Supply chain – The COVID 19 pandemic has undoubtedly had the impact of its effect on the planet. Economic indicators and health have been affected and all industries are touched inside one of the ways or perhaps some other. One of the industries in which it was clearly apparent would be the farming as well as food industry.
In 2019, the Dutch farming and food niche contributed 6.4 % to the gross domestic product (CBS, 2020). As per the FoodService Instituut, the foodservice business in the Netherlands dropped € 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 increased their turnover with € 1.8 billion.
Disruptions of the food chain have major effects for the Dutch economy as well as food security as many stakeholders are affected. Despite the fact that it was apparent to numerous individuals that there was a great effect at the tail end of this chain (e.g., hoarding around supermarkets, eateries closing) and also at the beginning of the chain (e.g., harvested potatoes not searching for customers), there are a lot of actors inside the supply chain for that the effect is less clear. It is therefore vital that you determine how well the food supply chain as being a whole is prepared to deal with disruptions. Researchers from the Operations Research and Logistics Group at Wageningen University and also out of Wageningen Economics Research, led by Professor Sander de Leeuw, studied the influences of the COVID 19 pandemic throughout the food supply chain. They based the examination of theirs on interviews with about thirty Dutch source chain actors.
Demand in retail up, contained food service down It is apparent and well known that need in the foodservice stations went down due to the closure of restaurants, amongst others. In certain instances, sales for suppliers in the food service business as a result fell to about 20 % of the original volume. Being a side effect, demand in the list stations went up and remained within a level of about 10 20 % greater than before the crisis started.
Products which had to come through abroad had the own issues of theirs. With the shift in demand coming from foodservice to retail, the demand for packaging improved considerably, More tin, glass and plastic material was necessary for wearing in buyer packaging. As much more of this particular packaging material concluded up in consumers’ homes instead of in joints, the cardboard recycling function got disrupted also, causing shortages.
The shifts in desire have had a significant effect on production activities. In some cases, this even meant the full stop in production (e.g. in 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. to the various meats processing industry), resulting in a closure of facilities.
Supply chain – Distribution pursuits were also affected. The beginning of the Corona crisis in China sparked the flow of sea canisters to slow down pretty shortly in 2020. This resulted in transport capacity which is limited throughout the very first weeks of the issues, and expenses that are high for container transport as a result. Truck travel faced different problems. Initially, there were uncertainties about how transport would be handled at borders, which in the end weren’t as strict as feared. That which was problematic in most cases, nonetheless, was the accessibility of motorists.
The response to COVID 19 – supply chain resilience The supply chain resilience analysis held by Prof. de Colleagues as well as Leeuw, was based on the overview of the key things of supply chain resilience:
To us this framework for the analysis of the interview, the findings show that few organizations were nicely prepared for the corona crisis and in reality mainly applied responsive methods. The most notable source chain lessons were:
Figure one. 8 best methods for meals supply chain resilience
To begin with, the need to design the supply chain for versatility and agility. This seems particularly complicated for small companies: building resilience right 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 observed that more interest was necessary on spreading threat and aiming for risk reduction inside the supply chain. For the future, this means far more attention ought to be given to the way companies count on specific countries, customers, and suppliers.
Third, attention is necessary for explicit prioritization and clever rationing strategies in situations where demand cannot be met. Explicit prioritization is necessary to continue to meet market expectations but also to increase market shares wherein competitors miss opportunities. This task is not new, although it has also been underexposed in this specific crisis and was usually not a part of preparatory pursuits.
Fourthly, the corona problems shows you us that the economic effect of a crisis additionally relies on the way cooperation in the chain is actually set up. It is typically unclear precisely how further costs (and benefits) are sent out in a chain, in case at all.
Lastly, relative to other functional departments, the operations and supply chain functions are in the driving accommodate during a crisis. Product development and marketing and advertising activities need to go hand in hand with supply chain activities. Regardless of whether the corona pandemic will structurally change the traditional discussions between production and logistics on the one hand and advertising on the other, the future must tell.
How is the Dutch meal supply chain coping during the corona crisis?