Aditya Vazirani

Director, Robinsons Global Logistics Solutions

April 9, 2020 4 min read
Opinions expressed by Entrepreneur contributors are their own.

Even as the country gears up to fight the COVID-19 pandemic, the food
supply chain for vegetables, fruits and other daily essentials is facing one
of the worst setbacks in the mid of a national 21-day lockdown. With over
3,000 positive cases and counting, the central government’s call for a
total lockdown has been a desperate attempt to control the pandemic that
has already claimed thousands of lives across the globe.

While the online food and grocery stores are stepping up their operations
to supply essentials to the masses, the overall food supply chain is
battling a number of challenges to stay functional. These range from lack
of regular supplies added pressure on agricultural and temperature-
sensitive food storage and lack of manpower. Even as the end consumers
and traders are bracing for the worst, here are the four factors that are
redefining the food supply chain in the country, as it manages to cope
with the pandemic and a global slowdown.

Ban on import-export
With the global health crisis accelerating, most countries have closed their
borders, restricting passenger and cargo movement. Additionally, amid a
complete lockdown, manufacturing and other industries remain shut,
impacting trade and economy. This has largely affected international
trade and the food supply chain that depended on the import and export
of fruits and grains to edible oils and certain processed foods, resulting in
a major scarcity for Indian consumers. Not to mention the loss of revenue
due to a completely non-existent international supply chain.

Increased storage for perishables

The lockdown has caused delays in the supply chain, resulting in a slow
movement of raw and processed food, including perishable items.
Farmers are already battling the fear of wasted produce due to a near
stagnant supply chain resulting in enhanced demand for adequate storage
space and conditions for these. Apart from fruits and vegetables, other
processed foods with a shorter shelf life are also occupying space in
warehouses, both for temperature-controlled and regular storage.

Perception of scarcity among masses

The uncertainty and the delays in last-mile deliveries and the tendency to
stock up supplies has led to a massive surge of demand which is adding
more pressure to the already stressed supply food supply chain. Apart
from fruits and vegetables, supplies such as bread, and ready to eat items
with a shorter shelf life are also scarce while people continue to stock or
save and bulk-buy whenever available. This is creating a bullwhip effect
which in the long run is going to be detrimental on the purchasing and
supply chain functions of companies and farmers because of the
perceived demand.

Bottlenecks in last-mile delivery  

With the lockdown and fear of contracting the virus, there have been
several bottlenecks in the overall supply chain, including a major shortage
of manpower for logistic offices to manning warehouses. However, the
biggest bottleneck has been the last-mile delivery areas. With the closure
of district borders, extreme precautions at housing societies and serious
lack of manpower, from truck drivers to on-field delivery boys, the last
mile have been hampered, adding to the already stressed situation.

While the above factors are forcing logistics and supply chain networks to
adapt and rise to the challenges, going forward in order to ensure that if a
situation like this pandemic is to arise again companies across all sectors
will be working on innovative ways with use of technology to smoothen
the supply chain disruptions and have better visibility and communication.

The end goal ideally would be to ensure that the customer regardless of
the situation has access to the products they require when they require it
without the need of hoarding supplies.

https://www.entrepreneur.com/article/348992