Wednesday, March 30, 2011

Safety MarketWatch - Japan Update

Arbill and our manufacturers worldwide have been and are continuing to evaluate the impact to the Safety supply chain as a result of the Japan earthquake. As with any major natural disaster, this event is fluid and conditions are ever changing. Although the general manufacturing sector is experiencing some effects due to the shutdown of Japanese factories, I am glad to report that as of today, Arbill is not impacted in its ability to supply safety products for the following reasons:
  • Arbill does not purchase any safety products in the regions impacted by the earthquake
  • Large domestic manufacturers of safety products have already begun to increase productions of products (such as respirators and adhesive bandages) that may be used in the Japan clean-up efforts in order to address increased demand
  • Arbill has strong relationships with a wide variety of domestic manufacturers, allowing for alternative and/or substitution of "like" products if and when required
  • Inventory levels and production forecasts of Arbill's suppliers remain on target to date

Likewise, Arbill is not projecting a significant impact to our Arbill-manufactured TruLine product supply, since none of our factories are in regions affected by the earthquake. We are, however, taking the following steps proactively as a part of our business contingency planning efforts:
  • Reviewing inventory levels
  • Increasing safety stock levels on critical items
  • Placing production orders in advance of normal schedules where feasible
  • Preparing to scale our TruLine factories as needed

Please be assured that we are monitoring this situation closely and will continue to take proactive measures to ensure that our customers do not experience any supply interruptions. I will be posting weekly updates here, which will include Arbill's perspective on any shifts in market conditions.

Warmest regards,
Julie