In the early days of the pandemic, concerns about the supply chain were abundant: everything from toilet paper to canned goods seemed on the brink of scarcity. As the importance of personal protective equipment (PPE) became clear, large sections of the logistics industry pivoted to make PPE its sole focus.
And it worked. By and large, the goods we needed most—sanitizer, gloves, masks, face shields, and more—were made abundantly available in short order. The logistical response to the pandemic can, from many angles, be viewed as a success story.
But what now? The virus still lingers—what will become of these high-priority PPE supply channels
Initial PPE Response
There were cases where PPE couldn’t reach areas, industries, or people that needed it. This was especially true in medical units. But the supply chain caught up—and quickly—as it became clear what was at stake.
Liquor producers began creating and selling their own hand sanitizer. Hundreds of people, and then businesses, began sewing and selling cloth masks. Auto manufacturers pivoted to produce ventilators. And within third party logistics, collaboration was undertaken to build and maintain PPE stocks.
“From a third party logistics perspective, a year ago our customers were all about securing supplies of PPE and obtaining as much space as possible to support the inventories,” says William McKinnon, President of Canadian Alliance Terminals. “Money was no object when it came to the cost of goods sold, or the infrastructure required to support the PPE stocks.”1
Before long, supply chains across Canada had caught up, and medical facilities and non-essential workplaces alike were able to obtain the PPE required to safely carry out their duties.
Looking Forward: Substitutes to Disappear
A highlight of this pandemic was the entrepreneurial spirit behind the creation of so many substitute products. Alcohol-based hand sanitizer is a prime example: every brewery and distillery with means began creating, branding, and selling or donating antibacterial products.
Similarly, brands like Herschel designed and began manufacturing cloth masks with pockets for air filters.
Both of these products came about because of the early shortage of PPE. But now, with stocks well established, there is little need for substitute goods.
“I think we’ll begin to see these products fade out of the market,” says McKinnon. “These goods were never meant to be a permanent fixture to retail product offerings. I can see some retail businesses continuing to sell cloth masks, but it’s important to remember that these are mostly non-medical products anyways.”1
These products were logistical feats, but were only ever granted temporary authorization by Health Canada. It could take years to receive authorization for a health product under typical regulatory practices.2
“Ultimately, it’s a good problem to have,” says McKinnon. “These products were emergency stop gaps. Now, we have the real thing—and lots of it.”1
Increased Demand Will Remain
Looking forward, it is apparent that the pandemic remains far from over. Case counts are lower, vaccine rollouts are well underway, and people are returning to work. But the threat of COVID-19 isn’t gone, and we don’t know when, if ever, it truly will be.
As such, it’s reasonable to expect demand for PPE to remain above its pre-pandemic levels. Especially for healthcare and frontline workers, it will remain critical to keep that supply chain active and responsive. In regions like Metro Vancouver where warehousing space remains at a premium, maintaining these stocks can be costly. But as we’ve learned over the past year and a half, having accessible stores of PPE is priceless.
“Amazingly, while inventories have continued to grow, the actual flow of goods has lessened,” says McKinnon. “We watched in real time while that balance between supply and demand was taking effect.”1
“Today, stocks of PPE far exceed demand,” he continues, “and the good news is that our very robust global supply chains delivered urgent goods on time and in order.”1
Bringing PPE Production Within Canada’s Borders
A recently formed industry association, the Canadian Association of PPE Manufacturers (CAPPEM), called for PPE production to be established within Canada’s borders in April.3 A May report in the Globe and Mail reflected on the same question.4 We may have survived—just—this pandemic crisis. Will we be ready for the next?
As substitute products entered the market so, too, did fraudulent or subpar ones. Fake N95 masks out of China were cause for great concern, as were substandard graphene masks distributed to Quebecois students in April.3
The problem, says CAPPEM? Sourcing PPE from overseas. “Many offshore PPE products originate from countries with lower quality standards and sometimes under poor working conditions,” reports CAPPEM, whereas “Canadian-manufactured masks go through rigorous testing and adhere to very high standards of quality control,” explains Barry Hunt, association President.3
The federal government has also signalled that it wants to avoid an international scramble (and associated bidding war) if the demand for PPE spikes again.4
It seems possible that the only way to circumvent fraudulent or poorly made product while ensuring enough supply for the population is creating domestic facilities for the scale production of PPE. But as the pandemic drags on, becoming frustrating for officials and the public alike, it’s hard to say if any action will occur without the pressure of imminent crisis.
Regardless, the third party logistics industry has absorbed lessons it won’t soon forget and, as such, if there is supply, we can expect it to reach those that need it with speed.
“What we learned as a company is that our involvement in helping our customers with appropriate infrastructure to support responsible distribution of mission critical products was the right thing to do,” says McKinnon. “Candidly, it is all about the health of our nation. That is what is important.”1
Citations
1 Personal communication between Rose Agency and William McKinnon, July 2021.
2 Government of Canada, Health Canada. “Health Canada Is Temporarily Authorizing the Use of Technical-Grade Ethanol in Hand Sanitizer Products: Always Follow the Label Directions When Using Alcohol-Based Hand Sanitizers,” April 15, 2020. https://www.healthycanadians.gc.ca/recall-alert-rappel-avis/hc-sc/2020/72739a-eng.php.
3 Manufacturers, Canadian Association of PPE. “Canada Needs to Be Self Sufficient in PPE.” Accessed July 23, 2021. https://www.newswire.ca/news-releases/canada-needs-to-be-self-sufficient-in-ppe-867861269.html.
4 “Canadian PPE Companies Confronting the Sober Reality of Long-Term Production.” Accessed July 23, 2021. https://www.theglobeandmail.com/business/article-canadian-ppe-companies-confronting-the-sober-reality-of-long-term/.