Article

Coronavirus causes supply chain upset for touchscreens

The suspension of business activity on account of the coronavirus pandemic, coupled with cancellations of all sorts of activities where large numbers of people gather — from shopping malls to sporting events to conventions — has delivered new uncertainties for many companies involved in touchscreens and self-service equipment.

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March 24, 2020 by Elliot Maras — Editor, Kiosk Marketplace & Vending Times

This story was originally posted on Kiosk Marketplace

The suspension of business activity on account of the coronavirus pandemic, coupled with cancellations of all sorts of activities where large numbers of people gather — from shopping malls to sporting events to conventions — has delivered new uncertainties for many companies involved in unattended retailing.

In addition to not being able to serve as many customers, as described in part one of this two-part series, providers of self-service equipment have experienced supply chain disruptions, especially those who source products from China. 

"Our supply chain has been severely impacted by products we procure and import from China and Taiwan," Glen Cowie, director of sales and marketing at Fabcon, a kiosk manufacturer, told this website. "We have had to adjust our production lead times accordingly due to the difficulties we're having getting certain items."

"It's still too early to tell what the sales impact will be because most of our projects and opportunities have long sales cycles," he said.

"We have been impacted by the lack of products currently in China," agreed Marcos Fugulin, business development director of Apek International, another kiosk manufacturer. "Many suppliers are claiming that their employees are staying at home and that the production process is taking longer. However, we feel that when we add more volume or more money in the process, they can meet our requests."

"We've had a couple of instances of longer lead time on components such as touchscreens and thermal printers," said Juan Perez, CEO of ADUSA Inc. "We're primarily a software company but also get involved in some hardware and integration as they relate to running our software."

Palmer Digital Group's supply chain has not been seriously affected, but Chuck Lewis, vice president of the kiosk manufacturer, said the company may decide to have some employees work from home if the virus continues to spread.

Trade show woes cause alarm

The cancellation of trade shows has also raised concerns among some suppliers.

"Many companies are canceling their presence at some events, so we are not investing in participating in events," said Apek International's Fugulin. "And that can have a future impact on some sales and partnership demands."

FlowVella, a multi-media solutions specialist that provides a kiosk app for iPads, has experienced a decline in activity from both trade show and museum customers, said company CEO Brent Brookler. Trade show exhibits and museums collectively account for close to half of his business.

"Trade shows are all canceled, and museums, a lot of them are shut down," said Brookler, who is based in Seattle, which has suffered a large number of COVID-19 cases. 

Some customers have also expressed concern about touchscreen sanitation on account the coronavirus, Brookler said. "There could be an impact on the whole touchscreen experience market," he said. "What can we do proactively to make sure that we're on top of it as an industry?

An upside for domestic manufacturers?

Some U.S. based manufacturers see a silver lining in China's coronavirus woes.

"We have noticed a slight uptick in the number of companies who are looking at Fabcon to become their manufacturing partner because of the problems in China and overseas," Fabcon's Cowie said.

Palmer Digital Group's Lewis agreed. "We suspect that due to the coronavirus that our sales will pick up since the Chinese manufactures have slowed down," he said.

Opportunities for customer engagement

The virus has also given companies an opportunity to engage with customers about issues they are facing, which some see as an opportunity to strengthen customer relations.

Parlevel Systems, a provider of micro market kiosks, cashless readers and software for micro markets, vending machines and refreshment services, has fielded requests for information from customers on account of the coronavirus, said Chris Blomquist, director of marketing.

"If anything, we have seen more companies reaching out to us asking how to get started with our technology," Blomquist said. "What we are trying to do is to help operators understand more about how to proactively face this epidemic, from teaching them how to prevent the spread of the virus at their workplace to helping them merchandise their locations with products that will assist their customers."

About Elliot Maras

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Elliot Maras is the editor of Kiosk Marketplace and Vending Times. He brings three decades covering unattended retail and commercial foodservice.