As part of our series on how luxury packaging suppliers are impacted by the coronavirus, earlier this week we spoke with Pierre-Yves Azuelos, ceo of multi-material luxury packaging manufacturer Dapy Paris.
What are your most pressing challenges today in the face of the crisis?
To be able to ensure delivery times with transport rotations that have become quite limited due to Covid-19. Meanwhile, the cost of airfreight has quadrupled in recent days due to the drastic reduction in flights operated by the airlines.
How has your production been impacted?
Our four manufacturing sites in Asia (three in China and one in Taiwan) are operational at about 85% and we’re projecting a return to normal soon. However, unlike our own production units, some subcontractors are still experiencing stock shortages, which slows us down in the supply of certain components. This may have repercussions on the supply chain.
What strategies are you putting into place?
We are shortening our supply chain by refocusing on the reliability of our production sites. At the end of January, which marked the end of Chinese New Year, we took the necessary measures to be able to resume our activity in the best possible conditions: disinfecting the premises, sending masks to our teams in Asia, checkpoints at the entrance to the sites, etc. These measures enabled us to obtain the necessary authorizations to resume activity quickly. Our sites were operational after a delay of just one or two weeks.
How are your clients working with their suppliers today?
Most of our customers continue to monitor projects and orders remotely. Our teams are in home office, but we’ve also assured a presence in our office to allow for validation processes and samples to our customers to stay current on projects in the pipeline.
For the moment, we have had very few cancellations or postponements. Activity may slow down in the coming days or weeks, but we’ll be ready when it picks up again.