| Literature DB >> 35855307 |
Linda Njomane1, Arnesh Telukdarie1.
Abstract
This study aims to understand the impact of the COVID-19 pandemic by comparing the performance of three major supermarkets in South Africa and addressing the following questions. 1) What is the impact of a supply chain disruption on the food system? 2) What interventions (short and long-term) are taken by the food supply chain to mitigate disruption? 3) What does the post-pandemic picture look like for the food retail sector? This study adopts a comparative research approach and investigates direct strategies adopted by various food supply chain actors to mitigate the impact of covid-19. This study compares how retailers Checkers, Woolworths, and Pick n Pay have adapted their business models to remain resilient during COVID-19 lockdown. The results show that the food supply chain remained resilient even with demand management challenges at the lockdown. Food supply chain issues came under a spotlight as borders and production plants were shut down or restricted to contain the spread of the virus. This study establishes that the food shortage is primarily caused by panic buying at the beginning of lockdown, causing shock in the supply chain cadence. The other aspect of food security issue is attributed to food availability and socioeconomic problems resulting from loss of income. On sustainability, there are fears that control measures such as packaging (increased use of plastic), cleaning chemicals, waste and sanitisation of space to maintain hygiene as required for covid-19 can undermine the gains towards preserving the environment.Entities:
Keywords: COVID-19 regulations; Food supply chain resilience; IoT; On-demand shopping
Year: 2022 PMID: 35855307 PMCID: PMC9281459 DOI: 10.1016/j.techsoc.2022.102051
Source DB: PubMed Journal: Technol Soc ISSN: 0160-791X
Fig. 1State of emergency alert Levels for COVID-19 in South Africa.
Fig. 2Typical demand of food in 2020 [11].
Fig. 3Data-driven value chain.
Fig. 4Framework of a pandemic resilient supply chain [20].
World response to COVID-19 imposed supply chain disruption.
| Issues introduced by COVID-19 pandemic | Response of the demand side of the food supply chain worldwide | Technologies introduced on the demand side | Reference |
|---|---|---|---|
| Hybrid shopping models to manage numbers at the shops | Online shopping/eCommerce/Click & collect, Apps like Skip the Dishes and Uber Eats | [ | |
| Restrict sales of non-essential items | [ | ||
| Spatial planning in the supermarkets | [ | ||
| Manage supply-side shocks influenced by labour shortages and blocked market links | [ | ||
| Move from global to local/short food supply chains | [ | ||
| Ready food delivery services | |||
| Economic response by 197 countries to lessen the impact of lockdown | |||
| Unique shopping slots for the elderly and vulnerable and allay panic buying by communicating with the customer and simplifying varieties, and hiring more temporary workers | |||
| Food Security Changing consumption patterns | Manage the supply of food to avoid empty shelves – even sourcing from new suppliers and transportation | Smartphones, the internet, applications | [ |
| Communicate with customers to manage panic | [ | ||
| Limit number of items per customer | [ | ||
| Increase food prices | [ | ||
| Predict consumer consumption patterns and peak times | [ | ||
| Stopping product marketing campaigns | [ | ||
| Panic buying behaviours in Indian families correlate with income, family age, and buying mode. | [ | ||
| Manage demand-side shocks as high as 47% influenced by panic buying and lack of restaurant service. | [ | ||
| Hybrid models remain as a choice of customers used to the new normal | [ | ||
| Building and improving capacity for non-store shopping | [ | ||
| Permanent structural changes in consumer behaviours | |||
| Increase in non-store food shopping | Expansion of non-store food shopping channels | [ | |
| Sustain online shopping | Ease of use of shopping technology sustained quality & customer service | e-grocers | [ |
| Even non-food sales are on the increase | [ | ||
| New positive trends to support food production & consumption | Direct deliveries, online farmers markets, small local grocers to emerge & thrive, food-producing community groups, home gardens, seed buying, home cooking. Other trends influence positively the GHG emission leading to climate change gains | Social media, apps like Instacart, Grubhub, DoorDash, smart retailing, online queues | [ |
| Address the food processing capacities and mitigate vulnerabilities of the supply chain, particularly deliveries and payment systems. | [ | ||
| Increase in supply consumer business model | [ | ||
| Short supply chains | |||
| Negative trends | Online shopping monopolies _ global conglomerates | Online shopping | [ |
Characteristics of mobile applications for Checkers, Woolworths, and Pick n Pay.
| Variables compared | Application Characteristics | ||
|---|---|---|---|
| Woolworths | Checkers | Pick n Pay | |
| Mobile application name | Dash | Sixty60 | ASAP! (Bottles) |
| Application download cost | Free | Free | Free |
| Type of service | On-demand | On-Demand | OnDemand |
| Turnaround time | Same day service | Delivers in 60 min from order | Same day service |
| Launch date | Dec-20 | Nov-19 | Bottles launched in 2016 for alcohol only and partnered with PnP in 2018. PnP acquired during COVID Bottles and extended the service to groceries in Oct 2020 |
| Reason for launch | Customer demand | Customer demand | Expanded an existing liquor delivery same day service to groceries |
| Delivery areas | Selected Suburbs in KZN, GP & WC | ||
| Care | Track your order from the store to house | Track your order from the store to house | |
| Demand Management | 30 items | Max 3 products per customer & 30 items per basket | Max 3 products per customer |
| Service Days | Everyday | Everyday | Everyday |
| Sustainability | Reusable bags | Recyclable bags | Paper |
| Cost | Free during trial for orders over R75 | 35 | 35 |
| Preservation of temperature-controlled foods | Specified unique technology | ||
| Variety of products | Not specified | 15 000 including Alcohol | 8000 including alcohol |
| Differentiator | First on-demand delivery service to offer a store to door cold chain through high tech cooler boxes that stay refrigerated | Only retailer with service in Mpumalanga | Includes township stores |
| Delivery Mode | Motorcycles | Not specified (Observed motorcycles on the road) | Not specified (Observed delivery personnel wearing Takealot Uniform) |
| Compatibility | iOS & Andriod | iOS & Andriod | iOS & Andriod |
| Radius from store | 5 KM | 5 km | 5 km |
| Reward Program | Not linked | Not linked | Not linked |
Comparison of Mobile application customer Reviews.
| Mobile App Name | No of Subscribers | Number of Reviews | Average review score | Summary of Reviews | Launch Date |
|---|---|---|---|---|---|
| Sixty60 _ Android | +500 000 | 5358 | 3.9 | ||
| Sixty60 _ iOS | Not Specified | 1300 | 2.9 | ||
| Woolies Dash _ Andriod | +10 000 | 415 | 4.3 | Dec 2020 | |
| Woolies Dash _ iOS | Not specified | 594 | 4.4 | ||
| ASAP! (Bottles) by PnP _ Andriod | +500 000 | 4130 | 3.5 | Existing app, extended in Oct 2020 for Groceries. | |
| ASAP! (Bottles) by PnP _ iOS | Not Specified | 6300 | 4.7 |
Fig. 5Delivery Areas for On-demand shopping service.
Fig. 6Comparison of financial results for the same period (pre and during COVID-19).
Fig. 7Updated control framework proposed to minimise supply chain disruptions.
What does the post-pandemic picture look like for the food retail sector?