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Global Sustainability Regulations Impacting the Food Industry

By Harold Chase, MPH
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In recent years, sustainability has emerged as a pivotal concern within the food industry, driven by growing consumer awareness and demand for environmentally responsible practices. As businesses strive to meet these expectations, global regulations play a crucial role in shaping sustainable practices across the sector.

Notably, the EU Green Claims Directive has introduced new guidelines that impact how food products in the region and imported are labeled and marketed, ensuring that claims about sustainability are credible and transparent. This directive not only aims to combat misleading marketing but also encourages companies to adopt genuine sustainable practices, ultimately promoting a more transparent and accountable food system. Food industry professionals must be knowledgeable and agile when it comes to global regulations in the EU, North America and beyond as they work to improve sustainability and remain competitive.

Legislative Status and Recent Developments

The Green Claims Directive proposal has not yet been adopted. During the legislative process, it underwent significant amendments and changes by the two EU co-legislators, the European Parliament and the Council of the European Union. Negotiations among them and the European Commission have been ongoing since the beginning of the year in the “trialogue” format.

Under industry pressure, they have agreed that third-party verification should take place within 30 days and may be extended, in duly justified cases, by an additional 30 days. In response to this industry concern, the Testing, Inspection and Certification (TIC) industry is developing solutions to efficiently address industry concerns.

The European Commission announced plans to withdraw the legislative proposal on environmental claims before the last trilogue, scheduled for June 23, 2025, citing pressure from several political groups that criticized the Directive for imposing an administrative burden on manufacturers.

Following the Commission’s announcement, negotiations were suspended. The Commission later indicated that it might proceed with the Directive if micro-enterprises were excluded from its scope, as per its initial proposal, which, however, contradicts the EU Council’s mandate.

The incoming Danish Presidency of the Council of the EU is expected to take over discussions on this issue after consultation with the three involved EU institutions. In the event of an agreement this year, the application of the directive cannot be expected to occur before 2028.

The EU Green Claims Directive

In line with the European Green Deal’s commitment to combat false environmental claims and reduce ‘greenwashing’, the legislative proposal aims to introduce minimum requirements for substantiating and communicating environmental claims in business-to-consumer practices. These claims must undergo accredited third-party verification before being used in commercial communications.

The proposed directive sets detailed rules for substantiating and communicating explicit environmental claims about products. These requirements would take precedence over Directive 2005/29/EC in the event of a conflict. The directive applies to voluntary, explicit environmental claims and environmental labeling schemes not regulated by other EU acts, such as the EU Ecolabel, the Organic Products Regulation, the Eco-Management and Audit Scheme (EMAS) or the carbon removals certification framework.

Food safety professionals should be familiar with the main elements of the initial proposal for requirements for Substantiating Claims, Comparative Environmental Claims and Communication of Environmental Claims:

  • Substantiating Claims: Includes specifying the product or company activity claims, taking a life-cycle perspective and considering all environmental impacts, and ensuring that positive achievements don’t have harmful impacts on climate change.
  • Comparative Environmental Claims: Requirements include using equivalent information and data for assessment, generating and sourcing data in an equivalent manner, and covering the same stages along the value chain.
  • Communication of Environmental Claims: Covers only substantiated claims and ensures that the provided product information is among the most relevant life-cycle stages.

The Commission would be empowered to adopt delegated acts to specify the information that can be communicated. The requirements do not apply to microenterprises (those with fewer than 10 employees and an annual turnover/balance sheet total of under €2 million) unless they request verification.

The proposed directive also sets requirements for environmental labeling schemes, certifying that a product, process, or company complies with environmental label requirements.

US Food Waste Reduction Laws

In the US, new laws have been developed, aiming to minimize food waste and its impact on supply chain management. With that, state legislators have been increasingly active and concerned about food waste. NSF is currently tracking 68 bills in the current state legislative sessions that address food waste, four of which have been signed into law.

One new law that impacts the food industry in Maine is set to take effect in 2030. The law defines a “designated food waste generator” and establishes a hierarchy of actions to be taken with the intention of reducing food waste, emphasizing three key points: reduction, donation and diversion for agricultural use or composting.

Colorado also implemented a new law that creates a voluntary program to assist small businesses in implementing food waste prevention and reduction strategies. The law requires the Department of Public Health and Environment to:

  • Provide annual training that includes strategies for preventing and reducing food waste.
  • Develop a food waste reduction guidance document.
  • Place the document on the department’s public website.
  • Update the document at least once a year.

The law also encourages grocery stores to clearly display the ingredients of prepared food items and use “best if used or frozen by” dates instead of “sell by” dates on prepared foods. Finally, the law extends existing civil and criminal immunity from liability for injury or death resulting from donated foods to include faith-based organizations that donate food and food donations to such organizations.

Another new law in Colorado encourages schools to adopt policies to reduce food waste in school cafeterias and food preparation facilities. The law also requires existing grant programs to consider providing funding to schools to develop and implement effective composting, excess food donation, or shared table programs.

The last of the four signed bills is in New York, which recently implemented a law that provides an additional year for the implementation of a program requiring entities that generate large amounts of food scraps to separate and donate food for human consumption to the extent possible and when donation is not possible, to engage with organic recyclers.

Food industry professionals must be knowledgeable about the various laws that take effect, so that they can comply with the requirements necessary to operate in different states.

Packaging Regulations

Packaging plays a critical role in the food industry’s environmental impact. It is no surprise that many states have enacted Extended Producer Responsibility (EPR) laws. California, Colorado, Maine, Oregon, New Jersey, Minnesota and Washington have all passed such laws, and many other states are considering EPR legislation. CA SB 54 was passed in 2022 and is perhaps the most comprehensive law of its kind in the United States. The law, which began phasing into effect this year, sets a goal of reducing plastic packaging by 25% by 2032.

The US FDA regulates food contact materials, including food packaging, as covered in 21 CFR. The CFR includes a list of substances that are prohibited from being used as food contact substances. With some limited exceptions, the FDA reviews all food contact materials, typically through the Food Contact Substance Notification process. This applies to packaging made from recycled materials, as the FDA requires manufacturers to demonstrate that these materials are safe for use in food contact applications.

Specifically, food industry professionals should be aware of relevant global food safety standards. ISO 18604:2013 is a mainstay in the industry, as it is an ISO standard that specifies the requirements for packaging to be recyclable. ISO 18604:2013 supports the United Nations Sustainable Development Goal (SDG) 12, Responsible Consumption and Production. In particular, this SDG sets a goal of halving food waste among businesses and consumers by 2030.

Sustainability for the Food Industry

Transparency in carbon emissions and reporting is crucial for food manufacturers to remain competitive in the industry. In fact, there are three different laws just in the state of California related to climate disclosure:

  • SB 253, the Climate Corporate Accountability Act: Applies to companies with total annual revenues exceeding $1 billion doing business in California, requiring disclosure of scope 1, 2, and 3 greenhouse gas emissions.
  • CA SB 261, the Climate-Related Financial Risk Act: Takes effect in 2026, requiring businesses that exceed $500 million in annual revenue to report on climate-related risks.
  • CA AB 1305, the Voluntary Carbon Market Disclosures Act: Requires entities making claims regarding net-zero emissions, carbon neutrality or significant reduction. In emissions to make specified website disclosures.

