What has COVID-19 done to the supply chain and net working capital? For bicycle sellers like Summit Bicycles it's been quite a ride--pun intended. When gyms and fitness centers across the country closed down this year during the pandemic, more and more people began looking at bicycles for exercise, causing a huge increase in sales. Learn more about the importance of working capital in this video interview.
According to CFO Weekly guest (and Summit Bicycle CFO) Peter Woolery, this boom at the height of lockdown reached 700 percent increase in online sales for Summit, but alongside that came a new set of challenges. In this episode, Woolery explains how this year has completely changed the way they approach their vendors and suppliers, sometimes having to order bikes a year into the future to ensure stock for the following model year.
All of this means disruptions to current cash flow and accounting and requires some creative solutions to manage the allocation of resources across the balance sheet.
Watch this week’s video episode of CFO Weekly to hear all about the importance of working capital how Peter and his team have readjusted their operating model to effectively manage working capital during these unpredictable times, and how you can too.
