Impact of Advanced Physical Connectivity on Food and Waste ... · Advanced Physical Connectivity on...

Presentation Title

Impact of

Advanced Physical Connectivity

on

Food and Waste Management

22 Nov 2017 10th Global Supply Chain and Logistics Summit www.sclgsummit.org

Presented by:

Dr. Lai Ving Kam

Associate Professor –

Berjaya University College , Malaysia

Nov 22, 2017

an issue that affects all aspects of society–

producers, growers, retail, hospitality, consumers and those who experience food poverty.

Today – SOME KEY STATS:

• Around one billion people

will eat too much

• Around one billion people

Food waste

WHY REDUCE FOOD WASTE?

Reducing food waste

• good for the world,

• good for food security and • good for the climate


9 Feb 2011

will go to bed hungry

• Over 20,000 people will die

from hunger

• An estimated one third of

all food produced in the

world ends up as waste.

Source: http://www.stopfoodwaste.ie/food-we-

waste/irelands-food-waste-forum/

• good for the climate

• The costs of decreasing food waste are

relatively low, but the potential benefits are substantial.

• Less food waste leads to more efficiency,

more economic productivity and

reductions in emissions of greenhouse

gases that contribute to climate change.

Food and Nutrition Security - a Growing ChallengeEU study

Globally, 3.5 billion people are malnourished,

yet ~ 2 billion people are overweight - ‘double burden’ of

malnutrition.

Globally to feed 9 billion by 2050 need to increase

production by + 60%, yet 1/3 of the food we produce is

Wasted Food is a Big Problem


9 Feb 2011

production by + 60%, yet 1/3 of the food we produce is

wasted.

Increasing global demand for meat & animal products, which

is not sustainable

Urgency & complexity: Compounded effects of population

growth, urbanization, migration, resource scarcity and

climate change - affect the entire global food chain

31% or 133 billion pounds

of food from U.S. retail

food stores, restaurants,

and homes goes uneaten.

Mitigate Climate Change &

Conserve Resources

All of the resources that went into

Food is the single largest component

of municipal solid waste going to

Landfills

(U.S. EPA)

As food rots in landfills, it generates

methane, a greenhouse gas over 20

times more potent than carbon


9 Feb 2011

All of the resources that went into

producing that wasted food –

including the land, labour, water,

pesticides, and fertilizers – could

have been saved or

gone to uses of higher value to

society.

times more potent than carbon

dioxide (U.S. EPA)

Landfills are the third largest source

of methane in the U.S.

(U.S. EPA)

Preventing food waste= 1st priority

�Awareness raising, iInformation & education

�Food redistribution

At ALL stages of the food chainAgriculture and fisheries

Food manufacturing

Retailers/wholesalers

Households

Caterers

Food waste

�to further assess how to limit


iInformation & education�Food redistribution

programmes� Logistical improvements� Role of food packaging

Transforming unavoidable foodwaste into a resourceFeed & energy recovery ��

separate collection of food wastenecessary

�to further assess how to limit

food waste throughout the

entire food chain;

� to investigate incentives to

halve the disposal of edible

food waste

Food systems approach

Food and Nutrition Security (FNS) :

Sustainability of the

Food Chain:Food Waste Minimisation

Food Packaging Optimisation

Consumer Information Needs

EU study


9 Feb 2011

Food and Nutrition Security (FNS) : desires a sustainable food systems approach from inputs, to

primary production (agriculture, aquaculture & fisheries),

harvesting, storage, processing, packaging, distribution,

waste streams, to consumer intake

– and back!

Consumer information needs and

sustainability

• Communicating environmental

performance for food = crucial

• Driver of global resource use

• Environmental pressures further

increase

• Consumers aware of challenges?

• Encourage consumers and producers –

fostering more sustainable choices

Current challenges:

• New and complex area of

information, in particular

for food

• Information overload and

proliferation of labels


fostering more sustainable choicesproliferation of labels

• Reliability of information

• Only information not

enough!

� green choice should be

the easy and affordable

choice

Solutions and ways forward:- Clear, reliable and comparable information

- Further consumer research

- Exchange of best practices/guidance from

multi-stakeholder platforms

� implementation and working together on

concrete actions

FOOD WASTE PREVENTION

Assessing your Area

To prevent Food Waste you must first identify where and why food waste is being generated. Then come up with solutions to prevent this waste as close to the wasting point as possible.

