Supply chain – The COVID-19 pandemic has certainly had the impact of its impact on the world. Economic indicators and health have been affected and all industries have been touched within one way or even some other. Among the industries in which it was clearly obvious would be the farming as well as food industry.
Throughout 2019, the Dutch agriculture and food industry contributed 6.4 % to the gross domestic product (CBS, 2020). Based on the FoodService Instituut, the foodservice business in the Netherlands shed € 7.1 billion in 2020. The hospitality business lost 41.5 % of the turnover of its as show by ProcurementNation, while at the same time supermarkets increased their turnover with € 1.8 billion.
Disruptions in the food chain have big consequences for the Dutch economy and food security as a lot of stakeholders are affected. Despite the fact that it was clear to most men and women that there was a great impact at the conclusion of this chain (e.g., hoarding around grocery stores, restaurants closing) and also at the beginning of the chain (e.g., harvested potatoes not finding customers), there are numerous actors inside the source chain for which the impact is much less clear. It is thus imperative that you figure out how properly the food supply chain as being a whole is armed to deal with disruptions. Researchers from the Operations Research and Logistics Group at Wageningen Faculty and coming from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the effects of the COVID 19 pandemic all over the food supplies chain. They based the analysis of theirs on interviews with about thirty Dutch source chain actors.
Need within retail up, that is found food service down It’s apparent and popular that demand in the foodservice channels went down on account of the closure of joints, amongst others. In some instances, sales for vendors of the food service business therefore fell to about 20 % of the original volume. As an adverse reaction, demand in the retail channels went up and remained at a degree of about 10 20 % higher than before the crisis started.
Products which had to come via abroad had their very own issues. With the shift in desire coming from foodservice to retail, the need for packaging improved considerably, More tin, glass or plastic material was required for wearing in consumer packaging. As much more of this product packaging material concluded up in consumers’ houses instead of in restaurants, the cardboard recycling function got disrupted also, causing shortages.
The shifts in demand have had an important affect on output activities. In a few instances, this even meant a full stop in output (e.g. within the duck farming industry, which arrived to a standstill on account of demand fall out inside the foodservice sector). In other instances, a major section of the personnel contracted corona (e.g. to the various meats processing industry), causing a closure of equipment.
Supply chain – Distribution activities were also affected. The start of the Corona crisis of China sparked the flow of sea canisters to slow down pretty shortly in 2020. This resulted in transport capacity which is limited throughout the earliest weeks of the issues, and expenses that are high for container transport as a result. Truck transport experienced different issues. At first, there were uncertainties regarding how transport will be managed at borders, which in the long run were not as stringent as feared. That which was problematic in situations which are a large number of, however, was the accessibility of motorists.
The response to COVID 19 – provide chain resilience The supply chain resilience evaluation held by Prof. de Colleagues as well as Leeuw, was used on the overview of the core elements of supply chain resilience:
To us this particular framework for the analysis of the interview, the conclusions indicate that few organizations were nicely prepared for the corona problems and in reality mainly applied responsive practices. The most important supply chain lessons were:
Figure one. 8 best practices for meals supply chain resilience
First, the need to develop the supply chain for agility and flexibility. This seems especially complicated for smaller sized companies: building resilience into a supply chain takes attention and time in the organization, and smaller organizations oftentimes do not have the potential to do it.
Second, it was discovered that much more interest was necessary on spreading risk as well as aiming for risk reduction in the supply chain. For the future, this means far more attention should be given to the manner in which businesses count on specific countries, customers, and suppliers.
Third, attention is required for explicit prioritization as well as clever rationing techniques in cases in which demand can’t be met. Explicit prioritization is actually required to continue to satisfy market expectations but also to boost market shares wherein competitors miss opportunities. This task isn’t new, though it’s also been underexposed in this problems and was usually not part of preparatory pursuits.
Fourthly, the corona problems teaches us that the monetary impact of a crisis also is determined by the manner in which cooperation in the chain is actually set up. It’s typically unclear precisely how extra costs (and benefits) are sent out in a chain, in case at all.
Last but not least, relative to other purposeful departments, the businesses and supply chain characteristics are in the driving seat during a crisis. Product development and marketing activities have to go hand deeply in hand with supply chain events. Regardless of whether the corona pandemic will structurally switch the classic considerations between creation and logistics on the one hand as well as marketing on the other, the future will have to explain to.
How is the Dutch food supply chain coping during the corona crisis?