We have prepared informations for our clients, describing the current status of the company and its production efficiency.
In March this year, we suffered from a large fluctuation in demand due to the world-wide pandemic. At the beginning of the year, our forecasts predicted for a large drop in orders in the third quarter. In the second quarter, the number of orders remained at a constant good level. Unexpectedly however, the third quarter brought a huge increase in orders placed by customers who distribute on-line sales channels. This increase was related to a decrease in orders for products distributed in traditional (off-line) channels. This turned into an extension of the production cycle, as products dedicated to e-commerce are more time-consuming to produce.
Products prepared for distribution through e-commerce channels.
Despite a significant reduction in lead time from 33 to 10 days, based on Lean Manufacturing, the order queue has increased during the holiday season and now the waiting time for a production order can be up to 60 days.
In July 2020, Delta-Trade received a record number of orders since 2016, which translated into an over fourfold increase in orders compared to July 2019.
A building of a modern sewing room recently put into use.
Our team is working hard to increase efficiency and production capacity by 60% by the end of 2020. We develop cooperation with suppliers and increase employment in the production department by 30%. A new tailor shop with a total area of 600 m2, equipped with modern and efficient machines for designing, cutting fabrics and sewing covers, has just been put into use at our production hall.
An operator operating an automatic fabric loader.
We remain in constant contact with our contractors and try to inform about delays and changes in delivery dates as much in advance as possible. The situation related to the waiting time for the order should change at the end of this year, when all new, currently introduced technologies will be permanently implemented and the new larger workforce will complete the training process.
We will keep you updated on the current order queue and waiting time for all customers with confirmed orders.