Ref: COVID-19 coronavirus

Managing schedules during the uncertainty the impact the coronavirus will have on lead times of electronic components.

3/2/2020

To Our Valued Customers,

Ref:  COVID-19 coronavirus

The purpose of this letter is to inform you of the likely negative impact on lead times of electronic components due to the coronavirus, and to outline the steps Altek Electronics is taking to mitigate delivery delays to our customers.

Lead Times of Electronic Components

While there is uncertainty as to exactly how much of
an impact the coronavirus will have on lead times of electronic components, a
number of reliable industry sources warn there will be a delay on certain components
of several weeks or months.  The
information is in flux and we’re working with suppliers to stay current.  All known shortages have been communicated
with customers, or mitigated by using alternate sources or approved alternate
parts.    We will continue to monitor the situation and
provide updates as new information becomes available.

Mitigation of Delivery Delays:

•    Safety Stock:  Altek will be building up a safety-stock of finished
goods inventory for orders that we ship on a regular basis.  In return, we ask that customers not push out
any scheduled delivery within a 4-week window. 
 It will take several weeks to establish
our buffer stock.  We’re hopeful this
will mitigate any incidence of absenteeism due to illness.

•    Supply Chain:  Altek will work closely with our suppliers
and manufacturers to confirm that components orders are shipping on-time, and
we will notify customers if we learn of any delays.  If supplies of certain components become
constrained, we may need to request approval to use alternate parts.

•    Planning:  We encourage customers to review forecasts
and consider placing orders at least 3-6 months in advance of the next
scheduled order date. 

We value our business partnership with you and appreciate
the trust you place in us to mitigate impacts to schedules during this
coronavirus epidemic.

Best Regards,
Sabrina Beck, VP/CO-Ower