Supply chain – The COVID-19 pandemic has definitely had the impact of its impact on the world. health and Economic indicators have been compromised and all industries have been completely touched in one of the ways or even some other. One of the industries in which it was clearly apparent will be the farming and food business.
In 2019, the Dutch agriculture and food sector contributed 6.4 % to the yucky domestic item (CBS, 2020). As per the FoodService Instituut, the foodservice industry in the Netherlands lost € 7.1 billion in 2020. The hospitality trade lost 41.5 % of the turnover of its as show by ProcurementNation, while at exactly the same time supermarkets increased the turnover of theirs with € 1.8 billion.
Disruptions in the food chain have significant consequences for the Dutch economy and food security as lots of stakeholders are impacted. Though it was clear to many individuals that there was a huge effect at the end of the chain (e.g., hoarding in grocery stores, restaurants closing) and at the start of this chain (e.g., harvested potatoes not finding customers), there are a lot of actors in the supply chain for which the impact is much less clear. It is therefore imperative that you determine how well the food supply chain as being a whole is equipped to cope with disruptions. Researchers from your Operations Research and Logistics Group at Wageningen University and from Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the consequences of the COVID 19 pandemic all over the food resources chain. They based the examination of theirs on interviews with around thirty Dutch source chain actors.
Demand in retail up, found food service down It’s apparent and well known that demand in the foodservice channels went down on account of the closure of restaurants, amongst others. In a few cases, sales for suppliers of the food service industry therefore fell to aproximatelly 20 % of the first volume. As an adverse reaction, demand in the list stations went up and remained at a level of about 10 20 % higher than before the problems began.
Products that had to come via abroad had their very own problems. With the change in desire coming from foodservice to retail, the need for packaging changed dramatically, More tin, cup or plastic material was necessary for wearing in consumer packaging. As more of this product packaging material concluded up in consumers’ homes instead of in restaurants, the cardboard recycling process got disrupted as well, causing shortages.
The shifts in need have had a significant effect on production activities. In some instances, this even meant the full stop in output (e.g. in the duck farming industry, which arrived to a standstill due to demand fall out on the foodservice sector). In other cases, a big portion of the personnel contracted corona (e.g. to the various meats processing industry), resulting in a closure of facilities.
Supply chain – Distribution activities were also affected. The beginning of the Corona crisis of China sparked the flow of sea bins to slow down fairly shortly in 2020. This resulted in limited transport electrical capacity during the earliest weeks of the problems, and high expenses for container transport as a direct result. Truck travel encountered different problems. Initially, there were uncertainties on how transport would be managed at borders, which in the end were not as rigid as feared. What was problematic in instances that are many , nonetheless, was the availability of drivers.
The reaction to COVID 19 – deliver chain resilience The source chain resilience analysis held by Prof. de Leeuw as well as Colleagues, was used on the overview of the key elements of supply chain resilience:
Using this framework for the analysis of the interview, the results indicate that not many organizations had been nicely prepared for the corona problems and actually mainly applied responsive methods. Probably the most notable supply chain lessons were:
Figure one. Eight best methods for food supply chain resilience
To begin with, the need to create the supply chain for agility and flexibility. This seems especially challenging for small companies: building resilience right into a supply chain takes time and attention in the organization, and smaller organizations often do not have the capability to do it.
Next, it was observed that more attention was needed on spreading threat as well as aiming for risk reduction in the supply chain. For the future, this means far more attention has to be given to the way organizations depend on specific countries, customers, and suppliers.
Third, attention is necessary for explicit prioritization as well as intelligent rationing techniques in cases in which need cannot be met. Explicit prioritization is necessary to continue to satisfy market expectations but in addition to boost market shares in which competitors miss options. This task isn’t new, but it’s additionally been underexposed in this specific problems and was often not part of preparatory pursuits.
Fourthly, the corona crisis shows you us that the economic effect of a crisis additionally relies on the manner in which cooperation in the chain is set up. It is usually unclear exactly how additional costs (and benefits) are actually distributed in a chain, in case at all.
Finally, relative to other purposeful departments, the operations and supply chain characteristics are actually in the driving accommodate during a crisis. Product development and advertising activities need to go hand deeply in hand with supply chain activities. Regardless of whether the corona pandemic will structurally replace the basic discussions between logistics and generation on the one hand as well as advertising and marketing on the other hand, the potential future will need to explain to.
How’s the Dutch meal supply chain coping during the corona crisis?