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By *rFunBoy OP Man
over a year ago
Longridge |
The last few months, many companies I regularly buy from are switching from buy today, delivered tomorrow.
Inverters, 2 to 4 months paid for up front waiting time.
Air conditioning, pay today, delivered March 23.
Is this happening in your industry?
This is going to rock this country's economy to its foundations. How can people earn if no products are available?
You get a job, tell your customer products are 2 to 6 months delivery and they have to be paid for 100% in full upfront with risks of being told at point of delivery, the price went up - "take it or leave it as plenty others will grab it if you don't want it". |
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"So find better suppliers.
A lack of power inverters is not going to 'rock this country's economy to its foundations'."
Not that easy. I’m in the car parts industry. Massive disruption to the supply chain. Pretty much all brake discs are made in China. I will reply later to the OP in more detail. |
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By *rFunBoy OP Man
over a year ago
Longridge |
Look forward to your reply.
Some people are short sighted when just two examples are given, then, you hear of other trades such as builders, electricians, plumbers and numerous others also having issues with basic day trading commodities.
The issue is chip supply, exchange rates, shipping, China's Zero COVID policies and sod all to do with the suppliers who themselves can't get supplies.
The only way to guarantee getting products in 6 months, is pay deposits or in full up front else someone else will. Last week I was in a bidding war with another guy to get an item I'd waited 3 months for.
I've just placed an order from China to be told it will be 16 weeks before it sees a ship. And has to be paid up front in full. |
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The JIT supply chain is fundamentally broken for many industries. And not just the JIT chain, but other regular chains too. There is no magic solution to this that I can see to be honest.
Contingency plan, extend your shipment expectation by 6 or more months, plan ahead with customers and pay up front. What else can you do ?
I think customers need to get used to 6+, 12+ waits for things now. That is the new normal. Once you accept that, you can plan around it, as can customers. Patience is a virtue as they say, and this is enforced patience, so there is not much you or I can do about it except accept it.
Things will calm down eventually. Just takes time, is all.
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By *rFunBoy OP Man
over a year ago
Longridge |
The problem with supply from China..
Cash up front, no credit, no 30 days - pay up front and nornally wait 6 weeks. Currently have over £250k tied up in delayed deliveries and to ensure stock beyond this, it needs more. 3 to 9 months is crucifixion of a business and very good for Liz to say "everyone should be paid well". This cannot be if cash flow is tied up and energy bills for offices still need paying. Many will go yo the wall.
There is only so much a business can tie up cash flow, oay interest and with long delays before liquidation to release profit to pay salary and bills.
I suspect companies not stocking are not risking or have cashed out and others, the up front fee is paying for the goods themselves prior to being put on a boat. |
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By *ercuryMan
over a year ago
Grantham |
I won't use any parts in my business that are supplied from China.
Whilst supply can be an issue, the quality tends to be poor, and can lead to reliability issues further down the line.
I have a client that has a large welding machine sat on his factory floor, waiting for an electronic control system. This was ordered from China im December last year! The promised delivery date of March has slipped somewhat!
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