Supply chain – The COVID 19 pandemic has undoubtedly had the impact of its impact on the planet. health and Economic indicators have been compromised and all industries have been completely touched within one way or even yet another. One of the industries in which it was clearly obvious will be the agriculture and food industry.
In 2019, the Dutch extension and food niche contributed 6.4 % to the disgusting domestic item (CBS, 2020). According to the FoodService Instituut, the foodservice business in the Netherlands shed € 7.1 billion within 2020. The hospitality business lost 41.5 % of the turnover of its as show by ProcurementNation, while at the identical time supermarkets enhanced the turnover of theirs with € 1.8 billion.
Disruptions in the food chain have significant effects for the Dutch economy as well as food security as many stakeholders are impacted. Despite the fact that it was apparent to numerous men and women that there was a huge impact at the end of this chain (e.g., hoarding around supermarkets, restaurants closing) and also at the beginning of this chain (e.g., harvested potatoes not searching for customers), you will find numerous actors inside the source chain for which the effect is much less clear. It is therefore important to determine how properly the food supply chain as being a whole is actually prepared to cope 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, studied the effects of the COVID 19 pandemic all over the food supply chain. They based their analysis on interviews with around thirty Dutch source chain actors.
Need in retail up, found food service down It’s apparent and well known that demand in the foodservice channels went down on account of the closure of restaurants, amongst others. In certain cases, sales for vendors in the food service industry as a result fell to aproximatelly 20 % of the initial volume. Being an adverse reaction, demand in the list channels went up and remained at a degree of aproximatelly 10 20 % greater than before the crisis began.
Products which had to come via abroad had their very own issues. With the shift in need coming from foodservice to retail, the demand for packaging changed considerably, More tin, glass and plastic material was required for use in customer packaging. As much more of this packaging material ended up in consumers’ homes as opposed to in restaurants, the cardboard recycling system got disrupted as well, causing shortages.
The shifts in demand have had a big effect on output activities. In a few instances, this even meant a complete stop of output (e.g. in the duck farming business, which arrived to a standstill on account of demand fall out in the foodservice sector). In other cases, a major part of the personnel contracted corona (e.g. to the various meats processing industry), resulting in a closure of equipment.
Supply chain – Distribution activities were also affected. The start of the Corona crisis of China triggered the flow of sea bins to slow down pretty shortly in 2020. This resulted in transport electrical capacity that is limited during the first weeks of the problems, and high expenses for container transport as a direct result. Truck transportation encountered different issues. To begin with, there were uncertainties regarding how transport will be handled at borders, which in the long run were not as strict as feared. The thing that was problematic in cases that are many , nonetheless, was the accessibility of drivers.
The reaction to COVID-19 – provide chain resilience The supply chain resilience evaluation held by Prof. de Colleagues and Leeuw, was based on the overview of the core things of supply chain resilience:
To us this framework for the evaluation of the interviews, the results show that not many companies were well prepared for the corona problems and in reality mostly applied responsive practices. Probably the most notable supply chain lessons were:
Figure 1. 8 best methods for food supply chain resilience
First, the need to develop the supply chain for agility as well as flexibility. This looks especially complicated for smaller companies: building resilience right into a supply chain takes time and attention in the organization, and smaller organizations oftentimes don’t have the capability to do it.
Second, it was observed that much more attention was required on spreading threat as well as aiming for risk reduction inside the supply chain. For the future, meaning more attention ought to be provided to the manner in which companies count on suppliers, customers, and specific countries.
Third, attention is necessary for explicit prioritization as well as smart rationing techniques in cases where demand can’t be met. Explicit prioritization is actually necessary to continue to meet market expectations but additionally to increase market shares where competitors miss options. This particular challenge is not new, though it’s in addition been underexposed in this specific problems and was often not a part of preparatory activities.
Fourthly, the corona crisis shows you us that the economic effect of a crisis additionally is determined by the way cooperation in the chain is actually set up. It is typically unclear precisely how additional costs (and benefits) are actually sent out in a chain, in case at all.
Finally, relative to other purposeful departments, the operations and supply chain operates are in the driving seat during a crisis. Product development and marketing activities need to go hand in hand with supply chain events. Whether or not the corona pandemic will structurally change the classic considerations between generation and logistics on the one hand and advertising and marketing on the other hand, the long term will need to explain to.
How is the Dutch meal supply chain coping during the corona crisis?