Supply chain – The COVID 19 pandemic has undoubtedly had its impact influence on the planet. health and Economic indicators have been compromised and all industries have been touched inside one way or another. One of the industries in which it was clearly obvious is the agriculture and food business.
Throughout 2019, the Dutch agriculture as well as food industry contributed 6.4 % to the gross domestic item (CBS, 2020). Based on the FoodService Instituut, the foodservice industry in the Netherlands lost € 7.1 billion inside 2020. The hospitality industry lost 41.5 % of the turnover of its as show by ProcurementNation, while at the identical time supermarkets enhanced their turnover with € 1.8 billion.
Disruptions in the food chain have significant effects for the Dutch economy as well as food security as lots of stakeholders are affected. Though it was apparent to many men and women that there was a great impact at the end of this chain (e.g., hoarding in supermarkets, eateries closing) as well as at the start of this chain (e.g., harvested potatoes not searching for customers), you will find numerous actors within the supply chain for that will the impact is much less clear. It is thus important to find out how well the food supply chain as a whole is actually armed to deal with disruptions. Researchers from the Operations Research and Logistics Group at Wageningen Faculty as well as out of Wageningen Economics Research, led by Professor Sander de Leeuw, studied the consequences of the COVID-19 pandemic throughout the food resources chain. They based their analysis on interviews with about thirty Dutch supply chain actors.
Demand within retail up, found food service down It is apparent and popular that need in the foodservice channels went down as a result of the closure of joints, amongst others. In certain cases, sales for suppliers in the food service business therefore fell to aproximatelly 20 % of the initial volume. Being a side effect, demand in the list stations went up and remained at a quality of aproximatelly 10-20 % greater than before the crisis began.
Products which had to come through abroad had the own problems of theirs. With the change in desire coming from foodservice to retail, the requirement for packaging improved considerably, More tin, cup and plastic material was necessary for use in buyer packaging. As more of this particular packaging material concluded up in consumers’ houses instead of in restaurants, the cardboard recycling function got disrupted as well, causing shortages.
The shifts in desire have had a big impact on production activities. In some instances, this even meant a complete stop of production (e.g. within the duck farming business, which arrived to a standstill as a result of demand fall-out inside the foodservice sector). In other situations, a major section of the personnel contracted corona (e.g. in the meat processing industry), causing a closure of facilities.
Supply chain – Distribution pursuits were also affected. The beginning of the Corona crisis in China triggered the flow of sea bins to slow down pretty soon in 2020. This resulted in transport capacity that is restricted throughout the first weeks of the issues, and high expenses for container transport as a consequence. Truck transportation encountered different problems. Initially, there were uncertainties regarding how transport will be managed for borders, which in the end were not as strict as feared. What was problematic in situations which are a large number of, nonetheless, was the availability of motorists.
The response to COVID-19 – supply chain resilience The supply chain resilience evaluation held by Prof. de Leeuw and Colleagues, was used on the overview of this main components of supply chain resilience:
Using this particular framework for the assessment of the interviews, the results indicate that few companies had been nicely prepared for the corona problems and in reality mainly applied responsive methods. Probably the most important source chain lessons were:
Figure 1. 8 best methods for food supply chain resilience
First, the need to create the supply chain for flexibility as well as agility. This seems particularly challenging for smaller companies: building resilience into a supply chain takes time and attention in the organization, and smaller organizations oftentimes do not have the capability to do so.
Next, it was found that more attention was necessary on spreading threat and also aiming for risk reduction in the supply chain. For the future, this means far more attention has to be provided to the manner in which companies rely on specific countries, customers, and suppliers.
Third, attention is needed for explicit prioritization and clever rationing techniques in cases in which need cannot be met. Explicit prioritization is actually needed to keep on to satisfy market expectations but also to increase market shares in which competitors miss options. This challenge isn’t new, though it has also been underexposed in this specific problems and was usually not a component of preparatory pursuits.
Fourthly, the corona issues teaches us that the economic effect of a crisis additionally is determined by the manner in which cooperation in the chain is set up. It is typically unclear precisely how further expenses (and benefits) are sent out in a chain, in case at all.
Finally, relative to other purposeful departments, the businesses and supply chain features are actually in the driving seat during a crisis. Product development and advertising activities need to go hand deeply in hand with supply chain activities. Whether the corona pandemic will structurally replace the traditional considerations between logistics and creation on the one hand as well as advertising and marketing on the other hand, the long term must tell.
How is the Dutch meal supply chain coping throughout the corona crisis?