FLi Distribution is to take over the handling of all UK P&A orders previously handled by KTM Bike Industries from Austria, with immediate effect.
Historically, KTM has been able to supply the UK dealer network with parts and accessories from its warehouse in Austria. With the increased admin and costs due to be incurred by both KTM and the receiving UK dealer as a result of the new deal between the UK and the EU, this is “no longer financially sustainable”.
This new distribution model only concerns KTM’s P&A business, including all its in-house brands, external brands and frames. It does not include the bicycles and e-bike side of the business, which will continue to be supplied to dealers direct from Austria, with FLi working as KTM’s UK agent and point of contact for all dealers. The bikes distribution model remains unaffected because KTM bikes and e-bikes are made in Austria, meaning no duty needs to be paid by the receiving dealer.
“Obviously, this previously unnecessary step in the supply chain will result in some increased costs to dealer and end consumer, but the alternatives all actually resulted in more costs, so we have been left with this as the best solution for our customers and supplier,” said a statement from FLi Distribution.
All backorders on KTM’s system will be moved to FLi and dealers will be notified directly. Where necessary, new FLi B2B accounts will be created and the new orders confirmed via the FLi system.
“The team here are working as fast as we can to create the new accounts and set up all the new products on our system and working out the new trade prices. Please be patient during this challenging time,” said FLi. “Any dealers who have access to the KTM B2B, please note we should be able to supply everything you see on there, so if you need us to add products so you can get them, let us know and we’ll make sure that product is listed as a priority for you.”
For questions on this, your orders, new accounts or new orders, contact FLi Distribution.
Read the February issue of BikeBiz below: