Recently, the severe spread and skyrocketing infection figures of the Covid-19 pandemic has caused great uncertainties in the manufacturing industry in many places. The market is facing escalating challenges such as shortage of raw materials, sluggish logistical efficiency, severe supply difficulties in Corona-related sealed-off areas (see e.g. Shanghai port closure) and suspension/impediment of battery product exports.
LEVA-EU member Bafang is actively addressing these influencing factors and challenges to meet customers’ trust and expectations. Based on a sophisticated supply chain with a carefully developed management system, the company has implemented sound production and transportation planning. The company’s production management has imposed strict pandemic prevention requirements on the regular operation of each production line. At the same time, Bafang has had the foresight to increase and structure the finished product and raw material stock sufficiently to ensure long-term internal production and thus maximum stocking of the central warehouse.
Although the global chip shortage continues, Bafang Electric has very good chip replacement solutions for its electronic control components. Strategic cooperation with key suppliers ensures a stable supply of the required raw materials. Also beneficial is Bafang’s pricing of most order items for six months, which helps to counteract the pressure of rising raw material prices. Due to the close, cooperative collaboration and support of the suppliers involved and the closely synchronized supply structure, Bafang Electric is in the advantageous position of being able to implement a stronger “anti-risk strategy” with regard to core components.
The company’s entire logistics department (incl. import/export) responds quickly to the challenges of daily transport and delivery. Here, Bafang not only uses the remaining open channel of the Shanghai port, but actively and constructively seeks other available export channels in various trans-regional cities such as Beijing, Qingdao, Nanjing, Ningbo, Xiamen and Shenzhen.
“Although shipments have been delayed to varying degrees due to the impact of the Covid 19 virus, we are able to respond in a timely manner to local policy and channel opening decisions, with appropriate actions, and adjust our measures with pinpoint accuracy. Thus, we can ensure continuous export of goods.” said the director in charge of Bafang Import and Export Department.
Furthermore, Bafang is working hard to increase its own capacity at production plants abroad. Coordinating domestic and overseas delivery systems thus leads to more effective support and management of more customer orders and demands. In support of this, Bafang is in close and positive communication with the OEMs involved to discuss and adjust production schedules accordingly.
Bafang is committed to protecting customers’ interests to the highest degree and ensuring the continuous supply of e-bike drive systems worldwide. In the current pandemic situation, with its drastic measures/restrictions in places, such as the Shanghai port lockdown, these challenges can only be overcome through joint, constructive cooperation.