Last month, we provided an update focusing on the supply challenges Enphase has been facing. The unprecedented demand for our products has caused delays in procuring critical materials which forced us to go on allocation. Unfortunately, this impacted our ability in getting products to our customers in a timely manner.
But things are changing. We are going to great lengths to ensure we improve our performance as we work through allocation by increasing our manufacturing capacity and product availability.
We have expanded our manufacturing partnership with Flex in Mexico and commenced shipments from this site. As we ramp production steadily over the next two to three quarters, we expect to reduce our lead times and streamline our logistics pipeline, while maintaining cost parity and excellent quality. Read more about our partnership with Flex and shipment from Mexico here.
In addition, we’re ensuring enough inventory levels to ensure a smooth transition to the new generation products. We have worked to return the inventory levels in our distribution channel to near desired levels. As we progress through the back half of the year we expect our lead times into the distributors to remain near 13-16 weeks. The demand outlook does remain strong so we expect to see our lead times improving in Q1’20. We have the capacity to support your demand and we are working with your distributors to ensure the order to the current lead times so they always have a product to meet your needs.
We will publish regular updates of our supply situation to keep our customers updated.
For any queries please reach out to your Enphase Sales representative.