COVID-19 Supply Chain Status

March 25, 2020

https://www.diversitech.com/en-US/coronavirus

 

Last Updated: 3/25/20
 
Dear Valued Customer,
 
As part of our commitment to keep you informed of any impact to our supply of products due to the COVID-19 situation below is an update on the current status.
 
Current Supply Chain Status:

China Region

1. DiversiTech’s freight forwarder is reporting that all roads (Except Wuhan) and ports are open and operating with little to no delay. 
2. Our partner factories are up and running with 80% of the employees reporting for work.
3. Supply lines are beginning to refill with some congestion. 
4. Ocean freight is leaving on schedule and air freight is available however, at premium costs. 
 
Other World Supply Lines


All DT Factories and distribution centers are operating as normal. 
1. We have few concerns regarding Italy and South Korea but continue to monitor conditions.  DiversiTech builds very few products sourced out of these regions and no new delays reported.
2. Caution is now shifting to watch U.S. supply lines as “shelter in place” and production slowdowns are beginning to appear.
3. All DT current vendors reported that they are open and operating.  Only two low volume component vendors have announced notice of closure and are being resourced.  These vendors are in New York and Pennsylvania and were not on the critical industry list. 
4. Raw materials continue to be readily available for our U.S manufacturing sites.  
5.  Transportation is showing signs of stress. We are seeing delays getting trucks to pick up at factories and distribution centers in the United States.  Our Logistics team has taken action to offset these delays. 
 
 
Stocking Levels

DiversiTech is holding an average of 4+ months of finished good products sourced from our China supply lines and we expecting limited stock outs as replenishment has restarted. However, we are not imposing hard allocations so availability may change from time to time.


We have added our United States sourced products (finished goods) to our watch list and are taking inventory actions to mitigate any inventory risks.

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