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COVID-19: Supply Chain Management Challenges of Food Industry Research Paper

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Abstract

The outbreak of COVID-19, popularly known as the coronavirus, has had a major impact on the global economy because of the containment measures that the World Health Organization has proposed. The limited movement and physical interaction of people have crippled many businesses, including those in the food industry. The supply chain has been significantly affected.

The guiding question in the study was to determine how players in the food industry can manage challenges in the supply chain to ensure that their operations are sustainable. The aim of the study is to propose ways in which individual businesses in the country can maintain a steady supply of items they need despite the effect of the pandemic. The researcher collected data from both primary and secondary sources. Mixed method research was considered most appropriate for the study.

The outcome of the study shows that supply chain in the food industry has been significantly affected by the pandemic. It is crucial for players in this industry to find ways of dealing with these challenges to ensure that their operations remain sustainable. The government also has a role to play in protecting this industry during this period.

Introduction

The food industry is one of the most sensitive sectors in the economy of any country. In the United Arab Emirates, the sector has transformed significantly over the past decades as the government continues to invest in the agricultural sector to reduce the country’s reliance on imported products.

According to Metcalfe (2019), the UAE no longer relies on imported vegetables to feed its population. Despite these initiatives, it still relies on imported food products such as rice and other cereals to sustain its people. The movement of food items across the border has been significantly affected by the global outbreak of COVID-19 pandemic. It is essential to note that the UAE is not the only nation that is affected by this pandemic.

The problem is global in nature and almost every country is struggling to protect the food industry. The impact that the pandemic has had on the transport sector has crippled the supply chain in the food industry. Erokhin and Gao (2020) explain that although the movement of essential products such as food items has received the support of governments around the world, numerous Covid-19 related challenges have hampered normal operations in the industry.

Many hotels and restaurants across the country are closed, and some farmers are forced to dispose of the products, especially those who supply perishables such as vegetables, fruits, and milk. In this paper, the primary focus is to discuss supply chain management challenges of the food industry during the outbreak of the COVID-19 pandemic.

Literature Review

The previous chapter has provided background information of the topic. In this chapter, the focus is to review related works conducted by other scholars. Food industry is one of the main pillars of economy in the United Arab Emirates. According to Balasubramanian (2020), the United Arab Emirates has emerged as one of the leading global tourists’ destination. The growth of the tourism industry has enhanced the development of food industry, especially in the Emirate of Dubai. When the corona virus pandemic struck, the country was ill-prepared to deal with resulting consequences (McEntire & Kennedy, 2019).

The containment measures required people to avoid physical interaction. It meant that free movement of people was restricted. One of the sectors within the food industry most affected by these containment measures was the supply chain. According to Cheshmehzangi (2020), the government has allowed hotels and restaurants to operate under specific guidelines. However, these businesses are facing a new challenge of having access to products they need.

The UAE largely relies on imported food products to sustain its economy. One of the most important imports is rice, which is one of the staples. India and Pakistan are the main exporters of rice that is consumed in the country. The problem is that these countries, just like the UAE and any other country around the world, is affected by the pandemic.

Balasubramanian (2020) observes that a trend is emerging where some governments within the region are restricting exportation of specific products for fear of depleting their food reserves. It means that the current food challenge that is starting to affect the industry may become worse. In cases where a company finds a way of sourcing for these products, transportation is becoming another major challenge.

The global community has allowed free movement of food products and other essential items despite the lockdown and cessation of movement that has been witnessed in different parts of the country. Berson (2019) explains that despite this free movement of goods, many transport companies are still finding it challenging to deliver their products to the market. One of the issues that they cite is discrimination and unfair attacks. Studies have shown that long-distance truck drivers have become super-spreaders of the virus because of the many places they visit and interactions they have (Schimidhuber et al., 2020).

As such, a trend has emerged where they are shunned away because they are viewed as part of the problem instead of being stakeholders trying to find solutions. Sometimes they are denied accommodations because of this negative perception. Many drivers have opted to stay at home or to engage in other economic activities instead of continuing with this job. The outcome has been a case where the much needed food products cannot reach the market at the right time.

