Supply chain – The COVID-19 pandemic has definitely had its impact influence on the planet. health and Economic indicators have been compromised and all industries have been completely touched inside a way or some other. One of the industries in which it was clearly visible would be the agriculture as well as food industry.
Throughout 2019, the Dutch agriculture and food sector contributed 6.4 % to the yucky domestic product (CBS, 2020). As per the FoodService Instituut, the foodservice business 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 exactly the same time supermarkets enhanced the turnover of theirs with € 1.8 billion.
Disruptions of the food chain have major consequences for the Dutch economy as well as food security as a lot of stakeholders are impacted. Though it was clear to numerous folks that there was a great impact at the conclusion of this chain (e.g., hoarding doing grocery stores, restaurants closing) and at the start of the chain (e.g., harvested potatoes not searching for customers), there are a lot of actors inside the supply chain for that will the impact is less clear. It is therefore important to figure out how well the food supply chain as a whole is armed to contend with disruptions. Researchers in the Operations Research as well as Logistics Group at Wageningen University as well as coming 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 examination on interviews with around thirty Dutch supply chain actors.
Need in retail up, that is found food service down It is apparent and well known that need in the foodservice channels went down on account of the closure of joints, amongst others. In some cases, sales for suppliers of the food service business thus fell to about 20 % of the initial volume. Being an adverse reaction, demand in the list channels went up and remained at a level of aproximatelly 10 20 % greater than before the problems began.
Goods that had to come via abroad had the own issues of theirs. With the change in demand from foodservice to retail, the requirement for packaging changed considerably, More tin, glass or plastic was required for use in consumer packaging. As more of this particular product packaging material concluded up in consumers’ houses rather than in restaurants, the cardboard recycling process got disrupted also, causing shortages.
The shifts in desire have had an important effect on output activities. In certain cases, this even meant a complete stop in production (e.g. in the duck farming business, which emerged to a standstill due to demand fall out inside the foodservice sector). In other situations, a significant portion 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 beginning of the Corona crisis of China sparked the flow of sea containers to slow down fairly shortly in 2020. This resulted in transport capability that is limited throughout the very first weeks of the issues, and costs which are high for container transport as a direct result. Truck transportation encountered different issues. To begin with, there were uncertainties regarding how transport would be managed for borders, which in the long run were not as rigid as feared. The thing that was problematic in cases that are most , nevertheless, was the availability of drivers.
The reaction to COVID 19 – supply chain resilience The supply chain resilience analysis held by Prof. de Colleagues and Leeuw, was based on the overview of the key things of supply chain resilience:
Using this particular framework for the assessment of the interviews, the conclusions indicate that not many companies were well prepared for the corona crisis and in fact mainly applied responsive methods. The most important source chain lessons were:
Figure 1. Eight best methods for food supply chain resilience
For starters, the need to create the supply chain for agility as well as versatility. This appears particularly complicated for small companies: building resilience right into a supply chain takes time and attention in the business, and smaller organizations oftentimes don’t have the potential to accomplish that.
Next, it was found that more attention was necessary on spreading threat and also aiming for risk reduction within the supply chain. For the future, meaning far more attention ought to be provided to the manner in which companies count on specific countries, customers, and suppliers.
Third, attention is needed for explicit prioritization and intelligent rationing strategies in situations where need can’t be met. Explicit prioritization is necessary to keep on to meet market expectations but additionally to improve market shares where competitors miss options. This task is not new, but it has also been underexposed in this crisis and was often not a component of preparatory activities.
Fourthly, the corona problems shows you us that the financial result of a crisis in addition relies on the way cooperation in the chain is actually set up. It’s usually unclear exactly how further expenses (and benefits) are distributed in a chain, if at all.
Last but not least, relative to other purposeful departments, the businesses and supply chain operates are in the driving accommodate during a crisis. Product development and advertising activities need to go hand in hand with supply chain pursuits. Whether or not the corona pandemic will structurally change the basic discussions between logistics and generation on the one hand and marketing and advertising on the other, the long term will have to explain to.
How is the Dutch meal supply chain coping throughout the corona crisis?