I have been getting a huge amount of enquiry into how Coronavirus is going to impact our production. As you all know, it is very hard to predict. We are now starting to see some feedback from suppliers on materials that are disrupted and we are working to understand if our buffers will cover these delays.
For the most part, we are covered and are not seeing much delay yet… However, I am sure that there will be a significant impact on all industries and that the longer the quarantining of people in China, and therefore reduced production, the more impact we will see in associated sectors.
For instance, we are starting to see delays in shipping and increased costs due to this. There has also been an increase in costs for materials and so we are looking for alternative products to substitute where we can.
At Fero, we can only work with the demand that we have in our system, so my advise is to get orders in to cover some extra demand in your business. We are working hard to ensure that we can continue to deliver to all of our customers but, as we know, it only takes one component to severely impact production. NOW IS NOT THE TIME FOR JUST IN TIME MODELS.
Please don’t hesitate to get in touch if you would like to discuss further how we are minimising the impacts of Coronavirus and putting plans in place to ensure continuity of supply.