food Archives - Total Supply Chain Summit | Forum Events Ltd

Total Supply Chain Summit | Forum Events Ltd Total Supply Chain Summit | Forum Events Ltd Total Supply Chain Summit | Forum Events Ltd Total Supply Chain Summit | Forum Events Ltd Total Supply Chain Summit | Forum Events Ltd

Posts Tagged :

food

How real-time visibility of the supply chain can help mitigate food waste

In today’s market, consumer demands have not only driven supply chain efficiencies for greater speed and convenience but are increasingly now forcing retailers to address expectations of improved sustainability.

The consequences of keeping up with customers’ wishes aren’t always easy and may have an adverse effect on short term business plans and processes, especially if your supply chain isn’t as seamless and transparent as it should be. Even the smallest of inefficiencies can add up and lead to all manner of waste during production, transport and even disposal.

Over recent years, the grocery market has come under scrutiny and intense pressure to re-evaluate its approach to tackling food waste, with around 88 million tonnes worth being generated yearly across the EU, a staggering 40% of food doesn’t even make it to the market. 

The problem is, without real-time insight into the exact status and condition of product and inventory within the end-to-end supply chain, what options do companies have to address waste and improve customer engagement? Amir Harel, General Manager of Visibility Solutions at Zetes, explores how complete real-time, intelligence-driven visibility of the supply chain can help mitigate food waste…

The Lack of Supply Chain Visibility 

The world is ready for change. According to REFRESH, an EU research project acting against food waste, resources being lost and wasted in Europe would be enough to feed all the hungry people in the world twice over. It’s a message that consumers around the world are taking to heart. From reusable bags to paper straws, and bottle-free toiletries to meat-free diets, people are taking real steps to reduce waste, and they expect the businesses they buy from to do the same.

In the UK, for instance, grocers have encouragingly pledged to halve their food waste from ‘farm to fork’ by 2030. Whilst we commend large retailers for deploying innovative ideas such as the introduction of ‘wonky veg’ – vegetables that do not meet the aesthetic requirements of supermarkets due to shape or appearance – are now being sold in supermarkets to help combat waste, it is analysing the production of waste on a more granular level that will achieve a positive environmental impact at a far greater scale and have more effect. 

Yet, recent research from Sapio, on behalf of Zetes, reveals that the current levels of supply chain visibility are far from perfect, with a staggering 94% of organisations surveyed saying they lack transparency throughout their supply chain.

Unlock Capability

To implement an appropriate resolution, it is imperative that the cause of waste is understood. There are so many contributors – from the excess inventory that arises from poor and/or delayed forecasting and orders, to time lost during the distribution process coupled with inefficient transportation models can be devastating for any short shelf-life products. Just 30% of organisations have full visibility of goods in transit. As a result, addressing the food waste that occurs at every stage of the supply chain is a complex task.

Research highlights that 79% believe that improved visibility would have a material effect on cutting wastage. As a taste of the potential savings, it’s estimated that supply chains could reduce food waste alone by €240bn.

For example, reducing empty miles, improving first time in full delivery, minimising unnecessary stock movement between stores, avoiding forecasting or ordering disputes and achieving far more intelligent routing, are all critical components for an efficient supply chain that minimises waste.

Real-time efficiency 

Having complete visibility and traceability of products is also key to a resilient supply chain, which is especially important when recalls and faults in production can cause crisis situations and disruptions. When retailers are able to share data throughout their supplier ecosystem in real time, they can create the foundations for better collaboration based on stronger connections and highly effective dynamic forecasting.

It is also essential that companies understand how technology can be deployed and utilised to address each challenge – whether that is waste reduction through improved transportation or more accurate and dynamic levels of stock availability.

So, where to start?     

Environmental consciousness in the digital age will continue to have a huge impact on retailers. The vision to transform ‘farm to fork’ and remove food waste from the supply chain is big. To succeed, retailers need to start small, identifying priority areas first, where quick and impactful wins can be realised. As they start to see results, they will be able to scale fast and ultimately achieve full end-to-end intelligence-driven visibility.

Zetes’ Supply Chain Visibility Research Report surveyed 451 respondents in the UK, France, Germany and Spain. All interviews were conducted in December 2018 and January 2019.

Image by Jasmin Sessler from Pixabay

Investors pile sustainability pressure on fast food supply chains

Global investors representing more than $6.5 trillion have called on six of the largest companies in the $570 billion global fast-food sector to act urgently on the climate and water risks in their supply chains.

The investors have sent letters to Domino’s Pizza, McDonald’s, Restaurant Brands International (owners of Burger King), Chipotle Mexican Grill, Wendy’s Co. and Yum! Brands (owners of KFC and Pizza Hut).

The letters, facilitated by the sustainability organisation Ceres and the FAIRR Initiative, ask companies to explain by March 2019 how they plan to enact meaningful policies and targets to de-risk their meat and dairy supply chains.

More than 80 investors have joined the letter, including BMO Global Asset Management (Canada), Aviva Investors (UK) and Aegon Asset Management (Netherlands).

The engagement is also supported by members of the Interfaith Center on Corporate Responsibility (ICCR) who have convened long-standing engagements with these companies on a host of environmental and social concerns – including deforestation and the water impacts of animal agriculture.

