Supply chain – The COVID-19 pandemic has undoubtedly had the impact of its impact on the world. Economic indicators and health have been compromised and all industries are touched within one way or even some other. Among the industries in which it was clearly apparent is the agriculture and food business.
Throughout 2019, the Dutch farming and food sector contributed 6.4 % to the gross domestic product (CBS, 2020). According to the FoodService Instituut, the foodservice industry 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 identical time supermarkets increased their turnover with € 1.8 billion.
Disruptions in the food chain have major effects for the Dutch economy and food security as many stakeholders are impacted. Even though it was clear to a lot of folks that there was a big impact at the end of the chain (e.g., hoarding in food markets, eateries closing) as well as at the start of this chain (e.g., harvested potatoes not finding customers), you will find many actors in the source chain for that will the effect is less clear. It’s thus important to figure out how well the food supply chain as a whole is armed to cope with disruptions. Researchers from your Operations Research as well as Logistics Group at Wageningen University and also out of Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the influences of the COVID-19 pandemic all over the food supply chain. They based their analysis on interviews with about 30 Dutch source chain actors.
Need within retail up, found food service down It is evident and well known that need in the foodservice channels went down on account of the closure of restaurants, amongst others. In certain instances, sales for vendors of the food service business thus fell to about twenty % of the original volume. Being a complication, demand in the list stations went up and remained at a degree of aproximatelly 10-20 % higher than before the problems started.
Products which had to come from abroad had their own issues. With the change in desire coming from foodservice to retail, the demand for packaging changed dramatically, More tin, cup and plastic material was needed for wearing in customer packaging. As much more of this particular packaging material concluded 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 significant impact on production activities. In certain cases, this even meant a total stop of production (e.g. inside the duck farming industry, which emerged to a standstill on account of demand fall-out on the foodservice sector). In other situations, a significant portion of the personnel contracted corona (e.g. in the meat processing industry), causing a closure of equipment.
Supply chain – Distribution activities were also affected. The start of the Corona crisis in China sparked the flow of sea canisters to slow down fairly shortly in 2020. This resulted in transport electrical capacity which is limited during the earliest weeks of the crisis, and costs which are high for container transport as a direct result. Truck travel experienced various problems. Initially, there were uncertainties about how transport will be handled at borders, which in the long run were not as rigid as feared. The thing that was problematic in cases that are most , however, was the accessibility of drivers.
The reaction to COVID 19 – provide chain resilience The supply chain resilience analysis held by Prof. de Colleagues and Leeuw, was based on the overview of this key components of supply chain resilience:
To us this particular framework for the evaluation of the interview, the findings indicate that few organizations were well prepared for the corona crisis and in reality mostly applied responsive methods. The most notable supply chain lessons were:
Figure one. 8 best methods for meals supply chain resilience
For starters, the need to create the supply chain for flexibility and agility. This appears especially complicated for small companies: building resilience into a supply chain takes attention and time in the organization, and smaller organizations usually do not have the capability to do so.
Next, it was found that much more interest was needed on spreading threat as well as aiming for risk reduction in the supply chain. For the future, what this means is far more attention ought to be made available to the way companies rely on specific countries, customers, and suppliers.
Third, attention is necessary for explicit prioritization and smart rationing strategies in situations where need can’t 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, however, it has also been underexposed in this specific crisis and was often not a component of preparatory activities.
Fourthly, the corona problems shows us that the economic result of a crisis in addition depends on the way cooperation in the chain is actually set up. It is typically unclear exactly how further costs (and benefits) are distributed in a chain, in case at all.
Lastly, relative to other purposeful departments, the operations and supply chain functionality are actually in the driving accommodate during a crisis. Product development and advertising and marketing activities need to go hand deeply in hand with supply chain events. Whether the corona pandemic will structurally replace the traditional discussions between creation and logistics on the one hand and advertising on the other hand, the future will need to explain to.
How’s the Dutch meal supply chain coping during the corona crisis?