How\\\’s the Dutch food supply chain coping throughout the corona crisis?
Supply chain – The COVID 19 pandemic has definitely had the impact of its influence on the world. Economic indicators and health have been compromised and all industries have been completely touched inside one of the ways or even yet another. One of the industries in which it was clearly noticeable will be the farming as well as food industry.
Throughout 2019, the Dutch extension as well as food industry contributed 6.4 % to the yucky domestic product (CBS, 2020). According to the FoodService Instituut, the foodservice industry in the Netherlands shed € 7.1 billion within 2020. The hospitality business lost 41.5 % of the turnover of its as show by ProcurementNation, while at exactly the same time supermarkets enhanced the turnover of theirs with € 1.8 billion.
Disruptions in the food chain have major effects for the Dutch economy as well as food security as lots of stakeholders are impacted. Though it was clear to numerous folks that there was a big impact at the conclusion of this chain (e.g., hoarding around supermarkets, eateries closing) as well as at the start of this chain (e.g., harvested potatoes not finding customers), you will find numerous actors inside the supply chain for that will the impact is much less clear. It is therefore important to figure out how well the food supply chain as being a whole is actually armed to contend with disruptions. Researchers from the Operations Research and Logistics Group at Wageningen University and coming from Wageningen Economics Research, led by Professor Sander de Leeuw, analyzed the consequences of the COVID 19 pandemic all over the food supply chain. They based their examination on interviews with around 30 Dutch supply chain actors.
Need within retail up, that is found food service down It’s obvious and widely known that demand in the foodservice channels went down as a result of the closure of joints, amongst others. In some instances, sales for vendors in the food service business as a result fell to aproximatelly 20 % of the original volume. Being an adverse reaction, demand in the list channels went up and remained at a degree of about 10-20 % higher than before the crisis started.
Products that had to come via abroad had the own problems of theirs. With the shift in need from foodservice to retail, the need for packaging improved considerably, More tin, glass and plastic material was necessary for wearing in consumer packaging. As more of this packaging material concluded up in consumers’ homes instead of in restaurants, the cardboard recycling function got disrupted as well, causing shortages.
The shifts in desire have had a major affect on output activities. In some instances, this even meant a full stop of output (e.g. in the duck farming business, which came to a standstill due to demand fall out inside the foodservice sector). In other cases, a big section of the personnel contracted corona (e.g. in the various meats 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 containers to slow down fairly soon in 2020. This resulted in limited transport electrical capacity throughout the very first weeks of the problems, and high costs for container transport as a result. Truck travel experienced different problems. At first, there were uncertainties regarding how transport will be handled at borders, which in the end weren’t as rigid as feared. What was problematic in instances which are a large number of, however, was the accessibility of drivers.
The response to COVID-19 – supply chain resilience The supply chain resilience analysis held by Prof. de Leeuw and Colleagues, was based on the overview of the primary components of supply chain resilience:
To us this framework for the analysis of the interview, the results indicate that not many organizations had been nicely prepared for the corona crisis and in reality mostly applied responsive methods. The most important supply chain lessons were:
Figure one. 8 best practices for food supply chain resilience
First, the need to create the supply chain for versatility and agility. This appears particularly complicated for small companies: building resilience right into a supply chain takes time and attention in the organization, and smaller organizations oftentimes don’t have the capability to accomplish that.
Next, it was observed that much more interest was necessary on spreading danger and also aiming for risk reduction in the supply chain. For the future, this means more attention should be provided to the manner in which businesses count on suppliers, customers, and specific countries.
Third, attention is needed for explicit prioritization and smart rationing strategies in situations where need cannot be met. Explicit prioritization is actually necessary to continue to meet market expectations but in addition to improve market shares where competitors miss options. This particular task isn’t new, though it has also been underexposed in this problems and was frequently not part of preparatory activities.
Fourthly, the corona problems shows you us that the monetary result of a crisis also is determined by the way cooperation in the chain is actually set up. It’s often unclear exactly how additional costs (and benefits) are distributed in a chain, in case at all.
Last but not least, relative to other functional departments, the businesses and supply chain functions are in the driving accommodate during a crisis. Product development and advertising activities have to go hand in deep hand with supply chain events. Whether or not the corona pandemic will structurally change the traditional discussions between generation and logistics on the one hand as well as marketing and advertising on the other, the long term must tell.
How’s the Dutch meal supply chain coping during the corona crisis?