Beyond reporting, the nexus of food, water, and energy is crucial to maintaining our food supply and cannot go unstated. Water management is crucial in sustainable food production, as agriculture is the largest consumer of freshwater worldwide. Water is also intensively used in energy production. As we battle climate change, we may face challenges, as a shortage of water will not only impact our water sources but also strain our food production.

Adapting to Changing Global Regulations

As the global food industry continues to evolve, the imperative for sustainability has never been clearer. Increasing consumer awareness and regulatory pressures are driving businesses to adopt sustainable practices, making it essential for companies to reevaluate their operations and supply chains.

In this context, regulations play a pivotal role in fostering these changes, with the EU Green Claims Directive standing out as a significant force in shaping food labeling and marketing strategies. The EU Green Claims Directive not only aims to combat greenwashing but also sets a standard for transparency, compelling businesses to substantiate their sustainability claims.

As we delve into the current regulations impacting the food industry, including US states implementing laws that impact packaging and carbon emission transparency, it becomes evident that addressing challenges such as food waste, carbon footprints, packaging and water usage is not just a matter of compliance but a pathway to a more sustainable future.

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Biden-Harris Administration Announces National Strategy to Reduce Food Loss and Waste and Recycle Organics

By Food Safety Tech Staff
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The U.S. Department of Agriculture (USDA), the U.S. Environmental Protection Agency (EPA), the U.S. Food and Drug Administration (FDA), and the White House announced the National Strategy for Reducing Food Loss and Waste and Recycling Organics as part of President Biden’s whole-of-government approach to tackle climate change, feed people, address environmental justice, and promote a circular economy.

According to the USDA’s press release, the strategy released on June 12 provides tangible goals that the U.S. government partners along with retailers and consumers can work toward to help further prevent the loss and waste of food, increase recycling of food and other organic materials to support a more circular economy for all, reduce greenhouse gas (GHG) emissions, save households and businesses money, and build cleaner, healthier communities.

“USDA is committed to reducing food loss and waste, facilitating many programs and activities to engage farmers, producers, communities and businesses in this collective effort,” said Agriculture Secretary Tom Vilsack. “This National Strategy charts a course to reduce our nation’s food loss and waste by 50% by 2030, and I am encouraged by the actions outlined for USDA and our federal partners. Everyone has a role to play in reducing food loss and waste, and I hope that these federal commitments will inspire and catalyze action in the private sector and communities around the U.S.”

“The FDA is committed to completing the actions outlined in the National Strategy that incentivize and encourage food loss and waste prevention and organics recycling,” said FDA Commissioner Robert M. Califf, M.D. “Along with the FDA, USDA and EPA efforts, U.S. consumers and retailers play an important role in meeting the National Strategy’s goal of reducing food loss and waste by 2030. As part of the release of this strategy, the FDA has made important resources available to guide, support, and accelerate their food loss and waste activities including the 2022 Food Code, Tips to Reduce Food Waste and the Food Loss and Waste Social Media Toolkit. We encourage all stakeholders to take advantage of these resources as we work together to reduce food loss and waste.”

The strategy drives progress toward the National Food Loss and Waste Reduction Goal to reduce the loss and waste of food by 50% by 2030.

The strategy highlights four objectives:
Objective 1: Prevent food loss.
Objective 2: Prevent food waste.
Objective 3: Increase the recycling rate for all organic waste.
Objective 4: Support policies that incentivize and encourage the prevention of food loss and waste and organics recycling.

For each objective, the strategy highlights actions that USDA, EPA, and FDA could take. Some of the priority USDA actions include:
* Investing $2.5 million from USDA’s National Institute of Food and Agriculture (NIFA) to rigorously test and measure the effectiveness of different consumer messages to encourage households to reduce food waste, in preparation for a National Wasted Food Prevention Campaign.
* Funding a new NIFA $1.5 million Center for Research, Behavioral Economics, and Extension on Food Loss and Waste to create meaningful momentum on food loss and waste prevention among land-grant universities, their partners and external stakeholders.
* Funding research and development on new food loss and waste innovations, such as innovative new packaging technology and cultivars to extend the shelf life of food and prevent loss.
* The Risk Management Agency (RMA) is working with farmers, crop insurance agents, and gleaning organizations to encourage the reduction of on-farm food loss.

The strategy also highlights the importance of public-private partnerships in reducing food loss and waste. On June 1, the three agencies renewed a Memorandum of Understanding (MOU) with the Food Waste Reduction Alliance (FWRA), which is comprised of the Consumer Brands Association, FMI – The Food Industry Association, and the National Restaurant Association. This public-private partnership will explore actions to reach industry sectors, through efforts such as targeted industry resources, tools, and guidance.

Additionally, USDA and EPA have been actively growing the U.S. Food Loss and Waste 2030 Champions pledge, through which food business have publicly committed to reducing food loss and waste by 50% by 2030 in their U.S. operations. 2030 Champions include industry giants such as Starbucks, Hilton, and Kroger.

The National Strategy builds on USDA’s prior work to reduce food loss and waste, including over $60 million in investments and activities that USDA has undertaken to reduce food loss and waste, including those announced in May.
For more information about Food Loss and Waste Reduction activities visit:
* USDA: Food Loss and Waste
* FDA: Food Loss and Waste

Learn more about The Impacts of Food Loss and Waste (FLW) and Food Donation at the Food Safety Consortium Conference, October 20-22 in Washington DC. This session will discuss how unique solutions such as thorough data tracking and predictive analytics in addition to a focus on food safety ultimately provides bottom-line benefits and positive community health outcomes. Presenters:

  • Al Baroudi, MS, Ph.D. Vice President, QA & Food Safety, The Cheesecake Factory Incorporated
  • Glenda Lewis, MSPH, Supervisory Consumer Safety Officer Director, Retail Food Protection Staff, U.S. Food and Drug Administration (FDA)
  • Mike Learakos, CEO, Abound Food Care

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Food in compost pile

Strategies to Reduce Food Loss and Waste

By Food Safety Tech Staff, Nicolle Portilla
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Food in compost pile

Food waste is a major problem that negatively impacts the environment. While the world wastes about 1.4 billion tons of food every year, the U.S. discards more food than any other country in the world: nearly 40 million tons every year. That’s estimated to be 30% to 40% of the entire U.S. food supply. And that excess food often ends up in landfills where it contributes significantly to CO2 emissions.

A 2021 report from the EPA on the environmental impacts of food waste estimated that each year, U.S. food loss and waste embodies 170 million metric tons of carbon dioxide equivalent (million MTCO2e) GHG emissions (excluding landfill emissions)—equal to the annual CO2 emissions of 42 coal-fired power plants. EPA data also show that food waste is the single most common material landfilled and incinerated in the U.S., comprising 24% and 22% of landfilled and combusted municipal solid waste, respectively.

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Restaurants and food manufacturing companies all over the country are making it a priority to reduce their food waste and loss. Below, we outline the most effective strategies—as well as resources available—to help food manufacturers and restaurant staff cut food loss and waste in their facilities.

Train Cooking Staff to Make Waste Reduction Priority

Make waste reduction part of your business culture. Start with the leadership and have them employ waste reduction throughout the entire organization.

