INSIGHTS

Update on MBX Systems COVID-19 Response Plan

March 12, 2020 | Post

The top priority at MBX Systems is the well being of our employees and maintaining business continuity as the spread of COVID-19 coronavirus advances.

Justin Formella, Chief Strategy Officer

It’s important that we continue to communicate how we are preparing our entire organization and protecting your end-to-end supply chain. We’ve gone to incredible lengths to minimize any potential impact across operations, suppliers, distribution, and transit.

Our first Coronavirus-related post identified potential constraints to the overall electronics supply chain, followed by our second COVID-19-related post that outlined specific information gathered from our suppliers. We encouraged customers to extend their sales forecasts, which they aptly did. We were transparent with supplier data and made recommendations to customers to avoid getting caught out by constrained SKUs. This proactive approach is proving effective, and orders are steadily leaving our facilities.

Today, we’re communicating the specific measures we’re taking through our business continuity planning and the extensive work we’ve done to protect our employees and strengthen operational policies. We’d like to address the potential effects of the virus spreading both internally by mitigating potential manufacturing and distribution impacts and externally by minimizing potential supply chain and transportation disruptions that could affect your business. 

Supply Chain

As part of our advance procurement strategies to prepare for component and manufacturer constraints, we provided clear and actionable guidance for customers to plan ahead. Their rapid response has enabled us to act swiftly and head into Q2 in a solid inventory position.

  • We’ve worked individually with customers to secure forecasts and pull ahead manufacturing orders enabling our supply chain to procure inventory ahead of demand.
  • We’ve increased our inventory positions on high volume SKUs and components most vulnerable to supply shortages.
  • We continue to communicate with our key suppliers on a regular basis and are receiving weekly manufacturing output updates.

MBX Operations and Business Continuity

As part of MBX’s Emergency Action and Response Plan, we have implemented infection control practices that span travel, staffing requirements, employee attendance, and operational processes.

  • All non-essential business travel is aggressively restricted both inbound and outbound for all employees, visitors and suppliers.
  • All trade show attendance has been canceled.
  • Updated illness policies include barring any employee with symptoms of sickness from entering the facility, sending an employee home if they begin to exhibit signs of sickness, and enforcing a quarantine period or proof of negative test results before allowing re-entry to our facilities.
  • Mandatory employee reporting is required for all personal travel, and quarantine periods will go into effect for any employee returning from a high-risk area based on our own risk assessment, which includes multiple U.S. locations.
  • PTO allocations have been increased to help employees in the event they must be absent from the workplace.
  • All employees who are able to work remotely are now working remotely to reduce the number of employees coming into our facilities.
  • Within our manufacturing and distribution departments, we have enacted additional new policies out of an abundance of caution, for example, enforcing social distancing and increasing facility sanitization and sterilization.
  • New preventative measures have been implemented for all deliveries and delivery drivers 

As part of our contingency planning, we have additional plans prepared for implementation in the future if conditions warrant. 

  • Each functional area of the organization has been outlined with minimum staffing levels required for continued operations.
  • Our cross-training program was expanded in February to increase the pool of employees prepared to fill critical positions.
  • Should conditions continue to slide, we are positioned to implement isolated offset shifts within functional areas that are critical to business continuity.

Transportation & Logistics

We continuously monitor for quarantine-related closures worldwide and domestically. At this time we continue to see an unencumbered movement of goods, even in areas of complete quarantine such as Italy. Regardless, we remain diligent and will keep our customer base up to date if we see any potential transit-related delays or impairments.

  • Domestically, Chicago is our primary transit hub, with secondary distribution points across the globe
  • We are offering customers the option to move a portion of their ready-to-ship finished goods to a secondary domestic logistics site in Phoenix, AZ

We will continue to closely monitor the situation and provide you with ongoing updates including any potential changes to business or supply chain impacts related to COVID-19.