Food Lifecycle Management
Transcription
Food Lifecycle Management
Managing the Challenge of Fresh June 22, 2016 Ray Connelly Vice President - iTradeNetwork AGENDA The Changing Food Supply Chain Managing the Challenge of Fresh About iTradeNetwork Food Lifecycle Management Discussion Copyright © 2016 iTradeNetwork, Inc. 2 The Changing Food Supply Chain Copyright © 2016 iTradeNetwork, Inc. 3 THE FOOD SUPPLY CHAIN HAS CHANGED The Supply Chain is Fragmented New Customers Have New Expectations Fresh Categories Differentiate Food Waste is Significant Copyright © 2016 iTradeNetwork, Inc. 4 THE FOOD SUPPLY CHAIN HAS CHANGED The Supply Chain is Fragmented New Customers Have New Expectations Fresh Categories Differentiate Food Waste is Significant Copyright © 2016 iTradeNetwork, Inc. 5 THE FOOD SUPPLY CHAIN HAS CHANGED The Supply Chain is Fragmented Driven by consumer demand: branded, local organic, certified organic, organically grown, sustainable, GMO and pesticide free The Supply Chain is Fragmented New Customers Have New Expectations Fresh Categories Differentiate Food Waste is Significant Copyright © 2016 iTradeNetwork, Inc. 6 THE FOOD SUPPLY CHAIN HAS CHANGED New Customers Have New Expectations Millennials expect more information from a transparent supply chain. Responsible, Sustainable, Transparent The Supply Chain is Fragmented New Customers Have New Expectations Fresh Categories Differentiate Food Waste is Significant Copyright © 2016 iTradeNetwork, Inc. 7 THE FOOD SUPPLY CHAIN HAS CHANGED Fresh Categories Differentiate Well-managed fresh categories, especially fresh produce and floral, increase store performance that results in higher profits The Supply Chain is Fragmented New Customers Have New Expectations Fresh Categories Differentiate Food Waste is Significant Copyright © 2016 iTradeNetwork, Inc. 8 THE FOOD SUPPLY CHAIN HAS CHANGED Food Waste is Significant USDA estimates losses at retail of 10%. Total farm-to-fork losses are approaching 40% The Supply Chain is Fragmented New Customers Have New Expectations Fresh Categories Differentiate Food Waste is Significant Copyright © 2016 iTradeNetwork, Inc. 9 WITH CHANGE COMES CHALLENGES New Regulations Impact Everyone Performance must be driven by New Operational Efficiencies The Food Savvy Workforce is Shrinking Copyright © 2016 iTradeNetwork, Inc. 10 WITH CHANGE COMES CHALLENGES New Regulations Impact Everyone Performance must be driven by New Operational Efficiencies The Food Savvy Workforce is Shrinking Copyright © 2016 iTradeNetwork, Inc. 11 WITH CHANGE COMES CHALLENGES New Regulations Impact Everyone Food Safety Modernization Act (FSMA) is a reality Performance must be driven by New Operational Efficiencies The Food Savvy Workforce is Shrinking Copyright © 2016 iTradeNetwork, Inc. 12 WITH CHANGE COMES CHALLENGES Performance must be driven by New Operational Efficiencies Visibility, operational efficiencies and cost reductions to reduce shrink New Regulations Impact Everyone The Food Savvy Workforce is Shrinking Copyright © 2016 iTradeNetwork, Inc. 13 WITH CHANGE COMES CHALLENGES The Food Savvy Workforce is Shrinking Fresh supply chain skills are specialized. Fewer industry veterans are available. More reliance on data for decision support. New Regulations Impact Everyone Performance must be driven by New Operational Efficiencies Copyright © 2016 iTradeNetwork, Inc. 14 Managing the Challenge of Fresh TECHNOLOGY FOR FRESH HAS NOT KEPT PACE There is no one-sizefits-all solution Earlier visibility is the key to better decision making Data needs to be connected Copyright © 2016 iTradeNetwork, Inc. 16 TECHNOLOGY FOR FRESH HAS NOT KEPT PACE There is no one-sizefits-all solution Earlier