Supply chain - The COVID-19 pandemic has definitely had its impact impact on the world. Economic indicators and health have been compromised and all industries have been touched in one way or even some other. Among the industries in which this was clearly noticeable would be the agriculture as well as food industry.
Throughout 2019, the Dutch farming and food sector contributed 6.4 % to the gross domestic product (CBS, 2020). Based on the FoodService Instituut, the foodservice industry in the Netherlands dropped € 7.1 billion in 2020. The hospitality industry lost 41.5 % of the turnover of its as show by ProcurementNation, while at the identical time supermarkets enhanced their turnover with € 1.8 billion.
Disruptions in the food chain have significant consequences for the Dutch economy and food security as a lot of stakeholders are impacted. Despite the fact that it was apparent to many folks that there was a significant impact at the conclusion of the chain (e.g., hoarding in grocery stores, eateries 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 the impact is less clear. It is thus imperative that you find out how well the food supply chain as being a whole is actually equipped to cope with disruptions. Researchers in the Operations Research and Logistics Group at Wageningen Faculty and also out of Wageningen Economics Research, led by Professor Sander de Leeuw, studied the consequences of the COVID-19 pandemic all over the food supplies chain. They based their examination on interviews with around 30 Dutch source chain actors.
Need in retail up, in food service down It is apparent and popular that need in the foodservice stations went down as a result of the closure of restaurants, amongst others. In some instances, sales for vendors of the food service business as a result fell to aproximatelly twenty % of the original volume. As a complication, demand in the retail channels went up and remained at a degree of aproximatelly 10-20 % greater than before the problems began.
Products that had to come via abroad had the own issues of theirs. With the shift in desire from foodservice to retail, the demand for packaging changed dramatically, More tin, cup and plastic was necessary for use in buyer packaging. As much more of this product packaging material concluded up in consumers' houses rather than in places, the cardboard recycling process got disrupted also, causing shortages.
The shifts in desire have had an important affect on production activities. In certain instances, this even meant a complete stop in production (e.g. inside the duck farming industry, which came to a standstill due to demand fall out on the foodservice sector). In other situations, a significant portion of the personnel contracted corona (e.g. to the various meats processing industry), resulting in a closure of equipment.
Supply chain - Distribution pursuits were also affected. The beginning of the Corona crisis in China sparked the flow of sea bins to slow down pretty shortly in 2020. This resulted in transport capability that is limited throughout the earliest weeks of the issues, and expenses which are high for container transport as a direct result. Truck travel faced different issues. At first, there were uncertainties about how transport will be managed at borders, which in the end were not as stringent as feared. What was problematic in many instances, nonetheless, was the availability of drivers.
The response to COVID 19 - deliver chain resilience The supply chain resilience analysis held by Prof. de Leeuw as well as Colleagues, was used on the overview of the key things of supply chain resilience:
Using this particular framework for the analysis of the interview, the conclusions indicate that few businesses had been nicely prepared for the corona crisis and actually mostly applied responsive practices. Probably the most notable supply chain lessons were:
Figure 1. Eight best practices for food supply chain resilience
For starters, the need to develop the supply chain for versatility and agility. This looks especially challenging 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 capability to do so.
Second, it was discovered that much more attention was necessary on spreading risk and aiming for risk reduction inside the supply chain. For the future, what this means is far more attention has to be made available to the way companies depend on specific countries, customers, and suppliers.
Third, attention is required for explicit prioritization and clever rationing strategies in cases in which need can't be met. Explicit prioritization is actually needed to keep on to meet market expectations but in addition to improve market shares wherein competitors miss options. This particular challenge is not new, although it's also been underexposed in this crisis and was often not part of preparatory pursuits.
Fourthly, the corona crisis shows you us that the monetary effect of a crisis additionally is determined by the way cooperation in the chain is set up. It's typically unclear precisely how additional costs (and benefits) are actually sent out in a chain, in case at all.
Lastly, relative to other functional departments, the businesses and supply chain characteristics are actually in the driving seat during a crisis. Product development and advertising activities need to go hand deeply in hand with supply chain activities. Regardless of whether the corona pandemic will structurally replace the basic considerations between generation and logistics on the one hand as well as advertising on the other hand, the potential future must explain to.
How's the Dutch food supply chain coping throughout the corona crisis?