Dear Integrative Healthcare Provider,
Historically PUR-C has taken tremendous pride in providing our network healthcare providers with the best product, value, service, and turnaround time. Sadly, due to unprecedented global market conditions, PUR-C, like most other companies worldwide, is finally experiencing the ramifications of this disaster, and we felt it is necessary to provide you with this informational update about the current state of the global supply chain.
Specifically, we want to inform you about the disruption in the delivery and pricing of raw materials used to manufacture Vitamin C. As part of our mission and unwavering commitment to support the global CAM provider community, we are sharing this update with you so you can better understand the current industry challenges.
The Pandemic has boosted interest in health and immune support ingredients and brought heightened interest and attention to critical Vitamin C therapies. As a result, the industry has experienced unprecedented price increases and raw material shortages worldwide.
PUR-C, along with virtually every other importer and manufacturer in the world, has felt the unprecedented effects of the global supply chain crisis. The current challenge has clogged up all major US ports, dock workers, and trucking companies, thereby increasing freight costs (both sea and air) by as much as 1000%. It is predicted that the cost of shipping goods across the world’s oceans and air routes may stay high for a year or more as consumer demand remains strong, and the already tight supply of capacity to move cargo commands a premium.
The effects of this crisis include:
1) price increases for all raw materials,
2) significantly extended lead times to receive both raw materials and components needed to manufacture products,
3) manufacturing backlogs, and
4) escalating freight costs.
PUR-C continues to work closely with our vendor-partners to optimize our inventory, negotiate favorable pricing, and manage logistics to the best of our ability; however, changes and increases are happening so rapidly, and without notice, that we are unable to control these issues to the extent that we have in the past.
These unprecedented, and unforeseen changes in our industry have severely impacted our procurement, manufacturing, testing, and fulfillment process. These issues will undoubtedly impact your practice.
PUR-C is committed to support your practices during these difficult times, and we have taken drastic measures to mitigate the supply shortages by utilizing the more expensive air freight platform to deliver our raw materials and manufacturing components, on an expedited basis.
Unfortunately, we are left no choice but to implement another price increase to absorb a small fraction of these escalating costs. Furthermore, so long as we are utilizing air freight to bring in raw materials, we are limited to much smaller production and inventory volumes. To better accommodate all our network providers, we are encouraging all our providers to review their inventory planning process and pre-order in advance.
Causes of Current Supply Crisis:
- Strong global demand – The economic recovery has been much faster and stronger than “experts” predicted. As a result, many manufacturers made long term planning decisions months ago regarding inventory and staffing levels based on a more pessimistic outlook.
- Government and corporate response to COVID-19 crisis – Government stimulus has contributed to strong demand with $13 trillion committed globally. Corporations laid off personnel and shut down facilities due to the looming COVID-19 crisis. Many have struggled to return to pre-COVID levels due to loss of skilled employees and hiring challenges.
- Transportation costs and distributions – Ports are struggling with backlogs. Crude oil prices have increased. Container prices have increased, and delays and pricing are increasing rapidly for LTL, ocean freight, and small package services.
- Labor shortages and challenges – The COVID crisis has caused many labor challenges as manufacturers are understaffed, struggling with higher-than-normal absenteeism and a less experienced workforce.
Almost daily we are receiving notices of significant price increases, force majeure declarations, and extended lead time notifications. Lead times are being extended 8-12 weeks on many products and in some cases even more.
Rest assured that PUR-C is doing everything in its power to obtain the necessary inventory to keep our customers operational. Specifically, we are increasing inventory levels on core items, negotiating with suppliers, proactively contacting customers for forecasts, and arranging blanket orders/stocking agreements where possible.
Please contact us if you have any information about your forecasts or if there are any other impending changes to your buying patterns that can help us stay prepared. We appreciate your patience and collaboration as we work through these challenges together. If you have any specific questions or concerns, please do not hesitate to contact our office directly.
Effective November 1, 2021, there will be an additional $2.00 per Bottle for all Orders placed after November 1, 2021.
Orders received before November 1, 2021, will be processed at the current price, and each will be filled in the order in which they are received as product becomes available.
We are doing all that we can to expedite the manufacturing and testing process, and we anticipate new inventory to be released before the end of November. Please note, we currently estimate the turnaround time for all pre-orders to be roughly 30 days. The new lot will be much smaller and limited, so we strongly encourage you to place an order as soon as possible to guarantee uninterrupted supply.
As always, we appreciate your business, and we will continue to work relentlessly to support your patients and practice.
