The reduction of food waste continues to be a global challenge and high on the political agenda. And it is also a serious concern for food and beverage manufacturers, and you can see why. Approximately one-third of all food produced for human consumption is lost or wasted. The economic costs of this food wastage are substantial and amount to more than $1 trillion per year. Beyond this, the hidden costs of food wastage extend much further. Food and drink products and ingredients that are wasted, and not consumed, leave a huge environmental impact. So here we explore the ways computer software can reduce food waste and provide a positive impact in terms of the viability of future food systems, food security and sustainable development, as well as having a positive impact on profit margins for food and beverage manufacturers.

Demand Forecasting and Demand Planning Software

Demand planning software is a platform specifically developed for the food and beverage supply chain, and it works to reduce waste by delivering accurate, precise demand forecasts by harnessing the power of the latest forecasting models and machine learning algorithms. Food and beverage manufacturers can use the software as their basis by which to manage optimal production, inventory, and service levels. With ever-changing consumer demand, particular in the wake of the COVID-19 pandemic, high-speed, automated forecasting that incorporates all available demand signals can be a vital tool. And users can have access to perfect forecasting tools, which mean supply will not exceed demand, and waste is reduced. 

Blockchain and Traceability Software

You may have been introduced to the idea of the blockchain via the cryptocurrency Bitcoin. But the technology has many uses beyond that. Simply defined blockchain is means of storing and sharing information across a network of users in an open virtual space. And it has huge implications for food and beverage supply chains, by making them more transparent. It also means a supply chain can be more responsive and alert to food safety disasters. Blockchain makes the process of food traceability possible; tracking products to their source for enhanced food authenticity and safety, as demanded by the FDA. This ‘farm to fork’ or ‘farm to table’ approach means food and beverage manufacturers can be responsive to food safety incidents and in the process reduce waste. Industry giants Nestlé and Unilever have begun implementing blockchain technologies for this reason.

Electronic Resource Planning (ERP) Software

Another related form of software leading the way when it comes to the reduction of food waste is Electronic Resource Planning (ERP) software. Firstly, advanced ERP software automates all of your delivery and shipment processes, helping you build the most efficient supply chain imaginable, and reducing transport costs. Secondly, with accurate demand planning functionality, your ERP solution can leverage tools of Artificial Intelligence (AI) and Machine Learning (ML) to use past sales information and trends to plot out a perfectly accurate timeline for future production. 

Every year there are roughly 700 FDA managed recalls. As a result, the industry suffers an average economic loss of $10 million per recall. Furthermore, only 33% of consumers now trust the safety of their food. If your food and beverage company is looking to scale and grow via ERP solutions, traceability and demand planing software, whilst meeting all the FDA requirements, get in touch with Cashmere today.