Guest post by Sheer Logistics

How bad is it?

The percentage is soaring, with 58% of food going to waste. Sadly, 32% of the food waste is perfectly edible. The costs of this loss are even more staggering at $49.46 billion, according to Second Harvest.

Food waste can occur for several reasons. The main ones are overproduction, inventory mismanagement, and operational failures. But, we can fix these problems with technology.

Here is a look into how a company can optimize its supply chain to reduce this number. But first, let’s understand how the supply chain contributes to food waste.

How the supply chain contributes to food waste

We have to take a systematic approach to understand how the supply chain affects food waste. This systematic approach entails harvesting, handling, storage, transportation, and consumption.

Harvesting

This is the stage where farmers harvest the fresh produce. Food wastage begins here if food is poorly handled or the climate isn’t ideal. Canada’s data on food wasted at this stage is 13%, per a 2019 Taking Stock report.

Handling and storage

Once food leaves the farms, harvesters sort, clean, and package it for the factories. If this isn’t done carefully, more food is wasted. Additionally, if the storage isn’t ideal, more waste occurs.

Processing and manufacturing

Here is where the bulk of the waste occurs.

A 2019 CBC news article lists that wasted food surpassed 4.82 million tonnes. Wastage here mostly occurs due to overproduction.

Inefficient processes can also render some of the food below standards.

Transportation and distribution

After production, the packaged foods are moved to wholesalers and retailers. Effective cold chain management during this stage ensures proper refrigeration, helping to minimize food waste due to spoilage.

Please note that sometimes retailers also reject food, leading to more waste. Retailers here are mostly supermarkets, restaurants, and other distributors.

Consumption

When food reaches our tables, we sometimes eat only bits, throwing out the rest. Other foods expire or decay before we consume them. The result? More food wasted!

How technology designs a smarter supply chain

Technological advancements can boost supply networks’ efficiency, transparency, and durability. This encompasses implementing systems that can track food from harvesting to distribution.

The four main technologies that can get that done include;

• IoT devices
• Real-time monitoring systems
• Data Analytics

These solutions helps gather, analyze, and store data on food movement. They work effectively for every supply chain stage.

Robotics and automated technologies can improve harvesting and handling processes. They can optimize sorting, packing, and tracking by eliminating human mistakes.

When it comes to storage, real-time sensors record temperature and storage time. These systems highlight delays and additional storage conditions, such as expiry dates.

In cold chain operations that carry perishable items, IoT sensors detect temperature changes. If there is even a minor drop, it sends an alert for a speedy adjustment.

Furthermore, automation in warehousing and transportation enables accurate administration of food goods. This ensures that the food reaches the suppliers fresh and fit for consumption.

How forecasting and inventory control help reduce waste

Many businesses strain to balance supply and demand. The result? They produce or order food in surplus. This causes excess inventory, which eventually leads to food expiration.

The following is how forecasting and inventory control help cut food waste;

Stock monitoring

Producers can streamline operations and reduce food waste with real-time data and predictive analytics. How? It helps to ensure the right products are available at the right time.

Stock waste-reduction management

These systems can also help you see the products which move slowly. Using this data, a company may apply waste-reduction tactics such as issuing discounts. Donations and redistribution are more methods.

Stock movement

The ability to track stock in real time also helps create orders. Companies can use the first-in, first-out (FIFO) policy to prioritize sales of older items. Eventually, this order minimizes waste and expiration.

Forecasts

Forecasts are also necessary to control seasonal supply fluctuations. During the holidays, certain products rise in demand.

Advanced forecasting models help companies prepare for these moves without over-production. This ensures they have enough stock to meet demand and avoid waste.

Improving cooperation throughout the supply chain

Food waste reduction requires collaboration among many supply chain stakeholders. This encompasses producers, merchants, distributors, and philanthropic groups.

Here’s how collaboration helps:

Better food distribution

By working together, these organizations can better manage surplus food. Their efforts ensure that food reaches people in need rather than the dumps.

Redistribution of surplus food is an example of a good partnership. Online platforms help make these relationships easier and more effective.

Data sharing for better forecast

Sharing information along the supply chain also helps. It improves forecasting, decreases overproduction, and optimizes logistics.

For example, a buyer can liaise with the distributor in a surplus case. The distributor then diverts the extra to another retailer.

Optimizing sustainable packaging and logistics

Sustainable packaging and efficient transportation help reduce food waste in the following ways.

Packaging

Packaging helps keep food fresh. Therefore, packaging materials such as biodegradable or recyclable solutions are necessary. These offer environmentally friendly solutions to reduce contamination.

Modified atmosphere packaging (MAP) modifies the atmosphere inside a storage box. This slows down the growth of pathogens that might ruin food.

Efficient logistics

Logistics entails cold storage or the movement of perishable foods at controlled temperatures. Such logistical solutions ensure that food products remain fresh during travel.

Companies can limit the risk of deterioration by improving delivery schedules. Using real-time tracking platforms also helps.

Technology is your ally

Technology is your ally, which can help reduce food waste. Robotics will improve sorting and packing by eliminating errors. IoT helps with temperature control during transportation and storage, while data analytics aids in forecasting sales trends. When you incorporate these solutions, they will streamline the supply chain and reduce food wastage.