Coronavirus Hoarding: Why You Can Stop Amassing Toilet Paper

Date:

Share post:

By Giovani J.C. da Silveira

Signs warning of one package of toilet paper per customer during the coronavirus pandemic are not an indication of supply chain failure. It is more a mark of an event that no one could have predicted.

Toilet paper is a product that is in the “just-in-time” supply chainResponsive and integrated, just-in-time supply networks ensure items arrive when they are needed to keep shelves stocked.

This is important not just for perishables, which might first come to mind when we think of timely delivery. Packages of toilet paper are big and bulky. No one wants to pay to stockpile warehouse supplies just in case of an event like a global pandemic — not manufacturers, wholesalers, retailers or consumers, to whom the cost would be passed onto.

But when word of COVID-19 spread, consumers became willing to stockpile this item in their homes, both disrupting the supply chain system and creating living spaces crammed with paper products.

Read more: There’s plenty of toilet paper – so why are people hoarding it?

Just-in-time supply chains are what helps to keep costs low through the system. But that means these networks are more easily disrupted than “just-in-case” supply chains.

Some traditional manufacturers use just-in-case production and distribution, keeping raw materials and stock on hand in the event of emergencies or disasters. These networks are more costly, but also better prepared to respond to surging demand, as we have seen recently.

Predicting demand

Now that the supply chain has been disrupted by a surge in demand, everyone along the supply chain will be working to figure out how to plan properly for the demand.

But the big question is: What will that demand look like in the near future? Will people want to live in a warehouse of toilet paper, continuing to buy in bulk? Or will there only be a need to do a small run and wait for everyone to work through their cache?

Some retailers might be considering whether they want to shift to a just-in-case approach to certain products. They will carefully weigh the costs of holding onto extra inventory, and if they take this approach, they’ll probably pass on the additional cost to the consumer.

Robust supply chains are resilient supply chains

Professionals working in supply chain are constantly evaluating the best ways to fulfil business operations weighing out options, many times with their work being unnoticed until there is a disruption.

Supply chain professionals weigh building a robust supply chain against other factors because choices are made along the line. Multiple sourcing, with each supplier providing smaller quantities, makes for a more responsive supply but also results in higher unit and ordering costs, as well as greater need for co-ordination to guarantee delivery performance. Another alternative may be to keep suppliers in reserve, providing organizations the agility to respond to changes.

Researching the trade-offs made by manufacturers to improve operations alongside a colleague, we worked to develop a model that can be more accurate and useful to professionals in industry. Taking into account the performance of the trade-off and its overall importance plays an important factor in planning. It’s a complex dance, with the choices along the way being opaque to the final consumer.

Resilience is where the supply chain can endure external impacts without being affected. The most resilient supply chains will also usually result in a more expensive product.

Supply chain professionals are on the case

But a supply chain cannot be resilient or responsive to change if it is not robust first. It takes time and trust to establish robust supply chains. It’s the work that professionals are doing every day. This acts as a form of insurance to help smooth things out when unforeseen events occur.

Supply chain professionals are always contingency planning, thinking of what can happen and building in accommodations into the system. They forecast what to do in certain circumstances.

But they did not foresee that the threat of COVID-19, a respiratory illness, would cause consumers to bulk-buy toilet paper.

When you do find toilet paper on the shelves, don’t forget to recognize the supply chain professionals who have always had it on the shelves just-in-time. They’re now tapping into the robust networks they have developed over the years to ensure that supply continues. So there’s really no need to hoard it.

Giovani da Silveira

Giovani da Silveira is a Professor in Operations and Supply Chain Management at the Haskayne School of Business, University of Calgary. He has published widely in academic journals. He is currently Associate Editor or Editorial Board member with the Journal of Operations Management, International Journal of Operations and Production Management, and International Journal of Production Economics, among other journals. His is an expert in operations strategy, mass customization, supply chain management, and servitization

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From Retail Insider

Anatomy of a Leader: Samir Kulkarni, CEO of Showcase

The CEO of the well-known retailer discusses growing up in Brampton in an entrepreneurial family that owned various businesses, and how he grew to become the owner and head of a chain of over 150 stores.

As Retailers Collect More Data, Cybercrime Hits Retailers Including London Drugs [Expert Comments]

With London Drugs stores in Western Canada being closed this week due to a cybersecurity incident, several experts discuss the challenges of retailers collecting customer data and what it means for the future.

Shake Shack Announces 1st Toronto Location at the City’s Busiest Pedestrian Intersection [Interview]

Expert Lisa Hutcheson says that Shake Shack will drive foot traffic with its popular foodservice concept that is officially expanding into Canada.

