Supply chain - The COVID 19 pandemic has undoubtedly had its impact effect on the planet. Economic indicators and health have been affected and all industries are touched inside one of the ways or even yet another. Among the industries in which it was clearly noticeable will be the agriculture and food industry.
Throughout 2019, the Dutch agriculture and food industry contributed 6.4 % to the disgusting domestic item (CBS, 2020). As per the FoodService Instituut, the foodservice industry in the Netherlands lost € 7.1 billion within 2020. The hospitality business lost 41.5 % of its turnover as show by ProcurementNation, while at the same time supermarkets enhanced the turnover of theirs with € 1.8 billion.
Disruptions in the food chain have significant consequences for the Dutch economy as well as food security as a lot of stakeholders are impacted. Even though it was clear to most folks that there was a huge impact at the conclusion of the chain (e.g., hoarding doing supermarkets, restaurants closing) and also at the start of the chain (e.g., harvested potatoes not searching for customers), there are a lot of actors inside the supply chain for that the impact is less clear. It's thus important to figure out how properly the food supply chain as being a whole is armed to deal with disruptions. Researchers in the Operations Research as well as Logistics Group at Wageningen University and coming from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the influences of the COVID-19 pandemic throughout the food supplies chain. They based their examination on interviews with about 30 Dutch source chain actors.
Need within retail up, contained food service down It's apparent and well known that demand in the foodservice stations went down due to the closure of joints, amongst others. In a few instances, sales for vendors of the food service industry as a result fell to aproximatelly twenty % of the first volume. Being an adverse reaction, demand in the retail channels went up and remained at a quality of aproximatelly 10 20 % higher than before the problems started.
Goods that had to come via abroad had their own issues. With the shift in desire from foodservice to retail, the demand for packaging improved considerably, More tin, glass and plastic was necessary for use in customer packaging. As more of this particular product packaging material ended up in consumers' houses rather than in joints, the cardboard recycling function got disrupted also, causing shortages.
The shifts in need have had a big affect on production activities. In a few instances, this even meant a full stop in output (e.g. in the duck farming business, which emerged to a standstill on account of demand fall-out in the foodservice sector). In other instances, a big portion of the personnel contracted corona (e.g. to the meat processing industry), resulting in a closure of equipment.
Supply chain - Distribution pursuits were also affected. The start of the Corona crisis of China sparked the flow of sea containers to slow down pretty shortly in 2020. This resulted in transport electrical capacity that is limited throughout the earliest weeks of the issues, and expenses which are high for container transport as a direct result. Truck transport faced different issues. At first, there were uncertainties regarding how transport would be handled for borders, which in the end weren't as strict as feared. The thing that was problematic in instances that are a large number of , however, was the availability of drivers.
The reaction to COVID-19 - provide chain resilience The source chain resilience evaluation held by Prof. de Leeuw as well as Colleagues, was used on the overview of this main things of supply chain resilience:
To us this particular framework for the evaluation of the interview, the conclusions show that not many businesses had been well prepared for the corona crisis and in fact mainly applied responsive methods. The most notable source chain lessons were:
Figure one. Eight best methods for food supply chain resilience
To begin with, the need to develop the supply chain for agility as well as flexibility. This appears especially challenging for smaller sized companies: building resilience right into a supply chain takes time and attention in the organization, and smaller organizations usually don't have the capability to do so.
Second, it was observed that more interest was required on spreading threat and aiming for risk reduction in the supply chain. For the future, this means more attention ought to be given to the manner in which organizations depend on suppliers, customers, and specific countries.
Third, attention is necessary for explicit prioritization as well as intelligent rationing strategies in cases in which need can't be met. Explicit prioritization is actually needed to keep on to satisfy market expectations but additionally to improve market shares wherein competitors miss opportunities. This challenge isn't new, but it's additionally been underexposed in this crisis and was frequently not a component of preparatory activities.
Fourthly, the corona crisis shows us that the monetary impact of a crisis in addition relies on the manner in which cooperation in the chain is actually set up. It's usually unclear how extra expenses (and benefits) are distributed in a chain, if at all.
Lastly, relative to other functional departments, the businesses and supply chain functions are actually in the driving seat during a crisis. Product development and marketing and advertising activities need to go hand in deep hand with supply chain activities. Whether or not the corona pandemic will structurally replace the traditional considerations between generation and logistics on the one hand as well as advertising on the other hand, the potential future must explain to.
How's the Dutch meal supply chain coping throughout the corona crisis?