We all know the challenge of the glove supply chain.
The bottleneck is a shortage of rubber. It is a natural material that cannot increase production quickly. It takes years to build a productive rubber plantation. There is no reserve stock from last year. Active plantations are having difficulty with a shortage of workers. These workers have the hardest working conditions with minimum pay. They stay in dormitories with poor hygiene conditions. When one worker gets COVID, it spreads through the whole plantation like a wildfire. It reduces rubber production, contributing to the shortage of rubber and gloves.
Due to the high demand, manufacturers are overbooked. You are familiar with the airline practice of overbooking in anticipation of cancellation. Very rarely, they have more passengers show up, and then they offer a voucher for volunteers to take a later flight. Overbooking orders is what’s happening now with all PPE products, in particular with glove orders. Unfortunately, they don’t give any vouchers.
They overbook it because there are so many failed payment cases. Their order system is not centralized or computerized, and it is difficult for them to know exactly how much they have in stock and how many orders they have until they start processing the order. All the gloves are coming from countries with high corruption rates. Doing business in those countries is not transparent, and there are many variables.
We are experiencing more order delays and complications. We use all our influence and connections to manage the situation.
– To manage the order smoothly and reduce the fear or failed payment from the supplier, we recommend escrow payment. It protects both buyers and sellers and enables a smooth transaction.
– We are adding an extra week to order processing to manage variables: 3 weeks for air freight order and five weeks for sea freight order.
Project Phoenix is one of the projects of Aster Impact. Another project is our migrant workers recruitment service, where we help workers find a decent job with employers who practice fair labor. Please see the article below to learn more about Top Glove hiring migrant workers through a recruitment agency that charges workers unreasonable fees ranging from $5,000 – $10,000 per person. Workers make only $200 – $300 a month, and their salary goes to the recruitment agency until they pay the recruitment fee with interest.
The service fee we charge in Project Phoenix goes to support the migrant workers’ project. The economic impact of COVID is worse in developing countries. Many people are desperate for a job. Companies are focused only on profit and are taking advantage of these vulnerable populations as a source of cheap labor.
Thank you for your partnership and support. Through Project Phoenix, you get the products you need, and you contribute to solving global problems. Let’s work together to make a better world!