Current supply chain situation in China

We are seeing China change its policies relating to how they handle COVID. Where China previously maintained a zero COVID policy, we are seeing this shift towards what could be considered as full tolerance towards COVID. This change is leading to a rapid increase in infection rates and we are seeing in China, now, changes in rates that the rest of the world experienced during 2020. This, in combination with the upcoming Chinese New year has the potential to affect the supply chain. In light of this, NCAB is taking actions to manage the situation – to protect our employees and support our factories and customers to reduce any potential negative impact on production and deliveries. 

What is the operational status of our factories?

The infection rates within some of our factories is increasing – testing has massively reduced after the government eased restrictions and we see a higher acceptance of staff expected to work if they are asymptomatic or have mild symptoms.

Temperature checks of employees are carried out daily along with PPE being distributed to help slow the spread within the working environment. Each factory has defined routines and actions relating to how to approach rising infection rates and how to isolate workers who are feeling unwell.

Working areas, communal areas and dormitories are being regularly disinfected.

Recommended actions from the government state that should a person show signs of COVID they are to stay at home, or at designated factory dormitory room and self-medicate. Turning towards hospital care is dependent upon the severity of the symptoms. 

At this time we have not seen the increasing infection rates impact production or lead to delivery issues. This is something that we can following up with our main factories on a day to day basis, so that should we begin to experience any negative impact, we can work with the factory as they implement their defined contingency plans.

What actions are NCAB taking?

We are preparing action plans together with our factories to find different ways of working around any potential disruptions. Our Factory Management team in China remain in close contact with our factories both on operational and management level, negotiating and booking capacity to gain production priority – some of these activities are explained below:

  • Establishing contingency plans with each factory
  • Closely monitoring infection rates and establishing crucial levels that would necessitate implementation of contingency plans in order to secure production and bolster staffing levels
  • Understand what temporary travel restrictions are put in place to secure the workforce and limit risk of infection.
  • Reviewing order books and prioritizing critical projects.
  • Cooperating with our local companies to pull forward orders to secure the order book both pre and post CNY
  • Identify optional back up factories in the case of capacity issues or production stops. 
  • NCAB has also defined back up factories that can be used should capacity of production concerns be experienced, thus ensuring seamless support customers with approved sources.  
  • We also have a fully approved supply chain in Taiwan that is capable of supporting all technologies and volumes, all managed by a well-established, local Factory Management team.
  • NCAB Factory Management meeting with senior management / owners within the factories to ensure continued support and prioritization.
  • Weekly delivery performance follow up at factories to evaluate performance.

Who do I contact to get more information about my deliveries?

If you have any questions or concerns, please contact your local contact person at NCAB.