Coronavirus Update: Supply Chain in Asia, Components Shortage

As the COVID 19 outbreak begins to stabilize, 97 percent of large companies in China have restarted their business operations. Many reached an average of 81.8 percent of normal activity level as of last month.

We are proud to announce that all of Avnan’s supply chain partners in China have already reached their normal production levels. In all of our partners’ facilities, many protection measures have been put in place to ensure the safety of employees, including the provision of personal protective equipment (PPE) like masks, gloves, and sanitization gels, as well as regular disinfection of facilities throughout the day, and the obligation to keep a safe distance in shared spaces, with assigned seats in company buses and canteens. While the safety of the supply chain is a top priority, the safety of the people who work in our partner facilities is also of paramount importance.

Many of our partners in China are now expediting the orders that had been interrupted by the massive lockdown during the outbreak period. We are working tirelessly to pull in schedules to meet customer requirements.

However, as most factories are located in China, we are facing a components shortage issue. Some of our product lead times have stretched from 10 weeks to 30 weeks due to these shortages. We are working closely with major component distribution partners to secure as many components as we can. Therefore, we still encourage our customers to contact our sales team with their forecasts and demand over the next six months to discuss options to mitigate the impact.

With respect to the global supply chain status, other Asian countries are still facing lockdowns or restricted business activity, including Japan, India, Malaysia and the Philippines. We will continue to communicate with you throughout this critical situation. Your supply chain safety will always be our priority.

We invite you to contact us if you have any questions or concerns.