Supply chain – The COVID 19 pandemic has undoubtedly had the impact of its effect on the world. Economic indicators and health have been affected and all industries have been touched inside one way or even some other. One of the industries in which this was clearly visible is the farming as well as food business.
Throughout 2019, the Dutch extension as well as food industry contributed 6.4 % to the gross domestic product (CBS, 2020). According to the FoodService Instituut, the foodservice industry in the Netherlands lost € 7.1 billion within 2020. The hospitality business lost 41.5 % of the turnover of its as show by ProcurementNation, while at the same time supermarkets increased the turnover of theirs with € 1.8 billion.
Disruptions in the food chain have significant consequences for the Dutch economy as well as food security as many stakeholders are impacted. Though it was apparent to numerous folks that there was a great impact at the conclusion of the chain (e.g., hoarding around food markets, eateries closing) as well as at the start of the chain (e.g., harvested potatoes not finding customers), there are many actors in the supply chain for that will the impact is much less clear. It’s thus vital that you determine how well the food supply chain as being a whole is prepared to cope with disruptions. Researchers from the Operations Research and Logistics Group at Wageningen University and also out of Wageningen Economics Research, led by Professor Sander de Leeuw, studied the consequences of the COVID-19 pandemic all over the food supplies chain. They based their examination on interviews with about thirty Dutch source chain actors.
Need within retail up, contained food service down It’s obvious and popular that demand in the foodservice stations went down on account of the closure of joints, amongst others. In some instances, sales for suppliers of the food service industry thus fell to aproximatelly twenty % of the initial volume. As a complication, demand in the list stations went up and remained at a level of aproximatelly 10-20 % higher than before the crisis began.
Products that had to come via abroad had the own issues of theirs. With the change in need coming from foodservice to retail, the requirement for packaging changed considerably, More tin, glass or plastic material was required for wearing in consumer packaging. As much more of this particular packaging material ended up in consumers’ houses as opposed to in joints, the cardboard recycling system got disrupted as well, causing shortages.
The shifts in desire have had a major impact on output activities. In a few cases, this even meant a complete stop of output (e.g. in the duck farming industry, which arrived to a standstill due to demand fall out inside the foodservice sector). In other instances, a big portion of the personnel contracted corona (e.g. in the various meats processing industry), resulting in a closure of facilities.
Supply chain – Distribution activities were also affected. The beginning of the Corona crisis of China triggered the flow of sea bins to slow down fairly shortly in 2020. This resulted in transport capability that is restricted throughout the first weeks of the problems, and costs that are high for container transport as a result. Truck transport experienced different problems. To begin with, there were uncertainties regarding how transport will be handled for borders, which in the long run were not as strict as feared. The thing that was problematic in cases that are a large number of , nonetheless, was the accessibility of motorists.
The reaction to COVID-19 – deliver chain resilience The supply chain resilience analysis held by Prof. de Leeuw and Colleagues, was used on the overview of the primary components of supply chain resilience:
To us this framework for the assessment of the interviews, the conclusions indicate that not many companies were well prepared for the corona crisis and in fact mostly applied responsive practices. Probably the most important supply chain lessons were:
Figure 1. 8 best methods for meals supply chain resilience
For starters, the need to create the supply chain for agility as well as flexibility. This appears particularly challenging for smaller sized companies: building resilience into a supply chain takes attention and time in the organization, and smaller organizations often don’t have the capability to do it.
Next, it was observed that more attention was necessary on spreading danger as well as aiming for risk reduction within the supply chain. For the future, this means far more attention has to be made available to the way businesses depend on specific countries, customers, and suppliers.
Third, attention is needed for explicit prioritization and clever rationing techniques in situations in which need cannot be met. Explicit prioritization is actually needed to continue to meet market expectations but additionally to boost market shares wherein competitors miss options. This particular task isn’t new, although it has in addition been underexposed in this problems and was often not a part of preparatory activities.
Fourthly, the corona crisis teaches us that the economic impact of a crisis also depends on the manner in which cooperation in the chain is actually set up. It’s usually unclear exactly how additional expenses (and benefits) are sent out in a chain, in case at all.
Lastly, relative to other purposeful departments, the operations and supply chain features are in the driving accommodate during a crisis. Product development and advertising and marketing activities have to go hand deeply in hand with supply chain activities. Regardless of whether the corona pandemic will structurally switch the classic considerations between logistics and production on the one hand as well as advertising and marketing on the other, the future must explain to.
How’s the Dutch food supply chain coping during the corona crisis?