In a look behind the scenes, Christian Reinwald, Head of Product Management and Marketing at Reichelt Elektronik, explains how the distributor maintains operations thanks to security measures, what challenges he sees for the supply chain and where supply bottlenecks occur.

Challenges for distributors in times of the coronavirus quarantine

The biggest challenges distributors are facing during the Covid-19 crisis are ensuring the availability of goods and continuing to provide good customer service while protecting employees and adhering to contact restrictions. There are also restrictions and delays in the delivery of parcels by logistics partners.

Reichelt Elektronik has closed its own store in Sande and has the majority of administrative staff - such as those in customer service, purchasing and product management - working from home. In logistics, a new shift plan ensures that employees keep sufficient distance from each other. Although this means that fewer people can work per shift, this is accepted for the safety of the staff. Infection of employees and the associated far-reaching effects on operations should be avoided at all costs.

Extra shifts were introduced in order to meet the significant increase in demand. "Our employees, whether working from home or in the new shift system, quickly got used to the changeover. A well-coordinated team and short decision-making channels help us to deal with difficult situations quickly," says Christian Reinwald. "A good relationship with our suppliers is just as important for us."

Security of supply despite the crisis?

In addition to health risks, customers' biggest concerns at the moment are ensuring the availability of goods and procuring important components in sufficient quantities and in good time. For distributors, this primarily means increasing stocks. Reichelt Elektronik is checking the situation daily in order to be able to react quickly.

"We increased our stock levels in good time and, with a few product exceptions, are currently still able to deliver well," says Reinwald, giving an insight into the current situation. In addition to occupational safety items such as face masks and disinfectants, demand for home office equipment such as laptops, video conferencing systems and headsets as well as items in the field of measurement technology, such as IR thermometers, has increased in recent weeks.

Reichelt is not currently experiencing supply bottlenecks for entire product groups. Individual products from the Far East, measuring devices, laboratory equipment and IT, such as headsets, are more difficult to obtain. Delivery times are increasing from three to six months and prices are rising. Individual network technology components are now only available with difficulty and in small quantities. Shortages are also looming for some components such as certain resistors and plastic housings. However, these are still isolated cases in relation to the entire range.

Outlook

"Customer orders - both private and business - are still at a high level. However, we are aware of business customers' concerns about delivery availability," concludes Christian Reinwald. "We are currently answering a lot of questions about delivery times. Customers are checking their planning reliability. We are currently on schedule with demand."