Update on supply situation
To our customers regarding our supply situation.
We see the light at the end of the tunnel
But still some problems along the way
We currently have a serious shortage in our capacity to supply some of our key products and we are of course very sorry for that.
Here we want to explain the reasons of the problems and tell you what measures we are taking to solve them.
The reasons for the situation
- Labour intensive suppliers in our supply chain were closed during long periods in 2021 because of covid. This has created a backlog that has taken time to recover from.
- We have had longer transportation lead times. They are still very unpredictable, only 1 out of 5 containers arrive on time.
- We have a large product range with plenty of stock on a majority of products, but our planning system have not been strong enough to increase capacity at proper time for some of our key products.
Measures to improve the situation
- There is a strong commitment and engagement from the management team and me to solve this situation, including all departments in the company.
- During 2022 we will build more safety stock on the key products missing.
- We are adding capacity in the supply chain, with new suppliers and weekend- and nightshifts at the present suppliers and within our own factory.
- We invest in new machine capacity in Finland that will be up and running in Q4 2022.
- Our supply chain has increased its output during the last quarter and a lot of material is on its way to our distribution center.
There are still risks
- Transportation situation does not yet seem to improve.
- There are still risks related to new Covid outbreaks in China with lockdowns of cities and regions.
Again, I apologize for our inability to supply all our products in a timely manner. I kindly ask for your patience and understanding and I assure you the full Ejendals team is working on the task to restore our product availability and delivery performance.
CEO of Ejendals