The World Health Organization and other international bodies have recommended different ways of managing the pandemic. Detwiler (2020) believe that it is necessary for the government to find ways of opening the economy even though the global community is yet to find lasting solution for this problem. Players in the food industry have to redefine their approach to supply chain management.

For instance, Just-in-Time (JIT) model of operation, which is an effective way of cutting costs, may no longer be desirable. Instead of ordering products that meet a firm’s need within a short period, it may now be necessary to have proper ways of storing non-perishable products for long periods.

Challenges in Harvesting Agricultural Produce

One of the main areas impacted by the outbreak is in harvesting agricultural produce. Many governments around the world issued directives limiting the physical interaction of people. Those who are working in the agricultural sector are considered essential workers, but they have been affected. Many people who are involved in harvesting have avoided going to work for fear of contracting this deadly disease.

Cheshmehzangi (2020) explains that cases where agricultural produce are left to rot in the farm have become common across the world. In Europe and North America, the agricultural sector relies heavily on immigrants, some of whom are not documented. The global ban on the physical interaction of people and the closure of many borders has limited the number of staff in these farms. Harvesting has become almost impossible as a result.

Logistical Challenges

Logistics has become another major challenge in this sector. Farmers who succeed in harvesting their products face numerous challenges in making them available in the market. Schimidhuber et al. (2020) explain that in many countries, including in the United Arab Emirates, cargo drivers and their assistants are expected to take regular COVID-19 tests to ascertain that they are free from the virus.

The process takes time, leading to cases of delays. When a driver tests positive, they are required to self-quarantine, which means that they can no longer work for their company. Finding their replacements within a short time, especially when handling perishable products, is a major challenge.

Processing documents at the border points has become another nightmare for the track drivers. Because of the fear of importing the virus, different countries have developed stringent measures that truck drivers have to observe, further restricting movements. Some of these border officials also fear contracting the disease and are now employing unconventional strategies causing further strain in the movement of goods.

Detwiler (2020) explains that in some places, a trend is developing where drivers are viewed as super-spreaders of the virus because of their constant movement. The prejudice has resulted in cases where they are denied services they need because of the belief that they could be positive of the virus. Many of these drivers have opted to avoid going to work because of these numerous challenges, making it difficult for food items to reach the market.

Processing Difficulties

Processing of food items has also become a major challenge during this period of the pandemic. Containment measures put in place by the government has significantly affected the industry. In the United Arab Emirates, there has been a shortage of staff in some industries because the government has been forced to close its borders as one of the containment measures. Some of the foreign nationals from India and Africa who have been working in food processing plants cannot come to the country anymore. Some of these companies rely on ingredients from foreign nations that are also suffering from the same problem (Ponnambalam, 2019).

Meat, rice, and fish are some of the staple foods in the country. Processing of meat and fish has been affected significantly because of the limited movement of people. Fishermen also find it challenging to venture into the deep seas because they know they cannot get some of the essential assistance they might need in cases of emergency.

Market Challenges

Hotels and restaurants are some of the critical customers of suppliers of food products. The United Arab Emirates is one of the leading tourists’ destinations in the world, especially its city of Dubai (Ivanov et al., 2017). Major hotels rely on a regular supply of food products from different products both locally and in the international market.

One of the sectors that the government was closed includes the hotel and restaurant businesses. In so doing, the huge market that farmers relied on was eliminated. As tourists were forced to go home, and the hotels temporarily closed their operations, major food suppliers were forced to find an alternative market. Schools were also major target markets for these suppliers. They too were closed to help limit the spread of the virus (Erokhin & Gao, 2020). The problem is not unique to the United Arab Emirates.

Food suppliers in almost every other country are feeling the impact as the size of the market continues to shrink. According to the Food and Agriculture Organisation of the United Nations (2019), some farmers have no alternative but to destroy their produce. It is becoming almost uneconomical to use expensive means of making products available in the market only to face the above challenges.

