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Marc Benioff’s $25 Million Blitz to Buy Protective Gear From China | Marc Benioff’s $25 Million Blitz to Buy Protective Gear From China |
(32 minutes later) | |
Sam Hawgood, the chancellor of the University of California, San Francisco, was getting concerned. | Sam Hawgood, the chancellor of the University of California, San Francisco, was getting concerned. |
It was March 19, coronavirus cases in California were rising at an alarming rate, and U.C.S.F., one of the Bay Area’s major medical providers, was already running perilously low on personal protective equipment. | It was March 19, coronavirus cases in California were rising at an alarming rate, and U.C.S.F., one of the Bay Area’s major medical providers, was already running perilously low on personal protective equipment. |
The university’s usual suppliers in the United States were short on masks and face shields, and there was no sign that the State of California or the federal government was coming to the rescue. “The supply chain had really dried up,” Mr. Hawgood said. | The university’s usual suppliers in the United States were short on masks and face shields, and there was no sign that the State of California or the federal government was coming to the rescue. “The supply chain had really dried up,” Mr. Hawgood said. |
So Mr. Hawgood called Marc Benioff, the hyperconnected billionaire who is a founder and the chief executive of Salesforce. | So Mr. Hawgood called Marc Benioff, the hyperconnected billionaire who is a founder and the chief executive of Salesforce. |
In some ways, it was the natural call to make. Mr. Benioff gave the university $100 million to build a children’s hospital in 2010 and remained a major benefactor. But there was no reason to think Mr. Benioff, who runs an enterprise software company, could quickly muster a supply chain for personal protective equipment, especially during a global pandemic. | In some ways, it was the natural call to make. Mr. Benioff gave the university $100 million to build a children’s hospital in 2010 and remained a major benefactor. But there was no reason to think Mr. Benioff, who runs an enterprise software company, could quickly muster a supply chain for personal protective equipment, especially during a global pandemic. |
Nonetheless, that phone call set off a frenzied effort by Mr. Benioff and his team that drew in major companies like FedEx, Walmart, Uber and Alibaba. In a matter of weeks, the team spent more than $25 million to procure more than 50 million pieces of protective equipment. Fifteen million units have already been delivered to hospitals, medical facilities and states, and more are on the way. | Nonetheless, that phone call set off a frenzied effort by Mr. Benioff and his team that drew in major companies like FedEx, Walmart, Uber and Alibaba. In a matter of weeks, the team spent more than $25 million to procure more than 50 million pieces of protective equipment. Fifteen million units have already been delivered to hospitals, medical facilities and states, and more are on the way. |
The relative ease with which Salesforce acquired so much protective gear stands in sharp contrast to the often chaotic government efforts. While states have had to compete against one another for scarce supplies and the strategic national stockpile of protective gear is depleted, Mr. Benioff and his team simply called up their business partners in China and started writing checks. | The relative ease with which Salesforce acquired so much protective gear stands in sharp contrast to the often chaotic government efforts. While states have had to compete against one another for scarce supplies and the strategic national stockpile of protective gear is depleted, Mr. Benioff and his team simply called up their business partners in China and started writing checks. |
Other Silicon Valley executives, including Tim Cook of Apple, have also tapped their connections to help get needed supplies to hospitals. Jack Dorsey, chief executive of Twitter, pledged $1 billion to fight the coronavirus. And many individuals and companies with vested interests in China have begun similar campaigns. | Other Silicon Valley executives, including Tim Cook of Apple, have also tapped their connections to help get needed supplies to hospitals. Jack Dorsey, chief executive of Twitter, pledged $1 billion to fight the coronavirus. And many individuals and companies with vested interests in China have begun similar campaigns. |
