Supply chain – The COVID 19 pandemic has definitely had the impact of its influence on the planet. health and Economic indicators have been compromised and all industries have been completely touched in one of the ways or even some other. Among the industries in which it was clearly apparent would be the farming and food industry.
In 2019, the Dutch extension and food sector contributed 6.4 % to the disgusting domestic product (CBS, 2020). As per the FoodService Instituut, the foodservice industry in the Netherlands lost € 7.1 billion inside 2020. The hospitality industry lost 41.5 % of the turnover of its as show by ProcurementNation, while at the same time supermarkets enhanced their turnover with € 1.8 billion.
Disruptions in the food chain have big effects for the Dutch economy as well as food security as many stakeholders are impacted. Though it was apparent to many individuals that there was a great impact at the conclusion of the chain (e.g., hoarding around grocery stores, restaurants closing) and also at the beginning of this chain (e.g., harvested potatoes not searching for customers), you will find many actors inside the supply chain for that will the effect is much less clear. It’s therefore vital that you find out how well the food supply chain as being a whole is armed to contend 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 effects of the COVID-19 pandemic all over the food supplies chain. They based their analysis on interviews with about 30 Dutch supply chain actors.
Need in retail up, in food service down It is apparent and widely known that need in the foodservice channels went down on account of the closure of joints, amongst others. In certain instances, sales for suppliers of the food service industry thus fell to aproximatelly twenty % of the initial volume. As an adverse reaction, demand in the list stations went up and remained within a degree of about 10 20 % greater than before the crisis started.
Goods that had to come from abroad had their very own issues. With the change in demand from foodservice to retail, the demand for packaging improved dramatically, More tin, cup or plastic was necessary for use in customer packaging. As more of this product packaging material ended up in consumers’ houses rather than in places, the cardboard recycling process got disrupted as well, causing shortages.
The shifts in desire have had an important affect on production activities. In some instances, this even meant a complete stop of production (e.g. in the duck farming industry, which arrived to a standstill on account of demand fall-out in the foodservice sector). In other cases, 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 pursuits were also affected. The beginning of the Corona crisis in China triggered the flow of sea canisters to slow down pretty soon in 2020. This resulted in transport capacity which is limited throughout the earliest weeks of the problems, and costs that are high for container transport as a consequence. Truck transport encountered different problems. Initially, there were uncertainties about how transport will be managed for borders, which in the long run weren’t as strict as feared. The thing that was problematic in instances which are a large number of, nevertheless, was the accessibility of drivers.
The reaction to COVID 19 – provide chain resilience The source chain resilience evaluation held by Prof. de Leeuw and Colleagues, was used on the overview of the main things of supply chain resilience:
To us this framework for the evaluation of the interviews, the conclusions indicate that not many businesses were well prepared for the corona problems and actually mainly applied responsive methods. The most notable supply chain lessons were:
Figure 1. 8 best methods for meals supply chain resilience
First, the need to design the supply chain for flexibility and agility. This appears especially complicated for smaller companies: building resilience into a supply chain takes time and attention in the organization, and smaller organizations often do not have the capability to do so.
Next, it was observed that more attention was required on spreading risk and also aiming for risk reduction in the supply chain. For the future, what this means is more attention should be made available to the manner in which businesses depend on specific countries, customers, and suppliers.
Third, attention is needed for explicit prioritization as well as clever rationing strategies in situations in which need cannot be met. Explicit prioritization is actually necessary to keep on to meet market expectations but also to increase market shares wherein competitors miss options. This particular challenge is not new, however, it’s in addition been underexposed in this problems and was often not part of preparatory pursuits.
Fourthly, the corona problems teaches us that the monetary result of a crisis additionally is determined by the manner in which cooperation in the chain is set up. It’s typically unclear precisely how additional expenses (and benefits) are sent out in a chain, in case at all.
Last but not least, relative to other functional departments, the businesses and supply chain functionality are actually in the driving accommodate during a crisis. Product development and advertising and marketing activities need to go hand in hand with supply chain events. Regardless of whether the corona pandemic will structurally replace the basic discussions between creation and logistics on the one hand and marketing on the other, the long term will have to tell.
How’s the Dutch meal supply chain coping throughout the corona crisis?