April 29, 2020
Dear Valued Customer,
The COVID-19 situation continues to be dynamic, and circumstances are changing frequently. We recognize that ensuring a secure supply of materials is extremely important for you, and even more critical during a global crisis such as COVID-19. As a global life sciences business, we are committed to do our utmost to ensure a secure supply to our customers in all parts of the world. Following our communication of 15 April, we want to update you further on the steps we are taking to help secure your business needs over and above our normal focus on security of supply.
First and foremost, we take the health, safety, and security of our global colleagues, customers and supply partners very seriously. Since the news was first reported, we convened a dedicated multi-functional team to coordinate our response. This team continues to be in contact with the Centers for Disease Control and Prevention (CDC) and seeks guidance from the World Health Organization (WHO) and other global health organizations.
Manufacturing / raw materials
Limited disruption is seen at this time. We are monitoring factory capacity closely, and this remains largely unaffected. Supply of raw materials is another key topic. We are in continuous communication with our supply partners in “lock-down” locations to ensure security of supply, and we are providing assistance and support where necessary. Where prudent we are working with suppliers to secure an appropriate level of safety stock for key raw materials.
Demand across all portfolios remains high with significant levels of previously unforecast orders received. At this time there is minimal impact to delivery lead times for the significant majority of items. Incoming demand and operational planning is done weekly to flex manufacturing capability to reflect the changing need.
This dynamic situation affects different product portfolios in different ways. We will be updating our FAQs and providing customer facing letters as appropriate. Please visit our FAQ page and/or contact your local account management team for further information.
Business continuity management
We are committed to fulfilling customer needs and regularly adjust our manufacturing output to respond to market demands, while ensuring our plants can continue with safe operations. At this time, the Crisis Management teams at all Cytiva plants have been activated and a Cytiva crisis team is in place to monitor the situation on a daily basis. We are taking necessary actions to secure the health and safety of all personnel working on our manufacturing sites, while ensuring that we can keep the manufacturing operations running.
We will take all reasonable steps to minimize disruption, but for current impact with regards to lead times and to keep us well-informed of your forecasts, please contact your local sales or your customer service representative. Due to the dynamic nature of these events our response and mitigating actions may change. We will keep you informed of our manufacturing and logistics status as the situation develops.
Fulfillment and logistics
The following explains what you can expect with regard to our current delivery lead times and sets out our ongoing actions to deal with supply chain challenges, mitigating delivery risks:
1. Shipments between global regions – Europe, US and Asia
- Materials typically move between regions on a ‘Just in Time’ basis. We are currently moving materials 10-14 days earlier than normal to mitigate the current increase in shipment times.
- Multimode transportation options are under investigation. Use of mix-mode transport, such as sea, train, truck, and flight are being evaluated and applied where appropriate.
- Charter flights into the USCAN region are implemented based upon the halt of passenger aircraft available to move materials. The first flight left Sweden to the US on Saturday April 4 (flights from US to Europe are still open).
- Singapore has imposed increased measures from April 7 – May 4. Our regional logistics and warehousing facilities are classed as essential services and continue working as directed by the business continuity plan.
- Cytiva shipments are classified as ‘medical’ for our key carriers which improves priority and movement of materials.
2. Shipments within a region
The situation remains dynamic globally and as such our teams are actively engaged daily in reviewing individual orders and shipments to take appropriate actions to ensure delivery to our customers. We are in close contact with our logistics partners to help ensure that timely and appropriate measures are taken. A brief overview, as of April 24:
- Goods are flowing as well as can be expected with wait times at borders reduced to a maximum of 2 hours
- Expect delays of 1-2 days when compared to pre-COVID-19 times.
- China – Situation has stabilized. Expect a delay of 1-3 days versus pre-COVID-19 levels. Congestion is building up on outbound China, and we currently expect a delay of 4-6 days
- India – Deliveries continue to be constrained due to the country lock down; current time frames indicate an approximate additional 3 weeks compared to the pre-COVID-19 delivery timelines.
- ASEAN – Singapore encountering labor shortages due to travel restrictions from Malaysia. Expect delays of 4-6 days versus pre-COVID-19 service levels.
- Wider country status – Varying levels of restriction by country with expectation that flight confirmations and transit times remain extended.
- Internal shipments within region are experiencing delays of 1-2 days.
Reminder: We are now Cytiva
On April 1, the Biopharma business became Cytiva, a part of the Danaher Corporation. We assure you that your success is imperative for us at Cytiva. Please see www.cytiva.com/4customers for more details or ask your customer representative if you have more questions.
Thank you for your patience during this challenging time. We appreciate your business and we will continue to work closely in our team to help ensure that, wherever reasonably possible, our supplies to you are maintained. We will continue to update you as the situation evolves.
Please visit our COVID-19 FAQ page or approach your local account manager for additional information.
President and CEO
Cytiva, formerly GE Healthcare Life Sciences