Food prep is an area that can contribute to food waste; your suppliers may be able to help. “We work with a company that includes black beans in their burritos and burrito bowls,” says Kari Hensien, president of Rizepoint. “Because the supplier was providing those beans in a size that was greater than the recipes called for restaurant employees were just dumping the whole bag in because it was ‘close enough.’”

Not only did this affect the quality of the end product, it resulted in increased costs and food loss. In similar cases, employees may throw out the excess in a can or package if it contains more than a recipe requires. “Working with your supply chain to optimize packaging to correspond with the formulation of your recipes can drive significant cost savings and reduce food waste for the business,” says Hensien. “You can also raise awareness with your staff of the importance of following that recipe and what to do with the nonstandard size materials. For example, saving it for the next batch rather than throwing it away.”

Improve Food Storage Standards and Follow Regulations

Ensure that the cooking staff and waiters know how to properly store food and use items promptly to prevent produce from spoiling. “So often food waste at retail occurs because employees are not following simple quality control techniques,” says Hensien. “Whether it’s the holding temp for food you’ve prepared or maintaining the temps for food you are storing, you want to make sure that you are reinforcing the basics of having a solid quality control HACCP program in place for doing those temp checks.”

Use Every Part of Food Products

You can use your food more efficiently and cut costs by utilizing every part of meat products, fruits, vegetables, dairy and grains. Have the cooks use every food scrap. For example, bits of tomatoes left over after making burgers can get used up in sauces or salsas.

You can use bones and vegetable leftovers to make chicken broth for a tasty noodle soup. Do you have bread that’s no longer super fresh? Then make some breadcrumbs to sprinkle on top of a fish filet or croutons for a salad.

Restaurants and food manufacturers are also finding creative ways to partner with other businesses to repurpose and make use of their leftover food products. “Are there other facilities that would take food scraps off your hands for a cost to put it into something else?” asks Hensien. “For example, a company may be willing to take your lemon peels and make them into disinfectants. Through creative collaborations you can reduce your food waste and help another company produce their product or service.”

Compost to Cut Food Waste

Composting is a great sustainability strategy for your organization. Add old bread, vegetable and fruit peels, egg shells and coffee grounds to a compost pile or work with a local composting company to take your leftovers. You can also forge partnerships with local farms and gardeners who will take you compostable materials to develop and use your nutrient-rich compost.

Legislation is making it both necessary—and easier—for food businesses to take part in composting programs. California, Connecticut, Massachusetts, New York, Rhode Island and Vermont have passed laws that restrict the amount of food waste going to landfills. Vermont’s “Universal Recycling Law,” which went into effect in July 2020, bans food scrap waste entirely.

Pending legislation in California, Colorado and Massachusetts would establish programs to fund private-sector composting and organic collection programs. In addition, several states including Tennessee and Washington, and cities like Los Angeles and Madison, Wisconsin, have created food waste task forces to reduce waste by creating composting education and infrastructure.

“You can often partner with a set of local nonprofits and/or local state agencies that will help you with a solution where they will come and get your food scraps or you can drop them off at a certain location. This does require some logistics and coordination but oftentimes we’re finding that there are simple solutions with local nonprofits available that are already in place,” says Hensien.

Inspect Your Food Deliveries and Work with Local Suppliers

You will need to check every food delivery sent to your place of business. Only accept food deliveries with fresh ingredients and nothing that looks like it’s about to spoil. Work with high-quality delivery services and certified suppliers, who follow all appropriate food safety protocols.

Also, focus on seasonal produce and ingredients from the local area, when possible. “Businesses can optimize their supply chain geographically, especially for the fresher items such as tomatoes and lettuce,” says Hensien. “The closer that supplier is to its retail destination, the lower the transportation costs and the greater the likelihood that the product will arrive in a good quality state.”

Donate Food to the Hungry

Donate excess food that is still edible to local food banks, soup kitchens and homeless shelters to feed the hungry or partner with “food rescue” initiatives that bring excess food from retailers and restaurants to people in need. Oftentimes, these organization will pick up the unused food from your business.

“A lot of those nonprofits are actively searching for partners because food insecurity in the U.S. is at an all-time high and donations to those food pantries and soup kitchens are at an all-time low,” says Hensien.

Start by connecting with your local nonprofits. You can also find U.S.-based food rescue organizations in your region here.

Use Tech Tools to Predict Ordering Quantities

A key step in reducing food loss and waste is ensuring you are ordering only the ingredients you will need and can use. “The simplest thing an organization can do to reduce loss and waste is to marry their operational data—what they are using—with their transactional data—what they are selling” says Hensien.

There are technologies and tools that will help you track historical trends and predict your sales, but tracking this data can be done manually or in spreadsheets as well.

Identify Areas of Waste or Loss

One of the best ways to reduce food waste at food manufacturing plants is to utilize a tracking system. Pay attention to the data with the help of software, such as an Enterprise Resource Planning (ERP) tool.

You will have the information you need regarding packaging, shipping and production. The data found via a tracking system can help you define areas of waste and inefficiency. You can then target those areas to decrease food waste.

There are also self-assessment tools available to help both you and your suppliers identify areas of food loss and waste. “Our industry is notorious for saying you should do an LCA assessment and then implement an FLW protocol into your auditing program, and everyone just sees: ‘Oh gosh, I’ve got to send another auditor into all these locations and do an bunch of work to get this up and going,’” says Hensien. “But you can start with simple self-assessments that you can easily assign as a task with very little overhead.”

You can download self-assessment resources through the FLW as well as the EPA, which offers a Food Assessment Guidebook and Toolkit for Reducing Wasted Food & Packaging.

By involving your entire team in the goal of reducing food waste and loss, the industry can have a significant impact in reducing food insecurity, improving profitability and protecting the environment.

 

CJ Pakeltis, RizePoint
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Food Businesses: Reduce Food Waste and Save Significant Money

By CJ Pakeltis
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CJ Pakeltis, RizePoint

After two years of COVID-19—and now an escalating Russia-Ukraine conflict—the failing supply chain is a pressing concern in the food industry. Exacerbating the supply chain issues is our excessive food waste problem. As supplies become more difficult and expensive to secure, we should be focusing more attention on reducing waste. Food businesses that proactively work to reduce food waste will save significant money, meet corporate sustainability goals and help the planet.

Food waste is estimated at between 30-40% of the U.S. food supply, which equates to an astonishing 133 billion pounds and $161 billion in waste, according to the USDA. In addition to discarded food, there is also considerable waste of labor, energy and other resources that go into producing, processing, transporting, prepping, cooking, storing and disposing of unused food.

Food waste occurs for many reasons, including:

  • Spoilage at every stage of the supply chain
  • Problems like mold or bacteria during harvesting, transporting, processing, etc.
  • Damage by insects, rodents, and other pests.
  • Equipment malfunction (such as faulty walk-in coolers).
  • Improper storage (e.g., not holding foods at proper temperatures).
  • Over-ordering, over-prepping, or cooking more than what’s needed, and tossing out the extras.

Many food businesses inadvertently practice wasteful behaviors. This is due, in large part, to the lack of accurate, comprehensive data. If operators don’t have accurate data about their inventory, sales patterns and forecasts, it can lead to food waste, which can be costly to your business and damaging to our planet.

