Supply chain - The COVID-19 pandemic has certainly had its impact impact on the planet. health and Economic indicators have been compromised and all industries have been touched in one way or yet another. Among the industries in which it was clearly obvious is the agriculture and food industry.
In 2019, the Dutch agriculture as well as food industry contributed 6.4 % to the yucky domestic item (CBS, 2020). Based on the FoodService Instituut, the foodservice business in the Netherlands lost € 7.1 billion inside 2020. The hospitality industry lost 41.5 % of its turnover as show by ProcurementNation, while at the identical time supermarkets enhanced the turnover of theirs with € 1.8 billion.
Disruptions of 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 numerous folks that there was a big effect at the conclusion of this chain (e.g., hoarding doing grocery stores, eateries closing) as well as at the start of this chain (e.g., harvested potatoes not finding customers), there are many actors inside the source chain for that will the impact is less clear. It is thus vital that you determine how properly the food supply chain as a whole is actually equipped to contend with disruptions. Researchers in the Operations Research as well as Logistics Group at Wageningen University and also out of Wageningen Economics Research, led by Professor Sander de Leeuw, studied the consequences of the COVID 19 pandemic throughout the food supplies chain. They based the examination of theirs on interviews with around 30 Dutch supply chain actors.
Demand in retail up, in food service down It's evident and popular that demand in the foodservice stations went down as a result of the closure of restaurants, amongst others. In certain instances, sales for vendors in the food service industry as a result fell to about 20 % of the initial volume. As an adverse reaction, demand in the list stations went up and remained at a degree of aproximatelly 10-20 % greater than before the crisis started.
Products that had to come via abroad had the own problems of theirs. With the shift in need coming from foodservice to retail, the need for packaging changed dramatically, More tin, glass and plastic was required for use in buyer packaging. As much more of this packaging material concluded up in consumers' homes instead of in joints, the cardboard recycling system got disrupted too, causing shortages.
The shifts in demand have had a significant affect on output activities. In a few instances, this even meant a full stop of production (e.g. in the duck farming industry, which came to a standstill on account of demand fall out in the foodservice sector). In other instances, a major part of the personnel contracted corona (e.g. in the meat processing industry), causing a closure of facilities.
Supply chain - Distribution pursuits were also affected. The beginning of the Corona crisis of China caused the flow of sea bins to slow down pretty shortly in 2020. This resulted in transport capacity which is limited throughout the earliest weeks of the issues, and expenses that are high for container transport as a result. Truck transportation experienced different problems. At first, there were uncertainties on how transport would be managed at borders, which in the end weren't as strict as feared. The thing that was problematic in many cases, nonetheless, was the accessibility of motorists.
The response to COVID-19 - supply chain resilience The source chain resilience evaluation held by Prof. de Colleagues and Leeuw, was used on the overview of the primary elements of supply chain resilience:
To us this particular framework for the evaluation of the interview, the findings show that not many organizations had been nicely prepared for the corona problems and actually mainly applied responsive methods. Probably the most notable supply chain lessons were:
Figure 1. Eight best practices for meals supply chain resilience
First, the need to develop the supply chain for flexibility as well as agility. This seems particularly challenging for smaller sized companies: building resilience right into a supply chain takes time and attention in the organization, and smaller organizations oftentimes do not have the capability to do so.
Second, it was found that much more attention was necessary on spreading risk as well as aiming for risk reduction inside the supply chain. For the future, this means far more attention has to be made available to the way businesses depend on suppliers, customers, and specific countries.
Third, attention is necessary for explicit prioritization as well as intelligent rationing techniques in cases where need cannot be met. Explicit prioritization is necessary to continue to meet market expectations but in addition to improve market shares in which competitors miss opportunities. This particular task isn't new, but it's also been underexposed in this crisis and was usually not a part of preparatory pursuits.
Fourthly, the corona problems shows us that the financial effect of a crisis additionally relies on the way cooperation in the chain is set up. It's usually unclear precisely how extra expenses (and benefits) are actually sent out in a chain, in case at all.
Finally, relative to other functional departments, the operations and supply chain works are in the driving accommodate during a crisis. Product development and advertising activities need to go hand in hand with supply chain pursuits. Whether or not the corona pandemic will structurally replace the basic discussions between creation and logistics on the one hand as well as advertising on the other, the potential future will need to explain to.
How is the Dutch foods supply chain coping during the corona crisis?