The impact of the novel coronavirus outbreak
Even though the Covid-19 outbreak continues to develop, many companies in China that remained closed in the beginning of the year are now operating again. However, companies worldwide are still experiencing disruptions in their supply chains due to the previous standstill in China. The majority of Axis suppliers in China are operating on a reduced capacity. The spread of the virus outside of China has not yet had any impact on our production.
We are also carefully monitoring the logistics situation worldwide on a daily basis. So far, we are pleased to say that we have been able to secure all the transportation required to date. Since the virus has spread globally, we are continuously monitoring our outbound logistics to secure customer deliveries.
We are experiencing a small number of extended lead times in our supply chain. As a result of the virus outbreak, it is taking longer than normal to bring these lead times down. Our Operations teams are continuing to work hard to find solutions to reduce any inconveniences for our customers, including working with multiple sources for raw materials and components in order to mitigate risk, monitoring stock levels across our supply chain in order to prioritize our efforts, and keeping safety stocks throughout our supply chain.
As many other companies, Axis has also taken precautions in terms of travel restrictions to avoid unnecessary risk exposure for employees.
We are committed to keeping our partners and customers updated on a weekly basis about how this situation develops. For more detailed information, we refer Axis partners to the Extended Lead Time List or to their regular channels.