Axis Communications Expects ‘End to Volatility’ After Years of Supply Chain Snafus

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Chelmsford, Mass. — Axis Communications announced this week that the company has reached several key supply chain milestones, including an increase in Q1 deliveries of more than 45% year over year. The company also noted record inventory levels in its Americas distribution channel.

Axis’ announcement comes after a record-breaking 2022, which yielded $1.6 billion in global revenue and 20% global year-over-year growth as noted in its 2022 Sustainability Report.

The company attributes this success to many of its recent initiatives, one of which includes the company’s sustainability program. Prior to the COOVID-19 pandemic, Axis Communications had already bolstered its supply chain by enacting a formal sustainability plan, which put an increased emphasis on environmental, ethical and social factors.

During the pandemic and the resulting global supply chain crisis, coupled with record demand for Axis products, the company began to increase its collaboration with dedicated channel partners and end customers to improve planning, forecasting and inventory management.

Within the past year, the company has opened multiple experience centers in key business areas to allow for easier access to Axis products for testing and demonstrations. It’s that ongoing work, Axis notes, that has helped the company excel and solidly position itself to meet future market needs.

Supply Chain Enhancements Coming

Despite the lingering effects of the supply chain, Axis touts its initiatives helped the company to deliver more units in 2022 than ever, with officials saying the company is on pace to surpass 2022’s banner output this year.

More than 85% of Axis’ products are now readily available at standard lead times, with a few remaining products available with longer times to delivery. The company is still looking to boost production to restore standard lead times on those remaining products in the next few months.

“Continuous improvement is a part of our DNA, and adversity often sparks innovation, so the COVID-19 pandemic and resulting supply chain crisis really put us into overdrive,” said Jeanette Skjelmose, Vice President of Operations at Axis Communications, in the company announcement. Diversifying, and solidifying, our supply chain will have a lasting positive impact for our partners and customers—providing greater resiliency to navigate any future challenges.

“We are grateful to our partners and customers for not only standing by us through challenging times, but also for working with us to help identify ways to improve our approach toward customer service and supply chain management. Those relationships have played a crucial role in helping us craft a stronger, more sustainable vision for the future,” she said.

Axis also notes the recent redesign of more than 100 of its cameras to match available components and create flexibility in production, with the company aggressively investing in high-demand components to increase buffer stock, while expediting shipping methods in order to support customers and investing in over-capacity with its manufacturing partners.

These new operational practices, streamlined processes and expanded partnerships will become mainstay, according to Axis, creating what the company hopes will be a lasting impact on it being able to serve its customers.

“In the perfect storm of supply chain constraints and unprecedented demand for our products, we have at times over the past year failed to meet our customers’ expectations,” said Fredrik Nilsson, Vice President of the Americas, Axis Communications, in the company announcement.

“We take full responsibility, and we’ve been working hard to restore our ability to deliver the products and solutions our partners and customers need,” he said. “We are thrilled to be stronger than ever with our team and supply chain, and we are just getting started.”

Axis plans to work closely with its partners to set appropriate expectations, noting a combination of supply chain enhancements and effective communication has helped the company lay a solid foundation for continued strong growth.

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