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Which technologies can reduce damage and losses in the supply chain?

Goods are often damaged throughout the supply chain but novel technologies – such as hyperspectral imaging, automated reject systems, and smart indicators – are reducing losses.

According to the Food and Agriculture Organisation (FAO), around 14% of the world’s food is lost after harvesting and before it reaches the retail environment, reducing what can be salvaged and sold. Unit loads that arrive with damage often result in loss, as they need to be replaced.

“It is highly commonplace and considered an unavoidable part of the supply chain for manufacturers to receive damaged goods,” Myriam Ertz, Canada research chair and professor of marketing and director of LaboNFC, at Université du Québec, told Ingredients Network.

Food loss during the transportation, storage and processing stages of the value chain has a greater environmental impact and disrupts a sustainable supply chain management model. The European Food Information Council (EUFIC) states that the later along the supply chain food is lost, the higher its carbon footprint. Once food reaches this stage, more energy, water and resources have been invested in production.

The industry dilemma

New technologies can help the global food system reduce damaged goods and the environmental impact of food loss.

Often, it is only a small part of deliveries that are damaged. A single bag on a pallet may be punctured and spill product, or a pallet of packaging may have been bumped, causing damage to items on one side.

“Very often, 90-plus per cent of the delivery is OK, so it is not worth following up,” said Mathew Simpson, sales manager UK & Ireland of CSB-System.

A lack of standardised loading and handling procedures, poor handling, or poor carrier selection and management can cause damage during transit.

Manufacturers therefore often need to weigh up the risks of trying to use compromised goods. “Generally, damaged goods which are a part of a bigger consignment would simply be discarded because it's not worth the time, effort or risk of trying to reuse them,” Simpson added.

Damage risks exist throughout the value chain

Various factors across the supply chain can cause damage to goods, alongside handling practices. Climate and weather events, such as extreme temperatures, natural disasters, or harsh winters, can lead to food loss.

As the number of touchpoints increases throughout the supply chain, so too does the risk of damage. E-commerce, for example, requires several additional touchpoints and carries a higher risk of damage than traditional retail.

“Having many links in a supply chain, with re-packaging or cross-docking operations (where pallets come off one vehicle and go onto another) would increase the incidence of physical damage from stacker trucks and the risk of exposure to weather damage and dust,” Simpson said.

Improper packaging means goods cannot withstand the shifts and bounces that typically occur during transportation. A lack of effective customer packaging design and sustainable options, such as eco-friendly materials that maintain protection levels may result in substandard products.

A lack protective materials such as foam, air pillows, corrugated inserts, or stretch wrap, and a lack of package testing, including International Safe Transit Association (ISTA) and Advancing Standards Transforming Markets (ASTM) protocols can also cause manufacturers and retailers to lose a percentage of their delivery.

Items can be stored incorrectly for their contents or shipped in extreme heat or cold, causing damage. Some items like perishable goods need to be kept in temperature-controlled storage spaces, and others like fruit and vegetables, must be stored in a cold environment to stay fresh.

How advancing technologies reduce food loss

Smart inspection and detection technologies provide solutions to reduce food loss caused by damaged goods. Artificial intelligence (AI)-powered X-ray and vision systems analyse products in real time to identify contaminants, including metal, glass and stone.

“Hyperspectral imaging detects microscopic contaminants and analyses food composition to ensure safety while preventing the disposal of safe, but visually imperfect products,” said Ertz. Automated reject systems remove defective items from the production line without stopping the entire line. Smart indicators utilise sensors or indicators, such as colorimetric reactions, that change colour when products are no longer fresh.

AI-driven process optimisation enables predictive F&B maintenance. “AI monitors equipment in real-time to predict failures before they happen, preventing massive batch losses caused by machinery breakdowns,” said Ertz. Dynamic inventory management, in contrast, uses Internet of Things (IoT) devices and AI to track inventory levels, predict when products are at risk of spoiling, and suggest real-time discounts or redistribution.

“Ingredient accuracy, in turn, involves checkweighers and fill-level scanners that provide instant feedback to filling machines, preventing overfilling and reducing waste in liquid and prepared meal production,” Ertz added.

Implementing an Integrated Quality Management System (IQMS) into manufacturing operations can ensure product consistency. Operations personnel receive an alert to check deliveries for damage or substandard produce. If identified, they can then either reject the delivery or log the damage in the system. Adopting this process gives manufacturers better control over damaged goods, enabling them to monitor supplier performance and order items less frequently.