Controlling Supply Chains is a Critical Step in Combatting COVID-19
For the past century, the American economy and to an even greater degree, the American consumer, has benefited from the most robust economy in the world due to its dominance of global logistics. A recent report in the New York Times highlights the failures of our once clear market advantages moving our food and consumer goods through the global supply chain and into our homes and onto our tables.
COVID-19 has broken those supply chains and highlighted the fissures that exist when an over reliance on numerous layers of "just in time" logistics is upended by a global pandemic. Lack of inventory in many of our essential sectors and the vital PPE, medical supplies and even cleaning equipment and disinfectants have been laid bare.
Amazon, who for the past several years has accelerated their dominance in the direct-to-consumer (D2C) space, momentarily lost its footing as the only e-com retailer to guarantee its short term delivery periods. Traditional competitors like Target and Walmart quickly adjusted and picked up the excess consumer demand and saw revenue increase for their e-com by as much as 140% in March and parts of April due to Amazon's overwhelmed logistics. Amazon has since increased its capacity and regained its footing, meeting its once sacred on-time delivery guarantees for Prime customers, along with stepping up its investment in how it protects its workforce from COVID-19 exposure. Amazon recognizes that these investments have a direct correlation to its ability to attract new workers and to increase its capacity.
One of the largest investments that Amazon and other corporations have dramatically enhanced are their cleaning and disinfecting operations, investing billions of dollars to increase the frequency and efficacy of its disinfecting. The use of electro-hygiene spray technology in facilities around the globe is increasing at a frenetic pace. Technology like HYGIENICA™ is on the frontlines of thousands of facilities in the US, Canada and the UK, and new end users and distributors are benefiting from its robust supply chains and superior technology.
BROKEN SUPPLY CHAINS
With constrained supply chains and the myriad of layers between a manufacturer and the end user, most all other products on the market, including Clorox360, Victory, e-Mist are severely impaired due to their inability to get product to its customers. These groups do not control their own supply chains and their end users are feeling the constraints. Most customers and distributors have back orders into the thousands of units even for units purchased back in early March. Most end users are waiting 10-16 weeks only to receive a portion of the original order they placed and a growing number are being canceled.
ROBUST SUPPLY CHAINS
HYGIENICA™ controls its own supply chains and has only one layer between its origin and its end users. Large end users like Caesar's Palace in Las Vegas, Vornado Realty Trust in NYC, American Paper and Daycon Products, two of the largest janitorial distributors on the east coast all have benefited from less than 7-14-day delivery times and speed to market. With a design and engineering team based in SoCal, who honed their skills at Apple, Amazon and numerous biotech device companies, HYGIENICA™ is designing its next generation products domestically in the market its management team and investors know best.