CE Pro July 2022 - 38

CE PRO DISTRIBUTORS GUIDE | Operations
Unchaining the
Supply Chain
Situation
Distributors offer advice on how to combat supply chain
shortages, including purchasing limitations on popular
products. By Jason Knott
THERE CAN'T BE
anything more
frustrating than the current
situation in the custom
electronics industry. Demand
is off the charts at historic
levels, yet integrators are not
able to fulfill that demand
due to lack of equipment.
You can almost hear the
sounds of hair being ripped
from scalps!
Indeed, for many integrators
the constraints of the
supply chain have felt like
proverbial " chains of bondage "
holding back their revenues,
growth and potential
success. As noted in the CE
Pro 2022 State of the Industry
Study, the inability to get
products meant dealers on
average were unable to complete
an additional six projects
in 2021. That equates to
13% more projects that they
weren't able to install and,
more importantly, were not
able to collect revenues on.
The news is even worse
in 2022 in the home theater
space, according to the just
38 | CE Pro July 2022
completed CE Pro Home
Entertainment Deep Dive
Study fielded in April of
this year. That data shows
in 2021 and into 2022 that
dealers say they were unable
to do four additional home
cinema projects, which
come with median price tags
between $27,500 for a multipurpose
room and $50,000
for a dedicated room.
For the industry's distributors,
the situation is just as
upsetting. Yet distributors
are pulling out all the stops
to creatively help CE pros
navigate through these
unprecedented times with
sage advice related to purchasing
patterns, limitations
on certain items to prevent
hoarding, and easier methods
to pick up gear and
conduct transactions.
CE Pro reached out to
several top distributors to
get their take on the current
situation, how they are
assisting dealers, and when
they believe the pressures
on the supply chain will ease.
HELGE FISCHER,
Executive Director,
Catalyst AV Group
CE Pro: What specific
procedures have you implemented
to help alleviate
the supply chain crisis for
integrators?
HELGE FISCHER: Communication!
With everyone:
manufacturers, dealers,
homeowners, other suppliers
they work with, past clients,
other distributors. While this
may not be a " procedure, " it
can help alleviate fears, pick
up new ideas, share products
and ideas and in general it is
just a good practice. Other
more procedural things can
be: Ordering early has helped
and getting money up front
more quickly from customers
to help the cash flow.
CE Pro: When do you
foresee the supply chain
crisis subsiding?
FISCHER: Into next year,
there should be a bit more
a return to normalcy. In the
meantime, dealers need
to look into alternative
solutions, consider installing
the product in phases and
RMR services by including
24/7 tech support, certain
free or discounted services
- anything that can let their
customers know that everyone
is trying hard during this
painful time.
CE Pro: How would you
scale the supply chain situation
today versus this exact
time last year and why?
FISCHER: It is slightly
better; the dealers and
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CE Pro July 2022

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