Business Process Reengineering within the bicycle industry

Abstract: Bicycle leader brands have shift production overseas to reduce the cost of labor and to implement new technologies at lower cost. Bike manufacturer both in Asia and Europe employ a traditional way of production  based on economics of scale that aims cost per unit reduction. Where MRP systems and forecasting are part of their day basis operations. This traditional way of operation offers room for innovation that must be seen as a business opportunity. Thus, alternative management approaches can strengthen strategic goals and improve responsiveness and flexibility. Bicycle brands producing locally should implement alternative management systems to remain competitive, to take the maximum advantage of their location, to improve customer service and to cut operational cost. The course of action followed was a market analys is to understand the nature of the bicyclemarket within European Union. Similarly, a Business Process Reengineering was conducted to identify with the current operational processes and opportunities within the bicycle industry. Based on the Business Process Engineering, an alternative business model was presented. The main proposed solution to improve the current operational processes:  (a) Implementation of Just-­‐in-­‐time management system and relocation of assembly facilities.  (b) Benchmark IKEA core methods, designing products for supply chain and that customer assemble  the future themselves. (c) Benchmark Dell Computer business model of customization and supply chain. Finally, the fundaments for an alternative business concept were established regarding bicycle design concept, strategy planning and production system design.