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Supply Chain Day Two........Not Really


If you didn't catch them, below are the replies from yesterdays Supply Chain Day One blog.

SSG gave us two great contributions below.....

Yesterday's replies

Toshiba Tec's recently revised consolidated financial report says it well, I think for all OEMs.

"... and on the profit front, operating profit and ordinary profit declined in contrast with the previously announced forecast owing to factors such as semiconductor shortages, soaring prices of components, tightness in international shipping transportation, increased shipping costs and delays in product supply due to COVID lockdowns in some areas of China."

If you really want to know what is going on with the Supply Chain, this is the best source from a University professor who reports on it three times a week.


... long story short, the COVID lockdowns in China has made shipping containers a mess that will not resolve before many months.

There are 100s of ships off China's coast that cannot load or off load containers.  When that does eventually resolve, the USA West Coast is going to be bombed once again with incoming container ships all arriving at the same time.

Most copiers entering North America do so via containers.  Air freight is too expensive and too overbooked for most copiers.  Diesel price has soared to record highs for trucks delivering copiers locally.

OEMs are allocating their precious chip supplies to higher value A3 product over A4.

Long Beach and LA Ports

As of this week there are forty ships waiting to be unloaded in Long Beach and LA ports, back in January it was more than 100.  SSG states that the lock downs in China because of COVID will get us to another situation where we could be back to those January numbers of more than 100 ships on the coast.


Since we're down to forty of so ships at the Cali ports and our industry in most cases is telling us it's a 3-5 month wait for those A3 MFPs. When it comes to A4 MFPs it seems most manufacturers are not providing A4 dates, and why is that?

I'm thinking it's not the ships tying up our copiers anymore but the shortage of chips. Keep in mind that's why Sharp and the relationship with Foxconn is helping their inventory. In addition Sharp made changes that they will not sell fax boards because the chips used in those boards can help the A3 production.

Tomorrow I'll be giving additional thoughts on A3 & A4 along with some sales issues I've heard about.

-=Good Selling=-

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... there might be 40 or so ships directly off the California cost but there are several dozen more slow idling off the Baja coast waiting to move into postion off LA and Long Beach.

... plus the Port of LA has some big contract renogitations to deal with the longshoremen and various port operators.

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