At a time when every dollar counts—and the supply chain is strained—your organization should proactively work to reduce food waste. The following are some effective ways to accomplish this goal.

  • Adopt the right software. Integrated software is the best solution to eliminate wasted food, money and other resources. Today’s systems allow organizations to view sales patterns, track inventory, manage production, avoid overstocking, enhance food safety and quality, and determine areas of wastage. Tech solutions allow organizations to use data—not instincts—to make better, more profitable, less wasteful decisions.
  • Conduct a food waste audit. Food waste is bad for the environment as well as business margins. A food waste audit can help a company determine how much food is being wasted, as well as the type of foods not being used effectively. This practice can help companies address waste problems and adjust their inventory accordingly.
  • Implement sustainable strategies. It’s problematic—and wasteful—when retail locations receive large quantities of fresh foods and can’t sell it all before it spoils. Hannaford Supermarkets found a solution to this common conundrum. They have their trucks deliver smaller amounts of food more frequently—versus less frequent, higher volume deliveries. As a result, they are selling fresher produce with less waste.
  • Make waste reduction part of company culture. Train staff to reduce waste, and properly use, cook, package and store foods while always prioritizing waste reduction. Adopt a waste-not-want-not mindset and follow sustainable strategies that are practiced starting in the C-suite.
  • Donate surplus food. After learning that billions of pounds of food goes to waste in the United States while millions of people are going hungry, entrepreneur Jasmine Crowe created Goodr, a food waste management company that connects food businesses with a surplus of supplies to non-profit organizations that give it to the food insecure. Additionally, grocery chain Trader Joe’s is well-known for their generous food donation program. In just one year, the company donated $295 million worth of their unused products to food banks, feeding the hungry and eliminating a huge amount of waste.
  • Improve packaging. Our industry must create better packaging that effectively protects and preserves food throughout the entire supply chain cycle—and helps reduce waste. For instance, companies are experimenting with more compostable packaging, clearer use-by/expiration dates, easier-to-understand usage instructions, tips for storing leftovers, and ways to use some of the food without compromising the rest of the food in the package.
  • Reconsider portion size. Some restaurants offer smaller meals (i.e., half portions) to reduce waste. Food manufacturers are also providing smaller options, such as the single-serving Duncan Hines Perfect Size Cakes for customers who want just a small treat without having to waste an entire cake. Sabra Singles hummus, Good Culture cottage cheese, Kraft Mac and Cheese and other companies offer single serving containers, which means less waste.
  • Use every scrap. Vegetable peels, eggshells, coffee grounds, tea bags and other non-meat scraps can be used for compost, which is nutrient-rich and will go back into the earth to grow more food. Use the compost to grow your own herbs and produce or share it with local farmers and gardeners.
  • Consider other eco-friendly options. Sustainable organizations are taking our food scraps and recycling them into bioenergy, bioplastics and clothing. Investigate eco-friendly organizations in your area and donate your unused food to them to repurpose it. For instance, H&M’s Conscious collection uses silk-like fabric made from citrus juice by-products and discarded orange peels. Other clothing lines, cosmetics companies and other innovators are making sustainable products from food waste.

It is important to recognize that the food industry’s waste isn’t limited solely to food. The following are some additional eco-friendly practices that companies can implement.

  • Reduce plastic waste. Americans produce a whopping 42 million tons of plastic waste annually. Increasingly, companies are looking for eco-friendlier options. Footprint, a materials science company, is inventing and manufacturing plant-based solutions to replace plastic. This innovative company is working with food companies—including McDonalds, Costco and Conagra—to adopt plant-based solutions, eliminate short-term use plastic, reduce CO2 emissions, cut landfill waste, and reach corporate sustainability goals. Stonyfield Farm, known for their planet-friendly business practices, is making their yogurt cups from plants. In fact, the market for edible packaging is on the rise, and expected to grow by almost 5% by 2030. A growing number of food businesses are now relying on biodegradable and compostable packaging solutions instead of plastic. Are you one of them?
  • Pick the right partners. Select partners (e.g., suppliers, vendors, etc.) that are also focused on sustainability. Digital solutions can easily track supplier certifications to ensure that you’re sourcing from—and collaborating with—other companies that are committed to waste reduction and other eco-friendly business practices.
  • Focus on sustainability. It takes considerable energy to run equipment non-stop, so shut down non-essential equipment during slow times to save energy and money. Also, insulate your hot water pipes to decrease the amount of water your organization uses (and lower your heating needs and costs). Turn off the air conditioning and open windows. Use silverware instead of plasticware, and reusable towels instead of paper. Think of different ways to reduce waste throughout your organization and you’ll save money, resources, and the environment.

Prioritize waste reduction using these proven strategies. Remember that every little bit helps, and even the smallest changes will add up to a substantial difference over time.

Emily Newton, Revolutionized Magazine
Retail Food Safety Forum

How Does Inventory Management Technology Improve Restaurants?

By Emily Newton
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Emily Newton, Revolutionized Magazine

Inventory management can be a challenge for restaurants. Stock often moves quickly, many ingredients have short shelf lives and limited storage space can make it easy to overlook some items. Manual tracking methods fall short of modern establishments’ needs, but technology offers an answer.

Inventory management software has made waves in warehousing and logistics, but the food and beverage industry can capitalize on it, too. Restaurants already recognize the need for tech adoption, with 100% of surveyed establishments increasing their urgency to adopt transformational technologies. Inventory tracking solutions should be part of that trend.

This article reviews how inventory management technology can improve restaurants.

Preventing Food Waste

One of the most important parts of inventory management is reducing waste. Up to 10% of food restaurants buy is thrown out before it ever reaches the consumer. Part of this comes from wasteful preparation practices, but much of it results from improper storage.

Inventory tracking technology addresses this issue by increasing stock visibility. In a traditional setup, restaurant employees may not be able to see what they have on hand, causing them to overlook items and leave them until they expire. Tracking technologies provide real-time data about everything in storage and consolidate it into a single, easily accessible window.

Many inventory software solutions include expiration date tracking, alerting workers when something is about to expire. They can use these technologies to find the product in question and use it before it goes bad. Trends over time can reveal if restaurants order too much of one item, driving managers to buy less to prevent waste-causing surpluses.

Avoiding Stock Shortages

Similarly, inventory management solutions can help avoid product shortages. Since the items restaurants order typically don’t go directly to the consumer, it can be difficult to understand stock levels in real-time. The visibility inventory tracking systems provide counteracts that.

Inventory software solutions can maintain real-time inventory data and alert managers when levels get low. They can then order more of a product before they run out, maintaining higher customer satisfaction. Perhaps more importantly, as restaurants use these systems over time, they can highlight seasonal trends to create more accurate forecasts.

Inventory trends will reveal how items grow and shrink in demand at various times of the year. Restaurants can then plan to order more or less of those products at different times according to those trends, avoiding shortages from under-ordering in-demand items.

Consolidating Multiple Sales Channels

Selling through multiple channels can make it more difficult to track inventory levels. Restaurants may use separate systems to manage online and in-person sales, which can lead to confusion and miscommunication.

