Supply chain resilience for global operations (1) : a rethink for a new paradigm (part I : agri-food processors)

Abstract

Unlike previous disruptions, the COVID-19 pandemic was a catastrophe of unprecedented scale. Not only did the pandemic fracture global economies, but it also threw supply chains into disarray - including agri-food supply chains. The adverse impacts of the coronavirus were set to weigh in on the performance of agri-food supply chains on top of the strict regulations governing food safety and security. Mobility restrictions from lockdowns severely impaired the flow of supply chains, causing a physical disconnect between the stakeholders. Within the agri-food supply chain, the food processing sector is positioned at a vital node, ensuring that food products that reach the dining tables are safe for consumption. Almost all food in the world is processed before reaching the consumers – by chemically or physically altering the raw food commodity, it holds the key to extending shelf-life for it to be distributed globally without wastage across the value chain. When it comes to a resilient supply chain, businesses have to absorb the shocks that come inevitably with risk events and be able to restore their core functions promptly. While resiliency is not a novel concept, COVID-19 had further exposed the vulnerabilities of supply chains that failed to withstand the adversity, and henceforth triggered agri-food businesses to rethink their supply chain models for a new paradigm. This paper will thus examine the shift in supply chain strategies and how agri-food businesses – Processors, in particular, can foster stronger resiliency into their supply chain to react and recuperate readily from external disturbances. A literature review on past disruptions and their impacts will further illuminate the challenges faced by the food processing sector. In addition, interviews were conducted with industry professionals of relevant experience to gain insights on overlapping perspectives regarding supply chain management (SCM) amidst disruptions. By exploring how Processors with global presence have responded to the coronavirus, this paper will propose viable SCM strategies that Processors and relevant stakeholders can adopt, to further enhance the effectiveness of agri-food supply chains in dealing with future disruptions of a similar scale.