Oakridge Park in Vancouver Announces Luxury Jewellery Brand Retailers Ahead of Spring 2025 Opening [Feature]

Included will be one of the world’s largest Rolex stores, and first-to-Canada locations for two of the world’s most exclusive and expensive jewellery and watch brands. 

Canada’s Top Shopping Centres by Sales Per Square Foot [Analysis]

Retail Insider analyses the top malls in Canada by sales per square foot, including which malls are top, what cities they're in, and how Canadian downtowns include several properties.

Retailer ‘Handmade Saskatchewan’ Eyes Store Expansion with Local Products [Interview]

The unique retailer with three locations is looking to open another in Regina as it works with local vendors, supporting the economy while offering one-of-a-kind products.

Why the Loblaw Boycott is a Useless Attempt to Address Grocery Pricing [Op-Ed]

Sylvain Charlebois says that organizers of the boycott don't understand retail, and that an effective boycott would have involved avoiding all big-box players that collectively dictate the market.

INLAND in Toronto Marks 10 Years with May Event: Interview with Founder Sarah Power [Video Interview]

Craig and Sarah discuss INLAND's evolution into Canada's leading retail pop-up platform for emerging designers, the unique retail locations in years past and the partnership with Toronto Metropolitan University.

Cadillac Fairview Portfolio Dominates in ICSC Mall Productivity Ranking Study [Interview]

The Canadian landlord owns more than half of the top 25 ranked shopping centres by sales per square foot, speaking to the strength of the portfolio and ongoing investment in the properties.

Non-Alcoholic Beverage Retailer ‘Sobr Market’ Opens Expanded Toronto Flagship Store [Interview/Photos]

Addressing a trend, the transformed downtown store features two levels with a tasting bar on each floor for customers to sample products before they purchase.

Craig’s Cookies Expands with 2 Toronto Stores in Major Malls, Further Expansion Planned [Interviews]

The popular Toronto-based brand is picking first-rate high-traffic locations, as it expands its flavours as well as its base of storefronts.

Asian-Themed Retailer ‘Kiokii and…’ Plans Significant Store Expansion Across Canada [Interview]

The Richmond Hill-based retailer, with beauty and other categories, has opened nine stores in Ontario since 2022 and now plans to open stores across the country in major shopping centres.

Former Eaton’s Department Store Restaurant in Toronto to Feature ‘Lunching with Lady Eaton’ Event in July

The iconic Eaton’s College Street Round Room Restaurant, which closed in 1977 for a store relocation, will be open to the public who can dine with a menu as well as the opportunity to shop local goods.

Many Canadians Are Risking Illness by Eating Expired Food with Grocery Inflation [Op-Ed]

Sylvain Charlebois says that over half of Canadians acknowledge that inflation has forced them to compromise on food safety, indicating a significant issue in affordability that needs to be addressed.

Coming Out Soon: Retail Insider the magazine, Volume 3, Issue 1: State of the industry

The Spring 2024 issue discusses the state of the industry from what's happening in physical retail, construction, online channels, and the future as retail transforms.

Anatomy of a Leader: Kristy Miller, Founder of The Scented Market

Miller discusses her entrepreneurial journey, her appearance on hit CBC television show Dragon’s Den, and how she's found success growing her eco-friendly business.

Canadian Retail Sees Strong Gains in February, Fueling Summer Shopping Speculation [JC Williams Group Analysis]

The consultancy analyses the most recent StatCan numbers, which show an increase in spending by consumers which could lead to a robust summer for retail.

‘Arcadia Earth’ Experience Concept And Travel Exhibit Opens At The Well in Toronto [Interview]

The sustainability-focused interactive experience that merges creative art and technology recently opened in Toronto, and its success is seeing it expand with alcohol-based evenings and a national traveling exhibit in malls.

Luxury Brand Loro Piana to Expand into Canada with Standalone Stores 

The Italian luxury brand will open a Bloor Street flagship and at least one mall storefront as it enters Canada with a flurry of construction.

Jeweller Michael Hill to Showcase New Store Design in Canada with Major Brand Refresh [Interview/Renderings]

The Australian jewellery brand has launched a new strategy with a brand ambassador, digital refresh, new product and a new store design that will first be showcased in a new Canadian flagship.

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Anatomy of a Leader: Samir Kulkarni, CEO of Showcase

The CEO of the well-known retailer discusses growing up in Brampton in an entrepreneurial family that owned various businesses, and how he grew to become the owner and head of a chain of over 150 stores.

