Supply chain - The COVID-19 pandemic has certainly had the impact of its effect on the planet. health and Economic indicators have been affected and all industries have been completely touched within one way or perhaps another. Among the industries in which it was clearly apparent is the agriculture and food business.
In 2019, the Dutch agriculture and food niche contributed 6.4 % to the gross domestic item (CBS, 2020). Based on the FoodService Instituut, the foodservice business in the Netherlands lost € 7.1 billion inside 2020. The hospitality business lost 41.5 % of the turnover of its as show by ProcurementNation, while at the same time supermarkets increased the turnover of theirs with € 1.8 billion.
Disruptions in the food chain have major consequences for the Dutch economy as well as food security as a lot of stakeholders are impacted. Even though it was apparent to a lot of men and women that there was a great impact at the tail end of this chain (e.g., hoarding in food markets, eateries closing) and also at the start of the chain (e.g., harvested potatoes not searching for customers), you will find numerous actors in the source chain for which the effect is less clear. It is thus vital that you figure out how well the food supply chain as a whole is actually prepared to deal with disruptions. Researchers from the Operations Research as well as Logistics Group at Wageningen Faculty and also from Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the effects of the COVID 19 pandemic all over the food supplies chain. They based the examination of theirs on interviews with about thirty Dutch source chain actors.
Need within retail up, that is found food service down It is obvious and widely known that need in the foodservice channels went down as a result of the closure of restaurants, amongst others. In some instances, sales for vendors of the food service business therefore fell to aproximatelly twenty % of the first volume. As a complication, demand in the list channels went up and remained at a quality of aproximatelly 10-20 % greater than before the problems started.
Goods that had to come through abroad had their own problems. With the change in need from foodservice to retail, the requirement for packaging changed dramatically, More tin, cup and plastic material was necessary for wearing in buyer packaging. As much more of this particular packaging material concluded up in consumers' houses instead of in places, the cardboard recycling system got disrupted too, causing shortages.
The shifts in desire have had a significant impact on production activities. In certain instances, this even meant a total stop of output (e.g. in the duck farming business, which arrived to a standstill as a result of demand fall-out in the foodservice sector). In other instances, a significant part of the personnel contracted corona (e.g. to the various meats processing industry), leading to a closure of facilities.
Supply chain - Distribution activities were also affected. The start of the Corona crisis in China sparked the flow of sea containers to slow down fairly shortly in 2020. This resulted in transport capability that is limited throughout the first weeks of the crisis, and costs which are high for container transport as a result. Truck travel encountered various problems. Initially, there were uncertainties on how transport will be managed at borders, which in the long run were not as rigid as feared. The thing that was problematic in instances which are most, nevertheless, was the availability of drivers.
The reaction to COVID-19 - deliver chain resilience The supply chain resilience evaluation held by Prof. de Leeuw and Colleagues, was based on the overview of this main things of supply chain resilience:
To us this framework for the analysis of the interview, the results indicate that few companies were nicely prepared for the corona problems and actually mostly applied responsive practices. The most important supply 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 as well as flexibility. This looks particularly complicated for smaller companies: building resilience into a supply chain takes attention and time in the organization, and smaller organizations often do not have the capacity to accomplish that.
Second, it was observed that more attention was required on spreading risk as well as aiming for risk reduction within the supply chain. For the future, this means more attention has to be given to the manner in which companies count on suppliers, customers, and specific countries.
Third, attention is required for explicit prioritization and smart rationing strategies in situations where demand can't be met. Explicit prioritization is necessary to continue to satisfy market expectations but in addition to improve market shares in which competitors miss options. This particular challenge is not new, though it's additionally been underexposed in this crisis and was often 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 typically unclear how further expenses (and benefits) are actually distributed in a chain, if at all.
Last but not least, relative to other functional departments, the businesses and supply chain operates are in the driving accommodate during a crisis. Product development and advertising and marketing activities need to go hand in hand with supply chain events. Regardless of whether the corona pandemic will structurally replace the classic considerations between production and logistics on the one hand and marketing and advertising on the other hand, the potential future will need to explain to.
How's the Dutch food supply chain coping throughout the corona crisis?