Innovations in the Food System Exploring the Future of Food: Proceedings of a Workshop (2020) / Chapter Skim
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5 Innovations in Food Distribution and Implications for Food Systems
5 Innovations in Food Distribution and Implications for Food Systems
Pages 37-48
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From page 37... ...
Vertical integration of entire supply chains accelerated in the 1980s in what she described as an adaptive response to the increasing risk in the system as gas prices became more volatile. In the 1990s, she continued, big box stores further improved the efficiency of distribution and took market share from corner grocery stores; in the 2000s, consolidation in the food industry accelerated.
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From page 38... ...
According to Miller, smaller food distribution systems face unique challenges. She explained that last-mile distribution through public terminals is particularly important for regional supply chains and that small wholesale supply chains lack analytics, a capacity that is commonplace for large companies, such as Walmart.
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From page 39... ...
Miller has documented concerns for food transportation in her research (Miller et al., 2016) , which has shown that key factors shaping supply chains include who owns the product and pays for the distribution at each step along the supply chain, the amount and diversity of supply to be transported, and the distance of each segment.
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From page 40... ...
Returning to regional supply chains, she argued, has the potential to create resilience. She pointed to the increased interest in public food terminals that meet public and private goals as one organizational solution when combined with improved rural broadband, potentially opening the door for small businesses to use open-source technology with compatible platforms and other technological innovations to reduce uncertainty in the supply chain and improve information flow.
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From page 41... ...
Sand cited two main types of innovation in food packaging: design innovation and science innovation. She noted that food waste has been at approximately 30 percent for the past several decades, and suggested that there are opportunities to improve sustainability and reduce waste throughout the supply chain.
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From page 42... ...
Other types of innovative packaging improve water barriers, incorporate edible microbials such as cinnamon (see below) , and use in-store modified atmosphere packaging that can reduce food waste and the resulting economic impact.
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From page 43... ...
The study found that, with the exception of water, the impact on the environment of food waste is much greater than that of food packaging, and noted that this is the case whether one is considering GHG emissions, water use, or other metrics. She suggested that increased focus is needed on how food packaging can be better used to reduce food waste.
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From page 44... ...
Heard defined sustainability as encompassing environmental, economic, and social impact. He expects that the food distribution industry will be an early adopter of self-driving vehicles and drones because of their ability to deliver perishable food quickly; help reduce food losses by decreasing food distribution and storage times; increase capacity through the potential for 24/7 service; and lower marginal costs through fuel savings, improved logistic efficiencies, and reduced driver wages.
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From page 45... ...
Heard noted, though, that experts consider these situations unlikely. He also emphasized that while optimized logistics in the preretail supply chain could reduce the time food is in refrigerated storage, thereby reducing emissions and food loss, the energy and water needed for the data communication centers required for these vehicles should also be considered.
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From page 46... ...
Heard went on to say that use of self-driving vehicles for the last mile of the supply chain is likely to have efficiency, crash, and employment impacts similar to those of the drones, including the possibility of an emissions rebound effect resulting from increased consumer purchasing. At the same time, however, they also have the potential to facilitate e-commerce
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From page 47... ...
AUDIENCE DISCUSSION Jensen opened the audience discussion by asking Miller and Sand about barriers in food systems logistics and food packaging. Miller responded that one of the key barriers for organizational and technological innovations is scale, in that large, vertically integrated supply chains suppress innovation.
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From page 48... ...
Heard responded that existing research demonstrates the adverse health effects of social isolation and that technology may play a role in separating people from each other. Sand added that it may be possible to have increased remote interaction.
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