Inventory management solutions can track online and retail sales together through a single platform. That way, restaurants have a consolidated view of all sales and history, eliminating the miscommunication that arises with traditional methods. Establishments that use a single system for all channels won’t accidentally sell out-of-stock items.

This consolidation also helps refine seasonal adjustments. Online sales trends fluctuate just as they do in person, but there may be some differences. Managers that look at seasonal trends across both channels can adjust their ordering schedules more accurately, further preventing stock shortages.

Highlighting Potential Issues

Restaurants can also use these technologies to review trends over time and highlight persistent issues. Inventory software may reveal that an establishment consistently loses one product because it passes its expiration date. This suggests that it orders too much of it at once, so it can start buying less to adapt.

Similarly, trends can reveal if something is wrong with the restaurant’s storage solution itself. Data could show if ingredients in one refrigerator consistently expire despite accurate ordering figures, suggesting the fridge fails to maintain a safe temperature. These situations are likely and deserve attention, considering that foodborne diseases cause 48 million illnesses a year, according to CDC estimates.

The longer restaurants use these technologies, the more data they’ll have, generating a growing information pool can then inform increasingly precise and reliable forecasts and mitigation strategies.

Calculating Accurate Profit Margins

Another overlooked benefit of inventory management technology is its utility as a financial planning tool. As much as 75% of restaurants struggle financially due to food costs. They may not be able to control ingredient prices, but they can manage them better with accurate inventory data.

Food prices fluctuate rapidly, leading to uneven profit margins. Restaurants that don’t have a granular picture of how their inventory moves won’t be able to calculate their profit margins accurately. Inventory management solutions provide a more granular look into stock levels and offer the context managers need for these calculations.

Inventory tracking technology allows restaurants to view stock movements weekly or even daily to compare with fluctuating prices. This specificity will help get a more accurate picture of expenses and profits.

Inventory Management Tech is Essential

Restaurants must become more financially agile to stay afloat amid widespread disruptions. Inventory management systems offer the insight and control they need to refine their processes, enabling that flexibility, and helping them adapt to incoming changes to ensure future success.

Emily Newton, Revolutionized Magazine
FST Soapbox

Using Artificial Intelligence May Add More Transparency to the Food Supply Chain

By Emily Newton
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Emily Newton, Revolutionized Magazine

Food industry professionals know how supply chain transparency plays a major role in keeping everything running smoothly. Brand representatives want confirmation that their agricultural partners can fill upcoming orders. If things go wrong and people get sick from what they eat, better visibility is vital in addressing and curbing such issues.

Artificial intelligence (AI) is a critical part of better food supply chain awareness among all applicable parties. This article briefly discusses some interesting examples.

Applying AI to Crop Management

Even the most experienced agricultural professionals know farming is far from an exact science. Everything from pests to droughts can negatively impact a growing season, even if a farmer does anything they can to influence production in their favor.

However, AI can help predict yields, enabling farmers to maintain transparency and set accurate expectations for parties further down the supply chain. That’s especially important in the increasingly popular farm-to-table movement, which shortens how far produce travels and may entail using it on the same day someone picks it.

One newly developed machine-learning tool relies on computer vision and ultra-scale images taken from the air to categorize lettuce crops. More specifically, it captures details about the size, quality, and quantity of the heads. Combining that with GPS allows more efficient harvesting.

Tracing Foodborne Illness

CDC Statistics indicate foodborne illnesses sicken one in six people every year in the United States. FSMA contains rules and actions for food processing facilities to prevent such instances, but outbreaks still happen. AI could be yet another useful mitigation measure.

Researchers at the University of Georgia determined that, since the 1960s, approximately a quarter of Salmonella outbreaks have been from the Typhimurium variation. They trained a machine-learning algorithm on more than 1,300 Typhimurium genomes with known origins. The model eventually achieved 83% accuracy in predicting certain animal sources that would have the Typhimurium genome. It showed the most accuracy with poultry and swine.

Reducing Food Waste

Waste is a tremendous problem for the food supply chain. In the United States, data shows that upwards of 40% of packaged consumables get discarded once they reach the use-by date. That happens whether or not the products are actually unsafe to eat.

However, better visibility into this issue has a positive impact on food distribution. For example, some restaurants give people discounted meals rather than throwing them away. In other cases, grocery stores partner with charities, helping people in need have enough to eat.

Scientists in Singapore have also created an electronic “nose” that uses AI to sniff out meat freshness. More specifically, it reacts to the gases produced during decay. When the team tested the system on chicken, fish and beef, it showed 98.5% accuracy in its task. Using AI in this manner could bring transparency that cuts food waste while assuring someone that a food product is still safe to eat despite the appearance of it being expired based on Best Before’ labeling.

Removing Guesswork From Dynamic Processes

People are particularly interested in how AI often detects signs that humans miss. Thus, it can often solve problems that previously proved challenging. For example, even the most conscientious farmers can’t watch all their animals every moment of the day and night, but AI could provide greater visibility. That’s valuable since animal health can directly impact the success of entire farming operations.

One European Union-funded AI project took into account how animal health is a primary factor in milk production. The tool compared cows’ behaviors to baseline levels and characteristics of the animals at the most successful farms. It then provided users with practical insights for improvement. Europe has at least 274 million dairy cows, and their milk makes up 11%-14% of Europeans’ dietary fat requirements. Those statistics show why keeping herds producing as expected is critical.

AI is also increasingly used in aquaculture. Until recently, fish farming professionals largely used intuition and experience to determine feeding amounts. However, that can lead to waste. One company uses artificial intelligence to sense fish and shrimp hunger levels and sends that information to smart dispensers that release food. The manufacturers say this approach causes up to a 21% reduction in feed costs. Other solutions track how much fish eat over time, helping farmers adjust their care protocols.

Fascinating Advancements in Supply Chain Transparency

These instances are only a sampling of what AI can do to support the food supply chain. Although most of them are most relevant to producers, consumers will likely reap the benefits, too. For example, some food labels already show the precise field associated with the potatoes used for a bag of chips. Once technology reaches a point where most consumers could have advanced AI apps on their phones, it could be a matter of aiming a smartphone’s camera at any food product and instantly seeing the path it took before reaching the consumer. It’s too early to know when that might happen. Nevertheless, what’s already possible with innovative technology is compelling in its own right and makes people rightfully eager to see what’s on the horizon.

Waylon Sharp, Bureau Veritas
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You Are What You Eat: Meeting the Demand For Sustainable Practices and Transparency

By Waylon Sharp
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Waylon Sharp, Bureau Veritas

A very volatile sector, there are always new trends, opportunities and challenges in the food space, as a multitude of factors—including global climate and geopolitical challenges—can cause supply chain disruptions. Sustainable audits are heightening in demand, in order to validate company claims and provide consumers with peace of mind, as the industry continues to evolve with new ingredients, processes and technologies in play.

Consumers Today Demand Sustainable Practices and Transparency

The shift towards sustainability has further been accelerated by COVID-19, as the pandemic has made for more ethical and conscious consumers. According to research from Forrester, 68% of highly empowered consumers plan to ramp up their efforts to identify brands that reduce environmental impact. While there are numerous audits to measure sustainability and social responsibility, trending focus areas in the food space today are around sustainable packaging, water usage and food waste.

