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Coronavirus: Rapid statement

Coronavirus: Rapid statement
The outbreak and spread of Coronavirus (Covid-19) poses a major threat to public health, but it also has the potential to disrupt the world economy. China is critical to the global supply chain, particularly in the electronics industry, and as a company that works closely with suppliers in the Far East we are taking the situation very seriously.

At present we are experiencing no shortages or delays in shipments from the Far East, but it must be appreciated that this is a quiet time of the year, with the usual slowdown because of the Chinese New Year. We will not start to see the true impact until April or May when shipments usually return to normal. With many areas of the country in lockdown, Chinese manufacturing is struggling for supplies of materials, workers and markets, with output suffering significant decline. How long and how deep this will continue is not something we can predict.

As an electronics distribution company Rapid Electronics is obviously concerned about the spread of Coronavirus and what effect it may have on our ability to fulfil all of our commitments to customers. We hold significant volume of fast moving and long lead time stock as a matter of course, and luckily we are an agile business that have systems in place to react quickly to changing circumstances. We are actively looking at ways to source products from elsewhere in the world if the need arises, but at present we are not experiencing any shortages.

Recent experience with Brexit preparation has helped to some extent, as we had already invested heavily in inventory in the event of disruption to trade. We also provide a service called Long Term Stock Agreements, which provides customers with greater control over their ongoing supply. These programmes have been designed to protect important parts of a customer’s supply chain, mitigating against potential price increases and/or delays caused by stock availability by buying 100% of stock needs upfront. To enquire about placing a Long Term Stock Agreement please contact our Customer Experience Team by email or phone: 01206 751166.

In terms of products that are in high demand because of Coronavirus, such as face masks and respiratory equipment, like all suppliers we are seeing these become unavailable at short notice and subsequent indefinite periods of replenishment.

The UK is likely to be affected with an increasing number of cases of Coronavirus in the following weeks, and Rapid is following UK government guidelines for businesses to prevent the spread of the infection. We will continue to monitor the situation closely and provide regular updates on how it may affect the way our business operates. If you have any queries or concerns, please do not hesitate to contact us.

James Bates
Managing Director
March 2020

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