Expect Huge Delays In Hand Sanitizer Replenishment.
We are in a unique position to understand the market for products and their delivery issues. For nearly 25 years we have dealt direct with the source factories in China and other SE Asian countries. We understand the supply chain.
Hand Sanitizer Supplies Disrupted.
For nearly 12 years now the supply and demand for hand sanitizer has been virtually the same. On a graph it would be a totally flat line.
This is a result of the marginal awareness by those outside of our health industry (meaning regular and promotional product consumers) as to the the importance of what alcohol-based hand sanitizer means during an unexpected event like the corona virus pandemic.
Imagine the water glass and tap.
A good visual to think of this is a rusty, nearly stuck kitchen sink tap that is stuck at the 1/4 open mark, dribbling water into a drinking glass that is directly below the tap. The dribble is the supply chain.
The glass below the tap is normally full and just barely overflowing. It has been like this for 10 years. THIS IS THE VISUAL OF THE SUPPLY CHAIN FOR THE LAST 10 YEARS OF HAND SANITIZER.
Now imagine that the drinking glass has developed a hole in its side, just near the bottom. It is pouring out the water in the glass that is above where the hole is. The tap, is still stuck. THIS IS THE VISUAL FOR THE SUPPLY CHAIN FOR THE LAST MONTH OF HAND SANITIZER.
The regular shipment method is A BIG PART of the problem. Prices will rise.
For the past 10 years all hand sanitizer has come in via ocean freight. Because hand sanitizer has been driven to historic low prices in the past 5 years, the cheapest method of shipment has been employed (ocean freight). This means than a new order placed today that comes via ocean will take 70-90 days. We do it differently, we airfreight everything in 5-7 days.
Now imagine the water glass and tap scenario again.
The hole in the glass is getting bigger and bigger as hospitals, schools, institutions etc ramp up their orders beyond what they normally order. The hole (demand) gets bigger, very quickly.
At the same time the factory supply (the tap) gets turned open but it takes time. The tap is stuck and needs grease (grease means more raw materials, more factory shifts, more employees to meet the demand). THIS IS THE VISUAL FOR THE SUPPLY CHAIN OF HAND SANITIZER RIGHT NOW.
The tap takes a few weeks to open fully and during that time the hole gets bigger. Once the tap is opened the hole keeps getting bigger still (the backlog of orders). In 3-6 months the tap will be open enough to fill the glass even with the hole in the bottom still. As the hole slowly heals and closes (gets repaired) the water will once again overflow. This will take 6 months or more, our best guess.
Prices are up and will stay up for the forseeable future.
The only way to speed up delivery is to do what what we are doing, which is to airfreight the hand sanitizer in from the factory. As the best hand sanitizer has an alcohol base (75%) it has to be shipped as dangerous goods. This costs money. Each unit of hand sanitizer costs as much as $1 each just for the insurance. As well, undoubtedly, the factory has increased prices. This I cannot help. All we are adding a simple 15% to our costs to provide everyone alcohol-based hand sanitizer. In short we are doing our best.
Get Your Clients to Be a Good Corporate Citizen.
Not to try and put a positive spin on this awful issue but let’s do our best. We are America. Look at it this way.
Any business that gives out hand sanitizer in these days will be seen as a corporate good guy!
Call 1-888-908-6932 email Emily