Three Ways Food Processors and Manufacturers Can Reduce Their Footprint

Key players across the food industry are stepping up to the challenge and finding innovative ways to minimize their environmental impact. The following are three ways food processors and manufacturers can reduce their footprint.

  • Use Environmentally Friendly Packaging: Food packaging is a major source of waste and pollution. In fact, containers and packaging make up a major portion of municipal solid waste (MSW), amounting to 82.2 million tons of generation in 2018, according to the EPA. Unfortunately, most packaging is designed as single-use, and is typically thrown away rather than reused or recycled. Given the impacts of packaging on the environment, more manufacturers are looking into packaging options that reduce waste and boost sustainability, including wood- and paper-based alternatives. Other manufacturers are developing innovative alternative packaging from biodegradable materials. The same rings true for takeout and grocery delivery, as the demand for home consumption grows, retail and foodservice companies are considering utilizing more sustainable packaging or reduce the use of virgin plastics to offset their impact.
  • Increase Energy and Water Efficiency: Food processing and manufacturing are energy- and water-intensive. In fact, according to the World Resources Institute, the 1.3 billion tons of wasted food annually also includes 45 trillion gallons of water. Water conservation methods can be implemented throughout the entire food chain—from selecting more efficient crops, to using less water within processing facilities and ultimately reducing food waste on the backend of the chain.
  • Reduce Food Waste: According to the Food and Agriculture Organization of the United Nations (FAO), nearly one-third of food produced for human consumption gets wasted each year. In fact, the carbon footprint of food waste is greater than that of the airline industry. This also includes the waste of resources used to produce the food including water, soil, transportation and labor. By improving processing and manufacturing efficiencies, we can reduce waste and better manage resources. Implementing systems to categorize and assess food waste can help identify areas for improvement and enable your team to develop a plan to correct.

Value-Add of Sustainability

Sustainability provides benefits to the consumer, the manufacturer and society-at-large. The consumer feels better about making a purchase that is not only better for the planet, but that may also provide health benefits to themselves and their families. The Organic Trade Association’s 2021 U.S. Organic Industry Survey highlights this trend, as organic food has the reputation of being better for your health and more sustainable for the planet. Organic food sales were up 12% in 2020, the highest growth rate in this category in over a decade.

Intrinsically, manufacturers with sustainable programs in place feel better about the work they are doing, knowing that they are supporting a better world. Companies that publicize their green programs and back them up with the applicable certifications can also attract top employees, despite today’s talent wars. Employees are zeroed in on corporate social responsibility and desire to work for a company that aligns with their purpose.

As it relates to the bottom line, the common misconception is that the sustainable choice will cost more. However, as sustainable supply increases due to consumer demand, companies are able to source sustainable inputs more affordably. Furthermore, they can communicate their commitments via certification bodies, through public forums and by labeling products based on their certifications. These approaches help reach and educate consumers at different levels—from their initial research of products to purchases from the store shelves.

Key Certifications and Auditing Technology

To reduce their environmental footprint throughout the value chain and implement more sustainable business practices, food companies can move toward a circular economy business model. By renewing, reusing and recycling materials at every stage of the food supply chain, companies can preserve the critical resources that allow their business to flourish.

There are a wide range of services help food producers make the transition to a more sustainable business model. This includes the GHG emissions verification, and management system auditing and certification or training to standards like ISO 14001 (Environmental Management System), ISO 24526 (Water Efficiency Management System), AWS (Alliance for Water Stewardship), ISO 50001 (Energy Management System) and SA8000 (Social Accountability standard), as well as SMETA (Sedex Members Ethical Trade Audit) audits. There are also a range of food sustainability-related product certifications including Organic, MSC, ASC and RSPO.

Auditing technology supports a range of requirements and helps teams set achievable targets. It can be used to analyze packaging materials, categorize and assess food waste, and monitor water usage. Newer auditing technology is now blockchain enabled to assess raw materials and packaging, and to ensure third party partners are also socially responsible. This information is packaged into a blockchain solution so that food companies can be confident that the auditing information is correct and secure. Furthermore, this technology provides the added visibility into their network should they have a recall.

How To Initiate or Ramp Up Your Sustainable Programs

For companies interested in kicking off a sustainability program, or branching into new levels of sustainability, a great place to start is training, in order to understand the audit standard. Early on in this process, ensure all parties are onboard and aware of the certification process and related costs—from managers who will be implementing the program daily to board level executives providing the final sign off. Doing this helps allocate sufficient time and resources and avoids surprises down the road.

It’s helpful to work with a third-party consultant through this process, as they are able take a birds-eye-view look to identify gaps in the program and help you achieve specific certification requirements that meet your unique food product needs. If your team works with a consultant to put together a plan that includes auditing, testing, inspection and certification, the right partner can verify that the program meets all the requirements necessary for the certification.

To keep your program running efficiently, arrange regular trainings for employees to stay up to date on the latest requirements and fill any gaps. For more specialized programs, it’s also a good idea to set aside standalone training sessions to avoid information overload.

As the industry continues to innovate, there will be more ways to reduce waste throughout the entire supply chain and build more efficient business models that are better for the company, consumers and the planet. Looking ahead to next year and beyond, the trend towards sustainability and transparency will press on. Ultimately, companies that take the extra steps to be more sustainable are setting a higher standard for industry and supply chain partners and building a pathway for long-term success.

Emily Newton, Revolutionized Magazine
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How Are Food and Beverage Professionals Putting Packaging Safety First?

By Emily Newton
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Emily Newton, Revolutionized Magazine

As the food and beverage industry manages the continual impacts of the COVID-19 pandemic, safety remains a major topic of discussion. While many are aware of how handling practices can impact safety, less attention is sometimes paid to how packaging and materials can also play a significant role.

Good packaging practices and innovative technology—like antimicrobial surface coatings and plastic alternatives—are helping to make food and beverage products safer for consumers.

The Role of Packaging in Food Safety

The packaging process can have a significant impact on the safety of food products. Hygiene and other practices present significant cross-contamination risks. Packaging material choice can also affect safety.

While outbreaks of foodborne disease are somewhat rarer than they were 20 years ago, they remain a serious threat to consumers. In 2018, there were 1,052 foodborne outbreaks in the United States, an increase from the previous year and only a slight decrease from the 1,317 outbreaks in 1998, according to data from the CDC’s National Outbreak Reporting System (NORS) dashboard.

Food and beverage manufacturers are investigating innovative practices and materials to help make their products safer. In response to the pandemic, in December DS Smith announced a partnership with Touchguard to develop antimicrobial coatings for cardboard packaging. One coating created by the two companies has a “proven kill rate of 99.5% in under 15 minutes on bacteria types … and eliminates the risk of person-to-person transfer of infections, such as MRSA and E. coli.”

The cardboard is just one of several examples of antimicrobial materials that may help limit the spread of viruses that cause foodborne diseases, like E. coli.

Other businesses are aiming to tackle spoilage during shipping and storage. Innovative experiments could have a major impact on food waste. EU-funded project RefuCoat intends to “develop fully recyclable food packaging with enhanced gas barrier properties.” These materials will keep foods sealed from air and water while also offering recyclability.

New design strategies and technologies can also preserve the freshness of food once customers bring items home from the grocery store.

