Supply chain crisis hits healthcare products, condom prices set to rise
Thekabarnews.com—World’s largest condom maker Karex Bhd. to raise prices by 20—30 percent. The company said ongoing supply chain issues stemming from tensions in Iran are affecting global markets....
Thekabarnews.com—World’s largest condom maker Karex Bhd. to raise prices by 20—30 percent. The company said ongoing supply chain issues stemming from tensions in Iran are affecting global markets.
“If it continues to be a problem, then we may have to increase prices more,” said Karex CEO Goh Miah Kiat. Rising shipping costs, delays, and limited access to raw materials have also greatly impacted production and distribution.
“We are seeing price increases all along the supply chain, and that means we need to adjust pricing,” Goh said in a media statement.
Karex produces well over five billion condoms a year, for Durex and Trojan, the world’s biggest brands. The company also works together with national health systems and international charitable programs supported by the United Nations.
Meanwhile, demand for Karex has surged. Shipping delays and high logistical costs have caused the chaos in supply chains, with many buyers purchasing more and stock levels falling.
The incident is an example of a wider problem for companies that use minerals from petrochemicals. The instability in the Middle East has resulted in disruptions to energy flows and supplies of critical inputs for manufacturing.
Karex is one of many companies, including makers of medical gloves, planning for long-term supply chain constraints. The disruptions have raised fears of potential shortages of essential healthcare items if the situation doesn’t improve.
The rising cost of raw materials and transportation is affecting global markets. Petrochemical products are particularly vulnerable to swings in prices given the geopolitics.
Public health campaigns and consumer awareness still urgently require condoms. Supplies are critical, particularly for global health programs fighting sexually transmitted infections and helping with family planning.
As demand and prices increase, Karex and other companies are expected to continue tweaking their tactics as the situation unfolds. The next few months will be a crucial test of whether supply chains settle down or price pressures keep building.
These trends illustrate the potential for global disputes to spill over from energy markets and disrupt key items and supply networks for public health worldwide.
No Comment! Be the first one.