Supply chain – The COVID 19 pandemic has certainly had its impact influence on the world. health and Economic indicators have been affected and all industries have been touched within one way or even yet another. Among the industries in which it was clearly obvious will be the farming as well as food business.
Throughout 2019, the Dutch extension as well as food sector contributed 6.4 % to the disgusting domestic item (CBS, 2020). According to the FoodService Instituut, the foodservice industry in the Netherlands lost € 7.1 billion in 2020. The hospitality business lost 41.5 % of the turnover of its as show by ProcurementNation, while at the same time supermarkets increased their turnover with € 1.8 billion.
Disruptions of the food chain have big consequences for the Dutch economy and food security as lots of stakeholders are affected. Despite the fact that it was apparent to majority of people that there was a significant effect at the tail end of this chain (e.g., hoarding around grocery stores, restaurants closing) as well as at the beginning of the chain (e.g., harvested potatoes not searching for customers), there are numerous actors inside the source chain for which the effect is less clear. It’s thus important to determine how effectively the food supply chain as a whole is actually equipped to contend with disruptions. Researchers from your Operations Research as well as Logistics Group at Wageningen University and also from Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the effects of the COVID-19 pandemic all over the food supply chain. They based the analysis of theirs on interviews with around 30 Dutch source chain actors.
Need within retail up, in food service down It is evident and popular that demand in the foodservice stations went down as a result of the closure of joints, amongst others. In some cases, sales for vendors in the food service industry thus fell to aproximatelly 20 % of the original volume. Being a complication, demand in the retail channels went up and remained within a level of aproximatelly 10 20 % greater than before the crisis started.
Products that had to come via abroad had their own issues. With the change in desire from foodservice to retail, the demand for packaging changed dramatically, More tin, cup and plastic material was needed for wearing in buyer packaging. As more of this particular product packaging material concluded up in consumers’ homes as opposed to in restaurants, the cardboard recycling system got disrupted too, causing shortages.
The shifts in need have had an important impact on production activities. In some cases, this even meant a full stop in output (e.g. inside the duck farming industry, which emerged to a standstill due to demand fall-out in the foodservice sector). In other instances, a major portion of the personnel contracted corona (e.g. in the various meats processing industry), causing a closure of equipment.
Supply chain – Distribution activities were also affected. The beginning of the Corona crisis in China sparked the flow of sea bins to slow down pretty soon in 2020. This resulted in transport capability that is limited throughout the first weeks of the issues, and costs that are high for container transport as a result. Truck transportation faced different issues. At first, there were uncertainties about how transport would be handled for borders, which in the end weren’t as stringent as feared. What was problematic in instances that are a large number of , nevertheless, was the accessibility of drivers.
The reaction to COVID-19 – provide chain resilience The source chain resilience evaluation held by Prof. de Leeuw and Colleagues, was used on the overview of the core elements of supply chain resilience:
To us this particular framework for the analysis of the interviews, the findings indicate that not many organizations were well prepared for the corona crisis and in reality mainly applied responsive practices. Probably the most important source chain lessons were:
Figure 1. 8 best methods for food supply chain resilience
To begin with, the need to create the supply chain for flexibility as well as agility. This seems particularly challenging for smaller sized companies: building resilience into a supply chain takes attention and time in the business, and smaller organizations often don’t have the capacity to do so.
Next, it was found that more attention was needed on spreading danger and also aiming for risk reduction within the supply chain. For the future, meaning more attention has to be given to the manner in which businesses depend on specific countries, customers, and suppliers.
Third, attention is required for explicit prioritization as well as intelligent rationing techniques in cases where demand can’t be met. Explicit prioritization is actually necessary to continue to meet market expectations but in addition to increase market shares where competitors miss opportunities. This particular task is not new, though it’s also been underexposed in this specific problems and was usually not a part of preparatory activities.
Fourthly, the corona issues teaches us that the economic impact of a crisis additionally depends on the manner in which cooperation in the chain is set up. It’s typically unclear precisely how additional expenses (and benefits) are distributed in a chain, in case at all.
Lastly, relative to other functional departments, the operations and supply chain characteristics are actually in the driving accommodate during a crisis. Product development and marketing and advertising activities need to go hand in hand with supply chain events. Regardless of whether the corona pandemic will structurally switch the traditional considerations between production and logistics on the one hand as well as advertising and marketing on the other hand, the potential future will have to explain to.
How is the Dutch meal supply chain coping throughout the corona crisis?