Coronavirus Impacts on Stock and Pricing
Feb 28, 2020
Dear valued clients,
The coronavirus has had an impact on the availability of stock in the mobile parts and accessories industry. In this environment of uncertainty, Esource Parts believes it is of utmost importance to address the inquiries we have received over the last weeks regarding our own stock and pricing. Our objective is to be transparent with all of our clients, share the details received from our own suppliers, and inform you of the steps we are taking to ensure that our business relationships continue to run as smoothly as possible.
The mobile parts industry, and the electronics industry as a whole, have been severely impacted by the outbreak and spread of the coronavirus. Many of the cities that we currently purchase from have been quarantined. In an effort to contain the spread of the virus, vital plants and factories have been shut down, workers are restricted from returning to their jobs, and re-openings have been delayed. In addition to the delays in the global supply chain, the transportation situation has also slowed as ports are closed and freight is held for longer periods of time at customs.
As a result of the situation in China, the production and distribution of parts that we rely on for our own stock has been slowed in some cases and completely suspended in others. Our shipments are not arriving at their scheduled or regular rates, which has resulted in shortages and, in some cases, situations where we are out of stock. We seek to be 100% transparent in our communications and, as such, we must report that it is unclear how long these delays and shortages will last. But we also wish to inform you that we are working diligently to ensure that we return to business as usual as soon as we are able.
Below are some of the key takeaways from our conversations with suppliers that will help you plan for your own business needs:
- We anticipate that, by the second week of March, our shipments should begin to flow more regularly. We have been working in close partnership with our suppliers to confirm that we will be given priority as shipments come in.
- In addition to the trusted suppliers we have always worked with, we are working around the clock to find alternative methods of getting the products that you need onto our shelves. This includes building relationships with other reputable suppliers that can help us fill in the gaps in this time of need.
- With more factories closing and for longer periods than expected, the global inventory of raw materials as well as parts and accessories has declined. This means that there are less available parts on the market, making them more valuable and increasing costs. We are doing our everything in our power to maintain the pricing you have come to rely on us for, and we will not be increasing our costs unless our own costs are severely affected.
As always, staff and leadership at Esource Parts are here to help and answer any questions or concerns you might have. We appreciate your patience and understanding at this time and we will continue to update you with complete transparency as we receive more information.