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A lot of the warehouse and supply chain systems running today were last updated around six years ago, and our research found that 37 percent of supply chain managers said these old systems were the main reason for food wastage. For example, in stock rotation: if a warehouse management system can’ t track food expiry dates properly, there’ s no way to make sure the oldest stock goes out first. So, whatever is closest may be picked first, while the older stock sits at the back and is eventually past its use date by the time it’ s reached.
The cost of avoidable food waste
In reality though, a lot of food waste isn’ t due to the food slowly going off. It’ s the avoidable mistakes, such as over-ordering and simple handling errors that then lead to larger supply chain issues, such as entire pallets of produce being ordered unnecessarily. Between tight margins and short shelf lives, these errors add up, and over the course of a year can become a serious amount of wasted stock, and resulting costs, with the average business losing £ 156,000 annually to avoidable waste.
The good news is that there are solutions. Over-ordering is a forecasting problem. Poor rotation usually means you don’ t really know what stock you’ re holding or where it is. Handling errors come down to process and training. By investing in new warehouse technology, the clear business case for modernization to ensure sustainability rings loud and true.
Reaching the 2030 target
2030 is not an unrealistic target, well within the reach of most suppliers. But only if they start spending on modernization processes now, instead of waiting for a customer or a regulator to force their hand.
So, what does investing in a warehouse management system look like? First, connecting the systems that are working in isolation. When your forecasting, stock and staffing systems all have clear visibility over data, you can see what’ s happening in real time across the entire warehouse. Then, it’ s about using that insight for accuracy and efficiency, with the end goal of reducing waste. For one warehouse that might mean voice-directed picking for warehouse staff to cut errors. For another it might mean automation that scales up and down for seasonality peaks. What each supplier needs will depend on how they run, but the basic idea holds: build the system around the warehouse, not the other way round.
There’ s a cost to getting this wrong that goes beyond money. When stock is lost or wasted, it can damage relationships with retailers and chip away at customer trust and brand reputation. Building a strong reputation takes years, but it can be damaged very quickly.
Social media has made this even more important. A single video can reach thousands
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