Sourcing Problems

Supermarkets have become the only alternative for people seeking to purchase food products. However, these institutions have been hit by a major sourcing problem. Like many other organisations, they have to deal with the challenge of understaffing. Finding the products they need in the market is also another major challenge.

The government has warned retailers against hiking the price of their products (Erokhin & Gao, 2020). However, having access to these items has become challenging and expensive. Some of the supermarkets have been forced to have empty shelves instead of stocking products that may result in loss. The problem is worse for companies that had relied on imported products.

Emerging Trends and Forces Fuelling the Transition

The challenges brought about by the new normal have forced stakeholders in the food industry to find ways of adapting. As Wallace (2016) observes, successful firms have learnt how to adapt to forces in the market to help them remain sustainable. Emerging trends and forces within the macro-environment are fuelling transition in this sector. It is important to look at these emerging trends, challenges associated with them, and how players in the food industry are responding.

Changes in Consumer Preferences

The novel corona virus outbreak has reemphasised the importance of leading a healthy lifestyle. As Cheshmehzangi (2020) observes, the majority of those who are at greatest risk of losing their lives are those with underlying health problems. People suffering from obesity, diabetes, and coronary diseases are at greatest risk of dying if they contract the disease. Many people have often ignored these diseases because of the presence of medicine that one can use to manage them.

However, the virus is a real threat that they cannot ignore any longer (Shanker, et al., 2019). More than ever, people are now focusing on healthy diets as a way of remaining in good health. These health-conscious customers are now looking for fresh additive-free food items with traceable origin (Christiansen & Kasarcı, 2017).

Players in the industry are finding it almost impossible to meet this new demand during this period. Sourcing for food products is a major challenge, and when customers become choosy, the problem becomes worse. The trend is likely to force some of these companies out of business.

Increased Volatility in Supply

The geopolitical and climatic factors have been the greatest factor contributing to the volatility in the food supply in the United Arab and its neighbouring countries within the Middle East. However, COVID-19 has worsened the situation. Berson (2019) explains that a new practice where farmers accumulate their products and sell them in large quantities at once is emerging. The trend is fuelled by the desire to cut the unit cost of making their products available in the market.

The problem with the practice is that it creates volatility in the industry which affects pricing. When the products are made available in the market in large quantities, the price is likely to drop significantly. On the other hand, when the supply falls, the price will rise sharply. Managing such volatility in the market may not be easy. Eugenio (2016) explains that convincing customers that it is normal for prices to fall and increase sharply is not easy. It results in cases of customer dissatisfaction.

Tightening of Rules and Standards

The food industry was already going through the transition before the outbreak of the virus as governments and customers demanded greater responsibility. However, Detwiler (2020) believes that the disease has significantly increased expectations. Research has revealed that when an infected person touches any surface, it becomes infected and poses a major risk to others.

Containment measures proposed by the World Health Organisation have meant tightening of rules and standards of handling food. Food items cannot be disinfected in the same way as non-food items. It means that supermarkets and other retailers have to find ways of limiting the spread of the virus through their food products.

One of the new rules is that these retailers have to regularly test their employees to ensure that they are free of the virus. Such tests add to the overhead costs for the company. When an employee tests positive, they are expected to go for self-isolation away from their work station even if they are asymptomatic. The ease with which the virus can spread means that the majority of the workers can easily contract the virus if one is infected.

The operations of the company can be crippled when it has to release most of its workers, and in some cases, it may be forced to temporarily stop its operations. The additional certificates related to COVID-19 that these firms should have would increase their unit cost. However, the government is warning against the hiking of prices. The only option that these retailers have is to deal with the problem of a significant drop in profitability.

Socio-Demographical Changes

It is not easy to have a clear prediction of the possible socio-demographical consequences of COVID-19 in the country. However, economists and health experts have argued that there will be significant changes in the food industry that stakeholders have to be ready to address. One of the expected changes is the drop in popularity of nursing homes for senior citizens. Balasubramanian (2020) observes that these homes were popular because elders not only received immediate medical assistance but they also enjoyed the social setting, freely interacting with their age mates instead of having to deal with young children back at home.

