Supply Chain Lessons from the Pandemic: Toilet Paper Edition
This TEDx talk explores what we've learned about supply chains from the global pandemic, using toilet paper as an example.
00:00:00 This TEDx talk explores what we've learned about supply chains from the global pandemic, using toilet paper as an example.
🌍 A supply chain is the complete process from raw materials to the store.
🧻 Toilet paper shortages during the pandemic revealed vulnerabilities in global supply chains.
🌏 The story of toilet paper illustrates the interconnectedness and complexity of supply chains.
00:01:09 The supply chain of toilet paper is unique due to its constant demand, low cost, and bulky nature, requiring production to be close to the point of purchase.
🧻 Toilet paper is an ideal product to understand supply chains.
📦 Toilet paper has stable demand and takes up a lot of volume.
🌍 Toilet paper is typically produced close to where it is consumed.
00:02:18 The world's largest toilet paper manufacturer and consumer is China. In the US, most toilet paper is made within our borders, close to major markets. The surprise shortage during the pandemic was due to stable demand and factory capacity decisions.
💡 China is the largest manufacturer and consumer of toilet paper, while the US is the second largest manufacturer.
💭 Toilet paper factories are usually sized according to stable demand, not sudden spikes.
🧐 The surprise shortage of toilet paper during the pandemic raised questions about why factories couldn't increase production.
00:03:27 The challenges of increasing toilet paper production during periods of low demand and the differences between consumer and institutional toilet paper.
🧻 The demand for toilet paper has changed due to people not going to offices, schools, hotels, and restaurants.
🚚 Increasing toilet paper production requires ramping up capacity and transportation logistics.
🧻🔄🧻 There is a difference between consumer toilet paper preferences and institutional toilet paper.
00:04:35 The problem with supply chains: excessive variety. Consumers expect different packaging and roll counts, causing inventory issues. Lessons from toilet paper and other products during the pandemic.
💡 Toilet paper supply chains face challenges in delivering the right product with the right packaging and roll count.
💭 Excessive variety in consumer expectations contributes to supply chain issues, causing stock imbalances in stores.
📦 The pandemic has highlighted the impact of excessive variety on supply chains, leading to fluctuating stock levels in stores.
00:05:43 The complexity of supply chains in grocery stores, with numerous brands and product variations, poses forecasting challenges and costs.
📦 Supply chains often face challenges due to the large variety of brands, packages, and sizes.
🛒 The abundance of choices in the grocery store comes with the cost of accurate forecasting for retailers.
⚖️ Forecasting errors create difficulties in matching the retailers' orders with manufacturing predictions.
00:06:52 This TEDx talk explores the challenges of supply chain forecasting using toilet paper as an example. It highlights the difficulties of accurately predicting demand and the importance of supply chain resilience.
🧻 The transcript discusses how toilet paper shortages exposed forecasting errors and the challenges of supply chain management.
🔄 If everyone used the same type of toilet paper in all settings, shortages could be easily resolved through reallocation of supplies.
🚽 The speaker emphasizes that understanding supply chains doesn't require extensive knowledge and uses toilet paper as an example.
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