Navigating Supply Chain Challenges: How Solé Bicycles Achieved 24% Year-Over-Year Growth with Innovative Shipping and Trade Finance Solutions

Introduction: Revolutionizing Bicycle Retail in Venice Beach

In the vibrant and sun-soaked streets of Venice Beach, California, a company is pedaling its way to success in the competitive world of bicycle retail. Solé Bicycles, a trendsetting brand known for its fashionable and affordable bicycles, has been making waves in the industry with its innovative approach to business. Catering to the fun-loving lifestyle of its customers, Solé has successfully carved out a niche in both direct-to-consumer online and in-store sales, as well as wholesale partnerships with corporate clients.

However, as with many rapidly growing businesses, Solé Bicycles found itself facing complex challenges in its finances and supply chain. The increasing demand for their stylish bikes brought about working capital constraints that threatened to put the brakes on their expansion plans. It was at this crucial juncture that Solé Bicycles discovered a game-changing solution that would propel them towards unprecedented growth.

The Challenge: Balancing Growth with Cash Flow

Jimmy Standley, the President of Solé Bicycles, is the mastermind behind the company's financial and operational strategy. His role includes managing Solé's global network of manufacturers, a task that comes with its own set of challenges. Standley recounts the difficulties they faced in the early days of their business:

"Early in our business, we experienced so much demand that we couldn't fulfill. We would run out of inventory because we didn't have the proper financing set up. It was a never-ending problem."

This scenario is all too familiar for many small to medium-sized businesses in the logistics industry. Traditional supply chain payment flows often create working capital constraints that force companies to make tough trade-offs and limit their ability to invest in growth. For Solé Bicycles, this meant potentially missing out on opportunities to capitalize on the growing demand for their products.

The Solution: Integrating Freight Forwarding and Financing

Solé Bicycles' journey towards overcoming these challenges began when they switched to working exclusively with a single freight forwarder in 2015. This decision marked a significant turning point for the company, as Standley explains:

"Having Flexport, everything happens so much quicker, and everything happens on the platform. There's also always someone we can reach out to and talk to. It's made a world of difference—the most frictionless piece of our supply chain is our freight forwarder."

The real breakthrough, however, came when Solé Bicycles discovered the power of integrating freight forwarding with trade finance. When they mentioned their cash flow issues to their freight forwarding partner, they were offered an innovative solution: the freight forwarder would pay their supplier on their behalf, allowing Solé to order the bikes they needed, maintain their cash flow, and repay the loan after selling the bikes.

The Impact: Unlocking Growth Potential

The integration of freight forwarding and trade finance has had a transformative effect on Solé Bicycles' operations and growth trajectory. Here are some of the key benefits they've experienced:

1. Improved Cash Flow Management: "We no longer have cash flow problems in our supply chain, thanks to Flexport Capital," Standley says. This newfound financial stability has allowed Solé to focus on growth rather than constantly worrying about working capital constraints.
2. Rapid Access to Funding: The speed at which Solé can now secure funding has been a game-changer. Standley notes, "For Flexport to turn around loans this quickly, and at the price point they do it for, is above and beyond what traditional banks can do."
3. Investment in Growth Initiatives: With their cash flow issues resolved, Solé has been able to redirect their resources towards key growth areas. "Freeing up our cash flow means we can invest in marketing, product development, and business development," Standley explains.
4. Enhanced Production Capabilities: The additional working capital has allowed Solé to invest in local production capabilities, enabling them to produce fully customized bicycles in under a month.
5. Impressive Year-Over-Year Growth: Perhaps the most significant impact has been on Solé's bottom line. The company projects a remarkable 24% year-over-year growth in sales from 2018 to 2019.

The Numbers: Quantifying Success

The success of Solé Bicycles' partnership with their freight forwarding and finance provider can be quantified in several impressive metrics:

• 17 total shipments financed by Flexport Capital
• 113 total TEUs (Twenty-foot Equivalent Units) moved
• 24% projected year-over-year growth in sales from 2018 to 2019

These numbers not only demonstrate the scale of Solé's operations but also highlight the significant impact that integrated freight and finance solutions can have on a growing business.

The Future: A New Model for Supply Chain Management

The success story of Solé Bicycles offers valuable insights for other businesses facing similar challenges in the logistics industry. By embracing innovative solutions that combine freight forwarding with trade finance, companies can overcome working capital constraints and unlock their full growth potential.

Standley believes this approach represents the future of supply chain management: "I had never heard of getting financing from your forwarder. But Flexport is different from other forwarders. They approach these problems in a very 21st century way while so many other parts of supply chain are still operating in a more traditional way. I think this is just the beginning for Flexport."

How FreightAmigo Can Help

At FreightAmigo, we understand the challenges faced by businesses like Solé Bicycles. As a full-service, one-stop Digital Platform for supply chain finance, we are uniquely positioned to help organizations, enterprises, and individuals transform and redefine their logistics experience.

Our Digital Logistics Platform combines artificial intelligence, big data, FreighTech, FinTech, InsurTech, and GreenTech to accelerate logistics, information, and cash flow. This integration ensures a hassle-free and enjoyable logistics experience for our clients, much like what Solé Bicycles experienced with their freight forwarding partner.

Here's how FreightAmigo can support businesses in navigating supply chain challenges and achieving growth:

1. Comprehensive Quote Comparison: Our platform allows clients to compare door-to-door freight quotes for international courier, airfreight, sea freight, rail freight, and trucking solutions, all in one place. This feature enables businesses to make informed decisions and optimize their shipping costs.
2. Real-Time Shipment Tracking: With connections to more than 1000+ reputable airlines and shipping lines, we provide real-time tracking of shipment status anytime, anywhere. This level of transparency helps businesses like Solé Bicycles maintain better control over their supply chain.
3. Integrated Services: FreightAmigo offers a one-stop solution for arranging customs clearance, cargo insurance, and trade finance. This integration of services can significantly simplify supply chain management for growing businesses.
4. Automated Documentation: Our Digital Logistics Solution includes features for automating shipment documents, reducing the administrative burden on businesses and minimizing errors.
5. Expert Support: We provide 24/7 logistics expert support, ensuring that our clients always have access to professional assistance when they need it.

Conclusion: Pedaling Towards a Brighter Future

The story of Solé Bicycles serves as an inspiring example of how innovative logistics and finance solutions can propel a business towards success. By embracing modern freight forwarding and financing options, Solé was able to overcome working capital constraints, invest in growth initiatives, and achieve impressive year-over-year sales growth.

As the logistics industry continues to evolve, companies like FreightAmigo are at the forefront, offering Digital Logistics Solutions that address the complex challenges faced by businesses in today's fast-paced global market. By leveraging these advanced tools and services, companies of all sizes can streamline their operations, improve cash flow, and focus on what really matters – growing their business and satisfying their customers.

The journey of Solé Bicycles from cash flow constraints to 24% year-over-year growth is more than just a success story – it's a roadmap for other businesses looking to navigate the complexities of modern supply chain management. As we continue to innovate and develop new solutions, we at FreightAmigo are excited about the potential to help more businesses achieve similar success in the years to come.