After Mr. Benioff got off the call with Mr. Hawgood on that Thursday, he called Daniel Zhang, chief executive of Alibaba, the enormous e-commerce marketplace. Last year, Salesforce and Alibaba announced a partnership meant to give Salesforce customers better access to the Chinese market, and teams from the two companies had been working closely. | After Mr. Benioff got off the call with Mr. Hawgood on that Thursday, he called Daniel Zhang, chief executive of Alibaba, the enormous e-commerce marketplace. Last year, Salesforce and Alibaba announced a partnership meant to give Salesforce customers better access to the Chinese market, and teams from the two companies had been working closely. |
Mr. Benioff told Mr. Zhang that U.C.S.F., an institution he cared deeply about, was in need. Mr. Zhang said he would help. | Mr. Benioff told Mr. Zhang that U.C.S.F., an institution he cared deeply about, was in need. Mr. Zhang said he would help. |
In San Francisco, Mr. Benioff tapped Ryan Aytay, one of the chief executives of Quip, a Salesforce productivity tool, to lead the effort. When Mr. Aytay reached out to his contacts at Alibaba that same day, they had already received the message from Mr. Zhang. | In San Francisco, Mr. Benioff tapped Ryan Aytay, one of the chief executives of Quip, a Salesforce productivity tool, to lead the effort. When Mr. Aytay reached out to his contacts at Alibaba that same day, they had already received the message from Mr. Zhang. |
Within hours, the teams from Salesforce and Alibaba began collaborating, with the Alibaba employees identifying trusted suppliers that might be able to fulfill Salesforce’s requests. | Within hours, the teams from Salesforce and Alibaba began collaborating, with the Alibaba employees identifying trusted suppliers that might be able to fulfill Salesforce’s requests. |
Mr. Aytay got in touch with Mr. Hawgood, who said U.C.S.F. needed masks, gowns, face shields and swabs. With Mr. Benioff’s approval, Mr. Aytay realigned his 25-person team to focus exclusively on the effort and brought in colleagues from other Salesforce departments. | Mr. Aytay got in touch with Mr. Hawgood, who said U.C.S.F. needed masks, gowns, face shields and swabs. With Mr. Benioff’s approval, Mr. Aytay realigned his 25-person team to focus exclusively on the effort and brought in colleagues from other Salesforce departments. |
Buying the gear was one thing, but getting it to the United States would be another. “Initially, I thought we were going to be able to use the U.S. military to bring it in,” Mr. Benioff said. “That was naïve on my part.” | Buying the gear was one thing, but getting it to the United States would be another. “Initially, I thought we were going to be able to use the U.S. military to bring it in,” Mr. Benioff said. “That was naïve on my part.” |
Realizing he would need to charter planes and trucks, and hoping to speed things along, Mr. Benioff reached out to Fred Smith, the founder of FedEx, who put the Salesforce team in touch with his son, Richard Smith, a high-ranking FedEx executive. | Realizing he would need to charter planes and trucks, and hoping to speed things along, Mr. Benioff reached out to Fred Smith, the founder of FedEx, who put the Salesforce team in touch with his son, Richard Smith, a high-ranking FedEx executive. |
In San Francisco, Mr. Aytay and his team decided to buy only from companies that someone they knew well could personally vouch for. “Setting up a trust network was very important,” Mr. Aytay said. | In San Francisco, Mr. Aytay and his team decided to buy only from companies that someone they knew well could personally vouch for. “Setting up a trust network was very important,” Mr. Aytay said. |
By March 22, the Salesforce team identified the first promising tip. The Jointown Pharmaceutical Group, a large Chinese company, had 500,000 surgical masks in a warehouse in Los Angeles. | By March 22, the Salesforce team identified the first promising tip. The Jointown Pharmaceutical Group, a large Chinese company, had 500,000 surgical masks in a warehouse in Los Angeles. |
But when Mr. Aytay called the Jointown office in China, no one there spoke English. Mr. Aytay had a member of his team who spoke Mandarin call back and negotiate the deal, and they soon agreed to buy all the masks for $300,000. The money was wired directly from Mr. Benioff’s family office that day. | But when Mr. Aytay called the Jointown office in China, no one there spoke English. Mr. Aytay had a member of his team who spoke Mandarin call back and negotiate the deal, and they soon agreed to buy all the masks for $300,000. The money was wired directly from Mr. Benioff’s family office that day. |
