Supply chain – The COVID 19 pandemic has definitely had its impact influence on the planet. health and Economic indicators have been compromised and all industries have been completely touched inside a way or perhaps another. Among the industries in which this was clearly noticeable is the farming and food business.
In 2019, the Dutch farming and food niche contributed 6.4 % to the disgusting domestic item (CBS, 2020). According to the FoodService Instituut, the foodservice industry in the Netherlands shed € 7.1 billion within 2020. The hospitality industry lost 41.5 % of the turnover of its as show by ProcurementNation, while at the same time supermarkets enhanced their turnover with € 1.8 billion.
Disruptions in the food chain have significant consequences for the Dutch economy as well as food security as many stakeholders are affected. Even though it was apparent to majority of individuals that there was a significant impact at the conclusion of this chain (e.g., hoarding doing grocery stores, restaurants closing) and also at the beginning of this chain (e.g., harvested potatoes not finding customers), you will find many actors within the supply chain for that will the impact is much less clear. It’s therefore imperative that you determine how effectively the food supply chain as being a whole is prepared to contend with disruptions. Researchers from your Operations Research and Logistics Group at Wageningen University and also from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the consequences of the COVID 19 pandemic all over the food supply chain. They based the examination of theirs on interviews with about 30 Dutch supply chain actors.
Need within retail up, that is found food service down It is evident and popular that demand in the foodservice channels went down as a result of the closure of restaurants, amongst others. In some cases, sales for vendors of the food service business therefore fell to about 20 % of the original volume. Being a side effect, demand in the list stations went up and remained at a quality of about 10 20 % higher than before the problems started.
Products that had to come through abroad had their own issues. With the change in need coming from foodservice to retail, the demand for packaging improved dramatically, More tin, cup or plastic was required for wearing in consumer packaging. As more of this packaging material ended up in consumers’ homes rather than in restaurants, the cardboard recycling function got disrupted as well, causing shortages.
The shifts in desire have had a major effect on production activities. In certain cases, this even meant a complete stop in output (e.g. within the duck farming industry, which emerged to a standstill as a result of demand fall out in the foodservice sector). In other instances, a major part of the personnel contracted corona (e.g. to the meat processing industry), resulting in a closure of facilities.
Supply chain – Distribution activities were also affected. The beginning of the Corona crisis of China caused the flow of sea canisters to slow down fairly soon in 2020. This resulted in limited transport electrical capacity during the earliest weeks of the problems, and high expenses for container transport as a consequence. Truck travel encountered various problems. Initially, there were uncertainties regarding how transport would be managed at borders, which in the long run weren’t as strict as feared. The thing that was problematic in situations that are most , nonetheless, was the availability of drivers.
The reaction to COVID 19 – provide chain resilience The supply chain resilience evaluation held by Prof. de Leeuw as well as Colleagues, was based on the overview of the core things of supply chain resilience:
To us this framework for the evaluation of the interview, the conclusions indicate that not many companies were well prepared for the corona problems and in fact mainly applied responsive practices. Probably the most important supply chain lessons were:
Figure one. Eight best practices for food supply chain resilience
First, the need to design the supply chain for flexibility and agility. This appears particularly challenging for smaller companies: building resilience into a supply chain takes attention and time in the organization, and smaller organizations often don’t have the capability to accomplish that.
Second, it was discovered that much more attention was required on spreading risk and 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 count on suppliers, customers, and specific countries.
Third, attention is necessary for explicit prioritization as well as clever rationing techniques in situations where demand cannot be met. Explicit prioritization is necessary to keep on to satisfy market expectations but additionally to improve market shares in which competitors miss opportunities. This challenge is not new, though it has also been underexposed in this specific crisis and was often not a part of preparatory activities.
Fourthly, the corona problems shows you us that the economic effect of a crisis additionally depends on the way cooperation in the chain is set up. It’s usually unclear precisely how further expenses (and benefits) are sent out in a chain, if at all.
Finally, relative to other purposeful departments, the operations and supply chain functions are in the driving seat during a crisis. Product development and advertising activities need to go hand in hand with supply chain activities. Whether or not the corona pandemic will structurally replace the traditional discussions between logistics and production on the one hand as well as advertising on the other, the future will need to explain to.
How is the Dutch food supply chain coping throughout the corona crisis?