Well-managed the materials supply and capacity expansion, MEAN WELL announced to shorten the lead-time

Dear valuable customers and distributors,
 
Thank you for your supports for over the years, to make MEAN WELL keep steadily growing.
 
In order to providing the best cost/ performance ratio of standard power supplies and services, MEAN WELL targets the niche market of “more variety at less volume” for industrial standard power supply and focus on customers of small or medium volume through distributor channels all over the world.
 
Since last year, the shortage of raw materials has led to prolonged delivery, and the rise in the price of paper, electric capacitors, MLCC, MOSFETs and other components. MEAN WELL was forced to extend the lead-time from 30 days to 36 days in April 2017.
 
Besides, MEAN WELL immediately formed the coordination committee of material shortages as well as the coordination committee of production and marketing. At the same time, MEAN WELL expanded its automated production lines to improve the productivity, and controlled the costs through materials integration.
 
In January 2018, in order to compliance with the new IEC-62368 regulations, MEAN WELL announced its discontinued products list on website and planned to eliminate those old models step by step. For those uncompetitive listed models and modified models with minus or ultra-low gross margin, we increased the selling price by 5~10%. We also recommended customers to use the new generation of standard models with better cost performance, to enhance their product competency.
 
After several months of efforts, MEAN WELL has effectively controlled the current situation of material supply, and the adjustment of production capacity has become increasingly stable. We scheduled to implement the following policies that need your support and cooperation.
 
 
1. We will gradually restore the original production lead-time. The original orders of LT 36 days can be delivered in advance. Since April 2018, the standard LT for three factories will be restored to 30 days.
 
2. Three factories are all equipped with a small inventory to meet the needs of sample or small quantity orders. For customers and distributors with large quantity orders, please place your orders in advance. The price for off-the-shelf orders will be slightly increased since 1st May ,2018. For more details, please contact your sales window.
 
3. MEAN WELL treats our suppliers as long-term partners. We accept the reasonable cost response, but the stable and timely supply of materials is priority. MEAN WELL’s vendor committee will regularly evaluate the suppliers based on the criteria of quality, cost, delivery, and service. Those suppliers who have higher price and delay in delivery will be listed as “unconsidered vendors.”. For details, please contact MEAN WELL procurement window.
 
 
We think that the urgent task at present is to restore the delivery period and not to cause customers any troubles in terms of delivery. Thank you very much for your supports. Please accept our apology for any inconvenience caused. 


MEAN WELL ENTERPRISES CO., LTD
 
Jerry Lin/ President
2018/03/26