Covid-19 rebound and product shortages at Walmart and Amazon

After various nations and cities around the world announced a resurgence in coronavirus cases, new restriction measures have been taken to prevent a greater number of deaths and, in this sense, some supply chains are beginning to suffer. Walmart and Amazon already report damages.

This problem had already been seen last March when the closures began throughout the world, affecting the distribution and supply chains.

Added to this was a greater demand for certain products, where consumers who were forced to remain in confinement, looked for a way not to see their empty cabinets.

Companies have sought to implement various mechanisms to reverse this scenario, where one of the first movements has been to adjust their production chain.

Organizations like Coca-Cola, Mondelez or Pepsi seem to be reducing their offer to focus on their key products, in order to optimize their production chains.

At least this is what a recent analysis signed by CNN refers to, which argues that the measure responds to the need to make supply chains more efficient.

The truth is that what is at stake is a millionaire business. According to estimates provided by Kearney, the losses caused by the paralysis of supply chains worldwide would reach close to 352 billion euros.

And it is that just nine months ago, empty shelves and users annoyed by not finding basic products was the constant, and now in the middle of a possible regrowth in various cities, this scenario seems to be replicating.

At least that is what an AP report indicates, which indicates that in the face of a new wave of infections, consumers in the United States have begun to make panic purchases of basic products, while companies have decided to put limits on purchases to avoid a possible shortage.

According to the cited source, chains such as Walmart have claimed to have problems meeting the demand for cleaning products, while firms such as Kroger and Publix are limiting the amount of toilet paper and paper towels per customer. In the case of Amazon, the disinfectant and paper towels are almost out of stock.

The truth is that Geoff Freeman, president and CEO of the Association of Consumer Brands, said that a situation as serious as a few months ago is not expected due to the fact that the confinements are taking place by region.

“A better-informed consumer coupled with a better-informed manufacturer and a better-informed retailer should give us all a greater sense of relief and reassurance that we can cope with growing demand,” Freeman noted.

Given this scenario, Walmart assured that there will begin to be a shortage in some areas, believes that it will be easier to replenish products than in previous months, while Amazon indicated that it will seek to collaborate with manufacturers of products such as disinfectant towels, paper towels and gel For hands.

Specifically, the biggest problem is expected to be related to the supply of paper products: 21 percent of the shelves of paper towels and toilet paper are empty, according to data from the market research company IRI.

This could be a great opportunity for Mexican brands in these same categories that have proven to be allies of US retailers to fulfill the supply.

So far this year, within the US market, the sale of toilet paper rolls has increased 22 percent, a situation that has not been fully covered by local companies.

In this way, important points of sale such as CVS, Piggly Wiggly, Safeway and 7-Eleven have begun to market brands such as Royal, Petal, Elite Hotels, Vogue Y Daisy Soft to meet the growing demand.