Appliance supply update | ANALYSIS


chip suppliers that are local to the factories we use, rather than going to the typical countries where chips are made. So we were able to launch a range of ovens that have TFT screens and are wi-fi-enabled when others have struggled with being able to launch that sort of technology into the marketplace.” Between 2019 and now Caple has also doubled the capacity of its warehouse. Similar factors also helped cooker hood specialist Falmec, as UK CEO Sean Drumm


of retailers have bought appliances online to complete orders


86%


explains: “The situation on component shortages seems to be improving daily. Luckily, Falmec avoided a lot of the shortage issues experienced by other appliance manufacturers due to its policy of extensive stockholding plus, of course, the fact that the appliances are manufactured in-house in


its own factory than outsourced.”


Ragip Balcioglu, chief commercial officer for Beko, spoke to kbbreview recently at IFA in Berlin and said that it could supply appliances within two weeks: “Although the challenges are continuing in terms of supply of certain components, demand is decreasing, which will take some of the pressure off. We are still seeing erratic component supply, but we are able to switch very quickly from one component to another without affecting quality or function of products and that gives us an edge. And we are investing in enhancing capacity.” At AEG/Electrolux, UK manging director Luke Harding told kbbreview during a recent podcast that availability was improving all the time.


in Italy, rather


He said: “The main challenge is in electronic components and that is par - ticularly impacting dishwashers. We have seen significant improvements over the past quarter and we are forecasting for them to improve significantly again in the next 12 weeks.” He added: “We have changed our structure around the supply chain over the past couple of years with additional headcount here in the UK to give the best possible supply that we can. And if we can’t supply,


we will upgrade, so long as that’s suitable for the consumer and after discussion with the studio affected.” Harding added: “We have extended some lead times


needed to and have put in a new supply specialist dedicated to the kitchen studio channel.


We can all cope with bad news, but you can’t cope with surprises. No one wants to take responsibility, so it’s left to the retailers to feel the pain. Customers don’t understand why they don’t have an oven when it was ordered six months ago


Simon Nairn, director, Kitchen Culture, Cambridge


But what we haven’t done is to limit the supply of any particular lines to the studios. We also paused taking on new partners for a period of time, but we are now open for business.” At Whirlpool UK, communications manager Ian Moverley is upbeat: “We have made a number of significant changes to improve the way we operate and, as a result, we are not currently experiencing component shortages. At Whirlpool UK, we offer a unique advantage in that we have 12 depots that are located across the country, meaning we can swiftly deliver products to meet supply demand. We are proud to be fulfilling orders extremely quickly.”


Moverley explains how they have where we have


put measures in place to protect the Whirlpool supply chain. He says: “Having a strong forecasting and demand planning model means we can ensure every part of our supply chain is in sync, and we are subsequently protected against any material or component shortages.” Miele too announced recently that supplies were returning to normal on some product categories and that it is taking steps to make all products available at pre-Covid levels by the end of the year. Dr Marcus


Miele,


executive director at Miele,


said “We can


happily report that delivery times are getting better. In most


there at the end of this year, so that we can deliver again at normal times.” At Samsung, UK kitchen channel manager Jonathan Hartley, tells kbbreview: “We have dedicated teams constantly working to make our supply chains as efficient as possible, so we can minimise any impact on our customers. We do this through careful forecasting and working closely with our customers and suppliers, which allows us to ensure visibility over demands and set our plans in a way that minimises any potential issues. Our new fully wi-fi-connected Series 4 and 5 ovens and combis are all well stocked in our distribution channel with stock available for customer orders.”


Rationing 72%


of retailers are looking for alternative suppliers


of our product groups, we are coming back to a normal situation. But, this has taken much work. We are fighting in production each and every day to get the right materials. And we’re not 100% there yet, but I hope we will be


Kbbreview was unable to get any comments from BSH for this specific analysis. However, in July we reported that BSH had taken steps to ration the supply of certain products, with kitchen studios only having access to certain higher-spec Siemens and Neff products in a bid, according to BSH UK and Ireland CEO Gunjan Srivastava, to “manage the shortages by limiting the number of models that each of our trade partners has access to”. While most retailers we spoke to at the time thought it was a step in the right direction, some worried that not being able to sell the


most affordable products might make them seem too expensive.


BSH also introduced a ‘traffic light’ system for retailers placing orders, who now see from the colour of traffic light next to an item what its availability is like. Kbbreview understands red means six to 10 weeks, green up to three weeks and black is ‘to be advised’.


Phil Beechinor at Alexander says that


the system at least ensures that he does not order appliances that have no chance of being available in time. Finally, Liebherr national sales manager Matt Jinks has this to say about the current situation for supply of its products: “The current timeline for delivery


varies depending on the


product. For example, we have a wide selection of products that are available immediately from our centralised UK warehouse.


For the products


that


aren’t available immediately, we have a turnaround time of two to three weeks.” Retailers will doubtless only be happy when they have resolved the legacy issues of customers with a hole in their kitchens where there should be an appliance. But the general consensus is that things are slowly getting better. However, with new Covid outbreaks in China, and something like 35% of the country in lockdown again – at the time of going to press– we may not be out of the woods just yet.


November 2022 · 35


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