Parts are an issue. Lead times on some of these are 26 weeks out. So it is
not possible to ramp up to the 1500 per day that we did before
the distributors asked us to back off. I takes a while to fill the
pipeline. And as there is not profit in the board, we can't just pay
expedite fees on parts and PCBs to get them in here faster like we did on
the other three boards. No desire to ship money out the door with every
board.

Just because we have orders on the books, does not mean distributors will
take everything they have on order immediately. They want them scheduled
out.

Gerald


On Tue, Feb 18, 2014 at 5:20 PM, Dennis Cote <[email protected]> wrote:

>
>
> On Tuesday, February 18, 2014 6:40:04 AM UTC-7, Gerald wrote:
>
>> We are basically keeping up with the back logs at most of
>> the distributors.
>>
>> As you can see we ship 700 per day and no one shows stock.
>>
>> We have 140,000 board back log at this time. A lot of those orders have
>> only come in the last couple of months. Lead times on some parts is 26
>> weeks.
>>
>> capacity is not the issue.
>>
>>
> Hi Gerald,
>
> I just want to check your math here.
>
> Using your last full month, January 2014, you shipped 13,575 boards over
> 22 working days, or about 617 boards per day. So shipping 700 per day seems
> reasonable.
>
> You say your backlog is 140000 boards which were ordered in the last
> couple of months. If I use 3 months as the span for the backlog orders, you
> backlog orders for about 47000 boards per month, or about 2100 boards per
> working day (based on 22 working days per month).
>
> Based on this your order backlog is growing at about 3 time the rate you
> are shipping. It seems like this must have been the case for a while in
> order for the backlog to build to 140000 boards. So perhaps capacity really
> is an issue.
>
> Is your current production limited by part supply issues? If so, I assume
> you increased your part orders several months ago when the backlog began,
> but with 26 week deliveries you won't see the increased supply for another
> 3 months or so. If that's the case then the backlog will only continue to
> grow and will take a month or two after the parts supply improves before
> you are able to clear this backlog even if you can increase your capacity
> to ship 7000 boards per day (i.e. 10 times what you are doing now).
>
> I agree that people best bet is still to place an order and get in the
> queue for any boards they want. They may have to wait for a while.
>
> Dennis Cote
>
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