Supply Chain Situation Report* April 2, 2020 Product Categories Unchanged from last week. Unprecedented demand surges are extending normal lead times in 5 main product categories. Customers need to place orders, so we can confirm lead times and allocations via the usual channels: • • • •
Personal Protection Equipment (PPE): we, as well as all of our PPE suppliers, are in allocation mode and unable to confirm lead times Microbiologic swab kits: Our sites and supplier sites are at maximum capacity, with an increasing backlog, requiring allocation of supplies COVID – 19 related materials: we are allocating due to urgent demands Diagnostic accessories, selected lab chemicals and general lab research products from our Fisher Scientific and Fisher Healthcare channels: Due to the large size of those portfolios, we need customers to work with us on lead times or alternative products
Manufacturing Sites All sites are operational. Thermo Fisher has received exemptions from governments to operate sites in areas with “shelter in place” and similar orders. All sites are executing business continuity plans, focusing on employee safety and ability to supply customers by: Implementing standard work guidance, for social distancing • Reinforcing our site protocols (e.g. cleaning, work from home, entry to site) • Tracking and executing guidance of local health authorities We are tracking our external partners and suppliers, and as of today have enough inventory and committed supplier deliveries to remain operational. We do not foresee any disruption within the next 30 days and have implemented an automated escalation process to assure that minor disruptions get immediate attention. Transportation We have been able to ship products to customers and between sites, but with newly imposed border regulations, anticipate average delays of 5 – 7 days. Shipments are currently very limited within and in/out of India, South Africa, French overseas territories and Australia. *
This update is provided to our valued customers to identify actual and potential supply impact related to the Covid-19 pandemic. Unrelated longer term capacity constraints or existing backorder constraints are not included..