Fulfillment, Deliveries, 5/1 Orders, and More

As we deliver miners week by week across the world, we monitor the feedback we're receiving from all of you and we'd like to take some time to address recurring concerns, particularly those related to batch quantities and the number of days each batch covers. The questions we'll be addressing with honesty and full transparency include the following:

  1. Why is Bobcat only fulfilling a day or two of orders rather than a full week?

  2. Why does it seem like Bobcat is delivering fewer orders?

  3. Has the lead time for orders placed around the 5/1 cutoff time changed?

  4. Is Bobcat able to improve the rate of production?


Fulfillment and Deliveries

As mentioned in a previous blog, two of the biggest reasons why fulfillment and rate of deliveries have changed can largely be attributed to a spike in orders between the end of April and early May, as well as manufacturing delays as a result of the COVID outbreak in Malaysia. Presently, one of our main component suppliers in Malaysia was mandated to shut down in June and the restrictions extended through July. In fact, only factories producing food and daily necessities are allowed to operate (read further here). Thus, we'd like to stress that changes to the quantity of miners in batches and lead times have little to do with Bobcat’s own production capacity and rather are entirely hinged on supply chain issues.


Lead Time for Orders Placed Around 5/1

After having extensive conversations with our suppliers, we have determined that these orders will be delivered approximately 16 weeks from the time they were placed. We had announced the possibility of an extended lead time for these orders last month, but we now have more concrete details on which orders this 16 week lead time will apply to. For US customers, it will extend to order numbers between 161084 and 173542 (placed between 2:31 pm 4/29 and 12:00 pm 5/1 PDT). As for EU customers, the only orders that will be impacted are between 163496 and 173530 (placed between 2:04 am 4/30 and 12:00 pm 5/1 PDT). All orders prior to this date will still arrive within a 12 week lead time.


Production Rate - Going Up or Down?

At the end of last month, we announced that our factories had been moved from Wuhan to Shenzen. This move actually enhanced our production capacity, allowing us to improve logistics, production cycles, and expedited overseas shipping. However, while we have full control of our production lines, we are not in control of the entire supply chain, particularly upstream suppliers. Thus, any type of supply shortages will have a negative impact on our rate of production, as we’re unable to produce an operational miner without having all the necessary components. As the famous Chinese proverb goes, "Even the cleverest housewife cannot cook rice without rice." That being said, we do not foresee our fulfillment exceeding the 20 week lead time estimate we noted for orders placed after 5/1.


So, what’s next?

  1. We are always in constant communication with our suppliers and have weekly meetings to fully understand how they are doing in order to properly plan our production.

  2. Our close relationship with suppliers allows us to quickly recognize whether we should expect delays or if we can increase our production. Either way, we will be the first to know and will adjust accordingly.

  3. We are continuing to look for more suppliers across all channels.

  4. Weekly deliveries will not stop.

As always, we appreciate all your support and feedback. Our goal with these updates is to remain as transparent as we can possibly be with all of you. We hope to have your continued support as we build and move forward. Stay tuned for more updates!


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