Supply chain – The COVID-19 pandemic has definitely had its impact impact on the planet. Economic indicators and health have been affected and all industries have been touched within one of the ways or even another. One of the industries in which this was clearly apparent is the farming and food industry.
Throughout 2019, the Dutch agriculture as well as food niche contributed 6.4 % to the disgusting domestic item (CBS, 2020). As per the FoodService Instituut, the foodservice business in the Netherlands dropped € 7.1 billion within 2020. The hospitality business lost 41.5 % of the turnover of its as show by ProcurementNation, while at exactly the same time supermarkets enhanced their turnover with € 1.8 billion.
Disruptions of the food chain have big effects for the Dutch economy and food security as many stakeholders are affected. Despite the fact that it was clear to numerous people that there was a significant effect at the tail end of this chain (e.g., hoarding doing supermarkets, restaurants closing) and at the start of this chain (e.g., harvested potatoes not finding customers), you will find numerous actors in the source chain for that will the effect is less clear. It is therefore vital that you find out how well the food supply chain as being a whole is prepared to deal with disruptions. Researchers in the Operations Research as well as Logistics Group at Wageningen Faculty as well as out of Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the effects of the COVID 19 pandemic throughout the food resources chain. They based their analysis on interviews with about thirty Dutch source chain actors.
Need in retail up, that is found food service down It’s evident and popular that need in the foodservice stations went down on account of the closure of joints, amongst others. In certain instances, sales for vendors in the food service business as a result fell to aproximatelly 20 % of the original volume. As a side effect, demand in the retail stations went up and remained at a quality of aproximatelly 10-20 % higher than before the problems began.
Products which had to come through abroad had their own issues. With the shift in need from foodservice to retail, the need for packaging changed dramatically, More tin, glass and plastic was necessary for use in consumer packaging. As much more of this particular packaging material concluded up in consumers’ homes as opposed to in restaurants, the cardboard recycling system got disrupted too, causing shortages.
The shifts in need have had an important affect on production activities. In certain cases, this even meant the full stop in production (e.g. inside the duck farming industry, which emerged to a standstill on account of demand fall-out on the foodservice sector). In other instances, a significant section of the personnel contracted corona (e.g. in the various meats processing industry), leading to a closure of equipment.
Supply chain – Distribution pursuits were also affected. The beginning of the Corona crisis of China sparked the flow of sea bins to slow down fairly shortly in 2020. This resulted in restricted transport capability during the earliest weeks of the problems, and expenses that are high for container transport as a consequence. Truck transportation faced different issues. At first, there were uncertainties on how transport would be managed at borders, which in the end were not as rigid as feared. That which was problematic in a large number of situations, however, was the availability of drivers.
The reaction to COVID-19 – provide chain resilience The supply chain resilience evaluation held by Prof. de Colleagues and Leeuw, was based on the overview of this main elements of supply chain resilience:
To us this particular framework for the assessment of the interviews, the conclusions indicate that few companies had been nicely prepared for the corona problems and in fact mainly applied responsive methods. Probably the most notable source chain lessons were:
Figure 1. 8 best practices for meals supply chain resilience
To begin with, the need to create the supply chain for agility and flexibility. This appears particularly challenging for smaller companies: building resilience into a supply chain takes time and attention in the organization, and smaller organizations often do not have the potential to do so.
Second, it was found that more attention was necessary on spreading threat and also aiming for risk reduction inside the supply chain. For the future, meaning more attention should be given to the manner in which companies count on specific countries, customers, and suppliers.
Third, attention is necessary for explicit prioritization as well as clever rationing strategies in cases in which need can’t be met. Explicit prioritization is actually necessary to keep on to satisfy market expectations but in addition to increase market shares in which competitors miss options. This particular task is not new, however, it has additionally been underexposed in this specific crisis and was frequently not a component of preparatory activities.
Fourthly, the corona issues shows us that the monetary impact of a crisis in addition is determined by the way cooperation in the chain is set up. It’s usually unclear how additional expenses (and benefits) are actually sent out in a chain, in case at all.
Lastly, relative to other purposeful departments, the businesses and supply chain functions are in the driving accommodate during a crisis. Product development and advertising and marketing activities have to go hand deeply in hand with supply chain activities. Whether or not the corona pandemic will structurally change the basic considerations between production and logistics on the one hand and advertising on the other hand, the future will need to explain to.
How is the Dutch foods supply chain coping during the corona crisis?