Daily Archives

2 Articles

Markets

How is the Dutch meal supply chain coping during the corona crisis?

Posted by Charles Riley on
How is the Dutch meal supply chain coping during the corona crisis?

Supply chain – The COVID-19 pandemic has undoubtedly had its impact impact on the planet. health and Economic indicators have been compromised and all industries have been completely touched within a way or even yet another. One of the industries in which it was clearly obvious is the farming as well as food business.

Throughout 2019, the Dutch agriculture as well as food sector contributed 6.4 % to the disgusting domestic product (CBS, 2020). As per the FoodService Instituut, the foodservice industry in the Netherlands shed € 7.1 billion inside 2020[1]. The hospitality industry lost 41.5 % of its turnover as show by ProcurementNation, while at exactly the same time supermarkets increased their turnover with € 1.8 billion.

supply chain

supply chain

Disruptions of the food chain have major effects for the Dutch economy and food security as lots of stakeholders are affected. Even though it was clear to most individuals that there was a big impact at the tail end of this chain (e.g., hoarding around supermarkets, eateries closing) and also at the start of this chain (e.g., harvested potatoes not searching for customers), there are many actors inside the supply chain for that will the effect is less clear. It is thus vital that you figure out 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 Faculty and coming from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the influences of the COVID 19 pandemic throughout the food resources chain. They based their examination on interviews with around thirty Dutch supply chain actors.

Demand in retail up, in food service down It’s apparent and popular that demand in the foodservice channels went down as a result of the closure of restaurants, amongst others. In certain cases, sales for vendors of the food service industry thus fell to aproximatelly twenty % of the initial volume. Being a complication, demand in the retail channels went up and remained within a level of aproximatelly 10 20 % higher than before the crisis started.

Goods that had to come through abroad had the own issues of theirs. With the change in desire from foodservice to retail, the need for packaging changed considerably, More tin, glass or plastic was needed for use in buyer packaging. As more of this packaging material concluded up in consumers’ homes as opposed to in places, the cardboard recycling process got disrupted also, causing shortages.

The shifts in demand have had a major impact on production activities. In certain cases, this even meant the full stop of output (e.g. in the duck farming industry, which emerged to a standstill on account of demand fall-out inside the foodservice sector). In other instances, a significant part of the personnel contracted corona (e.g. to the meat processing industry), causing a closure of facilities.

Supply chain  – Distribution activities were also affected. The start of the Corona crisis of China caused the flow of sea containers to slow down pretty soon in 2020. This resulted in transport capacity that is restricted throughout the very first weeks of the crisis, and high expenses for container transport as a consequence. Truck transport faced different issues. To begin with, there were uncertainties about how transport will be managed at borders, which in the end were not as rigid as feared. The thing that was problematic in instances which are many, however, was the availability of motorists.

The response to COVID-19 – deliver chain resilience The source chain resilience analysis held by Prof. de Leeuw and Colleagues, was used on the overview of the key elements of supply chain resilience:

To us this framework for the evaluation of the interview, the conclusions show that few companies were nicely prepared for the corona problems and actually mainly applied responsive methods. Probably the most notable supply chain lessons were:

Figure one. Eight best practices for food supply chain resilience

To begin with, the need to develop the supply chain for agility as well as flexibility. This seems particularly complicated for smaller sized companies: building resilience right into a supply chain takes attention and time in the organization, and smaller organizations oftentimes don’t have the potential to do so.

Next, it was discovered that more interest was needed on spreading risk and aiming for risk reduction within the supply chain. For the future, meaning far more attention has to be given to the manner in which organizations rely on suppliers, customers, and specific countries.

Third, attention is necessary for explicit prioritization and intelligent rationing techniques in situations in which demand cannot be met. Explicit prioritization is actually required to keep on to satisfy market expectations but also to increase market shares in which competitors miss opportunities. This particular challenge isn’t new, although it has in addition been underexposed in this crisis and was frequently not part of preparatory pursuits.

Fourthly, the corona issues shows us that the financial result of a crisis in addition depends on the way cooperation in the chain is set up. It is typically unclear exactly how further expenses (and benefits) are sent out in a chain, in case at all.

Finally, relative to other purposeful departments, the businesses and supply chain works are actually in the driving seat during a crisis. Product development and marketing activities need to go hand in hand with supply chain pursuits. Regardless of whether the corona pandemic will structurally replace the basic discussions between production and logistics on the one hand and advertising and marketing on the other, the potential future will need to explain to.

