Supply chain - The COVID-19 pandemic has certainly had the impact of its influence on the world. health and Economic indicators have been affected and all industries have been completely touched in one way or perhaps some other. Among the industries in which it was clearly apparent is the agriculture and food industry.
Throughout 2019, the Dutch farming and food niche contributed 6.4 % to the yucky domestic item (CBS, 2020). According to the FoodService Instituut, the foodservice industry in the Netherlands lost € 7.1 billion inside 2020. The hospitality trade lost 41.5 % of the turnover of its as show by ProcurementNation, while at the same time supermarkets increased their turnover with € 1.8 billion.
Disruptions of the food chain have major consequences for the Dutch economy as well as food security as a lot of stakeholders are affected. Though it was clear to numerous men and women that there was a great impact at the tail end of this chain (e.g., hoarding around food markets, restaurants closing) as well as at the start of this chain (e.g., harvested potatoes not searching for customers), there are a lot of actors inside the source chain for that the effect is much less clear. It's therefore imperative that you figure out how effectively the food supply chain as being a whole is armed to contend with disruptions. Researchers from your Operations Research and Logistics Group at Wageningen University and also out of 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 around 30 Dutch supply chain actors.
Need in retail up, that is found food service down It is evident and well known that demand in the foodservice channels went down on account of the closure of joints, amongst others. In a few cases, sales for suppliers in the food service business thus fell to about twenty % of the original volume. As a complication, demand in the list stations went up and remained at a degree of aproximatelly 10 20 % greater than before the crisis began.
Products that had to come from abroad had the own issues of theirs. With the shift in desire from foodservice to retail, the demand for packaging changed dramatically, More tin, cup and plastic was needed for wearing in buyer packaging. As more of this product packaging material ended up in consumers' houses as opposed to in places, the cardboard recycling function got disrupted also, causing shortages.
The shifts in need have had a significant effect on production activities. In some cases, this even meant a full stop of production (e.g. within the duck farming business, which emerged to a standstill due to demand fall-out in the foodservice sector). In other instances, a significant part of the personnel contracted corona (e.g. to the meat processing industry), causing a closure of equipment.
Supply chain - Distribution pursuits were also affected. The start of the Corona crisis in China sparked the flow of sea canisters to slow down pretty shortly in 2020. This resulted in transport capacity that is restricted during the first weeks of the issues, and costs that are high for container transport as a consequence. Truck travel encountered various problems. To begin with, there were uncertainties on how transport would be managed for borders, which in the long run weren't as rigid as feared. The thing that was problematic in a large number of instances, however, was the accessibility of motorists.
The response to COVID-19 - provide chain resilience The source chain resilience evaluation held by Prof. de Colleagues and Leeuw, was based on the overview of the core elements of supply chain resilience:
Using this particular framework for the analysis of the interview, the results show that not many businesses had been well prepared for the corona crisis and in fact mainly applied responsive practices. Probably the most notable supply chain lessons were:
Figure one. 8 best practices for meals supply chain resilience
For starters, the need to create the supply chain for flexibility and agility. This seems particularly complicated for small companies: building resilience into a supply chain takes attention and time in the business, and smaller organizations often do not have the capability to do it.
Second, it was discovered that much more interest was necessary on spreading threat as well as aiming for risk reduction within the supply chain. For the future, meaning more attention has to be made available to the manner in which businesses count on suppliers, customers, and specific countries.
Third, attention is necessary for explicit prioritization and smart rationing techniques in situations where demand can't be met. Explicit prioritization is actually needed to keep on to meet market expectations but also to boost market shares where competitors miss opportunities. This task isn't new, although it has in addition been underexposed in this specific problems and was usually not a component of preparatory pursuits.
Fourthly, the corona issues shows you us that the economic result of a crisis additionally depends on the manner in which cooperation in the chain is set up. It's typically unclear exactly how additional costs (and benefits) are sent out in a chain, in case at all.
Finally, relative to other purposeful departments, the businesses and supply chain works are in the driving seat during a crisis. Product development and advertising activities have to go hand deeply in hand with supply chain events. Regardless of whether the corona pandemic will structurally switch the traditional considerations between logistics and generation on the one hand as well as marketing and advertising on the other hand, the future will need to tell.
How is the Dutch foods supply chain coping throughout the corona crisis?