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

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Supply chain – The COVID-19 pandemic has undoubtedly had its impact impact on the world. health and Economic indicators have been affected and all industries have been completely touched in one way or even another. Among the industries in which this was clearly noticeable is the farming and food business.

Throughout 2019, the Dutch agriculture and food industry contributed 6.4 % to the yucky domestic item (CBS, 2020). According to the FoodService Instituut, the foodservice business in the Netherlands dropped € 7.1 billion in 2020[1]. The hospitality trade lost 41.5 % of its turnover as show by ProcurementNation, while at the same time supermarkets increased their turnover with € 1.8 billion.

supply chain

supply chain

Disruptions of the food chain have significant consequences for the Dutch economy and food security as many stakeholders are impacted. Though it was apparent to majority of people that there was a great effect at the end of the chain (e.g., hoarding in food markets, restaurants closing) as well as at the start of the chain (e.g., harvested potatoes not searching for customers), there are a lot of actors in the source chain for that the effect is less clear. It’s therefore important to find out how well the food supply chain as being a whole is actually equipped to contend with disruptions. Researchers in the Operations Research as well as Logistics Group at Wageningen University as well as from Wageningen Economics Research, led by Professor Sander de Leeuw, studied the influences of the COVID-19 pandemic all over the food resources chain. They based the examination of theirs on interviews with around thirty Dutch supply chain actors.

Need within retail up, found food service down It’s obvious and popular that demand in the foodservice stations went down as a result of the closure of restaurants, amongst others. In some cases, sales for suppliers of the food service industry therefore fell to about twenty % of the original volume. Being an adverse reaction, demand in the retail channels went up and remained at a level of about 10-20 % greater than before the problems began.

Goods that had to come through abroad had the own issues of theirs. With the shift in need coming from foodservice to retail, the requirement for packaging improved dramatically, More tin, cup and plastic material was necessary for use in consumer packaging. As more of this particular packaging material concluded up in consumers’ homes rather than in places, the cardboard recycling system got disrupted also, causing shortages.

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

Supply chain  – Distribution activities were also affected. The start of the Corona crisis in China sparked the flow of sea bins to slow down pretty shortly in 2020. This resulted in transport capacity that is restricted during the first weeks of the problems, and costs that are high for container transport as a consequence. Truck transport experienced different problems. Initially, there were uncertainties about how transport would be managed at borders, which in the long run weren’t as rigid as feared. The thing that was problematic in most situations, nonetheless, was the availability of motorists.

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

Using this framework for the assessment of the interviews, the conclusions indicate that not many businesses had been well prepared for the corona crisis and in reality mainly applied responsive practices. The most notable source chain lessons were:

Figure one. Eight best methods for food supply chain resilience

First, the need to create the supply chain for flexibility and agility. This appears particularly challenging for small companies: building resilience into a supply chain takes attention and time in the organization, and smaller organizations often don’t have the capability to do so.

Next, it was found that more interest was needed on spreading danger and aiming for risk reduction in the supply chain. For the future, meaning far more attention has to be made available to the manner in which businesses rely on specific countries, customers, and suppliers.

Third, attention is required for explicit prioritization and intelligent rationing techniques in cases in which need cannot be met. Explicit prioritization is required to continue to meet market expectations but in addition to improve market shares wherein competitors miss opportunities. This particular task is not new, although it’s in addition been underexposed in this specific crisis and was often not a component of preparatory pursuits.

Fourthly, the corona crisis shows you us that the monetary impact of a crisis in addition depends on the manner in which cooperation in the chain is set up. It is often unclear exactly how additional costs (and benefits) are sent out in a chain, in case at all.

Lastly, relative to other purposeful departments, the businesses and supply chain characteristics are actually in the driving accommodate during a crisis. Product development and marketing activities have to go hand in deep hand with supply chain activities. Whether or not the corona pandemic will structurally change the traditional discussions between generation and logistics on the one hand and marketing on the other, the potential future will need to explain to.

How is the Dutch food supply chain coping throughout the corona crisis?

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