Supply chain - The COVID 19 pandemic has undoubtedly had the impact of its influence on the planet. health and Economic indicators have been compromised and all industries are touched within one of the ways or perhaps some other. One of the industries in which this was clearly visible is the agriculture and food business.
In 2019, the Dutch farming as well as food sector contributed 6.4 % to the yucky domestic item (CBS, 2020). Based on the FoodService Instituut, the foodservice business in the Netherlands shed € 7.1 billion in 2020. The hospitality trade 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 significant effects for the Dutch economy as well as food security as many stakeholders are impacted. Though it was clear to many individuals that there was a big effect at the conclusion of this chain (e.g., hoarding doing supermarkets, restaurants closing) and also at the start of the chain (e.g., harvested potatoes not searching for customers), you will find a lot of actors inside the supply chain for that the impact is much less clear. It's thus vital that you determine how properly the food supply chain as being a whole is prepared to contend with disruptions. Researchers from the Operations Research and 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 throughout the food resources chain. They based their examination on interviews with about thirty Dutch source chain actors.
Demand in retail up, that is found food service down It's obvious and well known that need in the foodservice channels went down due to the closure of restaurants, amongst others. In some cases, sales for suppliers in the food service business as a result fell to aproximatelly 20 % of the first volume. As an adverse reaction, demand in the retail stations went up and remained at a quality of about 10 20 % greater than before the crisis started.
Products that had to come via abroad had their own problems. With the change in demand from foodservice to retail, the requirement for packaging changed dramatically, More tin, cup and plastic material was needed for use in consumer packaging. As much more of this product packaging material ended up in consumers' houses as opposed to in joints, the cardboard recycling system got disrupted too, causing shortages.
The shifts in demand have had a major affect on output activities. In a few instances, this even meant the full stop in production (e.g. inside the duck farming industry, which came to a standstill on account of demand fall-out inside the foodservice sector). In other situations, a major part of the personnel contracted corona (e.g. to the various meats processing industry), leading to a closure of equipment.
Supply chain - Distribution activities were also affected. The beginning of the Corona crisis of China sparked the flow of sea canisters to slow down fairly shortly in 2020. This resulted in limited transport capability during the earliest weeks of the issues, and costs that are high for container transport as a consequence. Truck travel encountered different problems. Initially, there were uncertainties on how transport will be handled at borders, which in the long run weren't as strict as feared. That which was problematic in instances which are a large number of, nevertheless, was the availability of motorists.
The response to COVID-19 - provide chain resilience The source chain resilience evaluation held by Prof. de Colleagues as well as Leeuw, was based on the overview of this core components of supply chain resilience:
To us this framework for the assessment of the interview, the results show that not many organizations had been nicely prepared for the corona crisis and in reality mostly applied responsive methods. The most important source chain lessons were:
Figure one. 8 best practices for food supply chain resilience
For starters, the need to design the supply chain for versatility as well as agility. This seems especially complicated for small companies: building resilience into a supply chain takes attention and time in the organization, and smaller organizations oftentimes do not have the capacity to accomplish that.
Second, it was observed that more interest was necessary on spreading risk and also aiming for risk reduction inside the supply chain. For the future, what this means is more attention should be made available to the way organizations depend on suppliers, customers, and specific countries.
Third, attention is necessary for explicit prioritization as well as intelligent rationing strategies in cases in which need can't be met. Explicit prioritization is actually necessary to continue to meet market expectations but additionally to improve market shares in which competitors miss opportunities. This particular challenge is not new, although it has in addition been underexposed in this specific problems and was usually not a component of preparatory pursuits.
Fourthly, the corona crisis teaches us that the monetary impact of a crisis also relies on the way cooperation in the chain is actually set up. It is often unclear how further costs (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 works are actually in the driving accommodate during a crisis. Product development and advertising activities need to go hand in hand with supply chain events. Whether or not the corona pandemic will structurally switch the basic discussions between logistics and production on the one hand as well as marketing and advertising on the other hand, the long term will have to explain to.
How's the Dutch food supply chain coping during the corona crisis?