Supply chain – The COVID-19 pandemic has definitely 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 even yet another. One of the industries in which this was clearly noticeable is the farming and food industry.
Throughout 2019, the Dutch extension as well as food niche contributed 6.4 % to the gross domestic item (CBS, 2020). According to the FoodService Instituut, the foodservice business in the Netherlands dropped € 7.1 billion within 2020. The hospitality industry lost 41.5 % of the turnover of its as show by ProcurementNation, while at exactly the same time supermarkets increased the turnover of theirs with € 1.8 billion.
Disruptions of the food chain have significant consequences for the Dutch economy and food security as a lot of stakeholders are impacted. Though it was apparent to most people that there was a great effect at the tail end of the chain (e.g., hoarding in food markets, restaurants closing) as well as at the beginning of the chain (e.g., harvested potatoes not finding customers), you will find many actors in the supply chain for that will the effect is less clear. It’s therefore vital that you determine how effectively the food supply chain as a whole is armed to deal with disruptions. Researchers from your Operations Research as well as Logistics Group at Wageningen Faculty and out of Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the consequences of the COVID 19 pandemic throughout the food supplies chain. They based their examination on interviews with about 30 Dutch source chain actors.
Need within retail up, that is found food service down It is apparent and widely known that demand in the foodservice stations 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 about 20 % of the initial volume. Being a complication, demand in the list stations went up and remained within a quality of aproximatelly 10 20 % greater than before the problems started.
Products which had to come from abroad had the own problems of theirs. With the shift in demand coming from foodservice to retail, the need for packaging improved considerably, More tin, cup or plastic was necessary for use in consumer packaging. As more of this packaging material concluded up in consumers’ homes rather than in places, the cardboard recycling system got disrupted also, causing shortages.
The shifts in demand have had an important effect on output activities. In certain cases, this even meant a complete stop of output (e.g. in the duck farming business, which arrived to a standstill due to demand fall out in the foodservice sector). In other cases, a major part of the personnel contracted corona (e.g. to the meat processing industry), leading to a closure of equipment.
Supply chain – Distribution activities were also affected. The start of the Corona crisis of China caused the flow of sea canisters to slow down fairly shortly in 2020. This resulted in transport electrical capacity that is restricted throughout the earliest weeks of the crisis, and costs which are high for container transport as a direct result. Truck transportation faced different problems. To begin with, there were uncertainties regarding how transport will be handled at borders, which in the long run weren’t as strict as feared. The thing that was problematic in situations which are many, nevertheless, was the availability of motorists.
The reaction to COVID-19 – supply chain resilience The source chain resilience evaluation held by Prof. de Leeuw and Colleagues, was used on the overview of the primary elements of supply chain resilience:
To us this framework for the evaluation of the interviews, the findings indicate that few companies had been nicely prepared for the corona crisis and in fact mainly applied responsive practices. Probably the most important source chain lessons were:
Figure 1. 8 best practices for meals supply chain resilience
To begin with, the need to create the supply chain for agility as well as flexibility. This looks particularly complicated for small companies: building resilience right into a supply chain takes attention and time in the business, and smaller organizations oftentimes do not have the capability to do so.
Second, it was observed that much more interest was needed on spreading threat as well as aiming for risk reduction within the supply chain. For the future, this means more attention should 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 situations where demand can’t be met. Explicit prioritization is actually necessary to continue to satisfy market expectations but in addition to boost market shares in which competitors miss options. This particular task isn’t new, however, it’s in addition been underexposed in this crisis and was usually not a part of preparatory activities.
Fourthly, the corona issues shows you us that the economic effect of a crisis in addition relies on the way cooperation in the chain is set up. It is usually unclear exactly how extra costs (and benefits) are actually distributed in a chain, if at all.
Finally, relative to other purposeful departments, the operations and supply chain functions are actually in the driving accommodate during a crisis. Product development and advertising and marketing activities have to go hand deeply in hand with supply chain events. Whether the corona pandemic will structurally replace the basic considerations between logistics and creation on the one hand as well as marketing and advertising on the other, the potential future will need to tell.
How is the Dutch food supply chain coping during the corona crisis?