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. Among the industries in which it was clearly visible will be the farming and food business.
In 2019, the Dutch extension 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 industry 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 consequences for the Dutch economy and food security as lots of stakeholders are impacted. Despite the fact that it was clear to many folks that there was a big impact at the end of the chain (e.g., hoarding in food markets, restaurants closing) as well as at the beginning of this chain (e.g., harvested potatoes not finding customers), you will find a lot of actors within the source chain for which the effect is much less clear. It's therefore imperative that you determine how effectively the food supply chain as being a whole is actually armed to cope with disruptions. Researchers in the Operations Research and Logistics Group at Wageningen University as well as out of 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 around 30 Dutch source chain actors.
Need within retail up, in food service down It's obvious and well known that demand in the foodservice channels went down on account of the closure of places, amongst others. In certain cases, sales for vendors of the food service business thus fell to aproximatelly 20 % of the initial volume. As a complication, demand in the list stations went up and remained at a level of aproximatelly 10-20 % higher than before the crisis started.
Goods that had to come through abroad had their very own issues. With the shift in desire from foodservice to retail, the requirement for packaging changed considerably, More tin, glass or plastic was needed for use in buyer packaging. As much more of this particular packaging material ended up in consumers' houses as opposed to in restaurants, the cardboard recycling function got disrupted too, causing shortages.
The shifts in need have had a big impact on production activities. In a few cases, this even meant the full stop in output (e.g. in the duck farming business, which came to a standstill on account of demand fall out on the foodservice sector). In other instances, a big section of the personnel contracted corona (e.g. to the meat processing industry), resulting in a closure of equipment.
Supply chain - Distribution activities were also affected. The start of the Corona crisis of China triggered the flow of sea bins to slow down fairly soon in 2020. This resulted in restricted transport capability during the very first weeks of the problems, and high expenses for container transport as a direct result. Truck transportation experienced different issues. Initially, there were uncertainties on how transport will be handled at borders, which in the long run were not as rigid as feared. The thing that was problematic in most situations, nevertheless, was the availability of drivers.
The response to COVID-19 - provide chain resilience The source chain resilience analysis held by Prof. de Leeuw as well as Colleagues, was used on the overview of this core elements of supply chain resilience:
To us this framework for the analysis of the interview, the conclusions indicate that not many businesses were well prepared for the corona crisis and in fact mostly applied responsive practices. Probably the most notable supply chain lessons were:
Figure one. Eight best methods for food supply chain resilience
For starters, the need to develop the supply chain for flexibility as well as agility. This appears especially challenging for small companies: building resilience into a supply chain takes attention and time in the organization, and smaller organizations oftentimes don't have the capability to do so.
Second, it was found that much more interest was necessary on spreading risk and also aiming for risk reduction within the supply chain. For the future, meaning more attention should 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 smart rationing strategies in cases where demand can't be met. Explicit prioritization is actually needed to continue to meet market expectations but in addition to increase market shares wherein competitors miss opportunities. This particular challenge isn't new, however, it's additionally been underexposed in this problems and was often not a component of preparatory pursuits.
Fourthly, the corona issues shows us that the economic impact of a crisis additionally is determined by the way cooperation in the chain is set up. It is typically unclear exactly how further 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 capabilities are actually in the driving accommodate during a crisis. Product development and marketing and advertising activities need to go hand deeply in hand with supply chain activities. Regardless of whether the corona pandemic will structurally change the classic discussions between logistics and production on the one hand as well as advertising and marketing on the other, the potential future will have to tell.
How's the Dutch meal supply chain coping throughout the corona crisis?