Inbound Logistics | January 2026

QUALITY CONTROL AS A COMPETITIVE ADVANTAGE

Few products are as emotionally driven—or as scrutinized—as

motorcycles. Harley-Davidson’s quality control processes are designed to protect that emotional connection. At the York plant, every motorcycle passes through multiple inspection stages. Components are individually checked, assemblies are veried against strict specications, and nished motorcycles undergo test rides to ensure performance, safety, and ride quality. This rigorous approach not only ensures regulatory compliance but also reduces rework, warranty claims, and downstream disruptions—key benets in a tightly coordinated supply chain. Despite operational strengths, Harley- Davidson faces signicant challenges. Global motorcycle sales declined to 151,229 units in 2024, generating $5.19 billion in revenue—a 7% year- over-year drop attributed largely to high interest rates and economic uncertainty. At the same time, the brand’s traditional image resonates less with younger buyers, putting pressure on product strategy and, by extension, the supply chain that supports it. NAVIGATING MARKET HEADWINDS ELECTRIFICATION AND THE SUPPLY CHAIN SHIFT Electrication represents one of Harley- Davidson’s most consequential supply chain transitions. Through its LiveWire subsidiary, the company has entered the electric motorcycle market with models such as the S2 Del Mar, S2 Mulholland, and S2 Alpinista. While LiveWire operates independently, Harley-Davidson leadership has been clear about its long-term direction. CEO Jochen Zeitz has stated that full electrication is inevitable—though gradual.

JUSTINTIME INVENTORY, HARLEY STYLE Harley-Davidson has long embraced just- in-time (JIT) inventory management to reduce excess stock and align production closely with dealer demand. Its pull-based production system limits overproduction and minimizes waste, supporting both cost control and product quality. The company rened its inventory strategy further in 2020 by intentionally reducing production volume to curb discounting. The goal: to preserve brand value and pricing integrity. By producing fewer motorcycles and focusing on full-price sales, Harley-Davidson positioned its supply chain as a value-protection mechanism rather than simply a cost center—a shift that reects broader changes in how manufacturers view inventory management.

January 2026 • Inbound Logistics 143

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