As Retailers Collect More Data, Cybercrime Hits Retailers Including London Drugs [Expert Comments]

With London Drugs stores in Western Canada being closed this week due to a cybersecurity incident, several experts discuss the challenges of retailers collecting customer data and what it means for the future.

Shake Shack Announces 1st Toronto Location at the City’s Busiest Pedestrian Intersection [Interview]

Expert Lisa Hutcheson says that Shake Shack will drive foot traffic with its popular foodservice concept that is officially expanding into Canada.

Oakridge Park in Vancouver Announces Luxury Jewellery Brand Retailers Ahead of Spring 2025 Opening [Feature]

Included will be one of the world’s largest Rolex stores, and first-to-Canada locations for two of the world’s most exclusive and expensive jewellery and watch brands. 

Canada’s Top Shopping Centres by Sales Per Square Foot [Analysis]

Retail Insider analyses the top malls in Canada by sales per square foot, including which malls are top, what cities they're in, and how Canadian downtowns include several properties.

Retailer ‘Handmade Saskatchewan’ Eyes Store Expansion with Local Products [Interview]

The unique retailer with three locations is looking to open another in Regina as it works with local vendors, supporting the economy while offering one-of-a-kind products.

Why the Loblaw Boycott is a Useless Attempt to Address Grocery Pricing [Op-Ed]

Sylvain Charlebois says that organizers of the boycott don't understand retail, and that an effective boycott would have involved avoiding all big-box players that collectively dictate the market.

INLAND in Toronto Marks 10 Years with May Event: Interview with Founder Sarah Power [Video Interview]

Craig and Sarah discuss INLAND's evolution into Canada's leading retail pop-up platform for emerging designers, the unique retail locations in years past and the partnership with Toronto Metropolitan University.

Cadillac Fairview Portfolio Dominates in ICSC Mall Productivity Ranking Study [Interview]

The Canadian landlord owns more than half of the top 25 ranked shopping centres by sales per square foot, speaking to the strength of the portfolio and ongoing investment in the properties.

Non-Alcoholic Beverage Retailer ‘Sobr Market’ Opens Expanded Toronto Flagship Store [Interview/Photos]

Addressing a trend, the transformed downtown store features two levels with a tasting bar on each floor for customers to sample products before they purchase.

Craig’s Cookies Expands with 2 Toronto Stores in Major Malls, Further Expansion Planned [Interviews]

The popular Toronto-based brand is picking first-rate high-traffic locations, as it expands its flavours as well as its base of storefronts.

Asian-Themed Retailer ‘Kiokii and…’ Plans Significant Store Expansion Across Canada [Interview]

The Richmond Hill-based retailer, with beauty and other categories, has opened nine stores in Ontario since 2022 and now plans to open stores across the country in major shopping centres.

Former Eaton’s Department Store Restaurant in Toronto to Feature ‘Lunching with Lady Eaton’ Event in July

The iconic Eaton’s College Street Round Room Restaurant, which closed in 1977 for a store relocation, will be open to the public who can dine with a menu as well as the opportunity to shop local goods.

Many Canadians Are Risking Illness by Eating Expired Food with Grocery Inflation [Op-Ed]

Sylvain Charlebois says that over half of Canadians acknowledge that inflation has forced them to compromise on food safety, indicating a significant issue in affordability that needs to be addressed.

Coming Out Soon: Retail Insider the magazine, Volume 3, Issue 1: State of the industry

The Spring 2024 issue discusses the state of the industry from what's happening in physical retail, construction, online channels, and the future as retail transforms.

Anatomy of a Leader: Kristy Miller, Founder of The Scented Market

Miller discusses her entrepreneurial journey, her appearance on hit CBC television show Dragon’s Den, and how she's found success growing her eco-friendly business.

Canadian Retail Sees Strong Gains in February, Fueling Summer Shopping Speculation [JC Williams Group Analysis]

The consultancy analyses the most recent StatCan numbers, which show an increase in spending by consumers which could lead to a robust summer for retail.

‘Arcadia Earth’ Experience Concept And Travel Exhibit Opens At The Well in Toronto [Interview]

The sustainability-focused interactive experience that merges creative art and technology recently opened in Toronto, and its success is seeing it expand with alcohol-based evenings and a national traveling exhibit in malls.

Luxury Brand Loro Piana to Expand into Canada with Standalone Stores 

The Italian luxury brand will open a Bloor Street flagship and at least one mall storefront as it enters Canada with a flurry of construction.

Jeweller Michael Hill to Showcase New Store Design in Canada with Major Brand Refresh [Interview/Renderings]

The Australian jewellery brand has launched a new strategy with a brand ambassador, digital refresh, new product and a new store design that will first be showcased in a new Canadian flagship.