Georgia-Pacific provides update on product sourcing


Georgia Pacific is making predictions about the impact of the COVID-19 pandemic on its supply chain. These predictions were announced by company spokesperson Eric Abercrombie and are as follows:

“Given the current situation surrounding the coronavirus / COVID-19, and just the cold and flu season in general, we are planning on more hand washing – especially considering how everyone is focused and talking. good hand hygiene and prevention of the spread of germs.

We expect some “out of home” activities to decline as business travel and vacation plans change, as well as companies encouraging employees to work from home when it makes sense. However, in recent weeks we have seen a 10-fold increase in demand for disinfectants.

For our retail business, we have seen a significant increase in orders over the past few weeks. For toilet paper, these increases were up to twice our normal demand.

We are responding quickly to the needs of our customers by shipping products that leverage our existing inventory, increasing production, and using a managed distribution process to intelligently handle this unusual period.

Based on IRI panel data, as well as the US Census, the average US household (2.6 people) uses 409 equivalent regular rolls per year. Using our own calculations, staying home 24/7 would result in an increase of around 140% over average daily usage. Therefore, to last about two weeks, a two-person household would need around 9 double rolls or around 5 mega rolls.

Over the past two weeks, we have seen a sharp drop in demand, especially in retail (tissues and towels) and disinfectants (GP PRO), and we expect these trends to continue for the moment. As a company, we have teams that work closely together (category, sales, operations, transportation and supply chain) to deliver as many products as possible. Additionally, we have worked with key suppliers to ensure we have enough packaging supplies to maximize the amount of product we can deliver to customers.

Inventory levels in our system remain healthy and we are working hard to maximize the number of deliveries we can load and ship out of our facility – you can just load and unload so quickly. Last week, our regional factories and distribution centers were able to ship approximately 120% of their normal capacity. We also work with customers to have drop shipments where possible to reduce distribution time. We currently have no issues with the ability of carriers (trucks and trailers) to ship. ”

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