Supply chain – The COVID 19 pandemic has certainly had the impact of its impact on the planet. health and Economic indicators have been compromised and all industries are touched in a way or some other. One of the industries in which this was clearly apparent would be the farming and food industry.
Throughout 2019, the Dutch agriculture as well as 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 industry lost 41.5 % of its turnover as show by ProcurementNation, while at exactly the same time supermarkets increased their turnover with € 1.8 billion.
Disruptions of the food chain have significant effects for the Dutch economy as well as food security as a lot of stakeholders are impacted. Even though it was apparent to many men and women that there was a significant effect at the tail end of the chain (e.g., hoarding around food markets, restaurants closing) and at the start of this chain (e.g., harvested potatoes not finding customers), there are many actors in the supply chain for that will the effect is much less clear. It’s therefore imperative that you determine how properly the food supply chain as a whole is equipped to cope with disruptions. Researchers from your Operations Research as well as Logistics Group at Wageningen University as well as out of Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the influences of the COVID 19 pandemic all over the food supply chain. They based their examination on interviews with about thirty Dutch supply chain actors.
Demand in retail up, found food service down It’s obvious and popular that demand in the foodservice channels went down due to the closure of restaurants, amongst others. In certain instances, sales for vendors of the food service industry as a result fell to aproximatelly twenty % of the first volume. As an adverse reaction, demand in the retail stations went up and remained within a degree of about 10 20 % higher than before the problems began.
Products that had to come from abroad had their very own problems. With the shift in demand coming from foodservice to retail, the requirement for packaging improved considerably, More tin, glass or plastic was required for use in customer packaging. As much more of this product packaging material ended up in consumers’ homes rather than in joints, the cardboard recycling function got disrupted too, causing shortages.
The shifts in demand have had an important effect on output activities. In a few instances, this even meant the full stop in output (e.g. inside the duck farming business, which came to a standstill as a result of demand fall-out in the foodservice sector). In other situations, a significant portion 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 fairly soon in 2020. This resulted in transport capability which is restricted throughout the first weeks of the problems, and high costs for container transport as a direct result. Truck travel faced different issues. To begin with, there were uncertainties about how transport would be managed for borders, which in the long run weren’t as rigid as feared. What was problematic in instances which are a large number of, nonetheless, was the availability of drivers.
The reaction to COVID 19 – deliver chain resilience The supply chain resilience evaluation held by Prof. de Colleagues as well as Leeuw, was used on the overview of this core components of supply chain resilience:
Using this framework for the analysis of the interview, the findings show that not many organizations were nicely prepared for the corona problems and in reality mainly applied responsive practices. The most important source chain lessons were:
Figure 1. 8 best methods for meals supply chain resilience
First, the need to create the supply chain for versatility and agility. This appears particularly complicated for smaller companies: building resilience into a supply chain takes time and attention in the business, and smaller organizations often do not have the capability to accomplish that.
Next, it was observed that much more attention was required on spreading threat as well as aiming for risk reduction within the supply chain. For the future, this means more attention ought to be provided to the way organizations depend on suppliers, customers, and specific countries.
Third, attention is needed for explicit prioritization as well as smart rationing techniques in situations where demand cannot be met. Explicit prioritization is required to keep on to satisfy market expectations but in addition to improve market shares in which competitors miss options. This task is not new, but it’s additionally been underexposed in this specific crisis and was often not part of preparatory activities.
Fourthly, the corona issues shows you us that the monetary impact of a crisis additionally relies on the manner in which cooperation in the chain is actually set up. It’s typically unclear exactly how extra costs (and benefits) are actually distributed in a chain, if at all.
Finally, relative to other functional departments, the operations and supply chain features are in the driving accommodate during a crisis. Product development and advertising and marketing activities need to go hand deeply in hand with supply chain events. Whether the corona pandemic will structurally replace the traditional considerations between logistics and creation on the one hand as well as advertising on the other, the long term will need to explain to.
How is the Dutch food supply chain coping during the corona crisis?