However, recent statistics have revealed that these nursing homes have become hotspots for the spread of the virus. As such, it is likely that many of the elderly persons and family members who would have preferred these institutions no longer trust them. Before the emergence of the disease, it was easy for retailers specialising in food items popular among the elderly to target them in their homes. That may no longer be the case if the current trend gains root in society. These vendors will have to look for these customers in places other than nursing homes. It may result in an increase in the overall cost of operation.

Technological Advances

Technology is changing rapidly and during this time, innovators are trying to develop ways in which people can lead normal lives under abnormal circumstances. According to Cheshmehzangi (2020), some of the biggest winners in the food industry during this period are those operating in the online platform. Amazon.com is one of the companies that have registered impressive growth during this period because of the nature of its operations.

Customers do not have to visit any brick-and-mortar store when they want to purchase their groceries. They only need to visit the company’s website, make their order, pay for the product, and wait for the delivery at the doorstep of their houses. Other retailers that are still using the traditional model of operation may need to adjust their operations in response to these changing forces in the market.

Technology has become a critical component of supply chain management, and when a firm continues to ignore its significance, its operations may easily be rendered outdated. The stiff competition brought about by these technological changes require an effective shift in the approach of operation

Sustainability Challenges

Perhaps the biggest challenge that firms in the food industry face is related to sustainability. The United Arab Emirates, just like many other countries within the region, in Europe, North America, and Africa, has been forced to implement measures that limit the movement of people from place to place to manage the spread of the virus.

Many sectors of the economy have been shut down, especially those classified as non-essential. Restaurants fall into this category of the non-essential sector. Tourism is currently one of the worst affected industries. As Bhat (2017) explains, tourism sector is closely intertwined with the hotel and restaurant businesses. The flow of customers has been going down consistently as the problem became worse.

Some of the hotels in the country have been forced to send their employees on unpaid leave. Others are paying their workers a fraction of their salaries. As these employees cannot conduct their activities from home, they have to be either at their respective places of work or be sent on leave.

The main challenge is that if the trend continues, these businesses will no longer be sustainable. The feared trend has been witnessed in the airline industry where some companies have already been forced out of operations. Some of these airlines include Flybe and Virgin Australia. The same trend may be witnessed in the food industry as the cost of operation continues to exceed the revenue that these firms generate. The government’s planned bailout may be the only option that these companies have as it is apparent that the virus may last longer than it had been anticipated.

Theoretical Framework

Supply chain management challenges that companies in the food industry face during this period of the COVID-19 pandemic can be analyzed using Theory of Constraints. This theory looks at the various bottlenecks that limit production potential (Balasubramanian, 2020). As shown in figure 1 below, it is crucial for the management to conduct a regular assessment to identify various bottlenecks and manage them individually. The first step is to identify a specific challenge, which for instance may be the difficulty in identifying reliable source of food supply (Lipper, et al., 2018).

The second step is to exploit the constraint before subordinating everything to the management of the constraint. The fourth step is to elevate the constraint within the system by proposing possible solutions (Detwiler, 2020). When one constraint is effectively managed, the team will then focus on the next challenge and will follow the same process to manage it. This model of managing challenges within an organization is relevant to firms in the food industry, which are currently dealing with numerous challenges in managing their supplies.

Theory of constraints
Figure 1. Theory of constraints (Levinson, 2019, p. 47).

Research Methodology

Supply chain management is a widely research topic, but the researcher narrowed the study to a specific current issue. The problem of COVID-19 pandemic has affected the supply chain management in the food industry. To understand the nature of this problem and recommend ways of dealing with it, it was necessary to collect data from various sources. The researcher relied on both primary and secondary sources of information (Devi, 2017).

Secondary data was collected from books and journal articles published recently when the global society was battling the pandemic (Brandenburg & McDonough, 2019). These sources had to be obtained from online databases because of the movement restrictions. JSTOR, Elsevier, Google Scholar, and EBSCO host among others provided important secondary sources in this study.

