Retailers – Solutions for Grocery Waste

Optimise The Harvest

Key Opportunities

Revise product specifications to accept broader cosmetic variety, using more of what is actually grown. Where not feasible, create established “imperfect” product lines.

Strive for stable buyer-grower relationships and innovative purchasing models, such as whole crop purchasing, to ensure full utilisation of product grown.

Increase visibility of forecasted demand for suppliers, leading to reduced overproduction that results from growers lacking this information.

Enhance Product Distribution

Key Opportunities

• Use technology innovations that streamline product movement, such as intelligent routing, temperature monitoring, and early spoilage detection.

• Audit current product distribution flow for highly wasteful products or transition points to ensure integrity of the cold chain.

Refine Product Management Key Opportunities

• Analyse and consolidate SKUs to increase inventory turnover and freshness while decreasing waste from low-performing or redundant SKUs.

• Optimise forecasting and inventory management systems throughout operations with demand planning informed by machine learning.

• Implement dynamic pricing and markdown strategies that increase sales of short-life product.

• Design in-store product management and displays to minimise waste, such as smaller produce displays, ensuring air circulation, and using night shades and covers to maintain freshness.

Maximise Product Utilisation Key Opportunities

• Repurpose perishable products pulled from shelves in deli and grab-and-go products.

• Dedicate R&D resources to create upcycled product lines in private/store brand products.

• Explore and pilot innovative shelf-life extension solutions, such as edible coatings, modified atmospheric systems, and other forms of active or intelligent packaging to improve product quality and freshness.

Reshape Consumer Environments Key Opportunities

• Educate and assist consumers in better home food management through in-store information, food preparation services (e.g., meal kits, on-demand cutting or butchering), appropriate promotions, and customised product tips.

• Enable consumers to purchase smaller or customised portions (e.g., through bulk bins or staffed seafood and meat counters).

• Implement standardised date labelling and train staff on proper handling, donation, and sales of products based on label dates to avoid premature or unnecessary discards due to misinterpretation of dates.

• Develop innovative features to online shopping experiences that encourage consumer meal planning and improved food management.

• Adjust consumer expectations on the availability of fresh products (bread and hot, prepared foods) towards the end of service to minimise over-production.

• Collaborate with appliance and kitchen IoT companies to explore smart home innovations that can help customers improve their food management.

Strengthen Food Rescue Key Opportunities

• Support innovation and pilots of real and near-time data-sharing technology, including type, quantity, condition, location, etc. of product nearing expiration to address time-sensitive food rescue opportunities.

• Coordinate across the sector to develop shared economies for idle assets, such as cold storage and transportation, to expand ability to food recovery organisations access to these resources at low cost.

• Expand staff training curriculums regarding donation liability protections and donation best practices, such as culling and storing procedures.

Recycle Anything Remaining Key Opportunities

• Build relationships with livestock operations to provide food scraps as animal feed.

• Collaborate with systems players to demonstrate demand for feedstock, generate consistent inputs, and incentivise investment in recycling infrastructure

• Pilot distributed anaerobic digestion models, including placing digester units behind processing facilities

Top Recommendations

Enhance demand planning: Optimise forecasting and inventory management systems throughout operations with demand planning informed by machine learning Employ dynamic pricing models: Implement dynamic pricing and markdown strategies such as markdown alert apps that increase sales of short-life product Implement advanced distribution technologies: Implement technologies that will inform product quality and shelf life, such as early product analysis and detection, and incorporate intelligent routing solutions using dynamic decision-making based on product freshness

Buy more of what is grown: Strive for stable buyer-grower relationships and innovative purchasing models, such as whole-crop purchasing, to ensure full utilisation of product grown

Revise product specifications to accept broader cosmetic variety, using more of what is actually grown. Where not feasible, create established “imperfect” product lines.

Assist customers with food management: Educate and assist consumers in better home food management through in-store information, food preparation services (e.g., meal kits, on-demand cutting or butchering), appropriate promotions, and customised product tips.