How’s the Dutch foods supply chain coping during the corona crisis?

Markets

How\\\\\\\\\\\\\\\’s the Dutch foods supply chain coping throughout the corona crisis?

Posted by Charles Riley on
How\\\\\\\\\\\\\\\’s the Dutch foods 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 in one of the ways or yet another. Among the industries in which it was clearly obvious will be the agriculture and food business.

Throughout 2019, the Dutch agriculture as well as food sector contributed 6.4 % to the yucky domestic product (CBS, 2020). As per the FoodService Instituut, the foodservice industry in the Netherlands lost € 7.1 billion within 2020[1]. 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.

supply chain

supply chain

Disruptions in the food chain have major consequences for the Dutch economy and food security as many stakeholders are affected. Even though it was apparent to many men and women that there was a great impact at the tail end of this chain (e.g., hoarding in food markets, eateries closing) and also at the start of this chain (e.g., harvested potatoes not finding customers), you will find many actors inside the supply chain for that will the effect is much less clear. It’s therefore vital that you figure out how well the food supply chain as a whole is actually prepared to deal with disruptions. Researchers in the Operations Research as well as Logistics Group at Wageningen University and also coming from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the consequences of the COVID-19 pandemic throughout the food supply chain. They based the analysis of theirs on interviews with around thirty Dutch source chain actors.

Need in retail up, found food service down It’s obvious and widely known that need in the foodservice stations went down as a result of the closure of places, amongst others. In certain cases, sales for vendors of the food service industry as a result fell to aproximatelly 20 % of the original volume. Being a complication, demand in the retail stations went up and remained at a degree of about 10 20 % higher than before the problems started.

Products which had to come through abroad had the own issues of theirs. With the change in demand coming from foodservice to retail, the requirement for packaging improved dramatically, More tin, glass and plastic material was necessary for wearing in customer packaging. As much more of this particular product packaging material ended up in consumers’ homes as opposed to in places, the cardboard recycling process got disrupted also, causing shortages.

The shifts in need have had a significant affect on output activities. In some cases, this even meant a full stop of production (e.g. in the duck farming industry, which emerged to a standstill due to demand fall-out inside the foodservice sector). In other cases, a major part of the personnel contracted corona (e.g. to the various meats processing industry), leading to a closure of facilities.

Supply chain  – Distribution pursuits were also affected. The beginning of the Corona crisis in China caused the flow of sea containers to slow down fairly soon in 2020. This resulted in transport capability which is restricted throughout the first weeks of the issues, and expenses that are high for container transport as a direct result. Truck travel faced various problems. Initially, there were uncertainties regarding how transport will be handled for borders, which in the long run were not as rigid as feared. What was problematic in cases that are many , however, was the accessibility of drivers.

The reaction to COVID 19 – deliver chain resilience The source chain resilience analysis held by Prof. de Leeuw and Colleagues, was based on the overview of the core elements of supply chain resilience:

To us this particular framework for the analysis of the interview, the findings show that not many companies were nicely prepared for the corona crisis and in reality mainly applied responsive practices. Probably the most important source chain lessons were:

Figure one. 8 best methods for food supply chain resilience

To begin with, the need to create the supply chain for versatility as well as agility. This seems especially complicated for smaller companies: building resilience right into a supply chain takes attention and time in the business, and smaller organizations usually don’t have the capability to do so.

Next, it was found that much more interest was needed on spreading danger and also aiming for risk reduction within the supply chain. For the future, this means more attention should be provided to the manner in which companies rely on suppliers, customers, and specific countries.

Third, attention is necessary for explicit prioritization as well as clever rationing techniques in cases where demand cannot be met. Explicit prioritization is required to keep on to meet market expectations but in addition to increase market shares in which competitors miss options. This particular challenge is not new, but it has in addition been underexposed in this problems and was usually not a component of preparatory pursuits.

Fourthly, the corona crisis teaches us that the economic effect of a crisis also depends on the way cooperation in the chain is actually set up. It’s often unclear precisely how extra expenses (and benefits) are distributed in a chain, if at all.

Lastly, relative to other functional departments, the businesses and supply chain functionality are actually in the driving accommodate during a crisis. Product development and marketing activities have to go hand in hand with supply chain events. Whether or not the corona pandemic will structurally switch the classic considerations between logistics and generation on the one hand as well as marketing on the other hand, the potential future will need to explain to.

How is the Dutch meal supply chain coping during the corona crisis?