Primary data had to be collected from a sample of individuals currently operating in the food industry in the United Arab Emirates. The researcher used judgmental sampling to identify people within the industry (business owners and senior employees) capable of providing the desired information (Politano, 2017; Worthington & Bodie, 2017).

Given the COVID-19 restriction, it was not easy to find qualified participants for the study. As such, sample calculation was not necessary as only 20 individuals could be reached through online platforms for participation (Kurum, 2017). They included managers and owners of local hotels, restaurants, and other food outlets within the city of Dubai. They were selected based on their availability on phone as stated on their company websites.

The researcher could not conduct face-to-face interviews with the sampled participants because of the restrictions discussed above (Baron & McNeal, 2019). As such, phone interviews were conducted instead. The researcher used a questionnaire to conduct these interviews. The collected data was analyzed using quantitative research to provide a comprehensive understanding of the issue under investigation and how it can be managed (Mami, 2019). The outcome was presented graphically and in form of detailed explanations. Excel was used to produce graphs based on the information obtained from participants.

Data Analysis and Results

The level of impact of the outbreak of the novel coronavirus on the global economy is yet to be determined because the problem is yet to be contained. However, economists predict that if the situation is not managed effectively and within the shortest period possible, it might be worse than the 2008 global economic recession. It is estimated that about 100 million people have already lost their jobs globally because of the containment measures that have forced many organisations to close their operations.

Food industry is one of the worst affected by these global containment measures set by the world health organisation. In this section, the researcher will conduct a statistical analysis to understand how the problem has affected the supply chain for local players in the food industry within the United Arab Emirates. The researcher started by asking respondents if their supply chain has been affected by the pandemic. The following figure 2 shows their response.

Impact of COVID-19 on supply chain in UAE’s food industry.
Figure 2. Impact of COVID-19 on supply chain in UAE’s food industry.

The outcome of the analysis shown in the figure above indicates that an overwhelming majority of the respondents are affected by this problem. 90% of those sampled stated that they are significantly affected by the problem. The remaining 10% stated that they have been slightly affected because they still have means of having access to what they need.

It is clear that none felt that they are safe from the pandemic. The result shows the magnitude of the problem within the food industry. The researcher asked the participants to state whether they feel their operations can be crippled if an effective solution is not found. Figure 3 below shows their response.

The likelihood of firms getting paralysed because of the supply chain challenges.
Figure 3. The likelihood of firms getting paralysed because of the supply chain challenges.

It is clear from the statistics above that an overwhelming majority of the respondents (95%) feel that their can easily be pushed out of operations if the current problem persists. They know that the current strategies they are using to access materials they need may not be sustainable in the long term. As such, they need strategies that can enable them address the problem more effectively. The researcher asked the participants to state whether they feel the government has a major role to play in solving the problem in a cyclic model of the Theory of Constraints as discussed in the literature review. Figure 4 below shows the outcome of the analysis.

Government’s involvement in solving the current problem.
Figure 4. Government’s involvement in solving the current problem.

It is important to note that there were divergent views when participants were asked to state whether government should be involved in solving the problem. Although the majority of the respondents (60%) felt that it is necessary to engage the government in various ways to find a lasting solution to the problem, some (30%) felt that involving the government may interfere with the normal operations in the industry. They cautioned that such a move should be done with significant level of restraint.

Another 10% of the respondents were not sure whether it was prudent to allow the government to be involved in solving the problem. The respondents were asked to state what they believe is the single-most important measure that should be taken to address the problem. Figure 5 below shows the suggestions they made based on their experience.

Ways of managing supply chain challenges during this pandemic.
Figure 5. Ways of managing supply chain challenges during this pandemic.

As shown in the figure above, the use of technology was the most mentioned solution when it comes to solving the current supply chain challenges in the food industry. These respondents felt that there is need to be innovative when it comes to solving this particular problem. Another commonly mentioned solution was the need for local players in the food industry to develop sustainable relationship with suppliers, especially for those products that have to be imported.

