For the past 6-8 months we have been hearing consistent reports of supply issues in the electronics industry. We have constantly been asked whether we face extended lead times or supply issues, while hearing unconfirmed reports of competitors who are unable to supply customers.
Our position is this:
Number of late deliveries = 0
Number of buy-outs to satisfy short-term orders = 1
In all honesty we have seen an increase in lead times, from two weeks to 10 weeks, but this is hardly something which we consider devastatingly challenging. As I write this, our stock of the most popular SIM800C module is at 20 000 pieces, with 30 000 pieces in transit to us. Our stock levels of other modules is healthy and we have seen no challenges around our popular Wlink LTE routers, antennas, etc.
Our model has never been one of ordering products on a back-to-back basis. We have always maintained local stock and taken a genuine ‘distribution’ approach, where we consider it our customer service duty to order products in bulk and support our customers at competitive prices, regardless of their volumes. When we saw the lead times extending, we took a decision to increase local stock holding, as opposed to strong-arming our customers into placing long-term commitments. Where our key customers have taken decisions to place long-term orders, they have done so in order to provide themselves with peace of mind, knowing that as their supplier, we value the long-term relationship and will maintain flexibility of supply.
The current supply situation has simply brought to the fore the value we endeavour to offer to our customers. We are very grateful for the support our customers have shown us and would like to take this opportunity to thank every one of them for their ongoing support and assure you once again that your choice of Otto Wireless Solutions as your supplier, with SIMCom, Wlink and others as your technologies of choice, has once again proven to be our differentiator in the market, and in particular, in the current tough supply environment.
We look forward to many more years of seamless supply and positive relationships.
| Tel: | +27 11 791 1033 |
| Email: | [email protected] |
| www: | www.otto.co.za |
| Articles: | More information and articles about Otto Wireless Solutions |
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