Agrifood Solutions delivering Indirect, Procurement & Supplier Cost Optimisation
Overview
COVID-19 has of course had a big impact on the Agrifood sector even if the impact is slightly different than other industries.
Disruptions in the supply chains of raw materials and parts, financially unstable suppliers, challenges with production planning due to increased distance between employees, new and possible complicated legislation are of course obstacles that the Agrifood industry meets – just like any other industry.
During crisis however, the Agrifood Industry is less affected in the first period of time, simply due to the fact, that people for obvious reasons prioritize food, despite the crisis they are in.
However, historically the industry is always hit after a period of time because of two factors.
Firstly, some export markets might be affected or even disappear. Covid-19 is no different to any other crisis and companies see major changes in demands. If, as an example, a country has a large number of Covid-19 related restrictions, the professional market (Catering, Hotel/ Restaurants, Events) might be radically affected. This is the case in most countries today, and even if retail turnover starts to increase, it doesn’t necessarily cover the losses and will for sure lead to changes in production and distribution setup.
Secondly, and this was very much the case in the years following the financial crisis in 2008, consumers tend to move from up market to discount products as the price parameter plays a larger role in consumer buying behaviour.
We still have to wait to see which long term changes Covid-19 will bring in the Agrifood Industry. However, companies with a sharp supply chain, where contracts have been updated and supplier relations renewed will be best prepared to meet the challenges ahead.
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"We are now entering, what some have termed, the global agrarian revolution. For businesses, it seems the only way to stay profitable is to understand and adapt to the trends and developments that continue to gain momentum and this means, for many, stepping into unfamiliar territory."
"The quicker businesses adopt technology and the opportunities it presents, the better placed they will be for the future."
Agrifood Solutions Case Studies
Agrico Case Study
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CP Foods Case Study
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"Digitalisation is changing the way consumers purchase products, including food, with new business models embracing direct-to consumer approaches."