Thursday, April 2, 2020

Supply Chains Are Being Hit By Consumption Pattern Changes — Brian Romanchuk

Will Oremus has written an interesting article "What Everyone's Getting Wrong About the Toilet Paper Shortage." The key takeaway is that it is not all about hoarding or even inventory building, it is also a consumption shift. His source from inside the industry gave a guesstimate that 40% of toilet paper is for commercial buildings. With the shutdown in activity, that commercial usage is moving to houses. The problem is straightforward: commercial toilet paper is a completely different product than residential, with different inputs*, produced at different plants, and use a completely different supply chain.…
Bond Economics
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