
To address the challenges in the European marketplace, OMEP analyzed and reviewed Giant Loop’s international business model. After an initial review, Giant Loop and OMEP went to work on developing a new business model for International Sales that reduced costs for export customers and improved margin structure, helping keeping Giant Loop products more competitively priced in international markets.
Happy customers and happy Giant Loop! In 2015, Giant Loop realized positive growth in their International Sales, providing a major contribution to their best, most profitable year ever. Giant Loop has increased inventory turns, and it has improved cash flow.
Giant Loop is at a critical stage in our growth and development as a company, and OMEP’s assistance has helped set us on a more solid foundation and a clear path to profitability that will support and sustain our growth into the future.