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 touched in one of the ways or yet another. Among the industries in which this was clearly obvious would be the agriculture as well as food business.
In 2019, the Dutch extension and food niche 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 inside 2020. The hospitality business lost 41.5 % of its turnover as show by ProcurementNation, while at exactly the same time supermarkets increased the turnover of theirs with € 1.8 billion.
Disruptions of the food chain have major effects for the Dutch economy and food security as lots of stakeholders are impacted. Though it was apparent to majority of men and women that there was a huge impact at the conclusion of this chain (e.g., hoarding in food markets, restaurants closing) and at the start of the chain (e.g., harvested potatoes not finding customers), you will find a lot of actors within the supply chain for which the effect is less clear. It is therefore vital that you find out how effectively the food supply chain as being a whole is equipped to cope with disruptions. Researchers from the Operations Research as well as 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 supply chain. They based their analysis on interviews with about thirty Dutch source chain actors.
Need in retail up, in 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 instances, sales for vendors of the food service business therefore fell to aproximatelly 20 % of the original volume. Being an adverse reaction, demand in the retail stations went up and remained at a quality of aproximatelly 10 20 % higher than before the problems began.
Products that had to come from abroad had the own problems of theirs. With the change in demand coming from foodservice to retail, the demand for packaging changed considerably, More tin, glass or plastic material was needed for use in consumer packaging. As more of this particular packaging material ended up in consumers’ homes as opposed to in restaurants, the cardboard recycling system got disrupted also, causing shortages.
The shifts in desire have had a big effect on output activities. In a few cases, this even meant a full stop of output (e.g. in the duck farming industry, which arrived to a standstill as a result of demand fall out on the foodservice sector). In other situations, a significant section 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 fairly soon in 2020. This resulted in transport capacity that is limited throughout the earliest weeks of the issues, and expenses which are high for container transport as a direct result. Truck travel faced various problems. Initially, there were uncertainties on how transport will be managed at borders, which in the long run were not as strict as feared. The thing that was problematic in many situations, nonetheless, was the accessibility of motorists.
The reaction to COVID 19 – deliver chain resilience The supply chain resilience analysis held by Prof. de Leeuw and Colleagues, was based on the overview of this key components of supply chain resilience:
Using this particular framework for the analysis of the interview, the results show that not many organizations were nicely prepared for the corona problems and actually mostly applied responsive practices. Probably the most notable source chain lessons were:
Figure one. 8 best methods for meals supply chain resilience
For starters, the need to create the supply chain for agility as well as versatility. This seems particularly complicated for smaller sized companies: building resilience right into a supply chain takes attention and time in the organization, and smaller organizations oftentimes do not have the capacity to do so.
Second, it was observed that more interest was necessary on spreading risk and aiming for risk reduction in the supply chain. For the future, this means more attention has to be provided to the way businesses depend on specific countries, customers, and suppliers.
Third, attention is needed for explicit prioritization and smart rationing strategies in situations in which demand can’t be met. Explicit prioritization is necessary to keep on to meet market expectations but also to improve market shares in which competitors miss options. This challenge isn’t new, though it’s also been underexposed in this problems and was usually not a component of preparatory pursuits.
Fourthly, the corona issues teaches us that the financial result of a crisis additionally depends on the way cooperation in the chain is set up. It’s often unclear how additional expenses (and benefits) are sent out in a chain, if at all.
Lastly, relative to other purposeful departments, the businesses and supply chain features are in the driving seat during a crisis. Product development and advertising activities have to go hand in deep hand with supply chain events. Regardless of whether the corona pandemic will structurally change the traditional discussions between logistics and generation on the one hand as well as advertising on the other hand, the long term will have to explain to.
How’s the Dutch food supply chain coping throughout the corona crisis?