As we move through the first quarter of 2020, Enphase is continuing to improve upon our manufacturing and operations processes. Unfortunately, the sudden emergence of the Coronavirus breakout in China has affected the entire world. Our hearts go out to those directly affected in China and elsewhere. Thankfully, none of the Enphase or partner team members is personally impacted. However, this outbreak has impacted hundreds of companies and thousands of supply chains everywhere.
Enphase has been impacted but has also taken steps to mitigate the interruption. Our top priority remains to ensure the highest quality products. A close second is to ensure an uninterrupted supply. We’d like to update our installer partners on the status of the supply chain and the next steps that we will take in order to keep up with it.
Our distributors are at target inventory levels, so we don’t anticipate any shortages in the distribution channel. We had prepared for the normal Chinese New Year shut down, we have inventory in our distribution centres and on ocean shipments and have initiated some expedited air shipments. As a result, deliveries are currently planned to continue as normal.
Furthermore, our contract manufacturers (CMs) are now running with staffing to keep our shipments on track. We are watching carefully as their suppliers come back and we will continue to work 24/7 over the coming days and weeks to ensure they are all back on-line. We will react to delays, if any, and work towards getting them back up to full capacity.
We do expect some challenges with a few suppliers but with Enphase team and CMs working together, we are well-positioned to avoid any supply disruption to our customers.
If we do run into any kind of constraints or delays in shipping, we will take all the necessary actions to deliver the product to our customers on time. This includes absorbing the cost of additional air freight if need be.
We will continue to publish regular updates on our supply situation to keep our customers updated. Our main enemy is uncertainty and that is best combatted with communication. For any queries please reach out immediately to your Enphase sales representative.