Efficient operation processes allow companies to scale, maintain quality and customer satisfaction. However, when a startup grows, processes can become a challenge that requires expertise to crack and solve. An unharmonized supply chain coming from explosive growth of the company was experienced by Vello Bike, an Austrian leading company creating high-quality folding bicycles and an alumnus of our Marc program.
Who is Vello Bike?
Vello Bike is a reference when it comes to high quality folding bicycles. This Vienna-based company has manufacturing processes in Europe and China. Currently they produce approximately 3,000 bikes which then are distributed via more than 120 business partners in Europe and Asia. Producing such an amount of bicycles in house, doesn’t come without challenges. “Due to the high demand, we didn’t know when we were running out of inventory of spare parts for our bikes. Over 5,000 screws are needed for just one bike, imagine if we didn’t have one of these items” explains Valerie Wolff, co-founder of Vello Bike. Overcoming this operation process was key to becoming investment-ready and attractive to investors: “there’s a potential market of selling 7,000 extra bikes per year”, shares Wolff to explain the European demand for bikes.
Vello Bike meets Marc
As demand was increasing, Vello Bike’s founders knew that they needed to find funding to boost their production capacity, so they joined Marc to become investment ready. That’s where they worked with Linda Vasilescu, Lead Coach, who started with a detailed consultation on their status. “Marc is a highly personalised program, that’s why we start with a conversation to understand the real challenges that the ventures are facing. From there, we figure out the concrete needs of the startup and the expert that suits best to help them”, explains Linda. “That’s why we reached out to Stefan Müller”. He is a seasoned professional, with decades of history in setting up manufacturing operations based on automation, in different countries. It was through his advice that they spotted a big need for the company. “Vello Bike needed to streamline and upgrade their manufacturing processes and inventory control”, pointed Vasilescu. Through the support offered within Marc, Vello Bike’s founding team found a space to step back and reflect on their own resources and networks. That’s precisely how they reached out to Robert Kiss, an expert in the cycling industry. “Founders often have the needed connections, especially when they are in an advanced stage such as Vello Bike. We did this exercise of stepping back and that’s how they found Robert Kiss, who’s now part of their leading team”.
Key results
Robert Kiss, formerly part of Woom, worked along with Valerie Wolff and her team to develop an efficient solution: a complete digitization of their entire production process. This digitization not only provided a clear inventory overview but also enabled them to increase production. “Robert started to work with us as part of the expert hours that the Marc program offers, but now he also joined the team”, says Valerie. Both outcomes help them to become investment ready. With a current revenue of 1 million euro per year, Vello Bike and a clear and digitised inventory and process, Vello Bike’s team is ready to scale their production. For that, they are now looking for investment. “We are looking for 8 million”, concludes Valerie Wolff.
