Supply chain – The COVID 19 pandemic has undoubtedly had its impact effect on the planet. Economic indicators and health have been compromised and all industries have been completely touched in one way or perhaps yet another. One of the industries in which this was clearly apparent would be the agriculture as well as food industry.
Throughout 2019, the Dutch extension as well as food sector contributed 6.4 % to the disgusting domestic product (CBS, 2020). Based on the FoodService Instituut, the foodservice industry 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 enhanced the turnover of theirs with € 1.8 billion.
Disruptions of the food chain have major effects for the Dutch economy as well as food security as a lot of stakeholders are affected. Even though it was apparent to many folks that there was a huge impact at the conclusion of this chain (e.g., hoarding in supermarkets, eateries closing) and at the beginning of this chain (e.g., harvested potatoes not searching for customers), there are a lot of actors within the supply chain for that the effect is much less clear. It is thus vital that you figure out how well the food supply chain as being a whole is equipped to contend with disruptions. Researchers in the Operations Research and Logistics Group at Wageningen Faculty and also coming from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the consequences of the COVID 19 pandemic throughout the food supply chain. They based their analysis on interviews with about thirty Dutch supply chain actors.
Demand in retail up, found food service down It’s obvious and widely known that need in the foodservice channels went down on account of the closure of restaurants, amongst others. In a few cases, sales for vendors of the food service industry therefore fell to about 20 % of the original volume. As a complication, demand in the list stations went up and remained within a degree of about 10-20 % higher than before the crisis started.
Products which had to come through abroad had the own issues of theirs. With the change in need from foodservice to retail, the demand for packaging improved considerably, More tin, cup or plastic material was required for wearing in customer packaging. As more of this product packaging material ended up in consumers’ homes as opposed to in joints, the cardboard recycling system got disrupted also, causing shortages.
The shifts in need have had a big effect on output activities. In certain cases, this even meant a complete stop in output (e.g. in the duck farming industry, which emerged to a standstill on account of demand fall-out in the foodservice sector). In other instances, a big part 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 in China caused the flow of sea bins to slow down fairly shortly in 2020. This resulted in transport capacity that is restricted throughout the earliest weeks of the crisis, and expenses which are high for container transport as a result. Truck travel experienced different issues. To begin with, there were uncertainties on how transport will be managed for borders, which in the long run were not as rigid as feared. What was problematic in instances which are a large number of, however, was the accessibility of drivers.
The response to COVID 19 – provide chain resilience The source chain resilience analysis held by Prof. de Leeuw as well as Colleagues, was used on the overview of this key components of supply chain resilience:
Using this particular framework for the evaluation of the interview, the findings indicate that few businesses had been well prepared for the corona crisis and in fact mostly applied responsive practices. The most important source chain lessons were:
Figure one. 8 best methods for food supply chain resilience
First, the need to design the supply chain for agility as well as flexibility. This looks especially challenging for smaller companies: building resilience into a supply chain takes time and attention in the organization, and smaller organizations usually don’t have the capability to do it.
Next, it was discovered that more interest was necessary on spreading threat and also aiming for risk reduction inside the supply chain. For the future, this means more attention ought to be provided to the way companies count on suppliers, customers, and specific countries.
Third, attention is needed for explicit prioritization and smart rationing strategies in situations where need cannot be met. Explicit prioritization is actually required to keep on to satisfy market expectations but additionally to increase market shares where competitors miss options. This particular challenge isn’t new, though it’s also been underexposed in this specific crisis and was frequently not a component of preparatory pursuits.
Fourthly, the corona problems shows us that the monetary impact of a crisis in addition is determined by the manner in which cooperation in the chain is actually set up. It’s usually unclear precisely how extra costs (and benefits) are sent out in a chain, in case at all.
Finally, relative to other functional departments, the operations and supply chain characteristics are actually in the driving accommodate during a crisis. Product development and marketing activities need to go hand in hand with supply chain events. Whether the corona pandemic will structurally switch the basic considerations between generation and logistics on the one hand as well as advertising and marketing on the other hand, the future will need to explain to.
How’s the Dutch foods supply chain coping throughout the corona crisis?