The Impact of COVID-19 on Perishable Export Supply Chains in New Zealand: Strategies and Adaptations
Total Page:16
File Type:pdf, Size:1020Kb
Lincoln University Digital Thesis Copyright Statement The digital copy of this thesis is protected by the Copyright Act 1994 (New Zealand). This thesis may be consulted by you, provided you comply with the provisions of the Act and the following conditions of use: you will use the copy only for the purposes of research or private study you will recognise the author's right to be identified as the author of the thesis and due acknowledgement will be made to the author where appropriate you will obtain the author's permission before publishing any material from the thesis. The Impact of COVID-19 On Perishable Export Supply Chains in New Zealand: Strategies and Adaptations A thesis submitted in partial fulfilment of the requirements for the Degree of Master of Commerce and Management at Lincoln University by Benjamin Michael Bowie Lincoln University 2021 Abstract The COVID-19 pandemic has proven to be a unique and challenging disruption globally, with many supply chains facing ongoing disruptions as a result. As such, 94% of the Fortune 1,000 companies have reported disruptions within their supply chains as a result of the pandemic (Ivanov, 2020). For perishable export supply chains in New Zealand, this is no different, with many impacts resulting from the pandemic, thus testing the resilience of these specific supply chains. These impacts include capacity, labour and equipment shortages, but also severe port congestion globally. New Zealand is highly dependent on its perishable exports that have grown in quantity and value exponentially in the last two decades, both via sea and air freight. Global Logistics Businesses (GLBs) act as the critical link between the point of production and consumption within many perishable export supply chains. Thus, a key research question is to determine the resilience of GLBs and how they have managed to mitigate and reduce the impacts of a large scale disruption such as COVID-19. To investigate this question, multiple case studies were conducted on both GLBs and Carriers in New Zealand to identify the resilience plans and adaptations used during the preparation, response and recovery phases of the COVID-19 pandemic. A useful conceptual framework to help frame disruptions and plan for future events is the Haddon Matrix. This matrix acts as the primary interpretative framework to categorise distinct factors and strategies used within each phase of the disruption. The result of this research is a revised Haddon Matrix offered as a planning tool for managers and researchers that can be utilised when facing further waves of COVID-19, or new pandemics in the future. The findings of this research suggest that the majority of GLBs and Carriers coped well despite the lack of specific pandemic planning. It found that flexibility and communication were key to resilience, as well as favourable exogenous factors such as the New Zealand Government’s influence and fiscal support during the pandemic. Together with the unique experiences that each GLB and carrier has faced during the COVID-19 disruption, it is hoped that the revised Haddon Matrix will provide a roadmap to aid and improve resilience during each phase within the disaster management cycle, including the preparation, response and recovery phases. Keywords: Supply chain disruptions, perishable, response, pandemic, COVID-19, coronavirus, resilience, New Zealand, exports, Haddon Matrix ii Acknowledgements I would firstly like to express my gratitude to both my supervisor, Dr Mark Wilson and associate supervisor Dr Muhammad Umar for providing support and guidance, but also sharing their vast and invaluable knowledge and experience with me over the course of my studies. Without them this research would not have been possible. I am also hugely grateful to my parents Sue and Mike Bowie for their endless support and care they have shown in my time studying at Lincoln. It has played a huge part in my success and determination to complete my studies. I would like to recognise all of the respondents who participated in this research. As demonstrated by this study, the impacts of COVID-19 have been challenging for the industry, so for them to take time out of their busy working schedules to share their experiences and knowledge is highly valued and appreciated. Finally, I would show my appreciation towards Lincoln University and in particular all of those involved in the sports scholarship programme. During my time at Lincoln, I have been fortunate to be on the Basketball Scholarship and it has been a vital in providing me with not only the funding to complete my studies, but it has also provided the necessary balance to my university experience. A huge thanks must go to Hoani Smith, as well as the other staff involved in the programme. iii Table of Contents Abstract..................................................................................................... .Error! Bookmark not defined.ii Acknowledgements .................................................................................................................................. iii Table of Contents ..................................................................................................................................... iv List of Abbreviations ............................................................................................................................... viii List of Tables ............................................................................................................................................ ix List of Figures ............................................................................................................................................ x Chapter 1 Introduction .........................................................................................................................1 1.1 Background Information ...........................................................................................................1 1.1.1 Coronavirus (COVID-19) ............................................................................................... 1 1.1.2 Supply Chain Disruptions .............................................................................................. 2 1.1.3 Perishable Commodity Exports..................................................................................... 4 1.1.4 Supply Chain Resilience ................................................................................................ 6 1.2 Importance of this Research .....................................................................................................7 1.3 Research Objectives ..................................................................................................................9 Chapter 2 Literature review ............................................................................................................... 11 2.1 Disaster Management ............................................................................................................ 11 2.2 Supply Chain Resilience .......................................................................................................... 13 2.3 The Haddon Matrix Concept .................................................................................................. 16 2.4 Categorising Disruptions ........................................................................................................ 17 2.4.1 Disruption Onset ........................................................................................................17 2.4.2 Risk and Vulnerability Assessment .............................................................................18 2.4.3 Outbreak Disruptions (Epidemics/Pandemics) ...........................................................19 2.5 Perishable Supply Chain Disruptions ...................................................................................... 20 2.6 Preparation and Response ..................................................................................................... 21 2.7 Impact of Supply Chain Disruptions ........................................................................................ 25 2.8 Gaps in Literature ................................................................................................................... 26 Chapter 3 Methodology ..................................................................................................................... 29 3.1 Research Design ..................................................................................................................... 29 3.2 Scope of Research .................................................................................................................. 29 3.3 Data Collection ....................................................................................................................... 30 3.3.1 The Haddon Matrix .....................................................................................................31 3.3.2 Interview Protocol ......................................................................................................33 3.4 Data analysis ........................................................................................................................... 34 3.4.1 NVivo 12 Analysis .......................................................................................................34 3.5 Methodological Issues ...........................................................................................................