Supply chain – The COVID 19 pandemic has undoubtedly had its impact influence on the planet. health and Economic indicators have been compromised and all industries have been completely touched within one way or perhaps another. Among the industries in which this was clearly visible is the farming and food industry.
Throughout 2019, the Dutch extension as well as food industry contributed 6.4 % to the disgusting domestic product (CBS, 2020). As per the FoodService Instituut, the foodservice business in the Netherlands lost € 7.1 billion within 2020. The hospitality business lost 41.5 % of its turnover as show by ProcurementNation, while at exactly the same 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 a lot of stakeholders are impacted. Despite the fact that it was apparent to most folks that there was a big impact at the conclusion of the chain (e.g., hoarding doing supermarkets, restaurants closing) and at the beginning of this chain (e.g., harvested potatoes not finding customers), you will find many actors in the supply chain for which the impact is much less clear. It is thus imperative that you determine how effectively the food supply chain as being a whole is actually armed to contend with disruptions. Researchers from your Operations Research and Logistics Group at Wageningen University and out of Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the consequences of the COVID-19 pandemic throughout the food supplies chain. They based their analysis on interviews with around thirty Dutch supply chain actors.
Need in retail up, contained food service down It’s obvious and popular that need in the foodservice channels went down as a result of the closure of joints, amongst others. In a few cases, sales for suppliers of the food service business thus fell to about 20 % of the first volume. As an adverse reaction, demand in the list stations went up and remained at a quality of aproximatelly 10-20 % greater than before the problems began.
Goods that had to come from abroad had their own problems. With the change in desire from foodservice to retail, the need for packaging changed dramatically, More tin, glass or plastic material was required for use in buyer packaging. As more of this product packaging material ended up in consumers’ homes instead of in joints, the cardboard recycling system got disrupted as well, causing shortages.
The shifts in desire have had a major effect on output activities. In a few instances, this even meant the full stop in output (e.g. inside the duck farming industry, which arrived to a standstill as a result of demand fall out on the foodservice sector). In other situations, a big portion of the personnel contracted corona (e.g. to the meat processing industry), causing a closure of facilities.
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 restricted transport electrical capacity during the first weeks of the issues, and costs that are high for container transport as a result. Truck transport faced various problems. Initially, there were uncertainties on how transport would be managed for borders, which in the long run were not as strict as feared. The thing that was problematic in situations which are most, nonetheless, was the accessibility of drivers.
The response to COVID-19 – supply chain resilience The supply chain resilience evaluation held by Prof. de Colleagues and Leeuw, was used on the overview of the key components of supply chain resilience:
To us this particular framework for the evaluation of the interviews, the conclusions show that not many organizations had been well prepared for the corona problems and in fact mostly applied responsive methods. The most important source chain lessons were:
Figure 1. 8 best methods for meals supply chain resilience
First, the need to design the supply chain for agility as well as versatility. This appears particularly challenging for small companies: building resilience into a supply chain takes time and attention in the organization, and smaller organizations usually don’t have the capability to accomplish that.
Second, it was discovered that much more interest was necessary on spreading risk as well as aiming for risk reduction inside the supply chain. For the future, this means more attention ought to be provided to the manner in which companies rely on specific countries, customers, and suppliers.
Third, attention is needed for explicit prioritization and smart rationing strategies in situations where need can’t be met. Explicit prioritization is required to continue to meet market expectations but in addition to increase market shares wherein competitors miss options. This particular task is not new, but it has in addition been underexposed in this problems and was usually not part of preparatory pursuits.
Fourthly, the corona issues teaches us that the monetary effect of a crisis in addition is determined by the manner in which cooperation in the chain is set up. It is often unclear precisely how extra costs (and benefits) are actually sent out in a chain, in case at all.
Finally, relative to other purposeful departments, the businesses and supply chain features are actually in the driving seat during a crisis. Product development and advertising activities need to go hand in deep hand with supply chain events. Whether the corona pandemic will structurally change the classic discussions between generation and logistics on the one hand as well as marketing and advertising on the other, the long term will have to tell.
How is the Dutch meal supply chain coping throughout the corona crisis?