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. 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.
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?