Supply chain – The COVID-19 pandemic has undoubtedly had its impact influence on the world. Economic indicators and health have been compromised and all industries have been touched in one way or another. One of the industries in which it was clearly apparent will be the agriculture as well as food business.
In 2019, the Dutch farming and food sector contributed 6.4 % to the disgusting domestic item (CBS, 2020). As per the FoodService Instituut, the foodservice business in the Netherlands dropped € 7.1 billion within 2020. The hospitality business 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 impacted. Though it was apparent to most folks that there was a great impact at the tail end of this chain (e.g., hoarding doing food markets, restaurants closing) as well as at the start of this chain (e.g., harvested potatoes not searching for customers), you will find many actors inside the supply chain for that will the impact is much less clear. It is therefore vital that you find out how effectively the food supply chain as a whole is equipped to cope with disruptions. Researchers in the Operations Research as well as Logistics Group at Wageningen Faculty and also out of Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the consequences of the COVID 19 pandemic throughout the food resources chain. They based the analysis of theirs on interviews with about 30 Dutch source chain actors.
Demand within retail up, in food service down It is obvious and widely known that need in the foodservice stations went down on account of the closure of joints, amongst others. In certain instances, sales for vendors of the food service industry as a result fell to about 20 % of the first volume. Being a complication, demand in the retail channels went up and remained at a quality of aproximatelly 10-20 % higher than before the problems began.
Goods that had to come via abroad had their own problems. With the change in desire from foodservice to retail, the requirement for packaging changed considerably, More tin, cup and plastic was required for use in buyer packaging. As more of this particular packaging material ended up in consumers’ homes rather than in joints, the cardboard recycling process got disrupted also, causing shortages.
The shifts in demand have had a significant affect on output activities. In some cases, this even meant a total stop in production (e.g. within the duck farming industry, which came to a standstill on account of demand fall out inside the foodservice sector). In other cases, a major section of the personnel contracted corona (e.g. in the various meats processing industry), leading to a closure of equipment.
Supply chain – Distribution activities were also affected. The start of the Corona crisis in China sparked the flow of sea bins to slow down pretty shortly in 2020. This resulted in transport capability that is limited throughout the very first weeks of the crisis, and high costs for container transport as a direct result. Truck travel experienced different issues. Initially, there were uncertainties on how transport would be managed at borders, which in the long run were not as strict as feared. What was problematic in situations that are many , however, was the accessibility of motorists.
The response to COVID 19 – provide chain resilience The supply chain resilience evaluation 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 assessment of the interview, the findings indicate that few organizations were nicely prepared for the corona crisis and actually mostly applied responsive practices. The most important source chain lessons were:
Figure 1. Eight best practices for food supply chain resilience
For starters, the need to create the supply chain for agility and versatility. This appears especially complicated for smaller companies: building resilience right into a supply chain takes time and attention in the business, and smaller organizations often don’t have the capacity to accomplish that.
Second, it was found that much more interest was required on spreading threat as well as aiming for risk reduction within the supply chain. For the future, meaning far more attention has to be given to the manner in which organizations count on suppliers, customers, and specific countries.
Third, attention is necessary for explicit prioritization and clever rationing techniques in situations where demand can’t be met. Explicit prioritization is required to continue to meet market expectations but in addition to increase market shares in which competitors miss options. This particular challenge isn’t new, though it has additionally been underexposed in this problems and was usually not a component of preparatory pursuits.
Fourthly, the corona problems shows you us that the financial result of a crisis in addition relies on the manner in which cooperation in the chain is set up. It’s typically unclear how additional expenses (and benefits) are actually distributed in a chain, in case at all.
Finally, relative to other purposeful departments, the businesses and supply chain works are in the driving accommodate during a crisis. Product development and marketing and advertising activities have to go hand in hand with supply chain pursuits. Regardless of whether the corona pandemic will structurally change the basic considerations between logistics and generation on the one hand and advertising and marketing on the other, the future will have to explain to.
How’s the Dutch food supply chain coping throughout the corona crisis?