Supply chain - The COVID 19 pandemic has undoubtedly had its impact influence on the planet. Economic indicators and health have been affected and all industries have been touched within one way or even some other. Among the industries in which this was clearly apparent will be the agriculture and food industry.
Throughout 2019, the Dutch farming as well as food niche contributed 6.4 % to the yucky domestic item (CBS, 2020). Based on the FoodService Instituut, the foodservice industry in the Netherlands lost € 7.1 billion in 2020. The hospitality industry lost 41.5 % of its turnover as show by ProcurementNation, while at the same time supermarkets increased the turnover of theirs with € 1.8 billion.
Disruptions in the food chain have significant consequences for the Dutch economy as well as food security as lots of stakeholders are affected. Though it was apparent to most individuals that there was a great impact at the tail end of this chain (e.g., hoarding around supermarkets, restaurants closing) and at the beginning of this chain (e.g., harvested potatoes not searching for customers), there are numerous actors inside the source chain for that will the effect is less clear. It is thus imperative that you find out how properly the food supply chain as being a whole is actually armed to cope with disruptions. Researchers in the Operations Research and Logistics Group at Wageningen University and from Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the influences of the COVID-19 pandemic all over the food supply chain. They based the examination of theirs on interviews with around thirty Dutch supply chain actors.
Demand within retail up, in food service down It's apparent and popular that demand in the foodservice stations went down on account of the closure of restaurants, amongst others. In certain cases, sales for suppliers in the food service business as a result fell to aproximatelly twenty % of the first volume. Being a side effect, demand in the list channels went up and remained within a level of about 10-20 % higher than before the problems started.
Products which had to come via abroad had the own problems of theirs. With the change in need from foodservice to retail, the demand for packaging changed dramatically, More tin, glass and plastic material was necessary for use in consumer packaging. As much more of this packaging material concluded up in consumers' houses as opposed to in joints, the cardboard recycling function got disrupted as well, causing shortages.
The shifts in need have had a significant affect on output activities. In a few cases, this even meant a full stop of production (e.g. in the duck farming business, which came to a standstill as a result of demand fall-out inside the foodservice sector). In other instances, a major section of the personnel contracted corona (e.g. in the meat processing industry), leading to 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 transport capacity which is limited during the first weeks of the problems, and high expenses for container transport as a direct result. Truck travel experienced different issues. Initially, there were uncertainties on how transport will be managed at borders, which in the long run weren't as rigid as feared. What was problematic in many cases, however, was the availability of motorists.
The reaction to COVID 19 - deliver chain resilience The source chain resilience analysis held by Prof. de Leeuw and Colleagues, was used on the overview of this key elements of supply chain resilience:
To us this particular framework for the evaluation of the interviews, the conclusions indicate that not many businesses were well prepared for the corona problems and in reality mostly applied responsive methods. The most notable supply chain lessons were:
Figure one. 8 best practices for meals supply chain resilience
For starters, the need to create the supply chain for agility and versatility. This looks particularly complicated for smaller sized companies: building resilience right into a supply chain takes time and attention in the business, and smaller organizations usually don't have the potential to do it.
Second, it was observed that more attention was required on spreading danger and also aiming for risk reduction inside the supply chain. For the future, meaning more attention has to be provided to the way businesses depend on suppliers, customers, and specific countries.
Third, attention is necessary for explicit prioritization and intelligent rationing techniques in cases in which demand can't be met. Explicit prioritization is necessary to keep on to satisfy market expectations but additionally to increase market shares wherein competitors miss opportunities. This particular task is not new, although it has also been underexposed in this problems and was often not part of preparatory pursuits.
Fourthly, the corona crisis teaches us that the financial impact of a crisis in addition is determined by the way cooperation in the chain is actually set up. It's usually unclear how additional expenses (and benefits) are sent out in a chain, if at all.
Lastly, relative to other purposeful departments, the businesses and supply chain capabilities are actually in the driving seat during a crisis. Product development and advertising activities have to go hand in deep hand with supply chain pursuits. Regardless of whether the corona pandemic will structurally switch the basic considerations between logistics and creation on the one hand and advertising and marketing on the other, the potential future will have to explain to.
How is the Dutch foods supply chain coping throughout the corona crisis?