Supply chain – The COVID 19 pandemic has certainly had the impact of its influence on the planet. health and Economic indicators have been compromised and all industries have been completely touched in a way or another. Among the industries in which this was clearly obvious will be the agriculture and food industry.
Throughout 2019, the Dutch agriculture and food niche contributed 6.4 % to the disgusting domestic product (CBS, 2020). According to the FoodService Instituut, the foodservice industry in the Netherlands dropped € 7.1 billion inside 2020. The hospitality industry lost 41.5 % of the turnover of its as show by ProcurementNation, while at exactly the same time supermarkets enhanced their turnover with € 1.8 billion.
Disruptions in the food chain have major effects for the Dutch economy and food security as lots of stakeholders are impacted. Even though it was apparent to a lot of men and women that there was a great effect at the conclusion of this chain (e.g., hoarding doing food markets, restaurants closing) and also at the start of this chain (e.g., harvested potatoes not finding customers), there are many actors inside the supply chain for that the effect is much less clear. It is therefore imperative that you determine how effectively the food supply chain as being a whole is prepared to deal with disruptions. Researchers from your Operations Research as well as Logistics Group at Wageningen University as well as from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the influences of the COVID-19 pandemic throughout the food supplies chain. They based the analysis of theirs on interviews with about thirty Dutch source chain actors.
Need in retail up, in food service down It’s evident and popular that need in the foodservice channels went down on account of the closure of joints, amongst others. In a few cases, sales for vendors in the food service industry thus fell to aproximatelly twenty % of the original volume. Being a complication, demand in the retail stations went up and remained within a degree of about 10-20 % greater than before the crisis started.
Products that had to come via abroad had the own problems of theirs. With the shift in desire from foodservice to retail, the requirement for packaging changed considerably, More tin, cup and plastic material was required for use in buyer packaging. As much more of this product packaging material ended up in consumers’ houses instead of in restaurants, the cardboard recycling function got disrupted too, causing shortages.
The shifts in need have had a significant affect on production activities. In certain instances, this even meant a complete stop in output (e.g. inside the duck farming business, which came to a standstill on account of demand fall out in the foodservice sector). In other situations, a big part of the personnel contracted corona (e.g. in the various meats processing industry), leading to a closure of facilities.
Supply chain – Distribution pursuits were also affected. The beginning of the Corona crisis of China sparked the flow of sea containers to slow down pretty soon in 2020. This resulted in limited transport capability throughout the earliest weeks of the issues, and costs which are high for container transport as a result. Truck transportation encountered various issues. Initially, there were uncertainties on how transport will be managed at borders, which in the long run were not as rigid as feared. That which was problematic in situations that are many , nonetheless, was the accessibility of motorists.
The response to COVID 19 – supply chain resilience The source chain resilience analysis held by Prof. de Leeuw and Colleagues, was based on the overview of this primary components of supply chain resilience:
Using this framework for the analysis of the interviews, the conclusions show that not many businesses were well prepared for the corona crisis and actually mainly applied responsive methods. The most notable supply chain lessons were:
Figure one. 8 best practices for meals supply chain resilience
For starters, the need to design the supply chain for versatility as well as agility. This looks especially complicated for smaller sized companies: building resilience right into a supply chain takes attention and time in the business, and smaller organizations oftentimes do not have the capacity to accomplish that.
Second, it was found that more interest was required on spreading threat and also aiming for risk reduction in the supply chain. For the future, meaning far more attention ought to be made available to the way businesses count on specific countries, customers, and suppliers.
Third, attention is necessary for explicit prioritization and smart rationing strategies in situations where demand cannot be met. Explicit prioritization is actually needed to keep on to meet market expectations but also to increase market shares wherein competitors miss options. This task isn’t new, although it’s in addition been underexposed in this specific crisis and was usually not part of preparatory activities.
Fourthly, the corona issues shows you us that the economic impact of a crisis additionally relies on the way cooperation in the chain is set up. It’s usually unclear exactly how extra expenses (and benefits) are actually distributed in a chain, in case at all.
Last but not least, relative to other purposeful departments, the operations and supply chain operates are actually in the driving seat during a crisis. Product development and marketing and advertising activities have to go hand in deep hand with supply chain activities. Regardless of whether the corona pandemic will structurally replace the basic discussions between generation and logistics on the one hand and marketing and advertising on the other hand, the long term will have to tell.
How is the Dutch meal supply chain coping throughout the corona crisis?