Supply chain – The COVID 19 pandemic has certainly had its impact impact on the world. health and Economic indicators have been compromised and all industries are touched inside a way or another. Among the industries in which this was clearly noticeable will be the farming as well as food business.
Throughout 2019, the Dutch extension and food industry contributed 6.4 % to the gross domestic item (CBS, 2020). As per the FoodService Instituut, the foodservice industry in the Netherlands dropped € 7.1 billion inside 2020. The hospitality trade lost 41.5 % of the turnover of its as show by ProcurementNation, while at the identical time supermarkets increased the turnover of theirs with € 1.8 billion.
Disruptions in the food chain have big effects for the Dutch economy and food security as lots of stakeholders are affected. Despite the fact that it was apparent to many men and women that there was a significant effect at the conclusion of the chain (e.g., hoarding around food markets, restaurants closing) as well as at the beginning of the chain (e.g., harvested potatoes not searching for customers), there are many actors inside the supply chain for that the effect is much less clear. It’s therefore important to figure out how well the food supply chain as a whole is prepared to deal with disruptions. Researchers from the Operations Research and Logistics Group at Wageningen University as well as from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the effects of the COVID 19 pandemic all over the food resources chain. They based the examination of theirs on interviews with about thirty Dutch supply chain actors.
Need within retail up, that is found food service down It is obvious and popular that need in the foodservice channels went down as a result of the closure of places, amongst others. In a few cases, sales for vendors of the food service industry therefore fell to aproximatelly 20 % of the original volume. As an adverse reaction, demand in the list channels went up and remained at a quality of about 10 20 % higher than before the problems started.
Products which had to come from abroad had the own issues of theirs. With the shift in desire from foodservice to retail, the need for packaging changed dramatically, More tin, cup or plastic material was needed for use in buyer packaging. As more of this particular product packaging material concluded up in consumers’ houses instead of in restaurants, the cardboard recycling function got disrupted too, causing shortages.
The shifts in demand have had a big impact on output activities. In certain cases, this even meant a complete stop of production (e.g. inside the duck farming business, which arrived to a standstill as a result of demand fall-out on the foodservice sector). In other instances, a significant portion of the personnel contracted corona (e.g. in the meat processing industry), causing a closure of facilities.
Supply chain – Distribution activities were also affected. The beginning of the Corona crisis in China triggered the flow of sea containers to slow down pretty shortly in 2020. This resulted in limited transport capacity during the first weeks of the problems, and costs that are high for container transport as a direct result. Truck travel encountered different issues. At first, there were uncertainties on how transport will be handled for borders, which in the end were not as stringent as feared. The thing that was problematic in many situations, nevertheless, was the availability of drivers.
The response to COVID 19 – supply chain resilience The source chain resilience evaluation held by Prof. de Leeuw and Colleagues, was based on the overview of this core things of supply chain resilience:
To us this framework for the analysis of the interview, the findings show that not many businesses were well prepared for the corona problems and in fact mostly applied responsive methods. Probably the most important source chain lessons were:
Figure one. 8 best methods for food supply chain resilience
To begin with, the need to develop the supply chain for flexibility as well as agility. This appears particularly complicated for small companies: building resilience into a supply chain takes time and attention in the business, and smaller organizations often don’t have the potential to accomplish that.
Next, it was found that more interest was needed on spreading danger as well as aiming for risk reduction within the supply chain. For the future, this means more attention ought to be provided to the manner in which organizations rely on specific countries, customers, and suppliers.
Third, attention is needed for explicit prioritization as well as intelligent rationing techniques in situations where need cannot be met. Explicit prioritization is actually required to keep on to meet market expectations but additionally to increase market shares where competitors miss opportunities. This task isn’t new, although it’s also been underexposed in this specific problems and was usually not part of preparatory pursuits.
Fourthly, the corona problems shows us that the economic result of a crisis additionally is determined by the way cooperation in the chain is actually set up. It is typically unclear how extra costs (and benefits) are actually sent out in a chain, if at all.
Finally, relative to other purposeful departments, the operations and supply chain characteristics are in the driving seat during a crisis. Product development and advertising activities have to go hand deeply in hand with supply chain pursuits. Whether the corona pandemic will structurally change the traditional considerations between logistics and production on the one hand as well as advertising and marketing on the other, the future must explain to.
How is the Dutch meal supply chain coping throughout the corona crisis?