Sun Chemical is conducting diligent inventory analyses of key intermediates, raw materials and finished goods inventories as the worldwide COVID-19 outbreak worsens.

The company noted that to procure several thousand materials on a regular basis and manage each one requires details of on-hand inventories, those that are in-transit and on order, as well as customer consumption patterns, as every customer uses different formulas and product lines for varied applications. Sun Chemical continues to monitor each of these product families in order to make sure customers do not experience supply chain disruptions.

Jeffrey Shaw, chief supply chain officer at Sun Chemical, commented, ‘Over these last several weeks, we continue to monitor the extent of the novel coronavirus (also referred to as COVID-19) around the world. The potential supply chain impact around the world is vast and unpredictable.

‘Nonetheless, we stay committed to manage our supply chain in a very proactive and comprehensive manner. We continue to monitor the labour situation, the run time of supplier manufacturing sites, and the logistics providers for over-the-road, ocean freight and even seaport services in China and other high-risk areas around the globe. The situation remains volatile and can change very quickly.’

Mr Shaw continued, ‘To this extent, we have made sure our contingency plans are in place and ready to be executed if needed. At this time, we have not experienced inventory issues and remain committed to the service levels we have been known to provide. We have numerous manufacturing sites around the world and are making sure we maintain the flexibility of manufactured volumes in order to meet customer demands.’

Sun Chemical further noted:

  • For those materials that are sourced in China, it is proactively communicating with suppliers to secure supply, and continues to manage orders with them and make sure the logistics processes are in place to ship on time and avoid a supply disruption;
  • With many sites around the world that service various regions, it is constantly assessing capabilities and capacities in order to meet customer demands in the event other regions have to stop manufacturing; and
  • If one region or site is at risk compared to others, the company is prepared to ship material from one region or site to the other; supply from higher risk areas has already been relocated to lower risk areas. Backup suppliers around the world also continue to be identified and to qualify other materials in formulas as needed.

Mr Shaw said, ‘Our supply chain control teams are proactively reviewing all levels of data and coordinating with suppliers, manufacturing and commercial teams so that they understand the latest material status. Furthermore, we have personnel stationed in China to manage suppliers and logistics locally. As specific questions about a customer’s material and inventory levels arise, we ask that they please direct those questions to their supply chain contact for a more detailed response.’