RumbleOn to enhance dealer inventory access through fulfillment centers

RumbleOn plans to operate its stores on a “keep-fill inventory system” in an effort to avoid the peaks and valleys of inventory supply, RumbleOn Chief Executive Marshall Chesrown said Tuesday during a fireside chat at the ICR conference. With its “keep-fill inventory system,” the powersports retailer will distribute bikes through fulfillment centers into RumbleOn retail locations in order to streamline the process of refilling inventory as motorcycles are sold, Chesrown said. “It’s no different than Walmart or Target , where all your products come into a central location and go out on a keep-fill basis.” Fulfillment centers will allow even small stores to keep up on their inventory, Chesrown said. For example, if a dealer sells five units over the weekend, those five units will be replaced by Monday. “We also think it gives us a competitive advantage because the little guys won’t be able to do that,” he added. Access to a steady stream of inventory through fulfillment centers allows RumbleOn to combat manufacturing crunches, which have been plaguing the powersports industry for well over a year. Harley-Davidson , for one, logged a 59% decrease in available inventory in its dealerships at yearend 2020, largely due to supply constraints and manufacturing bottlenecks. Supply chain issues extended well into 2021 and were one of the key drivers in depressing BRP ’s retail sales 20% year over year in the third quarter of 2021, according to Black Book ’s December Specialty Market Insights report. RumbleOn expects new inventory to be further squeezed in the fourth quarter as manufacturing plant closed around the holidays even as demand for motorcycles wanes with regular seasonality. RumbleOn continues to prioritize growth through acquisitions and new product fulfillment centers, Chesrown said. The focus going forward is to avoid seasonality and expand in the sunbelt, from Florida to California, where “almost all of our products can be used year-round.” The keep-fill strategy follows the October opening of RumbleOn’s Florida-based fulfillment center and its three latest acquisitions of Freedom Powersports , RideNow and a 13-store dealer group out of Florida . RumbleOn plans to integrate its technology platform and finance offering to its entire enterprise, including its acquisitions, Chief Operating Officer Peter Levy said last November. RumbleOn [Nasdaq: RMBL] shares were trading up 0.57% to $40.80 at market close today in New York. RumbleOn has a market capitalization of $609.2 million. Auto Finance Risk Summit, the premier event for risk and compliance management in auto finance, returns April 25-26 in San Diego. This event is the central resource for education and networking focused on best practices in risk management and will prepare your team for the dynamics of the evolving auto finance market. To learn more about the 2022 event and register, visit www.AutoFinanceRiskSummit.com .

RumbleOn to enhance dealer inventory access through fulfillment centers

RumbleOn looks to expand its footprint along the sunbelt

US inflation hits 39-year high of 7%, sets stage for Fed hike

BMWFS, HCA, SCUSA inject $3.3B into ABS market in first lease deals of 2022

Related Posts

RV dealers, lenders skeptical about AI

New RV registrations down 0.6% YTD

More affluent, diverse consumers are buying RVs

BMWFS, HCA, SCUSA inject $3.3B into ABS market in first lease deals of 2022

Stay Informed with Our Newsletters

The Roadmap Podcast

SPONSORED

Driving Innovation in Automotive Refunds: How Onbe and Allied Solutions Are Modernizing the Payment Experience

Navigating the Margin Squeeze: EVs, Tariffs & Pricing — A Q&A with Earnix

Enhancing credit approaches to boost conversion and dealer loyalty

Welcome Back!

Retrieve your password