AuthorAditya Nibhanupudi, RUSCA Blog Committee It is of no surprise that the COVID-19 pandemic has drastically affected the way supply chains are managed all across the globe. With different industries feeling the effects of the disruption differently, one industry that was hit hard but has managed to bounce back since is the food industry. The industry’s complex supply chains faced massive challenges as demands rose, and supplies were rapidly declining. Major hits to the transportation of food products, labor and supply availability, and consumer demands have led to instability in food supply chains around the world. However, now that companies are steadily adjusting to the global environment, there are a few lessons that we can learn about disruptions and how to better handle them. In the beginning of the pandemic as many governments ordered lockdowns, health organizations released safety guidelines and consumers began reacting to the imminent threat of the virus.There were issues that started at the producer level, where small farms who grew organic produce faced a lack of demand because the restaurants and farmers markets that they supplied had to shutdown or reduce their capabilities (Snyder and Horwich). In addition, many of the processing and packing plants faced shutdowns as the number of laborer infections increased, and need for workplace sanitation rose. There was an investigation that showed a cluster of infections were attributed to a meat packing plant. These small-scale disruptions have massive effects on food supply chains and lead to issues such as bottlenecks. Some of the broader effects of the pandemic on food supply chains stem from disruptions in transportation, specifically, air travel. Because of international travel restrictions and other government policies concerning imports of food material, food supply chains have faced bottlenecks with lack of supply in certain locations and increased waiting times and other roadblocks. All these problems result in the “international transport of fresh goods extremely difficult – and expensive” (Jagt). These impacts are further fueled and amplified by changing consumer preferences and demand. Consumers played a major role in testing the resiliency of food supply chains in the United States. As restaurants quickly shut down and consumers shifted from a “‘food away from home’ towards food consumed at home” model, food supply chains had to rapidly shift the way they operate (OECD). The demand for organic produce, frozen, and packaged food skyrocketed as consumers began stockpiling for a lockdown of unknown end. Supermarkets and other retailers faced low inventory levels and suppliers had to quickly react to the increasing demand. Although, all these factors have affected the food industry in some way or another, there has been resiliency and agility as well. Many developed nations demonstrated this resiliency by enacting rapid policy changes. In addition, supply chains quickly reacted to the shifts in demand by looking at alternative supply sources and adopting “just in time” models while still retaining safety stocks (OECD). Another result of the disruption is an increased focus on optimizing supply chains. Forces like changing consumer preferences, increased rules and regulations, increased supply volatility, and increased implementation of technology in supply chains encourage companies to implement omnichannel capabilities and end-to-end supply chain management in order to address some of these forces. Overall, food supply chains have a major role in sustaining an economy and moreover, society. After all, if it weren’t for the agility of the complex network of distribution, sourcing, and production channels, we wouldn’t be able to sustain ourselves. The lessons that were learnt from this disruption would ensure that there is increased security and resiliency in the future. Sources: www2.deloitte.com/nl/nl/pages/consumer/articles/food-covid-19-reshaping-supply-chains.html. www.greenhassonjanks.com/blog/how-covid-19-is-affecting-the-u-s-food-supply-chain. www.wired.com/story/why-meatpacking-plants-have-become-covid-19-hot-spots/. www.oecd.org/coronavirus/policy-responses/food-supply-chains-and-covid-19-impacts-and-policy-lessons-71b57aea/. AuthorTrupti Valsangikar, RUSCA Blog Committee Amid the growing COVID-19 cases in the United States, some positive advancements appeared. In mid-November, pharmaceutical company Pfizer announced that they had developed a 95% effective COVID-19 vaccine. Companies like Moderna and BioNTech also declared that their developed vaccines were over 90% effective. With the potential end to the pandemic in sight, questions about the distribution of the vaccines have emerged, such as: will the initial batch of vaccines be enough to cover the United States? Who would be the first to receive the vaccine? How will individual states handle distribution? While the answers to these questions remain murky, one thing that has become clear is that this vaccine’s allocation will be a massive undertaking. In May of 2019, the U.S. government announced Operation Warp Speed, an initiative that aims to deliver 300 million doses of the COVID-19 vaccine across the country by January of 2021. Two months later, Pfizer agreed to produce 100 million doses for $1.95 billion. While work on the vaccine had started before July, Pfizer didn’t announce a highly effective vaccine until November, after their clinical trial showed that only about 0.21% of subjects had contracted the virus. Pfizer’s chief executive said there would be enough vaccines for “15 to 20 million people to get an initial shot and a booster three weeks later.” (Zimmer, Thomas). However, twenty million people only comprise around 6% of the U.S. population. Pfizer will produce more doses, but with the supply currently limited, choosing who gets vaccinated first will be a priority. Though news of the vaccine may delight many people, the general public will likely have to wait until at least mid-2021 to receive the vaccine. The Center for Disease Control (CDC) has recommended early vaccination for “healthcare personnel, workers in essential and critical industries, people with certain underlying health conditions, and people 65 years or older.” These people are the most susceptible to contracting the virus, therefore they must be protected first (CDC). If approved by the Food and Drug Administration (FDA), this set of vaccines could be available as early as December 2020. However, this date relies on states being able to handle such a massive rollout of vaccines. The U.S. government has funded the development of the COVID-19 vaccine, but has not given much attention to state distribution processes. The CDC sent $200 million to 64 jurisdictions around the U.S., but state officials claim it will not suffice. One CDC doctor says “insufficient funding would slow the rate of vaccination, particularly among disadvantaged populations that are harder to reach.” (Goodnough, Kaplan) Without proper funding, transportation, and storage of the vaccines, or proper vaccine administration training, distribution will likely be delayed and difficult. A post-pandemic world slowly approaches. With Pfizer’s vaccine almost ready for the market, and many more companies conducting clinical trials, there is a light at the end of the tunnel. Though many obstacles lie ahead, the CDC’s goal of having most adults vaccinated by late 2021 seems attainable. Sources: https://www.nytimes.com/live/2020/pfizer-covid-19-vaccine https://www.nytimes.com/2020/11/14/health/covid-vaccine-distribution-plans.html https://www.cdc.gov/coronavirus/2019-ncov/vaccines/recommendations-process.html |
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