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CEO BLOG

Supply Chain and Corona Time

06.03.2020
Ulrich Spranger
Ulrich Spranger
We receive enquiries about the status of our supply chain around the clock. Therefore, it’s time to make a statement. The answer is: a limited all-clear. Naturally, we are constantly in contact with our suppliers and forwarding agents. The most important manufacturers have informed us in writing that production is at least »almost« back to full capacity. That's nice, but of course parts from sub-suppliers could be missing and the supply chain gets thrown askew. But this all only concerns China. Trump has brought us some »good luck« here, because thanks to the imposed tariffs, our suppliers have already largely moved their production from China to other countries. Not only because of the imposed tariffs - but also because of the rising labour costs - production in China is apparently considered a »luxury« nowadays.

As far as China is concerned, we are well informed, since we have 30 employees there. In the meantime, business at Jarltech China is back to normal again. The Chinese have decided to be cautious, but not to let their economy be taken away out of fear. Nevertheless, turnover there leaves a lot to be desired.

Another stroke of good luck is that in January we decided to increase our inventory by another 20 million euros. This means that our inventory is now higher than ever before and easily covers two months. Of course, some of the devices are missing because of the Corona situation. But there are almost always alternative products.

Unfortunately, we also have panic shopping. No, nobody has decided to use receipt rolls or labels instead of sold-out toilet paper, yet. Some big end customers simply want to ensure their roll-outs by ordering from stock rather than just-in-time. Some competitors are also trying to buy our stock via front men, but we defend ourselves against any cause for suspicion.

Our import forwarding agents also warn about slightly increased delivery times. A lot of goods are now flown instead of being shipped by sea - but since there are hardly any passenger flights to Asia anymore, there is less cargo space in the passenger planes. However, delays of up to one week at most are expected here.

Apart from the supply chain, we are currently mourning our LogiMAT party more, which was to take place next Wednesday in Stuttgart. Naturally, health comes first, but we would have loved to celebrate a fabulous party with you. Don’t forget though, postponed does not mean cancelled. In this case, we will deliver as well :)
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