Portion packaging allows customers to open only the amount they need, leaving the rest sealed for future use. This helps customers avoid relying on home storage strategies, which may not be as effective as factory packaging in keeping food fresh and preventing spoilage.

These strategies also can support existing food safe packaging techniques. For example, portion control can be combined with tamper-evident packaging to make it more obvious when an item at the store has been accidentally opened. This will help ensure that customers only bring home and use food items that they know are safe and as fresh as possible.

Choice of mold release agents used in manufacturing processes that require packaging molds can also have a significant impact on food safety. These chemical compounds help resins and other materials detach from molds once cured, without being damaged. This helps to ensure that the finished product is as close to the mold shape as possible, and isn’t compromised when released from the mold. Certain kinds, like silicon, can produce cleaner finished products and extend the lifespan of packaging, which reduces waste and potentially improves package safety.

These strategies can help protect food from contamination during the packaging process and ensure it remains fresh and safe for as long as possible after leaving the facility.

As customers experiment with new brands and foods, businesses may find they are more willing to try items that use novel packaging strategies.

Safety Risk and Potential in Food Packaging Materials

Like food items themselves, all packaging materials are subject to approval by regulatory agencies, like the FDA or the European Food Safety Authority. However, some substances approved by the FDA can still have health impacts.

For example, bisphenol A (BPA), a chemical used to make certain industrial plastics and resins, is not banned by the FDA. However, its use has become controversial in the food packaging industry due to potential reported adverse health effects.

Some major manufacturing companies, like Campbell Soup Company, have fully transitioned away from the use of BPA. Others, like the Coca-Cola Co., continue to use the chemical in linings for aluminum cans.

One paper, The FoodPrint of Food Packaging, details how materials used may present health risks—and how alternatives already in use can help the industry create safer packaging.

For example, styrofoam use is declining due to the material’s environmental impact. However, polystyrene is still frequently used in rigid and foam food packaging. Plastic particles made from materials like polystyrene may harm health.

The report also lays out steps that food and beverage manufacturers can take to reduce the use of potentially unsafe chemicals in their packaging. Reusable containers can significantly reduce the amount of plastic waste generated by the food industry while also lowering the health risks packaging presents.

In an article for Packaging Digest, senior editor Rick Lingle briefly summarized the report’s findings and discussed them with Jershua Klemperer, director of FoodPrint. When asked about alternatives to plastics, Klemperer suggested using sustainable packaging materials—like metal, cardboard and fiber—but only if manufacturers can ensure they are not used in combination with unsustainable or potentially harmful materials like PFAS.

Strategies for Improving Food Safe Packaging

Food safety will remain a top priority for the food and beverage industry. Innovative strategies like antimicrobial coatings, portion packaging and plastic alternatives can help manufacturers make safer options. These strategies may become more common over the next few years as consumers become increasingly invested in food safety practices.

Scott Deakins, Deacom
FST Soapbox

Billions of Dollars Lost to Food Waste, Tech Exists to Reduce It

By Scott Deakins
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Scott Deakins, Deacom

Food waste is a massive global problem led by the United States. According to the USDA, an estimated 30–40% of the country’s food supply ends up in landfills—most of it at the retail and consumer levels. This amounted to approximately 133 billion pounds and $161 billion worth of food wasted in 2010 alone, which prompted the USDA and the Environmental Protection Agency to launch the U.S. Food Loss and Waste 2030 Champions initiative in 2016. Businesses and other organizations can join the ranks as champions by committing to a 50% reduction of food loss and waste by 2030.

That’s a noble goal, but those businesses will only be able to achieve their objective with technologies that reduce food waste in production and the supply chain. Food lost in this medium is hardly insignificant. At least 10%—or billions of pounds of food—is wasted in acts as small as over-ordering or in transport. This is, in short, the result of errors in resource planning.

After an extremely difficult year, food process manufacturers can no longer afford to generate that level of waste. Fortunately, technologies already exist to help the industry regain control of its production, storage and forecasting, and can facilitate leaner businesses and less waste.

Eliminate Human Error and System Inconsistencies

There have been a lot of changes in the way food is grown, harvested, delivered and sold over the last few decades, yet little progress has been made when it comes to unnecessary waste. The Commission for Environmental Cooperation reports that food loss and waste can occur post-harvest due to inaccurate supply and demand forecasting, grade standards for size and quality, and deficiencies in refrigeration. Even the packaging can cause problems if it is inefficient or ineffective.

These and other problems lead to waste—some up front before the product is ever sold to consumers, others down the line after an item has been purchased, leading to a recall. If inventory records are anything less than 100% accurate from formulation through shipment, additional challenges will follow. Though it is not heavily considered in an FDA audit, manufacturers still need the ability to instantaneously report on any aspect of their inventory history, regardless of the ERP software from which data is pulled. ERP systems with bolt-on modules often fail in this regard. If functionalities of the sub-systems are not designed for strict lot tracking, or if those sub-systems are not designed exactly the same, errors are inevitable.

Workarounds can be implemented, but they cannot account for processes that still need to be performed manually, which increases the likelihood that lot tracking accuracy will fall short. Inefficiencies are further exacerbated by sub-systems that handle actions differently, but the challenges don’t end there.

Problems can also develop when data has to be shared across more than one module, database or even system, which may inspire the use of outside solutions, such as an Excel spreadsheet, compounding the issues at hand. Makeshift solutions increase the risk that an incorrect lot number will be entered or that someone will forget to delete a number after a lot was de-issued and re-issued. Any of these cracks in the operational foundation will inevitably deduct from the 100% inventory accuracy that’s necessary for a smooth recall process—anything less will lead to a greater impact on the business.

The only real solution is to eliminate the potential for human error and system inconsistencies altogether—and that can only be accomplished with a configurable ERP solution that handles all business processes from one system and one database and can easily adapt to changing regulation and recipes. Without it, true strict lot control—meaning 100% inventory accuracy with perfect record keeping and the ability to instantly report on any aspect of the inventory history—cannot be achieved.

Reduce Inventory Variance and Grow without Unnecessary Expansions

There are aspects of food waste that can be controlled, including inventory variance, which occurs when items are lost, misplaced or miscounted. This is particularly problematic for packaging and ingredients, causing issues at the production level—finished products cannot be made if there aren’t enough items to complete the process, which is also bad for the bottom line. Inventory variance may occur if deliveries are not verified to confirm that ordered ingredients were actually received or may happen if items are entered incorrectly or simply misidentified.

Variance is more than a nuisance—it can be quite costly. For example, Silver Spring Foods encountered this firsthand when it discovered that its inventory variance commonly reached between $250,000 and $300,000. The company, which debuted in 1929 when founder Ellis Huntsinger started growing horseradish and other vegetable crops, now produces the number-one horseradish retail brand in the United States. With more than 9,000 acres of prime Wisconsin and Minnesota farmland, Silver Spring realized that it had outgrown its outdated ERP solution.

The company initially thought that it had reached capacity and could only grow further by physically expanding its building with an additional manufacturing line that would require new hires to come aboard. In reality, the company needed an ERP solution that could keep up with its impressive level of growth.