It was also evident that these respondents feel it is necessary to promote domestic agriculture to reduce reliance on imported products. Improved transport system that protects long-distance truck drivers from contracting the virus was also proposed as a means of managing the problem. One respondent stated that it is necessary to have public awareness campaigns to enable people to appreciate the sacrifice that truck drivers make to avail food materials to the market. Instead of being victimized as super-spreaders, they need to be supported for their bravery.

Discussion

The analysis has provided an insight into the nature of the problem within the UAE and ways that the sampled respondents feel that it should be addressed. Both the primary and secondary data shows that the outbreak of the novel coronavirus has significantly disrupted the movement of food products in the industry within the United Arab Emirates and in other parts of the world. According to Balasubramanian (2020), the problem has affected almost every sector of the chain, from the farm to the restaurants. It is essential to assess how supply chain management has been affected.

Effectiveness of the Theoretical Model in Solving the Problem

The theory of constraints described a systematic approach of diagnosing challenges within a system and solving them individually. The analysis of primary data supports the ability of this model to solve the challenges identified. It is clear that players in the food industry face different problems with their supply chain because of the pandemic (Akkucuk, 2019). Each of these challenges need unique approach of solving them, and the model may be effective. It emphasizes the need to identify a specific problem and then finding a lasting solution based on the capacity of an individual company and the prevailing external forces.

Managing Supply Chain Challenges Associated with COVID-19

The outbreak of COVID-19 has had major implications on the food industry as discussed above. Many large corporations in this industry such as McDonalds, Burger King, and Al Dawaar Revolving Restaurant are struggling to remain operational. Major hotels in the country such as JW Marriot Marquis, Palm Jumeirah Dubai, Grand Hyatt Dubai, and the Ritz Carlton are also facing the same grim situation in the market. Other food retailers, transporters, suppliers, and producers are also dealing with different problems related to the outbreak of the novel coronavirus (Ram & Davim, 2018).

The new business environment created by this virus may last for long, and the food industry will remain one of the most sensitive sectors even if economies around the world open. In the United Arab Emirates, it is expected that the government may set new regulations meant to limit the spread of the virus in these facilities (Detwiler, 2020). Companies must find strategies that can enable them to operate effectively under the new environment. Building supply chain resilience may be the only solution for these companies.

Market Versatilities

Suppliers in the food industry have enjoyed a business model where they deliver their products to restaurants, hotels, bars, and other large retailers instead of selling them in small portions directly to customers. This approach of operation may need to change for them to survive, especially if the virus remains persistent for long globally. Given that these preferential customers are crippled, suppliers have to find alternative ways of making their products available to their customers (Gersen et al., 2019).

One of the possible strategies that these entities can consider is the use of digital solutions. They will have to use online platforms to ensure that they can reach out to individual customers. It may not be as desirable as selling mass products to large suppliers. However, it is the only way that they can continue selling their products when restaurants and hotels are still closed or partially opened.

End-to-End Management of Supply Chain

One of the lessons that many corporations have learnt during this period of coronavirus outbreak is that it is risky to rely on one or two suppliers who can easily change their loyalty if it suits them. Cases have been witnessed where some retailers are unable to access important inventory because the supplier has opted to sell their products to another company. It has become clear that companies may be forced to have end-to-end management of the supply chain.

The vertical integration approach will mean that the firm will have full control of the entire supply chain, from the production of raw materials, logistics management, processing, and availing products in the market (Detwiler, 2020). This approach not only cuts costs by eliminating brokers, but it also assures the firm of continuity. It will have continuous flow of all the materials that it needs without the fear that a supplier may opt to sell products to a competitor.

In cases where it is not possible to monopolise the entire supply chain, such as cases where raw materials have to be imported, a firm should have reliable suppliers who are not easily compromised. It would be advisable to have legally-binding contracts that can protect the company just in case issues arise in the future.

Legislative and Policy Changes

The global community has realised how vulnerable it is to a major outbreak of a communicable disease. It is expected that after the situation is managed, countries will come up with various policy measures to ensure that such catastrophes are contained in case they can occur in the future. Movement of people and goods and general interaction in socio-economic and religious gatherings may be subject to laws and regulations, especially if the virus remains persistent in the global community (Neumann & Neumann, 2018).

