Continued fully operational production – building activities for investments continue – increased safety measures continue – selected long-haul logistic routes challenging – raw material and supplies availability still tight, respective cost increases significant
Jungbunzlauer continues to monitor the development of the pandemic coronavirus (COVID-19) very closely. This letter is dated 20 July 2021 and will be updated regularly. While COVID-19 infections have and are further decreasing in many parts of the world we all, unfortunately, are still uncertain how new variants of the virus will affect us.
At Jungbunzlauer we are reopening selected offices and return gradually to shift set-ups that we know from the before-COVID time while as our safety measures remain at highest standards. We are continuously able to supply products to our valued customers and will stay alert to react fast and efficient if the general pandemic situation deteriorated again.
Despite extra efforts to secure and improve access to raw materials and other supplies like packaging etc. we are still experiencing a reduced general availability of selected commodities and supplies and, even more so, a significant increase in cost for raw materials and energy. Especially the surplus demand of our products can only be realised at higher cost and with limited to no flexibility on shortterm demand schedules. We are in close contact with our customers and prioritise on the flow of goods while working on securing raw material at competitive conditions.
On-site/physical audits will continue to be restricted to essential audits only. We have worked on developing a remote audit format and first experiences were very positive. We see this as a very viable alternative, at least on an interim basis.
Our travel activities are still mostly on hold. In first, carefully selected, and well planned cases we have engaged in physical meetings with customers again, following all necessary and recommended safety measures. In the same way we, as an organisation, have started to conduct selected internal meetings in our offices again. Moving forward we are optimistic to be able to reduce the time to meet virtually in exchange for more face-to-face interaction in a secure and real environment.
In compliance with the different local restrictions, all project activities are continuing in the different countries so that availability of additional supply possibilities for our customers are not going to be delayed substantially.
Supply chain security
We are in permanent contact with our forwarders and distribution partners to discuss transport routes in critical regions and discuss alternative routes and possibilities. In general, the availability of trucks in Europe and the US is stabile but we continue to experience significant delays in shipments from Europe to overseas locations, especially deliveries to the United States are currently several weeks delayed.
The duration of this supply chain bottleneck is hard to predict. We believe, however, that we will have to deal with this situation beyond 2021 and we expect the already high transportation cost to increase further, especially for long-haul transportation. In case of any questions, please do not hesitate to contact your sales representatives.
The health and wellbeing of all our employees, colleagues and their families are priority number one. We are very much aware that many customers and, hence, consumers rely on our ability to supply our products. We do our utmost to stay fully operational, have increased safety measures in place and continue to operate in a fast, efficient and responsible manner.
Many of us are convinced that the continuous roll-out of the vaccines will be an enabler to get out of lock-downs, travel restrictions and social distancing. We are ready to open up gradually without compromising on safety and precautionary measures.
Stay safe and sound.
With best regards,
Jungbunzlauer International AG
|Tom Knutzen|| ||Stephan Müller|
|CEO|| ||VP Sales|