Supply chain – The COVID 19 pandemic has undoubtedly had the impact of its impact on the world. health and Economic indicators have been affected and all industries are touched within one of the ways or perhaps some other. Among the industries in which this was clearly apparent would be the agriculture and food business.
In 2019, the Dutch agriculture and food industry contributed 6.4 % to the yucky domestic item (CBS, 2020). According to the FoodService Instituut, the foodservice industry in the Netherlands dropped € 7.1 billion in 2020. The hospitality trade 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 and food security as lots of stakeholders are impacted. Even though it was clear to numerous individuals that there was a big impact at the conclusion of this chain (e.g., hoarding in supermarkets, eateries closing) as well as at the beginning of this chain (e.g., harvested potatoes not finding customers), there are numerous actors in the source chain for that the effect is much less clear. It is therefore imperative that you figure out how properly the food supply chain as being a whole is actually equipped to contend with disruptions. Researchers from your Operations Research as well as Logistics Group at Wageningen Faculty and also out of Wageningen Economics Research, led by Professor Sander de Leeuw, studied the effects of the COVID-19 pandemic throughout the food supplies chain. They based the analysis of theirs on interviews with around thirty Dutch source chain actors.
Demand within retail up, that is found food service down It is evident and well known that need in the foodservice stations went down on account of the closure of restaurants, amongst others. In certain cases, sales for vendors of the food service industry thus fell to aproximatelly 20 % of the original volume. As a side effect, demand in the list stations went up and remained within a level of about 10 20 % greater than before the problems started.
Products which had to come via abroad had the own issues of theirs. With the change in desire coming from foodservice to retail, the demand for packaging changed dramatically, More tin, glass and plastic material was required for wearing in customer packaging. As much more of this packaging material concluded up in consumers’ houses rather than in joints, the cardboard recycling system got disrupted too, causing shortages.
The shifts in demand have had a significant effect on production activities. In some cases, this even meant a full stop of production (e.g. within the duck farming industry, which arrived to a standstill on account of demand fall-out inside the foodservice sector). In other instances, a major part of the personnel contracted corona (e.g. in the various meats processing industry), causing a closure of equipment.
Supply chain – Distribution pursuits were also affected. The beginning of the Corona crisis of China caused the flow of sea containers to slow down pretty shortly in 2020. This resulted in transport electrical capacity that is restricted throughout the first weeks of the crisis, and costs that are high for container transport as a consequence. Truck transportation experienced different problems. Initially, there were uncertainties regarding how transport would be managed at borders, which in the end weren’t as rigid as feared. That which was problematic in instances which are most, nonetheless, was the accessibility of motorists.
The response to COVID-19 – supply chain resilience The source chain resilience analysis held by Prof. de Colleagues and Leeuw, was based on the overview of this primary components of supply chain resilience:
To us this framework for the analysis of the interview, the results show that few companies were well prepared for the corona crisis and in reality mainly applied responsive methods. Probably the most notable source chain lessons were:
Figure one. 8 best methods for meals supply chain resilience
For starters, the need to develop the supply chain for agility as well as versatility. This seems particularly complicated for small 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.
Second, it was discovered that more interest was required on spreading danger and aiming for risk reduction within the supply chain. For the future, this means more attention should be made available to the manner in which organizations depend on suppliers, customers, and specific countries.
Third, attention is needed for explicit prioritization and intelligent rationing strategies in cases in which need can’t be met. Explicit prioritization is actually necessary to continue to satisfy market expectations but also to improve market shares in which competitors miss opportunities. This particular challenge isn’t new, although it has in addition been underexposed in this crisis and was usually not part of preparatory activities.
Fourthly, the corona problems shows us that the monetary result of a crisis in addition depends on the way cooperation in the chain is actually set up. It is typically unclear how additional costs (and benefits) are actually sent out in a chain, if at all.
Lastly, relative to other purposeful departments, the businesses and supply chain operates are in the driving accommodate during a crisis. Product development and marketing activities have to go hand in deep hand with supply chain activities. Whether or not the corona pandemic will structurally change the basic considerations between logistics and creation on the one hand and advertising on the other hand, the long term will have to explain to.
How’s the Dutch food supply chain coping during the corona crisis?