22 Mar Unit 4 discussion response_MT433
13327Elaborate or respond to the discussion post below:
Before the COVID-19 pandemic, the demand for hand sanitizers like Purell were fairly predictable, mostly driven by personal hygiene habits, seasonal flu outbreaks, and health policies in places like schools and workplaces. The market was smaller, with most sales happening in healthcare settings, public restrooms, and offices. Purell, for instance, was well-known in healthcare but wasn’t used as much by everyday consumers compared to after the pandemic. But the pandemic caused an enormous surge in demand, completely changing those forecasts.
“No one expected a global illness like COVID to hit so hard. In fact, U.S. sales of hand sanitizer skyrocketed nearly sevenfold to $1.3 billion for the 52 weeks ending January 2, 2021, compared to the previous year” (The Wall Street Journal, January 25, 2021).
To deal with this massive 600% spike in demand during the worst of the sanitizer shortage, Purell quickly started producing more sanitizer from local distilleries. They also rented 700,000 square feet of Cleveland’s I-X Center to store cleaning products, a facility that was about to close for good due to the pandemic. They even signed a seven-year lease for a warehouse and distribution center in northeast Ohio, hiring 60 to 90 people working three shifts.
In supply chain management, we often look to the past to predict future trends, this is one of the most common approaches. But the pandemic showed us how important it is for companies to be flexible and prepared for the unexpected. Having the ability to adapt quickly and innovate in response to sudden shifts in demand is key to navigating crises and maintaining success in an ever-changing market.
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