Supply chain - The COVID-19 pandemic has undoubtedly had its impact impact on the planet. health and Economic indicators have been affected and all industries have been completely touched inside one way or another. Among the industries in which it was clearly noticeable is the farming and food industry.
Throughout 2019, the Dutch agriculture and food industry contributed 6.4 % to the gross domestic item (CBS, 2020). According to the FoodService Instituut, the foodservice industry in the Netherlands dropped € 7.1 billion in 2020. The hospitality industry lost 41.5 % of the turnover of its as show by ProcurementNation, while at the same time supermarkets enhanced their turnover with € 1.8 billion.
Disruptions of the food chain have big effects for the Dutch economy as well as food security as many stakeholders are impacted. Even though it was apparent to many folks that there was a big impact at the end of the chain (e.g., hoarding in food markets, eateries closing) and at the beginning of the chain (e.g., harvested potatoes not searching for customers), there are numerous actors within the supply chain for that will the effect is less clear. It is therefore important to figure out how well the food supply chain as a whole is prepared to cope with disruptions. Researchers from your Operations Research and Logistics Group at Wageningen Faculty and out of Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the influences of the COVID-19 pandemic all over the food resources chain. They based their analysis on interviews with around 30 Dutch supply chain actors.
Need in retail up, contained food service down It's evident and well known that demand in the foodservice stations went down as a result of the closure of places, amongst others. In certain instances, sales for suppliers in the food service industry as a result fell to about twenty % of the initial volume. As a complication, demand in the list stations went up and remained within a level of about 10 20 % greater than before the crisis began.
Goods that had to come via abroad had their own problems. With the change in demand coming from foodservice to retail, the requirement for packaging changed considerably, More tin, cup or plastic was needed for use in consumer packaging. As more of this particular product packaging material concluded up in consumers' houses rather than in places, the cardboard recycling process got disrupted also, causing shortages.
The shifts in demand have had an important effect on output activities. In certain cases, this even meant a full stop in output (e.g. in the duck farming industry, which emerged to a standstill on account of demand fall-out in the foodservice sector). In other cases, a major portion of the personnel contracted corona (e.g. to the meat processing industry), leading to a closure of equipment.
Supply chain - Distribution pursuits were also affected. The start of the Corona crisis in China caused the flow of sea bins to slow down fairly soon in 2020. This resulted in transport capability which is limited throughout the first weeks of the issues, and costs that are high for container transport as a result. Truck transportation faced different problems. Initially, there were uncertainties regarding how transport would be managed at borders, which in the end weren't as rigid as feared. What was problematic in a large number of cases, nevertheless, was the availability of motorists.
The response to COVID 19 - supply chain resilience The source chain resilience evaluation held by Prof. de Leeuw as well as Colleagues, was based on the overview of the main components of supply chain resilience:
Using this framework for the evaluation of the interview, the findings indicate that not many companies had been well prepared for the corona crisis and actually mainly applied responsive practices. Probably the most important source chain lessons were:
Figure one. Eight best practices for meals supply chain resilience
To begin with, the need to develop the supply chain for agility and versatility. This looks especially complicated for smaller companies: building resilience right into a supply chain takes attention and time in the organization, and smaller organizations often don't have the capability to accomplish that.
Next, it was discovered that much more attention was required on spreading threat and also aiming for risk reduction inside the supply chain. For the future, this means more attention should be given to the way businesses depend on specific countries, customers, and suppliers.
Third, attention is needed for explicit prioritization and clever rationing techniques in situations in which need cannot be met. Explicit prioritization is actually required to keep on to meet market expectations but additionally to improve market shares where competitors miss opportunities. This task is not new, although it's in addition been underexposed in this specific crisis 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 set up. It is often unclear how additional expenses (and benefits) are actually distributed in a chain, in case at all.
Last but not least, relative to other purposeful departments, the businesses and supply chain functions are in the driving accommodate during a crisis. Product development and marketing and advertising activities need to go hand in hand with supply chain events. Whether or not the corona pandemic will structurally switch the classic considerations between creation and logistics on the one hand as well as marketing on the other, the potential future must tell.
How is the Dutch foods supply chain coping during the corona crisis?