Supply chain - The COVID 19 pandemic has undoubtedly had its impact impact on the world. Economic indicators and health have been compromised and all industries have been touched within one of the ways or even another. One of the industries in which this was clearly obvious would be the agriculture as well as food industry.
Throughout 2019, the Dutch agriculture and food sector contributed 6.4 % to the disgusting domestic item (CBS, 2020). As per the FoodService Instituut, the foodservice industry in the Netherlands shed € 7.1 billion within 2020. The hospitality business lost 41.5 % of the turnover of its as show by ProcurementNation, while at the identical time supermarkets enhanced the turnover of theirs with € 1.8 billion.
Disruptions of the food chain have major effects for the Dutch economy and food security as many stakeholders are impacted. Despite the fact that it was apparent to many men and women that there was a big impact at the tail end of the chain (e.g., hoarding around food markets, eateries closing) and also at the start of this chain (e.g., harvested potatoes not finding customers), there are numerous actors in the source chain for that the effect is less clear. It is thus important to determine how effectively the food supply chain as being a whole is armed to cope with disruptions. Researchers in the Operations Research as well as Logistics Group at Wageningen Faculty and also coming from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the influences of the COVID 19 pandemic all over the food supply chain. They based their examination on interviews with about thirty Dutch supply chain actors.
Demand in retail up, contained food service down It is obvious and popular that need in the foodservice channels went down on account of the closure of joints, amongst others. In certain cases, sales for suppliers of the food service business thus fell to aproximatelly twenty % of the first volume. As a side effect, demand in the list stations went up and remained within a quality of about 10 20 % greater than before the crisis began.
Goods that had to come via abroad had the own issues of theirs. With the change in desire from foodservice to retail, the need for packaging improved dramatically, More tin, cup and plastic material was necessary for wearing in consumer packaging. As more of this packaging material concluded up in consumers' homes as opposed to in joints, the cardboard recycling function got disrupted as well, causing shortages.
The shifts in need have had a big impact on output activities. In a few cases, this even meant a full stop in output (e.g. in the duck farming industry, which arrived to a standstill as a result of demand fall-out in the foodservice sector). In other instances, a significant section of the personnel contracted corona (e.g. to the meat processing industry), causing a closure of facilities.
Supply chain - Distribution activities were also affected. The beginning of the Corona crisis in China caused the flow of sea canisters to slow down pretty shortly in 2020. This resulted in limited transport capability during the earliest weeks of the crisis, and expenses which are high for container transport as a result. Truck transportation encountered different issues. Initially, there were uncertainties on how transport will be handled at borders, which in the long run weren't as strict as feared. The thing that was problematic in situations that are a large number of , nonetheless, was the accessibility of drivers.
The response to COVID-19 - supply chain resilience The supply chain resilience analysis held by Prof. de Leeuw as well as Colleagues, was used on the overview of the core things of supply chain resilience:
Using this framework for the assessment of the interview, the results indicate that not many companies were well 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
First, the need to design the supply chain for flexibility as well as agility. This looks especially challenging for smaller companies: building resilience into a supply chain takes attention and time in the business, and smaller organizations often do not have the potential to do so.
Next, it was found that much more attention was needed on spreading risk and aiming for risk reduction within the supply chain. For the future, meaning more attention ought to be made available to the manner in which organizations count on suppliers, customers, and specific countries.
Third, attention is required for explicit prioritization and smart rationing strategies in situations where demand cannot be met. Explicit prioritization is actually needed to keep on to satisfy market expectations but in addition to boost market shares in which competitors miss options. This task isn't new, but it has also been underexposed in this crisis and was frequently not a part of preparatory activities.
Fourthly, the corona crisis teaches us that the economic impact of a crisis in addition depends on the way cooperation in the chain is actually set up. It's typically unclear precisely how extra costs (and benefits) are sent out in a chain, in case at all.
Lastly, relative to other purposeful departments, the operations and supply chain characteristics are in the driving seat during a crisis. Product development and marketing activities have to go hand in deep hand with supply chain activities. Regardless of whether the corona pandemic will structurally switch the traditional discussions between logistics and production on the one hand and advertising and marketing on the other hand, the future must explain to.
How is the Dutch foods supply chain coping throughout the corona crisis?