Supply chain – The COVID-19 pandemic has definitely had the impact of its impact on the planet. Economic indicators and health have been compromised and all industries have been completely touched inside a way or another. Among the industries in which it was clearly obvious would be the agriculture as well as food industry.
In 2019, the Dutch agriculture and food industry contributed 6.4 % to the gross domestic item (CBS, 2020). According to the FoodService Instituut, the foodservice business 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 of the food chain have big effects for the Dutch economy and food security as many stakeholders are impacted. Despite the fact that it was clear to majority of folks that there was a huge impact at the end of the chain (e.g., hoarding around supermarkets, eateries closing) and at the start of the 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 vital that you determine how well the food supply chain as being a whole is actually equipped to cope with disruptions. Researchers from the Operations Research and Logistics Group at Wageningen University and also coming from Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the influences of the COVID-19 pandemic throughout the food supplies chain. They based the analysis of theirs on interviews with about thirty Dutch supply chain actors.
Need in retail up, that is found food service down It’s evident and widely known that demand in the foodservice channels went down as a result of the closure of restaurants, amongst others. In a few cases, sales for vendors of the food service business therefore fell to about twenty % of the initial volume. As a complication, demand in the list channels went up and remained at a degree of aproximatelly 10-20 % greater than before the problems began.
Products that had to come through abroad had their very own issues. With the shift in desire coming from foodservice to retail, the requirement for packaging changed dramatically, More tin, glass and plastic material was necessary for use in consumer packaging. As much more of this packaging material ended up in consumers’ homes as opposed to in joints, the cardboard recycling process got disrupted also, causing shortages.
The shifts in demand have had a significant impact on output activities. In a few instances, this even meant a total stop in output (e.g. in the duck farming business, which emerged to a standstill due to demand fall out in the foodservice sector). In other cases, a significant part of the personnel contracted corona (e.g. in the various meats processing industry), causing 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 fairly soon in 2020. This resulted in transport electrical capacity which is restricted throughout the very first weeks of the problems, and costs which are high for container transport as a consequence. Truck travel experienced various problems. Initially, there were uncertainties on how transport will be managed for borders, which in the end weren’t as stringent as feared. What was problematic in a large number of instances, nevertheless, was the accessibility of motorists.
The reaction to COVID-19 – supply chain resilience The supply chain resilience evaluation held by Prof. de Colleagues as well as Leeuw, was used on the overview of this primary elements of supply chain resilience:
To us this framework for the evaluation of the interview, the results indicate that not many organizations had been well prepared for the corona problems and in fact mostly applied responsive practices. The most important source chain lessons were:
Figure 1. Eight best practices for meals supply chain resilience
For starters, the need to create the supply chain for flexibility and agility. This seems especially complicated for smaller companies: building resilience right into a supply chain takes time and attention in the business, and smaller organizations usually do not have the capacity to do it.
Second, it was found that more interest was needed on spreading threat and aiming for risk reduction inside the supply chain. For the future, what this means is more attention has to be given to the way businesses depend on specific countries, customers, and suppliers.
Third, attention is required for explicit prioritization as well as clever rationing techniques in cases in which need can’t be met. Explicit prioritization is actually needed to keep on to satisfy market expectations but also to boost market shares where competitors miss opportunities. This task is not new, although it has also been underexposed in this problems and was frequently not a component of preparatory pursuits.
Fourthly, the corona problems shows you us that the economic effect of a crisis in addition is determined by the way cooperation in the chain is set up. It’s usually unclear how further costs (and benefits) are sent out in a chain, in case at all.
Last but not least, relative to other purposeful departments, the businesses and supply chain works are actually in the driving seat during a crisis. Product development and advertising and marketing activities need to go hand in hand with supply chain events. Whether the corona pandemic will structurally replace the traditional discussions between logistics and creation on the one hand and marketing on the other, the potential future must explain to.
How is the Dutch meal supply chain coping during the corona crisis?