Supply Chain Problems Seen Mostly For Cameras

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TWICE:

Have there been supply chain problems due to the Japanese earthquake/tsunami disaster? Do you expect any later this year? If so, which categories?

Warren Chaiken, Almo:

Yes, we are experiencing supply chain problems due to the Japanese Disaster particularly with digital camera and Tablet PC categories. Point and Shoot digital cameras are mainly built in China, so these were not affected. However SLR cameras were solely built in Japan and we won’t see any product until these factories are back on line. In the case of tablet PCs, the memory component was affected. We’re hopeful to have tablet product in stock sometime in July.

Bill Stewart, Petra Industries:

We’ve definitely heard rumblings of delays in the supply chain, but we haven’t experienced anything that has really affected our company adversely. We are in close contact with our manufacturers about any upcoming shortages or delays, and as we get any information, we will do everything we can to provide alternative solutions for our retailers.

Fred Towns, New Age ElectRobics:

The supply chain has definitely been impacted by the tsunami in certain areas, like digital still photography and in other products that are dependent on components manufactured in Japan.

We do not anticipate any further issues in supply chain from Japan, as manufacturers have been communicating that the problems are being resolved and are not reporting any additional delays.

Tom Roper, SED International:

Cameras and camcorders have been the most effected so far. We are hearing about many components that go into a variety of CE and IT products that are affected, but so far our vendors have done a good job keeping supply issues to a minimum. We do not expect major shortages later this year.

Jerry Satoren, DSI Systems:

There have been no supply chain problems to date as a result of the Japan disaster. It appears unlikely at this point that there will be any impact later this year on the TV and home audio categories. That is clearly good news.

Jim Annes, AVAD:

We started executing on action plans with our vendors within seven days of the tragedy, so we were well prepared for the constraints that the market has started to see and will likely see over the next two to three months.

While there will likely be impact to [flat panel TVs], Blu-ray players and other products due to component factories being damaged, the flexibility we have built into our purchasing processes and a stRobg balance sheet as a North American distributor enabled us to take in additional inventory to hedge against disruptive events such as the earthquake and Tsunami.

Rob Eby, D&H Distributing:

We have seen some inventory constraints, but D&H has been very diligent in providing its resellers with alternatives for the categories in question to avoid any interference of their sales cycles.

D&H was aggressive in buying inventory ahead of the curve to make sure it had supplies in key areas for its customers. So, due to conscientious planning, no significant impact on stock materialized.

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