The last 3 quarters have been very challenging for our customers from a supply perspective. There have been delays in getting schedules as well as getting the product. This has been due to the unprecedented demand for our products has forced us to go on allocation and has caused delays in getting products to all our customers in a timely manner. As we worked through the allocation process we have taken several key steps forward to greatly improve our performance.
Lead Times and Supply Availability:
We are working tirelessly to add capacity to meet our ever-increasing demand and are proud that year over year we will increase the output of our inverters by a factor of three. However, even with this increased output, our lead-time is still at ~16 weeks for inverters. The demand picture continues to look very strong through the end of the year and we see our lead times dropping in Q1’20. We have the capacity to support your demand and we are working with your distributors to ensure they order to the current lead-time of 16 weeks so they always have a product to meet your needs. To that extent, we have made significant progress and expect that most locations will have an adequate inventory profile by the end of Q2 to support customer needs. We expect that position to further improve by end of Q3.
While we have been working to fulfil demand during these times of heavy demand and working towards optimizing our supply to best service our customers, we are also working on improving scheduling communication. We recognize this has caused a lot of challenges for you, our customers during the period of heavy allocation.
As our supply has improved, our goal is to get you to order confirmations in 2 working days but at worst you should always see a confirmation within 1 week starting immediately.