How to improve food supply chain efficiency

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

Driven by geopolitical conflicts, changing international trade policies and extreme weather events associated with climate change, the global food industry is facing an unprecedented level 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 metric tons per year. It almost cost the world economy $940 billion each yearand with assessment 735 million people worldwide suffer from malnutritionThere is an urgent case for change.

A chance to change the game for foodies

Addressing these inefficiencies early 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 represents lost revenue, improving sustainability and cutting waste becomes as fiscal as it is ethical. By optimizing distribution ecosystems and making them smarter, brands and retailers can reduce costs, mitigate the impact of disruptions, and deliver the right products in the right quantities to reach the end consumer before they go bad.

Using technology and data to drive change

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

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For agricultural companies, 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 alerts when on-shelf products approach use-by dates – giving them the visibility to take proactive action against potential wastage.

Achieving this level of visibility requires collaboration. An approach where manufacturers, consumer packaged goods companies and retailers share data and insights can lead to significant improvements in efficiency and sustainability across the entire 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 turn 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 white paper further looks at the role of technology and industry collaboration in creating a sustainable food environment. We would like to thank all the contributors and our partners, MicrosoftTo facilitate and co-create this white paper.

Food for thought

How collaboration and technology can drive a more sustainable food ecosystem

Learn more about Capgemini’s food waste solutions and how they can help businesses thrive in this evolving landscape.

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