The world is in confusion, but life still goes on. We want to inform and reassure all of our stakeholders and here is a brief introduction to Darekon’s state on the day of release.
Media coverage can tend towards the sensational, adding to an almost apocalyptic atmosphere but we want to emphasise the importance of calm and caution. Darekon is strictly complying with all instructions and regulations of the authorities regarding the coronavirus.
Manufacturing plants operating normally
Darekon’s overall situation is calm and practically all Darekon’s staff is on duty. Remote working has been set up where possible.
Freight traffic is operating quite normally and production has not been hindered by a shortage of materials. In this regard, potential future problems have been anticipated for several weeks. There have been delays in some shipments from China, but Darekon’s own buffer stocks have covered most of the shortages. In some cases, local replenishment has been possible.
Darekon’s materials department is constantly working hard to ensure that materials are delivered on schedule. At the same time, other measures have been taken, such as increasing inventory levels, to minimise potential future disruptions.
Skilled staff allow flexibility
“A significant amount of components and other materials come to us from China and elsewhere in the Far East, and they come from there all the time,” says Antti Järviluoma, Darekon’s Haapavesi plant director. “For their part, Finnish partners supplying sheet metal parts, special coatings, injection moulding and other mechanical parts seem to be doing their best to deliver orders accurately.”
“Our competent and multi-skilled staff ensure that any future inconvenience in case of absences is minimised. Individuals are able to move flexibly from one job to another depending on the situation. Job rotation is quite common for us in managing hurry orders during normal times, and now we have been preparing with the staff to deal with exceptional situations.”
No free fall in sight
Darekon’s customers are also striving to work as usual and have not for the time being cancelled orders. The situation for some companies has even led to an increase in demand and an increase in order volumes. If partners’ production facilities are shut down in the future, this will of course also be reflected in Darekon’s operations.
“Managing material chains and predicting production is now even more difficult and important,” says Petri Kettunen, sales director at Darekon. “Responding to changes in demand in the short term is now more challenging than usual. We conduct regular, confidential discussions with our clients about possible changes and we encourage clients to contact us as early as possible if changes are needed.”
“Darekon’s steady financial position is a particularly important factor in securing operations in this situation. Regular cash flow is essential, but a strong economy gives a better opportunity for making any necessary arrangements.”
It is easier to operate locally
The current situation is new and will have an impact on the long-term development of globalisation. Darekon has retained its operations in the Baltic Sea Region and has previously talked about the many benefits of short physical and cultural distances.
“We have wanted to provide our partners with a stable, manageable and predictable operating environment,” Kettunen continues. “It is a good idea for clients to look critically at the operation of their own supply chain and to consider other things than just the unit price of the product in a distant country. One of the key factors is the ability of the chain to handle abnormal situations.”
“If these issues or the current situation evoke questions, I am happily prepared to discuss in more detail. Although physical meetings are right now banned, we can meet virtually right away – for example, through a Teams meeting. It is a good idea to act soon if, for example, the concern is for next year. This is no time to just wait for the current situation to pass. Let’s sit down right away if your company is thinking about these things.”