It will be necessary for players in the food industry to be actively involved when developing these policies because they are likely going to affect supply chain management. They should offer their views on issues such as the approach that the country should take in regulating imported food.

India is one of the major exporters of rice to the UAE. This food item is popular in the UAE, but the country lacks the capacity to produce it because it requires a significant amount of water. Any policy that limits the importation of rice may have an adverse effect on the country’s food industry. Working closely with the government, these players can propose ways of making the supply chain safer without compromising on the ability of the country to have access to the needed items.

Some of the policies may increase the cost of operation (Hugos, 2018). For instance, the need to test workers regularly may be costly. Social distancing rules also limit the capacity of some of these organisations to operate to their full potential. These institutions should ensure that they are involved in developing these policies to protect their ability to remain sustainable.

Use of Emerging Technologies

The events following the outbreak of the novel coronavirus show that technology is going to be a major factor that will define supply chain management in the food industry. The internet has made it easy for people to communicate easily without necessarily having physical interactions. Players in the food industry must find ways of taking advantage of these technological changes to achieve success while operating online (Kumar & Saurav, 2018).

One of the ways of redefining operations is to partner with logistics companies such as Uber to facilitate the delivery of food items to customers’ homes or offices instead of them having to visit the food outlets. Given that the physical capacity of these facilities is reduced, the extra food items can be delivered to clients’ preferred locations instead of them having to visit these stores. Emerging technologies can also be used to communicate with suppliers. Using models such as Just-in-Time, it is possible to monitor inventory and order for stock when it is necessary to do so. It will help in avoiding cases where excess stock is delivered, leading to an increased cost of storage.

Recommendations

The impact of the COVID-19 on the country’s supply chain, especially in the food industry, has outlined major weaknesses that stakeholders within the country must address. It is now evident that the United Arab Emirates relies significantly on imported food items. This issue should be addressed effectively. The following recommendations should be considered by players in this industry:

  • It is necessary to identify trusted suppliers capable of availing needed products during this period of pandemic. The management should consider developing lasting relationship with these suppliers.
  • It is necessary for these firms to find ways of storing food products which are not perishable.
  • The government should consider empowering local farmers to reduce the level of reliance on imports.

Conclusion

Supply chain management in the food industry has been adversely affected by the global outbreak of the COVID-19 pandemic. The analysis shows that numerous suppliers have not been able to deliver their products to the market because of the numerous restrictions that the ministry of health has put in place. Some of the major food outlets and hotels are also closed to help curb the spread of the virus.

As the country prepares to ease these measures, players in this industry will need to embrace new practices that will protect the supply chain. The government is likely to develop new policies meant to protect people from contracting the disease. Some of these measures may affect supply chain management in this industry negatively. It is essential for these companies to redefine their operational strategies to help them remain sustainable in the market.

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IvyPanda. (2022, May 21). COVID-19: Supply Chain Management Challenges of Food Industry. https://ivypanda.com/essays/covid-19-supply-chain-management-challenges-of-food-industry/

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"COVID-19: Supply Chain Management Challenges of Food Industry." IvyPanda, 21 May 2022, ivypanda.com/essays/covid-19-supply-chain-management-challenges-of-food-industry/.

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IvyPanda. (2022) 'COVID-19: Supply Chain Management Challenges of Food Industry'. 21 May.

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IvyPanda. 2022. "COVID-19: Supply Chain Management Challenges of Food Industry." May 21, 2022. https://ivypanda.com/essays/covid-19-supply-chain-management-challenges-of-food-industry/.

1. IvyPanda. "COVID-19: Supply Chain Management Challenges of Food Industry." May 21, 2022. https://ivypanda.com/essays/covid-19-supply-chain-management-challenges-of-food-industry/.


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IvyPanda. "COVID-19: Supply Chain Management Challenges of Food Industry." May 21, 2022. https://ivypanda.com/essays/covid-19-supply-chain-management-challenges-of-food-industry/.

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