Before you start, consider

FOOD WASTE PREVENTION – Solutions


• The main food waste producing business types in your area

• Typical quantities of food waste generated by different business

• The main types of food waste generated by different business Source : Nourish eu

Healthy & Create Food Region

PREVENTION•Reducing the waste produced•Redistributing surplus food to humans

•Redistributing surplus food (without processing) to livestock

RECOVERYProcessing waste/surplus food for livestock feedHome compostingEnergy from Waste (incineration and fuel*)

FOOD WASTE PREVENTION – Solutions


RECYCLINGAnaerobic Digestion (energy recovery system but counts as recycling for Directive)Composting

DISPOSALFood disposal units to sewerLandfill

Source : Nourish eu

Healthy & Create Food Region

STOP FOOD WASTE INITIATIVE

1. Promotion of food waste prevention message

• Provide information

• Website, materials, newsletter, social media, commercial information and support, commercial food waste tool (new)

• National Promotion and national Events

• Cookery demos

War on Food Waste- Proactive and destiminictic

6. Strategies for the collection of food waste

7. Procurement strategies & contracts


2. Promoting composting

• Provide information

• Master Composters & Demo Sites

3. Raise Awareness

4. Education & Training

5. Integrated advice on healthy eating & food waste

7. Procurement strategies & contracts

8. Strategies for Policies that relate to food packaging

9. Food labelling & hygiene/safety policy

10. Food Distribution redefine

What Can We Do?

Reduce food waste through

improved ordering, prepping,

& storage

Recover wholesome, uneaten

food and donate it to feed


9 Feb 2011

food and donate it to feed

people in need

Recycle discarded food for other

uses including animal feed,

compost, and energy generation

At a government level, measures that can be utilised include

• Tax and food safety regulations that can act to promote the redistribution of surplus food for human consumption.

• Regulations that influence what food waste and related by-products can safely be used as animal feed


can safely be used as animal feed

Co-creating the Agri-food Platform

Food Technology Agricultural TechnologyDistribution Technology

Strategies for Policies that relate to food packaging

Food labelling & hygiene/safety policy

Impacts of waste on Environment

Waste breaks down in landfills to formmethane, a potent greenhouse gas

Change in climate and destruction ofozone layer due to waste biodegradable

Littering, due to waste pollutions, illegal


9 Feb 2011

Littering, due to waste pollutions, illegaldumping, Leaching: is a process bywhich solid waste enter soil and groundwater and contaminating them.

U.S. Environment Protection Agency (2009)

Waste Management

What are Wastes?Waste (also known as rubbish,

trash, refuse, garbage, junk, litter, and ort) is unwanted or useless materials. In biology, waste is any of the many unwanted substances or toxins that are expelled from living

Basel Convention Definition of Wastes

“substances or objectswhich are disposed of orare intended to bedisposed of or arerequired to be disposed ofby the provisions of the


substances or toxins that are expelled from living organisms, metabolic waste; such as urea and sweat.

by the provisions of thelaw”

IMPACTS OF WASTE IF NOT MANAGED WISELY

•Affects our health

•Affects our socio-economic conditions

•Affects our coastal and marine environment

•Affects our climate

IMPACTS OF WASTE IF NOT MANAGED WISELY

•Greenhouse Gas (GHGs )are accumulating in Earth’s atmosphere as a result of human activities, causing global mean surface air temperature and subsurface ocean temperature to rise.

•Rising global temperatures are expected to raise sea levels and

Activities that have altered the chemical composition of the atmosphere:

-Buildup of GHGs primarily carbon dioxide (CO2) methane (CH4), and nitrous oxide (N20).

-C02 is released to the atmosphere by the burning of fossil fuels, wood and wood products, and solid waste.


9 Feb 2011

expected to raise sea levels and change precipitation and other local climate conditions.

•Changing regional climates could alter forests, crop yields, and water supplies.

•Affect human health, animals, and

many types of ecosystems.

-CH4 is emitted from the decomposition of organic wastes in landfills, the raising of livestock, and the production and transport of coal, natural gas, and oil.

-N02 is emitted during agricultural and industrial activities, as well as during combustion of solid waste and fossil fuels. In 1977, the US emitted about one-fifth of total global GHGs.

WHAT SHOULD BE DONE

Reduce Waste- Reduce office paper waste by implementing a formal policy to duplex all draft reports and by making training manuals and personnel information available electronically.

- Improve product design to use less materials.

- Redesign packaging to eliminate

Reuse- Reuse corrugated moving boxes internally.

- Reuse office furniture and supplies, such as interoffice envelopes, file folders, and paper.

- Use durable towels, tablecloths,


- Redesign packaging to eliminate excess material while maintaining strength.

- Work with customers to design and implement a packaging return program.

- Switch to reusable transport containers.

- Purchase products in bulk.

- Use durable towels, tablecloths, napkins, dishes, cups, and glasses.

- Use incoming packaging materials for outgoing shipments.

- Encourage employees to reuse office materials rather than purchase new ones.

WHAT SHOULD BE DONE

Donate/Exchange

- old books

- old clothes

- old computers

Consumer Education

- Develop an “office recycling procedures” packet.

- Send out recycling reminders to all employees including environmental articles.

