By Amarendra Maity
In light of escalating food wastage figures reaching trillions and continuing to rise, the food industry must prioritize innovation and digitalization to address this alarming trend. As the global population expands, the demand for food is projected to exceed the available supply. In response to this challenge, leveraging cutting-edge technologies such as Artificial Intelligence, Internet of Things, Machine Learning, and others through digitization is seen as the most effective solution to break free from the cycle of excessive production and wastage. Strategic revisions throughout the food supply chain management, covering production, processing, and retail sectors, are imperative to enhance resource utilization.
A zero-waste supply chain aims to eliminate waste at every stage of the process by taking a comprehensive approach to sustainability. This involves reevaluating packaging, sourcing strategies, production processes, distribution systems, and implementing closed-loop supply chain methods to minimize wastage. Advanced AI algorithms play a crucial role in optimizing deliveries and reducing carbon footprint for businesses globally. Real-time data on risks and performance is essential for businesses to adapt their strategies and build more resilient and sustainable supply chains.
Food wastage occurs throughout the entire value chain, with production and consumption being the most critical stages. The issue is particularly prevalent in developing countries at the production level and in developed countries at the consumption level. A significant factor contributing to this wastage is the lack of visibility into the extent of food loss and waste across the value chain. This lack of awareness is not only common among consumers but also among food service providers, restaurants, and hotels. Enhancing visibility and implementing the right infrastructure are key steps in addressing the food waste problem. Utilizing digital supply chain tools can improve the relationship between supply and demand; optimize transactions, track loss and waste, and enable dynamic pricing. These tools can help products more efficiently through the system before they expire, ultimately reducing food waste.
The influence of Artificial Intelligence (AI) across numerous industries is undeniable, with the future economy heavily reliant on AI and emerging technologies. The food processing sector has embraced AI to enhance operations and enhance customer satisfaction. The application of AI in the food industry has significantly alleviated challenges in processing and storing food. Tasks such as automating sorting processes, detecting anomalies in food, and ensuring compliance with food regulations have all been significantly improved through AI technology. While some companies have previously turned to Big Data solutions to address supply chain issues in the food industry, these solutions lack the intelligence necessary to uncover important trends and correlations among vast amounts of data. Therefore, it is essential to leverage AI and machine learning technologies to unlock key insights in the food industry.
Through the integration of data from both internal and external sources, AI has the ability to provide a comprehensive overview that can assist in addressing supply chain challenges within the food industry. Utilizing an integrated business planning solution, manufacturers can effectively reduce or eliminate issues such as overproduction and excess inventory. This solution leverages advanced algorithms to accurately predict customer demand, thereby preventing unnecessary production of goods. For instance, for businesses specializing in perishable products like dairy, historical data, point-of-sale information, purchasing trends, and other data points can be analyzed to determine the optimal quantity of items to produce. This approach ensures that products do not go to waste by expiring in warehouses or sitting unsold on store shelves. By utilizing demand sensing capabilities, AI can provide valuable insights into product demand, enabling businesses to optimize production volume, speed, and distribution channels for maximum sales potential.
By providing all stakeholders in the supply chain with access to vital data through integrated systems, processes can be enhanced to optimize food handling. For instance, special cold storage options may be required for a batch of vegetables to ensure maximum value is retained. The implementation of a pre-warning system and information sharing can mitigate the risk of waste and assist stakeholders in strategic planning. Utilizing AI in efficient sorting and grading systems proves to be essential in reducing food wastage at various stages of the supply chain.
The Nirmalya SCM, powered by AI, is designed specifically for managing food supply chains, streamlining operations, reducing waste, and enhancing overall efficiencies. By utilizing its demand sensing feature, this system allows for accurate demand forecasting and the creation of responsive inventory plans to minimize waste and lower transportation costs. Additionally, it enhances production-planning by providing real-time data for adjustments based on shifting demand patterns. With AI-driven insights, businesses gain improved visibility into their supply chain processes, preparing them for future demand fluctuations. By connecting upstream and downstream operations, this platform optimizes product delivery times and establishes a data-centric supply chain capable of adapting to unexpected challenges.
Start your journey towards a zero-waste food supply chain today with the Nirmalya Supply Chain Management platform. If you're prepared to adopt AI-powered SCM, get in touch with us to learn more.