Three days later, on March 25, the masks arrived at U.C.S.F. on trucks that FedEx provided at a discounted rate. | Three days later, on March 25, the masks arrived at U.C.S.F. on trucks that FedEx provided at a discounted rate. |
Once it was apparent that the Salesforce team could obtain and deliver supplies, it took steps to formalize its efforts and set a lofty target. | Once it was apparent that the Salesforce team could obtain and deliver supplies, it took steps to formalize its efforts and set a lofty target. |
“We did the math when we started, and thought we were going to acquire a billion pieces of P.P.E.,” Mr. Benioff said. | “We did the math when we started, and thought we were going to acquire a billion pieces of P.P.E.,” Mr. Benioff said. |
It was a typically ambitious goal from Mr. Benioff. This year, he led an effort to plant one trillion trees. | It was a typically ambitious goal from Mr. Benioff. This year, he led an effort to plant one trillion trees. |
The Salesforce team set up a website, www.1bppe.com, (the b is for billion) to obtain leads and give Mr. Aytay a new email address, since his Salesforce inbox was overloaded. It set up a daily meeting with U.C.S.F. to monitor progress. And the team gave itself a name: Maskforce. | The Salesforce team set up a website, www.1bppe.com, (the b is for billion) to obtain leads and give Mr. Aytay a new email address, since his Salesforce inbox was overloaded. It set up a daily meeting with U.C.S.F. to monitor progress. And the team gave itself a name: Maskforce. |
Updated June 22, 2020 | Updated June 22, 2020 |
A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. | The unemployment rate fell to 13.3 percent in May, the Labor Department said on June 5, an unexpected improvement in the nation’s job market as hiring rebounded faster than economists expected. Economists had forecast the unemployment rate to increase to as much as 20 percent, after it hit 14.7 percent in April, which was the highest since the government began keeping official statistics after World War II. But the unemployment rate dipped instead, with employers adding 2.5 million jobs, after more than 20 million jobs were lost in April. |
States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. | States are reopening bit by bit. This means that more public spaces are available for use and more and more businesses are being allowed to open again. The federal government is largely leaving the decision up to states, and some state leaders are leaving the decision up to local authorities. Even if you aren’t being told to stay at home, it’s still a good idea to limit trips outside and your interaction with other people. |
Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. | If you’re sick and you think you’ve been exposed to the new coronavirus, the C.D.C. recommends that you call your healthcare provider and explain your symptoms and fears. They will decide if you need to be tested. Keep in mind that there’s a chance — because of a lack of testing kits or because you’re asymptomatic, for instance — you won’t be able to get tested. |
On Friday, March 27, Mr. Benioff joined a weekly call organized by the Business Roundtable, a lobbying group. With about 100 other chief executives on the line, he described his efforts and said that if any others wanted to help, or knew of hospitals that desperately needed supplies, they could call him. | |
Soon after that, Mr. Benioff got a text from Virginia M. Rometty, a former chief executive of IBM, who said hospitals in New York were in dire need of equipment. Mr. Aytay and his team had been buying more gear in China, and within days a 747 was on its way to New York, full of medical supplies. | Soon after that, Mr. Benioff got a text from Virginia M. Rometty, a former chief executive of IBM, who said hospitals in New York were in dire need of equipment. Mr. Aytay and his team had been buying more gear in China, and within days a 747 was on its way to New York, full of medical supplies. |
But when the plane landed, Mr. Aytay’s contacts at the Federal Emergency Management Agency and in New York said that instead of going directly to hospitals, the equipment should be sent to a warehouse in Albany where New York State was coordinating distribution. | But when the plane landed, Mr. Aytay’s contacts at the Federal Emergency Management Agency and in New York said that instead of going directly to hospitals, the equipment should be sent to a warehouse in Albany where New York State was coordinating distribution. |
