Supply chain – The COVID-19 pandemic has certainly had the impact of its effect on the world. Economic indicators and health have been affected and all industries have been touched in a way or perhaps another. Among the industries in which it was clearly obvious will be the agriculture as well as food business.
Throughout 2019, the Dutch farming as well as food industry contributed 6.4 % to the disgusting domestic item (CBS, 2020). According to the FoodService Instituut, the foodservice industry in the Netherlands shed € 7.1 billion in 2020. The hospitality industry 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 consequences for the Dutch economy and food security as many stakeholders are impacted. Despite the fact that it was apparent to most folks that there was a huge effect at the end of the chain (e.g., hoarding doing supermarkets, restaurants closing) and at the start of the chain (e.g., harvested potatoes not searching for customers), you will find numerous actors inside the supply chain for which the impact is less clear. It’s thus important to determine how effectively the food supply chain as being a whole is actually prepared to deal with disruptions. Researchers in the Operations Research as well as Logistics Group at Wageningen Faculty and also from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the consequences of the COVID-19 pandemic throughout the food resources chain. They based the examination of theirs on interviews with around 30 Dutch source chain actors.
Demand within retail up, that is found food service down It is obvious and widely known that demand in the foodservice stations went down on account of the closure of places, amongst others. In a few instances, sales for vendors in the food service industry therefore fell to aproximatelly 20 % of the initial volume. Being a complication, demand in the list channels went up and remained at a quality of aproximatelly 10-20 % higher than before the problems began.
Products which had to come via abroad had the own problems of theirs. With the shift in desire coming from foodservice to retail, the requirement for packaging changed considerably, More tin, glass and plastic was needed for use in buyer packaging. As more of this particular product packaging material ended up in consumers’ houses as opposed to in places, the cardboard recycling function got disrupted also, causing shortages.
The shifts in desire have had a big impact on output activities. In some instances, this even meant a full stop of production (e.g. in the duck farming industry, which emerged to a standstill as a result of demand fall out in the foodservice sector). In other instances, a significant section of the personnel contracted corona (e.g. in the various meats processing industry), leading to 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 soon in 2020. This resulted in transport capability which is limited throughout the earliest weeks of the problems, and high costs for container transport as a consequence. Truck transport faced various problems. At first, there were uncertainties about how transport would be handled at borders, which in the end weren’t as rigid as feared. What was problematic in situations that are most , however, was the accessibility of motorists.
The reaction 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 key things of supply chain resilience:
To us this framework for the evaluation of the interviews, the results show that not many companies had been well prepared for the corona crisis and in fact mainly applied responsive methods. Probably the most notable supply chain lessons were:
Figure 1. 8 best practices for food supply chain resilience
For starters, the need to create the supply chain for agility and flexibility. This seems particularly complicated for small companies: building resilience into a supply chain takes attention and time in the business, and smaller organizations usually don’t have the capability to do so.
Next, it was observed that more interest was required on spreading danger as well as aiming for risk reduction within the supply chain. For the future, what this means is more attention should be provided to the manner in which businesses depend on suppliers, customers, and specific countries.
Third, attention is needed for explicit prioritization as well as smart rationing strategies in cases where need can’t be met. Explicit prioritization is actually required to continue to satisfy market expectations but also to boost market shares wherein competitors miss options. This task is not new, although it’s additionally been underexposed in this crisis and was frequently not part of preparatory activities.
Fourthly, the corona problems teaches us that the monetary result of a crisis additionally depends on the way cooperation in the chain is actually set up. It is usually unclear exactly how further costs (and benefits) are actually distributed in a chain, if at all.
Finally, relative to other purposeful departments, the businesses and supply chain features are in the driving accommodate during a crisis. Product development and advertising activities have to go hand in deep hand with supply chain activities. Whether or not the corona pandemic will structurally replace the traditional discussions between logistics and creation on the one hand as well as advertising and marketing on the other, the future must tell.
How is the Dutch meal supply chain coping throughout the corona crisis?