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May 25, 2020, 06:12:39 AM Last edit: May 25, 2020, 06:49:19 AM by Alamgirsony |
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Signs warning of one package of toilet paper per customer during the coronavirus pandemic are not an indication of supply chain figure. It is more a mark of an event that no one could have predicted.
Toilet paper is a product that is in the "Just-in-time" supply chain. Responsive and integrated, just-in-time supply networks ensure items arrive when they are needed to keep shelves stocked.
This is important not just for perishables, which might first come to mind when we think of timely delivery. Packages of toilet paper are big and bulky. No one wants to pay to stockpile warehouse supplies just in case of an event like a global pandemic-not manufacturers, wholesalers, retailers or consumers, to whom the cost would be passed onto.
But when world of COVID-19 spread, consumers became willing to stockpile this item in their homes, both disrupting the supply chain system and creating living spaces crammed with paper products.
Just in time supply chains are what helps to keep costs low through the system. But that means these networks are more easily distracted than "just in case" supply chains.
Some traditional manufacturers use just-in-case production and distribution, keeping raw materials and stock on hand in the event of emergencies or disasters. These networks are more costly but also better prepared to respond to surging demand, as we have seen recently.
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