Supply chain - The COVID-19 pandemic has definitely had its impact influence on the world. health and Economic indicators have been compromised and all industries have been completely touched in a way or yet another. Among the industries in which it was clearly obvious is the agriculture and food industry.
In 2019, the Dutch farming as well as 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 in 2020. The hospitality industry lost 41.5 % of the turnover of its as show by ProcurementNation, while at exactly the same time supermarkets increased their turnover with € 1.8 billion.
Disruptions of the food chain have significant effects for the Dutch economy and food security as a lot of stakeholders are affected. Though it was apparent to numerous folks that there was a big effect at the end of this chain (e.g., hoarding in grocery stores, restaurants closing) and at the start of this chain (e.g., harvested potatoes not searching for customers), you will find many actors inside the supply chain for that the effect is much less clear. It's thus imperative that you figure out how properly the food supply chain as being a whole is actually prepared to contend with disruptions. Researchers from the Operations Research as well as Logistics Group at Wageningen Faculty and coming from Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the consequences of the COVID 19 pandemic throughout the food resources chain. They based their analysis on interviews with around thirty Dutch source chain actors.
Need in retail up, that is found food service down It is obvious and well known that need in the foodservice channels went down as a result of the closure of restaurants, amongst others. In some instances, sales for suppliers in the food service industry thus fell to about 20 % of the first volume. As a complication, demand in the retail channels went up and remained within a quality of aproximatelly 10-20 % higher than before the problems started.
Goods that had to come from abroad had their very own issues. With the change in need from foodservice to retail, the need for packaging improved considerably, More tin, cup and plastic material was necessary for wearing in consumer packaging. As more of this packaging material ended up in consumers' homes rather than in joints, the cardboard recycling function got disrupted too, causing shortages.
The shifts in demand have had an important affect on production activities. In certain instances, this even meant a full stop of output (e.g. inside the duck farming industry, which emerged to a standstill on account of demand fall-out on the foodservice sector). In other instances, a major part of the personnel contracted corona (e.g. in the various meats processing industry), leading to a closure of facilities.
Supply chain - Distribution activities were also affected. The beginning of the Corona crisis of China sparked the flow of sea containers to slow down fairly shortly in 2020. This resulted in transport capability that is restricted during the earliest weeks of the issues, and costs which are high for container transport as a result. Truck transport encountered different problems. At first, there were uncertainties about how transport will be handled for borders, which in the end weren't as stringent as feared. The thing that was problematic in situations which are many, nevertheless, was the availability of drivers.
The response to COVID-19 - provide chain resilience The supply chain resilience analysis held by Prof. de Colleagues and Leeuw, was used on the overview of the key things of supply chain resilience:
To us this particular framework for the assessment of the interview, the findings indicate that few businesses had been well prepared for the corona problems and actually mostly applied responsive practices. Probably the most notable supply chain lessons were:
Figure one. Eight best methods for meals supply chain resilience
For starters, the need to design the supply chain for versatility as well as agility. This appears especially complicated for smaller companies: building resilience right into a supply chain takes time and attention in the organization, and smaller organizations usually do not have the potential to accomplish that.
Second, it was observed that more interest was required on spreading risk and aiming for risk reduction in the supply chain. For the future, what this means is far more attention should be provided to the way companies rely on suppliers, customers, and specific countries.
Third, attention is necessary for explicit prioritization and clever rationing strategies in situations where demand can't be met. Explicit prioritization is needed to continue to meet market expectations but also to improve market shares where competitors miss opportunities. This challenge is not new, though it has additionally been underexposed in this crisis and was usually not a part of preparatory pursuits.
Fourthly, the corona issues shows us that the monetary result of a crisis in addition relies on the manner in which cooperation in the chain is actually set up. It is usually unclear exactly how extra expenses (and benefits) are actually distributed in a chain, in case at all.
Lastly, relative to other purposeful departments, the operations and supply chain capabilities are in the driving accommodate during a crisis. Product development and marketing activities need to go hand deeply in hand with supply chain events. Whether or not the corona pandemic will structurally replace the classic discussions between logistics and generation on the one hand and advertising on the other, the future must explain to.
How's the Dutch food supply chain coping during the corona crisis?