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DMP Manufacturing and Supply Chain Update

DMP Manufacturing and Supply Chain Update

March 27, 2020

With the first of April approaching, our industry has transitioned from Security Providers to Essential Workers & Employers. DMP is committed to fully support our dealer and end user needs during this critical time. We stand with you and offer our combined resources to help provide stability and safety in our nation and to the world during the fight against COVID-19.

DMP is an essential employer in fighting this pandemic as defined by Homeland Security as you can see in this document:

We manufacture critical equipment that maintains and supports the functions of Law Enforcement, Public Safety and First Responders (page 6), Communications and Information Technology (page 9), Other Community-Based Government Operations and Essential Functions (page 10), Financial Services (page 11) and the Defense Industrial Base (page 11). DMP is a Critical Manufacturer that is defined on page 10. To that end, we continue to manufacture product, distribute that product and support our dealers in the best possible way that we can during this difficult time.

March shipments to DMP dealers continued an extremely strong first quarter. Year over year growth in March exceeded the record level of deliveries already needed by DMP dealers in January and February. During this same time, the balance of finished goods manufactured in our Springfield, Missouri facility has increased by more than 20% since the end of 2019. This increased product inventory is available now and is ready to deliver as needed. Even with the higher material demand, DMP vendors in our supply chain have stepped up deliveries, and the raw material balance on hand has increased by more than 5% the first quarter.

Daily contact is made with our supply chain providers to confirm shipment schedules and redirect orders as needed. Additional vendors have been approved in the first quarter, and duplicate hard tooling is being constructed to increase capacity and provide diversification for mission-critical DMP materials. This aggressive approach will continue in the weeks ahead.

We will continue to to keep you informed as we strive to maintain uninterrupted flow of products from our factory in the midwest. Thank you for your confidence in DMP. Thank you for your continued business.

UPDATE: March 9, 2020

As a U.S manufacturer, DMP continues to aggressively manage our finished good and raw material inventories. January and February shipments to DMP dealers have been at record levels and business continues to be very strong for our industry. During these two months, DMP has also increased the level of inventory in house at the DMP manufacturing facility in Springfield MO which includes raw materials and finished goods. The level of finished good inventory has increased by 10% since the end of December at the same time a record number of shipments have been made to DMP dealers. This inventory growth plan is being accelerated in the weeks and months ahead.

Our business plan continues to be to maintain six to eight weeks inventory of finished goods as well as months of raw materials in Springfield. In addition, we are in daily contact with our U.S. and Global suppliers who also maintain DMP allocated materials. Half of all materials used in DMP products are sourced directly in the U.S. with distributor and direct global partners from a variety of countries worldwide. Direct U.S. manufacturing partners include important custom materials such as all metal enclosure fabrication and injected plastic materials as well as component distributors in the U.S.

It is encouraging to see the current level of business activity in the security industry and DMP stands prepared to support and grow all of our combined opportunities.

We will continue to keep you updated on this blog post if things change.

February 24, 2020

DMP relies on the best components we can find from across the USA and all over the world. In light of the coronavirus, we’ve been asked if it is affecting DMP’s supply of components.

While we do rely on global components sourced from around the world, including China, in light of recent tariff issues, we’ve actively been moving the purchase of components to more trade-compliant countries. As a result, DMP does not source its metal enclosures, injected plastics, most PCBs, wire-in transformers and many other vital components from China.

Furthermore, because we do our very best to ship our products directly to you on the day you order it, DMP is not a “Just-In-Time” manufacturer. Therefore, we have good inventory levels of components and finished goods. As an additional proactive step, DMP Purchasing is increasing current safety stock levels for all discreet electronic parts.

Still to this day, we are one of the few security companies who continues to design, engineer and manufacture all of its products in the U.S. — centrally located in Springfield, Missouri. If you’ve done business with DMP, you may already know that we do this quite intentionally — to keep our supply chain short so we can best serve our customers.

As a result of our policy to purchase U.S.-manufactured components whenever possible, our internal policy to maintain six to eights weeks inventory of finished goods and our ability to warehouse six to nine months, in some cases, of raw materials in order to deal with these type of supply issues that continue to surface in the electronic component market, DMP is much better positioned to weather any extended supply problem than most companies in our market. We do not expect to see any impact on our ability to deliver DMP products to our customer as a result of disruptions caused by the coronavirus. We continue to pray for the families in China and hope this virus is eliminated soon.

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