Supply chain - The COVID 19 pandemic has definitely had the impact of its effect on the planet. Economic indicators and health have been affected and all industries have been completely touched in one of the ways or perhaps another. One of the industries in which it was clearly visible will be the farming and food industry.
In 2019, the Dutch farming as well as food niche contributed 6.4 % to the yucky domestic product (CBS, 2020). As per the FoodService Instituut, the foodservice business 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 same time supermarkets increased the turnover of theirs with € 1.8 billion.
Disruptions of the food chain have big effects for the Dutch economy as well as food security as lots of stakeholders are affected. Though it was clear to many men and women that there was a big effect at the conclusion of the chain (e.g., hoarding in supermarkets, restaurants closing) as well as at the beginning of the chain (e.g., harvested potatoes not searching for customers), you will find numerous actors inside the supply chain for that will the effect is less clear. It is thus important to figure out how properly the food supply chain as being a whole is prepared to contend with disruptions. Researchers from your Operations Research as well as Logistics Group at Wageningen Faculty and coming from Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the consequences of the COVID 19 pandemic throughout the food supplies chain. They based their analysis on interviews with about thirty Dutch supply chain actors.
Demand within retail up, found food service down It's evident and popular that demand in the foodservice channels went down as a result of the closure of restaurants, amongst others. In a few instances, sales for vendors of the food service business as a result fell to about 20 % of the initial volume. Being a complication, demand in the retail channels went up and remained at a level of about 10 20 % greater than before the crisis began.
Goods that had to come through abroad had their own issues. With the shift in demand from foodservice to retail, the need for packaging improved dramatically, More tin, glass and plastic material was needed for wearing in buyer packaging. As much more of this particular product packaging material concluded up in consumers' homes instead of in joints, the cardboard recycling system got disrupted as well, causing shortages.
The shifts in demand have had a major impact on production activities. In some cases, this even meant the full stop of production (e.g. in the duck farming business, which came to a standstill due to demand fall-out inside the foodservice sector). In other instances, a major section of the personnel contracted corona (e.g. to the meat processing industry), resulting in a closure of facilities.
Supply chain - Distribution activities were also affected. The start of the Corona crisis in China triggered the flow of sea containers to slow down pretty soon in 2020. This resulted in transport capacity which is limited during the earliest weeks of the crisis, and high expenses for container transport as a direct result. Truck transport faced various problems. Initially, there were uncertainties on how transport will be managed for borders, which in the long run weren't as rigid as feared. That which was problematic in a large number of instances, however, was the accessibility of motorists.
The response to COVID 19 - provide chain resilience The supply chain resilience analysis held by Prof. de Leeuw and Colleagues, was used on the overview of this key components of supply chain resilience:
To us this framework for the analysis of the interviews, the results indicate that not many organizations had been nicely prepared for the corona crisis and in reality mainly applied responsive practices. The most notable supply chain lessons were:
Figure 1. 8 best practices for food supply chain resilience
For starters, the need to develop the supply chain for versatility as well as agility. This appears especially challenging for small companies: building resilience right into a supply chain takes time and attention in the organization, and smaller organizations often do not have the capacity to do so.
Next, it was observed that much more interest was necessary on spreading threat and also aiming for risk reduction in the supply chain. For the future, what this means is more attention ought to be provided to the way businesses count on specific countries, customers, and suppliers.
Third, attention is needed for explicit prioritization as well as intelligent rationing techniques in cases where need can't be met. Explicit prioritization is actually required to keep on to meet market expectations but also to boost market shares where competitors miss opportunities. This challenge isn't new, however, it has additionally been underexposed in this specific crisis and was frequently not part of preparatory activities.
Fourthly, the corona crisis shows you us that the financial impact of a crisis additionally is determined by the manner in which cooperation in the chain is set up. It is often unclear precisely how additional costs (and benefits) are distributed in a chain, in case at all.
Finally, relative to other purposeful departments, the operations and supply chain works are actually in the driving seat during a crisis. Product development and advertising activities have to go hand in hand with supply chain events. Regardless of whether the corona pandemic will structurally switch the traditional discussions between logistics and generation on the one hand as well as marketing and advertising on the other hand, the long term must explain to.
How's the Dutch meal supply chain coping during the corona crisis?