visibility is the key to better decision making Data needs to be connected Copyright © 2016 iTradeNetwork, Inc. 17 TECHNOLOGY FOR FRESH HAS NOT KEPT PACE There is no one-size-fits-all solution A responsive cloud-based collaborative network is a must-have to connect the entire food supply chain – from growers to distributors, to manufacturers, retailers and operators built on best practices Earlier visibility is the key to better decision making Data needs to be connected Copyright © 2016 iTradeNetwork, Inc. 18 TECHNOLOGY FOR FRESH HAS NOT KEPT PACE Earlier visibility is the key to better decision making Getting information from the fields drives greater efficiencies across the food supply chain There is no one-sizefits-all solution Data needs to be connected Copyright © 2016 iTradeNetwork, Inc. 19 TECHNOLOGY FOR FRESH HAS NOT KEPT PACE Data needs to be connected Quality, regulatory, food safety, special requirements and tracking There is no one-sizefits-all solution Earlier visibility is the key to better decision making Copyright © 2016 iTradeNetwork, Inc. 20 YOUR SUPPLY CHAIN SHOULD BE ABLE TO ANSWER: Why do I have recurring problems with late trucks, product quality issues, and missed items? All I need is just a little more information about this load – could I have made alternate purchases to save the company thousands of dollars? It has taken days for this load to arrive. I wonder how long this product will last on the shelf? I hear that people are checking on the quality “every step of the way” but where does that actually happen? Where along my supply chain can I reduce shrink? Copyright © 2016 iTradeNetwork, Inc. 21 iTradeNetwork’s food lifecycle management solutions master the complexities of bringing the freshest products to market to create a lasting connection with customers About Distribution Shippers Operators Wholesale 10,000 trading partners $300B in annual spend 600M annual purchase orders Retail Food Service Logistics Food Lifecycle Management FOOD LIFECYCLE MANAGEMENT GROW HARVEST PACK & COOL SHIP RECEIVE DISTRIBUTE RETAIL Copyright © 2016 iTradeNetwork, Inc. CONSUME 25 FOOD LIFECYCLE MANAGEMENT GROW HARVEST PACK & COOL 1st Mile SHIP RECEIVE 2nd Mile DISTRIBUTE RETAIL CONSUME Last Mile The fresh food supply chain must be properly managed throughout each segment of the food lifecycle Copyright © 2016 iTradeNetwork, Inc. 26 1ST MILE ADAPTATION – LAST MILE BENEFITS Improved Inventory Visibility and Velocity Better Cut to Cool Management Increased Shelf life, better quality, higher customer satisfaction Brand Promise Copyright © 2016 iTradeNetwork, Inc. 27 1ST MILE, 2ND & LAST MILE ISSUES August 2015 - One restaurant in Simi Valley, CA - 243 reported sickened - Norovirus December 2015 - One restaurant in Boston, MA - 143 reported sickened - Norovirus August 2015 - Minnesota and Wisconsin - 64 reported sickened – Salmonella October & November 2015 - multiple states - 60 reported sickened – E. Coli 026 Extensive testing Using central kitchens for food preparation Modified food prep procedures In store checklists and compliance Audits and inspection Employee wellness and incentives Source of Information - www.chipotle.com/2015incidents Copyright © 2016 iTradeNetwork, Inc. 28 LAST MILE EXPERTISE Copyright © 2016 iTradeNetwork, Inc. 29 FOOD LIFECYCLE MANAGEMENT Cross Network Insights RESPONSIVE SUPPLY CHAIN CONNECTED QUALITY IMPROVED FRESH EXPERIENCE FOOD SAFETY COMPLIANCE SUSTAINABLE SOURCING Food-Centric Network Copyright © 2016 iTradeNetwork, Inc. 30 Discussion What can we do for you? Ray Connelly Vice President Business Development [email protected] www.itradenetwork.com @RayTrac Copyright © 2016 iTradeNetwork, Inc. 32