There were other setbacks. On March 26, the Salesforce team secured two million surgical masks from a source in Shenzhen, China. But on their way from the warehouse to the airport, 1.5 million went missing. | There were other setbacks. On March 26, the Salesforce team secured two million surgical masks from a source in Shenzhen, China. But on their way from the warehouse to the airport, 1.5 million went missing. |
“They were sold right off the truck,” Mr. Aytay said. “It was the Wild Wild West.” | “They were sold right off the truck,” Mr. Aytay said. “It was the Wild Wild West.” |
(The supplier ultimately fulfilled the order.) | (The supplier ultimately fulfilled the order.) |
Once, Mr. Aytay got a call from a friend who had found 9,500 KN95 masks made by 3M in the Bay Area. Within hours, the masks arrived at Mr. Aytay’s house. He wrote a personal check for about $40,000 to pay for them, and he hired a driver who sometimes takes him to the airport to pick them up and distribute them to hospitals. | Once, Mr. Aytay got a call from a friend who had found 9,500 KN95 masks made by 3M in the Bay Area. Within hours, the masks arrived at Mr. Aytay’s house. He wrote a personal check for about $40,000 to pay for them, and he hired a driver who sometimes takes him to the airport to pick them up and distribute them to hospitals. |
By March 29, 10 days after Mr. Hawgood called Mr. Benioff, Salesforce had found more than 50 million pieces of protective equipment, with millions already delivered. | By March 29, 10 days after Mr. Hawgood called Mr. Benioff, Salesforce had found more than 50 million pieces of protective equipment, with millions already delivered. |
The work was being noticed. | The work was being noticed. |
On March 31, Mr. Aytay spoke with California’s governor, Gavin Newsom, and shared his list of suppliers. The next week, President Trump thanked Salesforce for its donations during his daily press briefing. | On March 31, Mr. Aytay spoke with California’s governor, Gavin Newsom, and shared his list of suppliers. The next week, President Trump thanked Salesforce for its donations during his daily press briefing. |
At one point, Mr. Aytay was in his garage talking to an Irish supplier when the supplier asked him to hold. When he came back on the line, he had patched in Bono, the U2 frontman, who wanted to collaborate. | At one point, Mr. Aytay was in his garage talking to an Irish supplier when the supplier asked him to hold. When he came back on the line, he had patched in Bono, the U2 frontman, who wanted to collaborate. |
The gear continued to arrive. A 747 loaded with protective masks and other equipment landed in San Francisco on April 2. The next week, Uber Freight donated four trailer trucks to help transport equipment from multiple locations to U.C.S.F. | The gear continued to arrive. A 747 loaded with protective masks and other equipment landed in San Francisco on April 2. The next week, Uber Freight donated four trailer trucks to help transport equipment from multiple locations to U.C.S.F. |
The supplies allowed U.C.S.F to institute a mandatory mask policy. “It’s made a huge difference,” Mr. Hawgood said. | The supplies allowed U.C.S.F to institute a mandatory mask policy. “It’s made a huge difference,” Mr. Hawgood said. |
On April 12, two planes landed in Chicago carrying 1.3 million pieces of protective gear that Salesforce, Walmart and State Farm had bought in China. Mr. Aytay’s team had been in touch with FEMA to identify emerging hot spots. | On April 12, two planes landed in Chicago carrying 1.3 million pieces of protective gear that Salesforce, Walmart and State Farm had bought in China. Mr. Aytay’s team had been in touch with FEMA to identify emerging hot spots. |
When the planes arrived, Walmart trucks picked up the gear and drove it to Michigan and Louisiana. “We wanted to get gear to underrepresented communities,” Mr. Aytay said. | When the planes arrived, Walmart trucks picked up the gear and drove it to Michigan and Louisiana. “We wanted to get gear to underrepresented communities,” Mr. Aytay said. |
In the last weeks, it has become apparent that early social distancing measures have worked in the San Francisco area, and U.C.S.F. is unlikely to need all the supplies that Salesforce delivered. | In the last weeks, it has become apparent that early social distancing measures have worked in the San Francisco area, and U.C.S.F. is unlikely to need all the supplies that Salesforce delivered. |
Now, faced with a surplus, the company and university are sending excess gear to hospitals and medical institutions with more acute needs. | Now, faced with a surplus, the company and university are sending excess gear to hospitals and medical institutions with more acute needs. |