- Train employees on recycling practices prior to implementing recycling programs.

- Conduct an ongoing training process as new technologies are introduced and new employees join

Employee Education- education campaign on

waste management that includes an extensive internal web site, quarterly newsletters, daily bulletins, promotional signs and helpful reference labels


- excess building materials

- old equipment to local

organizations

introduced and new employees join the institution.

reference labels within the campus of an institution.

Conduct outreach program adopting an ecologically sound waste management system which includes:

• waste reduction

• segregation at source

• composting

• recycling and re-use

• more efficient collection

• more environmentally sound disposal

Can Advanced Physical

Connectivity changing the

face of Food and waste

management

Digital distribution (combining B2B and B2C commerce)


Omnichannel logistics / Digital distribution

From smart lockers to deliveries to your cars,

logistics players are coming up with innovative

solutions to challenge of "last-mile" delivery.

Physical ConnectivityImpacted by Multiple Factors Driving the Relationship

Factors impacting Connectivity

Management

Global Supply Chain Environment

Connectivity Intermodal

Relationship


Cost to serve the Market

Market competitions

Technology and its lifecycle

Product and its lifecycle

Business

Model

Alignment

Collaborative

Value

Creation

New technological tools provide powerful

and promising new ways of working

High Speed rail – shortening

connecting Time

Land Bases

Super connectivity permit less

perishability


Legend

____ High speed railway built / Under-

construction / to be built / in plan.

Source: People’s daily, Xinhua News

agency

5/20/2016 22Adam Mo/ Dr. VK Lai India Supply Chain

Summit 19-20 May 2016

Land Bases

Supper

connectivity

Super connectivity contribute to Food

Waste reduction


Asia-Euro-Africa connectivity Network

Land Bases Supper connectivity support less than truck load On demand delivery

Extended Super connectivity

Physical Connectivity boost efficient and

responsive food distribution

Connectivity in Adaptive Responsive Supply Chain

Hub and Spoke: Wider Global Supply Chain

Major Hub


Major Hub

Feeders

Feeders

Sub

Feeders

Feeders

Major HubFeeders

Super

Connectivity

Infrastructure

Global Trade Redefined

Digital Free Trade Zone (DFTZ)

Super Hub and Spoke: Wider Global Supply Chain

Speed – key to adaptive Responsive

Supply Chain


Feeders

Sub

Feeders

Feeders

Super

Connectivity

Infrastructure

Consumer marketplaces-retail has already been changed forever.

Change brings with it opportunity. Top Megatrends

• Trend :

Replacement of multiple distribution network strategies with an omnichannel.


Smart and flexible

logistics solutions will

require a combined

network of smaller

and larger

distribution/storage/

sales points.

Last Mile

Delivery

/ Delivery system

/ DistributionStore Front

as Inventory

management point

Mobile

Order

Management

Order

/warehouse

Management

/ Catalogue

Channel-agnostic

returns management

Workforce

management

Allocation

Policy

Store fulfilment

A-RSC

Adaptive Responsive Supply Chain (A-RSC)

The emergence of Omnichannel Operations


Online

Omni Channel

Business

intelligence

Infrastructure

required

Network Speed

and Agility

returns management

Supply Chain

fundamental

Delivering the right

quality at the lowest

cost, with the

agreed service level.

How to manage efficient food

distribution ?

Speedy On-demand

connectivity

and customer

satisfaction =

Profitable sales

increment

Connectivity

1. USE AGILE APPROACHES

TO IT AND BUSINESS

2. FOUR THINGS YOU

NEED TO DO


• Change how you think about designing your network and

fulfilling orders

• Consider a variety of options for last mile and delivery

• Aggressively integrate upstream and downstream to lower

total cost in the value chain

• Build and partner for the right tech capabilities

Preventing

food wastage


What We Must Do !


Intelligent Product R&D / Manufacturing

and Fulfillment AI

5G

2020 Product Design and

Development process


Intelligent

Manufacturing

Sustainable

Manufacturing

Last Mile

Delivery

/ Delivery system

/ DistributionStore Front

as Inventory

management point

Mobile

Order

Management

Order

/warehouse

Management

/ Catalogue

Online

Omni Channel

Business

intelligence

Infrastructure

required

Network Speed

and Agility

Channel-agnostic

returns management

Workforce

management

Allocation

Policy

Store fulfilment

Sustainability as Strategic SC Emphaasis

Demand –Driven

Adaptive Responsive

Supply Chain

Management

Physical

Connectivity

Technology

Adaptive Connectivity


9 Feb 2011

Adaptive

responsive

Supply

Chain

Strategy

Internet

Communication

Technology

Connectivity

Infrastructure

And Network

Design

Multi Echelon Business Model Strategy

Multi technologies interface application technology

Talent with Competency on Sustainability

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