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Better Call Art "Thoughts with Supply Chain and Reps"

 

I'm still in the field selling MFPs and IT Services. In recent months I've seen some new changes with IT hardware and A3 MFP devices and supply chains. Should we be concerned even more?



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1. It use to cost approx $200.00 to airship a Doc Feeder from China to Canada.  It now costs $800.00.

2. A manufacturer now has to compete for space on airlines to ship product. Air shipments that use to arrive in a week now take three weeks.

3. In Canada, Toshiba made A4s have been in stock for months.  We still sell way more A3 product.  A3 delivery has been pretty good but not great especially on Dual Head Doc Feeders and accessories.  Toshiba Canada loses money  because of freight costs on bulky floor model finishers.  Toshiba Canada has full inventory right now for Sept 30 half end but all bets are off come Oct-Dec.

4. Toshiba America is no longer allowing big dealers to bulk buy due to inventory limits.  Product is only being shipped if there is a direct sell through to end user customers.

5. The cost to ship a container from China to Canada use to be around $3,000.00 now costs over $20,000.00 if you can find a container to load product into.  Almost every container Toshiba Canada receives suffers from multi unpredictable delays anywhere along the supply chain that results in unpredictable deliveries.  There is a shortage of truck drivers to make deliveries anywhere along the supply chain.

6. Toshiba Canada advises dealers that if you want to protect your sales reps potential income you must inventory product in your warehouse and not order only as required from HQ.

7. Toshiba rebranded Lexmark product has been terrible delivery of up to six months.

8. Toshiba Canada has broadcast to our dealer network that prices are rising on all product on Oct 18th by 5% to offset out of control rising logistical costs.

9. Lexmark has not increased their prices but have added a Logistical Surtax of 5% until June 2022 when it will be reevaluated.

10. Konica Minolta Canada has told dealers to expect a price increase shortly.  They told their dealers to expect all product shipments will likely take 60 days to deliver.

11. There was a fire in Japan that destroyed a key manufacturing facility for electronic components for many industries.

Not only in the US and Canada but worldwide many supply chains are disrupted. And this problem won't be over soon.....

1. It use to cost approx $200.00 to airship a Doc Feeder from China to Canada.  It now costs $800.00.

2. A manufacturer now has to compete for space on airlines to ship product. Air shipments that use to arrive in a week now take three weeks.

3. In Canada, Toshiba made A4s have been in stock for months.  We still sell way more A3 product.  A3 delivery has been pretty good but not great especially on Dual Head Doc Feeders and accessories.  Toshiba Canada loses money  because of freight costs on bulky floor model finishers.  Toshiba Canada has full inventory right now for Sept 30 half end but all bets are off come Oct-Dec.

4. Toshiba America is no longer allowing big dealers to bulk buy due to inventory limits.  Product is only being shipped if there is a direct sell through to end user customers.

5. The cost to ship a container from China to Canada use to be around $3,000.00 now costs over $20,000.00 if you can find a container to load product into.  Almost every container Toshiba Canada receives suffers from multi unpredictable delays anywhere along the supply chain that results in unpredictable deliveries.  There is a shortage of truck drivers to make deliveries anywhere along the supply chain.

6. Toshiba Canada advises dealers that if you want to protect your sales reps potential income you must inventory product in your warehouse and not order only as required from HQ.

7. Toshiba rebranded Lexmark product has been terrible delivery of up to six months.

8. Toshiba Canada has broadcast to our dealer network that prices are rising on all product on Oct 18th by 5% to offset out of control rising logistical costs.

9. Lexmark has not increased their prices but have added a Logistical Surtax of 5% until June 2022 when it will be reevaluated.

10. Konica Minolta Canada has told dealers to expect a price increase shortly.  They told their dealers to expect all product shipments will likely take 60 days to deliver.

11. There was a fire in Japan that destroyed a key manufacturing facility for electronic components for many industries.

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