Supply chain – The COVID 19 pandemic has definitely had its impact influence on the world. health and Economic indicators have been affected and all industries are touched in a way or even another. Among the industries in which it was clearly obvious is the farming as well as food business.
In 2019, the Dutch extension as well as food industry contributed 6.4 % to the disgusting domestic item (CBS, 2020). Based on the FoodService Instituut, the foodservice industry in the Netherlands lost € 7.1 billion in 2020. The hospitality trade lost 41.5 % of the turnover of its as show by ProcurementNation, while at the same time supermarkets enhanced the turnover of theirs with € 1.8 billion.
Disruptions in the food chain have big effects for the Dutch economy as well as food security as many stakeholders are impacted. Though it was clear to many people that there was a huge impact at the conclusion of the chain (e.g., hoarding in food markets, restaurants closing) and at the beginning of this chain (e.g., harvested potatoes not finding customers), you will find numerous actors inside the source chain for that the impact is less clear. It is thus important to determine how effectively the food supply chain as a whole is armed to cope with disruptions. Researchers from the Operations Research and Logistics Group at Wageningen Faculty and from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the effects of the COVID-19 pandemic all over the food supplies chain. They based the analysis of theirs on interviews with around 30 Dutch supply chain actors.
Demand in retail up, in food service down It is evident and popular that demand in the foodservice stations went down due to the closure of places, amongst others. In some instances, sales for vendors in the food service business thus fell to about 20 % of the original volume. As an adverse reaction, demand in the retail channels went up and remained at a level of aproximatelly 10-20 % greater than before the crisis started.
Goods that had to come through abroad had the own issues of theirs. With the change in desire from foodservice to retail, the need for packaging changed considerably, More tin, glass and plastic material was required for wearing in buyer packaging. As much more of this particular packaging material ended up in consumers’ homes as opposed to in places, the cardboard recycling system got disrupted also, causing shortages.
The shifts in demand have had a big affect on output activities. In certain instances, this even meant a full stop in output (e.g. within the duck farming industry, which emerged to a standstill on account of demand fall out on the foodservice sector). In other situations, a significant part 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 in China caused the flow of sea containers to slow down fairly soon in 2020. This resulted in transport electrical capacity that is limited during the very first weeks of the crisis, and high costs for container transport as a direct result. Truck transportation faced various problems. Initially, there were uncertainties about how transport would be managed for borders, which in the long run weren’t as rigid as feared. What was problematic in a large number of instances, nonetheless, was the availability of drivers.
The response to COVID-19 – provide chain resilience The source chain resilience evaluation held by Prof. de Colleagues and Leeuw, was used on the overview of this main things of supply chain resilience:
Using this particular framework for the analysis of the interview, the findings show that few businesses were nicely prepared for the corona problems and in fact mostly applied responsive practices. Probably the most notable supply chain lessons were:
Figure one. 8 best practices for food supply chain resilience
For starters, the need to develop the supply chain for flexibility as well as agility. This seems especially challenging for smaller sized companies: building resilience into a supply chain takes time and attention in the business, and smaller organizations usually do not have the capacity to accomplish that.
Next, it was discovered that more interest was required on spreading risk and also aiming for risk reduction in the supply chain. For the future, what this means is more attention has to be given to the way companies depend on suppliers, customers, and specific countries.
Third, attention is needed for explicit prioritization as well as intelligent rationing techniques in situations where need can’t be met. Explicit prioritization is required to keep on to meet market expectations but in addition to increase market shares where competitors miss options. This challenge isn’t new, however, it’s additionally been underexposed in this crisis and was usually not a component of preparatory activities.
Fourthly, the corona problems shows us that the monetary impact of a crisis additionally is determined by the way cooperation in the chain is actually set up. It is usually unclear exactly how further expenses (and benefits) are distributed in a chain, in case at all.
Last but not least, relative to other purposeful departments, the operations and supply chain characteristics are actually in the driving seat during a crisis. Product development and marketing and advertising activities have to go hand deeply in hand with supply chain pursuits. Regardless of whether the corona pandemic will structurally change the traditional discussions between logistics and production on the one hand and marketing on the other, the future will have to tell.
How is the Dutch meal supply chain coping throughout the corona crisis?