The Coronavirus outbreak in China and South Korea is affecting some of Tarsus Distribution’s key vendors and their ability to produce and transport their products, and thus the supply of products to their distributors around the world.
The Tarsus leadership is doing everything it can to mitigate these challenges and others that will likely manifest in the months to come.
CEO of Tarsus Distribution Gary Pickford says that vendors are reporting that while there have been interruptions to production due to the Coronavirus outbreak, staff are returning to work and factories are gradually resuming production. It’s expected that ramping back up to full production capacity will take some time, however.
While production ramps back up, the bigger challenge is logistics. Due to the Coronavirus outbreak, travel into and out of the area is heavily restricted. As a result access to vendor production facilities is limited, and so a backlog of deliveries is building up.
In response, Pickford says Tarsus has appointed a task team that is handling lead times and ETAs and communicating with resellers to ensure expectations are accurately managed.
Pickford adds, “Our efforts are now focused on working with our suppliers to resume normal trading as soon as possible. Order status and potential delays on existing customer orders will be reflected in our systems, and we will keep you updated about any changes.”
Tarsus will continue to receive feedback from some of our major vendors and what their response has been to the Coronavirus outbreak so far; Tarsus.Today will provide regular updates as soon as they get back to us with any additional information.
[Update, 6 March 2020]
HP has provided us with this response:
“HP continues to monitor the COVID-19 situation on a daily basis. We are in regular contact with our customers to provide information regarding shipments and any potential delays. Our supply chain team is actively working to navigate this dynamic situation and meet customer demand. The wellbeing of our employees, partners, customers and their families is our number one priority.
While the situation remains fluid, we are actively working to return to full production as quickly as possible. Most HP factories in the affected area are back up and running, and productivity throughout the region is steadily increasing. Our supply chain team is actively working to navigate this dynamic situation and meet customer demand.”
[Update, 17 March 2020]
General manager of Lenovo South Africa Thibault Dousson provided the following feedback:
- Can South African distributors and resellers expect delays in Lenovo product availability in the coming months?
We can expect some short term industry-wide disruption in China’s supply chain. Our component suppliers and our transportation providers are facing similar challenges to us, so as a result we are seeing overall supply chain network capacity impacted in the short term, but we have contingency plans in place and are well positioned to address the supply challenges.
- If so, what is Lenovo doing to mitigate the situation?
We are leveraging the full strength of our operations as we ramp up production in order to minimise impact for customers. Given our global footprint we are confident that we are better placed than most to handle the situation and quickly resume to normal. We will leverage our worldwide manufacturing capabilities, strategic supplier partnerships, deployment of more second-tier sources, and increased local hires to close the supply gap wherever possible and are managing our controllable costs prudently.
- Have Lenovo’s factory workers returned to work yet?
By far most of our factories in China have reopened and are operational, albeit on a limited basis due to health quarantine restrictions, and public transportation and travel limitations. The remaining ones (Wuhan and Chengdu) will open in line with the policies of the respective regional government where they are located. We are leveraging our core competency in managing global supply chains and the full strength of our 30+ factories around the world to mitigate the impact.