Supply chain - The COVID 19 pandemic has definitely had its impact influence on the world. Economic indicators and health have been compromised and all industries have been touched in one way or perhaps some other. One of the industries in which this was clearly noticeable is the agriculture as well as food business.
Throughout 2019, the Dutch agriculture and food industry contributed 6.4 % to the disgusting domestic product (CBS, 2020). As per the FoodService Instituut, the foodservice industry in the Netherlands shed € 7.1 billion within 2020. The hospitality business lost 41.5 % of its turnover as show by ProcurementNation, while at the same time supermarkets increased their turnover with € 1.8 billion.
Disruptions in the food chain have big consequences for the Dutch economy as well as food security as many stakeholders are impacted. Though it was clear to many men and women that there was a huge effect at the tail end of the chain (e.g., hoarding doing supermarkets, restaurants closing) as well as at the start of this chain (e.g., harvested potatoes not finding customers), you will find a lot of actors within the supply chain for which the effect is much less clear. It's thus vital that you find out how properly the food supply chain as being a whole is armed to deal with disruptions. Researchers in the Operations Research and Logistics Group at Wageningen University as well as from Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the effects of the COVID 19 pandemic all over the food resources chain. They based the examination of theirs on interviews with around thirty Dutch supply chain actors.
Need within retail up, contained food service down It's obvious and popular that demand in the foodservice stations went down on account of the closure of restaurants, amongst others. In some instances, sales for vendors of the food service industry therefore fell to aproximatelly 20 % of the initial volume. As an adverse reaction, demand in the retail channels went up and remained at a degree of aproximatelly 10-20 % higher than before the problems started.
Products that had to come through abroad had their own issues. With the shift in desire coming from foodservice to retail, the requirement for packaging changed considerably, More tin, cup and plastic material was necessary for wearing in buyer packaging. As much more of this packaging material ended up in consumers' homes as opposed to in places, the cardboard recycling function got disrupted as well, causing shortages.
The shifts in demand have had a big impact on production activities. In certain cases, this even meant the full stop of production (e.g. inside the duck farming industry, which came to a standstill on account of demand fall out inside the foodservice sector). In other situations, a big portion of the personnel contracted corona (e.g. to the various meats processing industry), resulting in a closure of equipment.
Supply chain - Distribution pursuits were also affected. The start of the Corona crisis in China caused the flow of sea canisters to slow down pretty soon in 2020. This resulted in transport capability that is limited throughout the first weeks of the crisis, and high costs for container transport as a direct result. Truck transportation encountered various problems. To begin with, there were uncertainties about how transport would be handled for borders, which in the end were not as strict as feared. That which was problematic in instances that are most , however, was the accessibility of motorists.
The reaction to COVID 19 - deliver chain resilience The source chain resilience evaluation held by Prof. de Leeuw and Colleagues, was used on the overview of the main elements of supply chain resilience:
To us this framework for the analysis of the interviews, the conclusions show that not many organizations had been nicely prepared for the corona problems and actually mostly applied responsive methods. The most notable source chain lessons were:
Figure one. 8 best methods for food supply chain resilience
For starters, the need to develop the supply chain for flexibility and agility. This looks especially 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 capacity to do so.
Next, it was discovered that more attention was necessary on spreading risk and also aiming for risk reduction inside the supply chain. For the future, what this means is far more attention has to be provided to the manner in which businesses depend on suppliers, customers, and specific countries.
Third, attention is required for explicit prioritization and clever rationing strategies in situations in which demand cannot be met. Explicit prioritization is actually necessary to continue to meet market expectations but also to increase market shares where competitors miss opportunities. This task is not new, but it has in addition been underexposed in this specific problems and was frequently not a component of preparatory activities.
Fourthly, the corona issues shows you us that the monetary impact of a crisis in addition is determined by the way cooperation in the chain is set up. It is typically unclear exactly how further costs (and benefits) are distributed in a chain, if at all.
Last but not least, relative to other functional departments, the businesses and supply chain features are in the driving accommodate during a crisis. Product development and advertising activities need to go hand in deep hand with supply chain events. Whether the corona pandemic will structurally replace the basic discussions between creation and logistics on the one hand and advertising on the other hand, the future must explain to.
How's the Dutch food supply chain coping during the corona crisis?