The letters call on the fast food companies to:

  • Adopt a supplier policy with clear requirements for suppliers of animal protein products to report and reduce greenhouse gas (GHG) emissions and freshwater impacts.
  • Publish quantitative, time-bound targets to reduce the GHG emissions and freshwater impacts of their own meat and dairy supply chains.
  • Commit to publicly disclose progress on these targets annually.
  • Undertake a climate scenario analysis in line with the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD).

Meanwhile, a new investor briefing from FAIRR highlights the environmental impact of the meat and dairy producers that supply the fast food sector. Agricultural emissions, including those from meat and dairy, are on track to contribute  around 70% of total allowable GHG emissions by 2050. This will create an 11-gigaton GHG mitigation gap between projected emissions and the target level required to keep global warming under a 2°C threshold. The livestock sector is also estimated to use approximately 10% of annual global water flows.

Jeremy Coller, Founder of FAIRR and Chief Investment Officer of Coller Capital said: “Every day around 84 million adults consume fast food in the US alone, but the inconvenient truth of convenience food is that the environmental impacts of the sector’s meat and dairy products have hit unsustainable levels. To put this in perspective, if cows were a country, it would be the world’s third largest emitter of greenhouse gases.

“Other high-emitting industries, such as cars or oil and gas, are beginning to set clear yet ambitious climate targets, making animal agriculture one of the world’s highest-emitting sectors without a low-carbon plan. A failure to tackle these major environmental problems in corporate supply chains puts the long-term financial sustainability of these household names under threat. Investors are calling for more strategic and innovative thinking to manage these risks.”

Mindy Lubber, president and CEO of Ceres, added: “Fast-food giants deliver speedy meals, but they have been super slow in responding to their out-sized environmental footprints. Investors are eager to see more leadership from these companies to reduce the mounting climate and water risks linked to their meat and dairy suppliers. From eliminating deforestation to reducing water waste, cleaning up their supply chains will have enormous impacts on the animal agriculture sector as a whole, and dramatically increase our ability to meet the goals of the Paris Agreement to limit global warming.”

Retailers warn over ‘no deal’ Brexit food supply chain risks

Sainsbury’s, Asda, Waitrose and M&S are among UK retailers to have warned about the devastating impact a so-called ‘no deal’ Brexit will have on food security and supply in the UK.

In an open letter to MPs, send by the British Retail Consortium trade body, the CEOs of the country’s biggest food retailers called on the government to do everything it can to prevent the cliff-edge scenario from occurring.

The letter, which was also signed by eateries KFC, McDonald’s and Pret A Manger, said that food stocks will experience shortages and that sufficient storage at ports and in warehouses simply wasn’t available for stockpiling given the just in time methods employed on most food imports.

The letters reads: “Our supply chains are closely linked to Europe – nearly one third of the food we eat in the UK comes from the EU. In March the situation is more acute as UK produce is out of season: 90% of our lettuces, 80% of our tomatoes and 70% of our soft fruit is sourced from the EU at that time of year. As this produce is fresh and perishable, it needs to be moved quickly from farms to our stores.

“This complex, ‘just in time’ supply chain will be significantly disrupted in the event of no deal. Even if the UK government does not undertake checks on products at the border, there will still be major disruption at Calais as the French government has said it will enforce sanitary and customs checks on exports from the EU, which will lead to long delays; Government data suggest freight trade between Calais and Dover may reduce by 87% against current levels as a result. For consumers, this will reduce the availability and shelf life of many products in our stores.

“We are also extremely concerned about the impact of tariffs. Only around 10% of our food imports, a fraction of the products we sell, is currently subject to tariffs so if the UK were to revert to WTO Most Favoured Nation status, as currently envisaged in the no-deal scenario, it would greatly increase import costs, which could in turn put upward pressure on food prices. The UK could set import tariffs at zero but that would have a devastating impact on our own farmers, a key part of our supply chains.”

FSA trials first use of blockchain for food supply chain

The Food Standards Agency has successfully completed a pilot using blockchain in a cattle slaughterhouse, representing the first time the technology has been used as a regulatory tool to ensure compliance in the food sector.

A blockchain is a type of database that takes a number of records and puts them in a block (rather like collating them on to a single sheet of paper). Each block is then ‘chained’ to the next block, using an encrypted signature. This allows block chains to be used like a ledger, which can be shared and checked by anyone with the appropriate permission.

In the pilot both the FSA and the slaughterhouse had permission to access data, giving the benefit of improved transparency across the food supply chain. A further pilot is planned for July which will give permission to farmers to access data about animals from their farm.

The next action will be for further work to replicate this in other plants and ensure that all those across the chain get the full benefit of the new way data is managed and accessed as ‘permissioned’ data to the FSA, slaughterhouse and farmer.

If use of blockchain technology continues to show success in pilot, then its permanent use would need to be industry-led because the current data model is limited to the collection and communication of inspection results.

Sian Thomas, Head of Information Management, said: “This is a really exciting development. We thought that blockchain technology might add real value to a part of the food industry, such as a slaughterhouse, whose work requires a lot of inspection and collation of results.

“Our approach has been to develop data standards with industry that will make theory reality and I’m delighted that we’ve been able to show that blockchain does indeed work in this part of the food industry. I think there are great opportunities now for industry and government to work together to expand and develop this approach.”