Food Chain - Issue 195 - August 2023 | Page 34

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Food supply chains continue to face significant disruption , which has been predicted to only worsen or at least , stay the same , as the year goes on . Meanwhile , the industry is also subject to safety concerns , and the need for increased resilience to market uncertainty and disruption has never been more crucial . To be future-fit , the food industry must embrace a new value chain built around new business models , practices and technologies that can enhance operational capabilities .

1 . Reengineering the food supply chain for resilience Building resilience into the global food supply chain begins with accepting that things cannot go back to the way they used to be . In a world facing a growing population that ’ s expected to reach 8.5 billion by 2030 , as well as a climate crisis , food supply chains must be strong , nimble , and smart .
The past decade has seen a growing dependence on imported fruits and vegetables in many western countries , however the food industry is under pressure to reduce postharvest food losses . It ’ s also working to cut its dependence on vapor compression-based cold storage , which is a major contributor of greenhouse gases . This means production needs to move closer to the consumer and the industry needs to invest in new-age coldstorage solutions that reduce energy consumption . In the long run , this translates into creating a more diversified food supply chain that ’ s better able to handle disruption . Food retailers must optimize their last-mile delivery mechanisms .
To provide on-time delivery while optimizing delivery costs , businesses need greater automation in their warehouses and delivery partners that can provide real-time visibility of shipment status for online buyers . Automation of brick-and-mortar stores can also provide a frictionless and safer buying experience for instore customers .
2 . Build transparency and trust Satisfying the food safety concerns of today ’ s increasingly healthconscious and well-informed consumer requires constant monitoring of products from farm to table , as well as the ability to use gathered data to improve visibility across manufacturing and distribution . Internet of Things ( IoT ) technologies deployed throughout the value chain can collect and present data to improve visibility and create data-driven processes and decisions for businesses . This also improves the ability of companies to respond to unforeseen disruptions .
Similarly , technology like blockchain has emerged as a reliable way to track not just food products but the ingredients they consist of . For down-chain players such as grocery stores and restaurants , this data can help identify and reduce contamination and , in the case of product recalls , identify impacted shipments . This level of detail and monitoring will become increasingly relevant for building customer loyalty and trust .
3 . Overcoming retail barriers with digital offerings For retailers and grocers , Covid-19 demonstrated the need for a digital-
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