More specifically, Silver Spring Foods wanted an ERP system that could tie together several elements, including customer service, accounting, manufacturing, purchasing and shipping within a single tool. The company needed a solution that offered strong data mining and reporting functionality, as well as strong sales reporting, sustainable tech support capabilities and would not exceed ERP budget allocations. It was equally important to have an ERP solution that was configurable without customization, prioritizing speed and efficiency while offering predictable quality and cost of ongoing IT support and maintenance.

After upgrading to a solution that met all of its requirements, Silver Spring Foods was able to gather all data in one system that brought together multiple software integrations, including CRM. This allowed the firm to fine-tune its material purchases to match current production needs, sales forecasts and production schedules. More importantly, inventory variance was reduced to $90,000 during the first year and now falls within a range of just $1,800 to $2,500. By improving inventory management, unearthing new efficiencies and proving that Silver Spring had not yet reached capacity, the company was now able to grow without adding additional square footage.

Don’t Let Waste Cut into Productivity

Food growers, processors and supply chains cannot afford to let waste cut into their productivity or their bottom line. They need to be able to keep track of everything, achieving true strict lot control to limit the damage caused by a recall. They also need to be able to improve food management and reduce inventory variance. These and other advantages can only be attained with the right ERP technology, however, so businesses must choose wisely before making an investment.

Sanjay Sharma, Roambee
FST Soapbox

The Need for Improved Visibility in the Fresh Produce Supply Chain

By Sanjay Sharma
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Sanjay Sharma, Roambee

The Ever Given eventually broke free, but the Suez Canal blockage was just one dramatic incident in a year full of “black swan” events exposing weaknesses in the global supply chain, including daily mini disruptions. Among the lessons to be learned is the need for verifiably better supply chain visibility that goes beyond crowdsourced carrier or telematics data. This article hones in on the significant challenges faced in the fresh produce supply chain, and strategies suppliers can implement in situations to help improve supply chain visibility and prepare for an unpredictable future.

The Reality of Today’s Food Supply Chains

As the global supply chain continues to expand, the distance fresh produce travels to reach the consumer is extended. According to the International Institute of Refrigeration, the lack of a functioning cold chain causes significant food loss; the Global Cold Chain Alliance (GCCA) reports that “one-third of food produced globally is lost or wasted between farm and fork.”

Multimodal shipping, as well as the change in hands before the harvested produce reaches the consumer, makes it hard for food to retain its freshness. Moreover, multiple parties involved in the supply chain create plenty of room for coordination issues, contributing to delays, damaged products, and increased costs. Potential challenges faced while transporting fresh produce include the following.

Reusability and Circular Economy of Plastic Containers

The best way to preserve quality and freshness from source to consumer, retail-ready transport packaging solutions are needed to optimize space, improve temperature control and protect quality into the retail distribution center. While it is an environmentally sustainable choice, renting returnable plastic containers (RPC) instead of corrugated boxes comes with its own challenges. These RPCs get lost or misplaced from the time they are rented, during use to ship products from consumer locations and during the return of the empty RPCs back to the renter.

Temperature Excursions During Transport & Transshipment

Transport losses in a fresh food cold chain are primarily related to temperature and humidity excursions, caused by delayed/improper cooling or refrigeration equipment failure. The biggest problem is not always the lack of data, but rather the lack of timely data that can be used to correct anomalies in time to prevent spoilage.Temperature excursions can occur both while in transit and at transshipment points. During the former, it can happen due to failure of cooling equipment, while for the latter, it can occur if active cooling containers or reefers are not plugged into power sockets for extended periods of time during handling or when on a ship. In air transport, the goods can face temperature excursions during loading, unloading and storage, such as on the tarmac on a hot day.

Damaged Packages

Early spoilage in fresh produce can be attributed to both handling as well as changes in external environment. An example is the impact of atmospheric pressure on bags of potato chips traveling through a mountainous region or by air. The financial impact of damaged packages—one of the leading reasons for increased cost of food logistics management—goes beyond the visible replacement and re-shipping costs; in the case of fresh food spoilage, not only can your brand be impacted, legal issues could result if consumer health is affected.

Safety/Security Issues

Fresh produce is easily contaminable and thus requires extra care in the chain of custody. Today, customers are not just demanding visibility into the authenticity of how their food was farmed, but also how safely it was transported. The right temperature and humidity play a vital role in maintain the quality of the fresh produce reaching the grocery store. Whether it is a Black Swan event like a widespread E. coli contamination of tomatoes that can endanger human lives, or just a daily product freshness issue, there’s considerable impact on the food brand and retail store.

High Maintenance Costs

Maintaining the right conditions, ensuring quality packaging, and facilitating quick transportation increases the cost of a fresh produce supply chain significantly compared to other products.

Lack of Information Accuracy in Data Sharing

Every actor in the supply chain is working toward maintaining the freshness of a product, such as avocadoes imported from Mexico. But tying this data into a common thread is difficult due to disparate systems and processes in monitoring condition, handling and chain of custody. For example, the warehousing company may only measure temperature in a few corners of the warehouse where the fresh product wasn’t technically stored and the trucking company will only have the reefer’s temperature, but the product may have never traveled on that reefer owing to a missed connection. This makes data aggregation inaccurate and unactionable.

The Need for Improved Visibility

Whether it be food losses, increased costs, or food safety regulations, improving the verifiability of supply chain visibility from end to end can ultimately help eliminate these challenges. The following are some measures that can help contribute to food supply chain success.

Enhancing Information Transparency

A clear string of communication from end-to-end is critical to manage the supply chain. Increased information transparency and a clear chain of data can reduce food damages and losses.

Optimizing Maintenance

Maintenance costs can arise out of substandard packaging, lack of adherence to quality standards, and mishandling during transportation. Additional measures can be taken in order to reduce the overall maintenance costs, as well as time and effort spent tackling late or damaged product delivery. Such measures include adding more service locations, improving on time delivery, monitoring in real time, improving reusable packaging (if applicable), and performing thorough quality checks.

Building Faster, Flexible and Precise Supply Chains

Running a lean supply chain is vital to successfully delivering fresh food products. Many items such as yogurts or fresh produce have a short shelf life. Hence, the slightest reduction in transit time has significant benefits. Predictive analytics, image recognition and process automation offer timely alerts to improve actionability.

Where to Begin

You need to take a top-down, end-to-end approach to visibility because a supply chain involves several stakeholders and modes of transport from farm to fork.

Sensor-driven visibility helps implement a top-down, end-to-end approach because it is firsthand and not reliant for data from the actors in the chain of custody. Sensor-driven location and condition in real time offers transparency, collaboration and ultimately, reliable logistics automation.

End-to-end real-time data on inventory location and package conditions can result more transparency and control across the supply chain. The best, and often the only way to wade through both the visible and hidden business costs of in-transit damage is to keep track of your shipments from door to door with the help of an on-demand food and beverage monitoring solution.

When working with low shelf life products like food, reliable supply chain visibility is vital to prevent incidents that can contribute to financial loss. The loss of customer relationships, dealer loyalty, and cascading delays can have a ripple effect and result in further monetary losses as well as long-term business impacts that might take very long to resolve. Implementing the above recommendations can help supply chains recover from accidents and prepare for the inevitable future of “black swan” events and daily mini disruptions alike.