Tuesday, March 22, 2011

Japan Earthquake Impact & Current Status - Murata Power Solutions

We would like to update you regarding the earthquake and tsunami damage in Japan with respect to your supply of products from Murata Power Solutions. Before getting into the details of the current situation, we do want to first thank you for the ongoing concerns so many of you have expressed through phone calls and emails. We sincerely appreciate it.

At this time, it is very difficult for us to provide many clear details, as changes are very dynamic. Nonetheless, we would like to share the current state of affairs as best we can:

With the exception of our OKL-T/3 and OKL-T/6 series, Murata Power Solutions products are manufactured in China, UK, and the US. Only the OKL-T/3 and OKL-T/6 series are produced in Japan.

On ALL products except for these two OKL models, there was no impact to our production schedules. Based on the daily communications we have with our vendors and manufacturing locations, there is no impact to our immediate delivery schedules. Our supply pipeline is full for the next three to four weeks.

For the OKL-T/3 and T/6 models, we are still currently assessing the impact to our ability to deliver new orders. Until further details are provided, any new requirements should be handled on a case by case basis by contacting a member of our sales team.

We have experienced only minor delays for shipments outbound to Japan, and we will continue to track this matter very closely in terms of inbound material from Japan.

We continue to work very closely with our manufacturing sites and commodity teams to review and evaluate any possible risks to our raw material supply on a real-time basis. As a proactive measure, we requested our supply base to identify risks to our delivery schedule within the lead-time horizon. We have established a priority list of commodities that will become our main focus for supply chain evaluation and risk assessment.

Our first step will be to validate at a component level all critical manufacturing operations in order to anticipate and respond to any potential exposure to our supply. Mitigation plans will be put in place as soon as a risk to our supply is identified.

We appreciate your cooperation to work with us via our local Sales Managers, to keep us informed of your most urgent requirements, in order to help us best meet your expectations in the weeks and months ahead.

Regards,
John Parma
Sr. V.P. Global Operations
Murata Power Solutions
Email: john.parma@murata-ps.com