How disruptive technologies are improving food supply chains by Abhilasha Satpathy, DCMME Center Graduate Student Assistant

One of the lectures in my Logistics class, got my interest in understanding how we as professionals interested in the supply chain industry can do our bit to improve the efficiencies in the food supply chain area and I decided to do some reading on the same. I decided that since it’s the need of the hour, maybe I can share it with others too.

IOT enabling better decisions

Internet of Things (IoT) or sensors can continuously capture large amounts of relevant information, while the decreasing cost of storing data in cloud solutions, and the increased possibilities of analysing these big amounts of data, creates new insights and the basis for better decisions. For example, the sensors can capture data in biological processes, such as aquaculture. Advanced analytics on these data may create new insights and better decisions. They may contribute to improved fish health and fish welfare, reduced mortality rates, improved feed efficiency and a more sustainable seafood production.Moreover, IoT enables the entire food and beverage industry to monitor raw goods and products all the way through the value chain, and use the information to ensure safe and sustainable products at the consumers’ tables.

Use of blockchain

Blockchain and other digital technologies will enable the communication of information from sensors directly to the consumer at the purchasing moment. Digital assurance may contribute to making the story true and trustable and an effective defence against counterfeiting and food fraud.For example, the food service industry may log and blockchain temperature information of products throughout the supply chain, from the ready meal producer to the consumer in the convenience store. In addition to the value of this information to the consumer, this may also contribute to longer shelf lives, improved cooling chain performance and reduced food waste. The flip side of making this information fully transparent to the consumer, is of course that the consumer will also know if the cooling chain was disrupted.

Shorter value chains

Thirdly, the platform economy may disrupt the supply chain and impact the retailers by connecting the consumers more directly to the food producers, as short value chains or direct purchase become consumer values in themselves. The decrease in transaction cost and the growing e-business in the food market, may increase the power of consumers, as a larger variety of products and producers may be made available at a lower cost. In addition to deep customer insight, platforms and social media creates open innovation opportunities, by involving customers directly in product development. Through engagement, sense of belonging and loyalty your customers may increasingly become part of your brand.

Transportation Automation

Transportation planners are on the frontlines of the latest supply chain disruption — and they’re making significant progress in more ways than one. Although many think of autonomous vehicles when it comes to the next generation of transportation, supply chain managers have a myriad of applications for advanced robotics and automated systems:

  • Smart Traffic Management: The city of Nanjing, China recently introduced a traffic flow management system that incorporates real-time data as well as predictive analytics and forecasts to help travelers plan their routes on a day-to-day basis. Such a system is easily extrapolated to the supply chain by providing information on traffic delays, detours and even weather conditions.
  • Enhanced Safety Mechanisms: While some are concerned with the safety issues presented by autonomous and driverless vehicles, others focus on human drivers. New systems can estimate a driver’s fatigue by monitoring various vital signs to help avoid accidents on the road.
  • Aerial Drone Delivery: Remote-controlled aerial drones are already popular among consumers, so it makes sense that they’re being considered for product deliveries and shipments.

 

References:

https://www2.deloitte.com/content/dam/Deloitte/ie/Documents/ConsumerBusiness/2015-Deloitte-Ireland-Food_Value_Chain.pdf

(n.d.). How Are Digital Technologies Transforming Food Value Chains? Retrieved from https://www.mygfsi.com/news-resources/news/news-blog/1330-how-are-digital-technologies-transforming-food-value-chains.html

Nichols, M. R. (2018, April 25). 5 Technologies Disrupting the Supply Chain. Retrieved from https://www.manufacturing.net/article/2018/04/5-technologies-disrupting-supply-chain

Questions:

  1. How is IOT changing the food supply chains as we know it?
  2. How can transportation automation help improve the efficiency of food supply chains?
  3. How will shorter value chains enhance the efficiencies of food supply chains world over?