How to improve the efficiency of the food supply chain

In the latest episode of our Food Ecosystem Insights series, we explore how the food industry can improve supply chain performance in times of disruption.

Driven by geopolitical conflict, changing international trade policies, and extreme weather events linked to climate change, the global food industry is facing unprecedented levels of disruption. The industry’s challenges not only threaten the stability of the food supply, but also highlight inefficiencies in the supply chain. One of the most obvious is food waste.

According to the Food and Agriculture Organization of the United Nations, one-third of the food produced is lost or wasted – about 1.3 billion tons per year. It costs the global economy almost $940 billion per year and an estimated 735 million people worldwide suffer from malnutrition. There is an urgent need for change.

A chance to change the game for foodies

Addressing these inefficiencies early on presents a significant opportunity for the food industry. Food companies are increasingly embracing the idea that a more robust supply chain is not only more sustainable, but also more profitable. When food waste means lost revenue, improving sustainability and reducing waste becomes as fiscal as it is ethical. By optimizing and making distribution ecosystems smarter, brands and retailers can reduce costs, mitigate the impact of disruptions, and deliver the right products in the right quantities to the end consumer before they spoil.

Using technology and data to drive change

When talking to customers and partners, one non-negotiable comes up time and time again: visibility. The food industry generates vast amounts of data, but it can easily become overwhelming without effective tools to make sense of it. Technology plays a key role in this, analyzing data to generate actionable insights. This leads to better decision-making and greater efficiency throughout the supply chain.

For agricultural businesses, advanced analytics can help improve yields by determining the best planting times and crop choices based on weather patterns and soil conditions. Help consumer goods brands identify bottlenecks and pain points in their supply chains and implement changes to reduce waste. Retailers also benefit from automated product notifications as products on the shelf approach their expiration dates, giving them the visibility to take proactive action on potential waste.

Achieving this level of visibility requires collaboration. An approach where manufacturers, consumer goods companies and retailers share data and insights can lead to significant improvements in efficiency and sustainability across the value chain, creating value and supply ecosystems.

Advanced technologies and industry collaboration are key to change

The food industry has the potential to transform supply chain operations through the strategic use of digital tools and collaborative practices. By doing so, food players can not only mitigate the impact of various disruptions but also convert these challenges into opportunities for growth.

This transition transcends traditional commercial competition and emphasizes collaborative efforts to create a more sustainable and resilient food system.

Capgemini’s recent Rethink whitepaper delves deeper into the role of technology and industry collaboration in creating a sustainable food environment. We would like to thank all contributors and our partners, MicrosoftTo facilitate and co-create this whitepaper.

Discover more about Capgemini’s food waste solutions and how they can help businesses thrive in this changing world.