Thermo Fisher Scientific 300 Industry Drive Pittsburgh, PA 15275 724-517-1500 fishersci.com
March 26, 2020
RE: COVID-19 Product Inventory Allocation Process Dear Customer, The Fisher Scientific channel is committed to keeping you informed as the COVID-19 pandemic continues to evolve. This letter provides an update on the supply challenges and our actions in addressing how our products are being distributed into the marketplace. Due to the increasingly high demand for personal protective equipment (PPE), our inventories are limited, and we are prioritizing orders for those customers directly involved in containing the spread of COVID-19. This includes first responders, healthcare workers, and customers supporting patient testing and vaccine development. Our core PPE suppliers are providing daily updates and doing everything possible to support us. Several suppliers are requesting details about end users so they can allocate orders based on the following priority: 1. Government and First Responders 2. Medical and Hospital Personnel 3. Critical Infrastructure (companies with an immediate impact on the health and welfare of the community, such as gas, electric and water) CURRENT PRODUCT SUPPLY CHALLENGES: We continue to monitor our supply chains and work with our supplier partners to increase our inventories of critical products where possible so we can meet our customer commitments.
Categories Cleaners/Sanitizers/ Disinfectants
Subcategories Hand Care
Inventory Position Experiencing significant backorders & extended lead times due to supplier allocation. Limited replenishment.
Surface Cleaners
Experiencing significant backorders & extended lead times due to supplier allocation. Limited replenishment. Experiencing moderate backorders. Monitoring inventory with future extended backorder risks.
Personal Protective Equipment
Exam Gloves Goggles
Shippers
Face Masks Face shield Gowns Lab coats Shippers
Experiencing significant backorders & extended lead times due to supplier allocation. Limited replenishment inventories. Able to meet current customer historical demand but continue to monitor for future surge orders.
Categories Healthcare
Subcategories Swabs
Inventory Position Experiencing moderate to severe backorders with several suppliers. Monitoring inventory with future risk of extended backorders.
Fisher Scientific channel immediate actions: We are focused on addressing key COVID-19 related product shortages and are actively engaging with internal and external procurement channels to increase supply. Key areas of focus are: • • • • •
Daily inventory levels of key COVID -19 categories Daily view into demand changes across all COVID-19 product categories Implementation of inventory release protocols to monitor and direct large order quantities Intense engagement with suppliers across all product categories to expedite product procurement Identification of alternate products and suppliers for key COVID-19 categories
We are monitoring orders on an hourly basis to ensure customers are receiving an appropriate allocation of product based on previous buying patterns and our current inventory position. We realize your demand for information is increasing; please be assured that we are working tirelessly to support our customer’s needs in responding to this healthcare crisis. Sincerely,
Lisa Witte President, Fisher Scientific