Business & Investment

Shipwell: Reduce food waste with one on-time shipment at a time

In the United States, 30% to 40% of the food produced is wasted. EPA.. Food waste can be generated on farms, supply chains, stores and homes.

How much of that corruption occurs in the supply chain? Lots — according to about one-third Shipwell.. Shipwell co-founder and president Jason Traffic told FreightWaves that US food waste emits more carbon dioxide than the aviation industry.

Unreliable forecasts of demand, shipping delays, truck market volatility, high inventories, and temperature inaccuracies all lead to food waste in the supply chain.

In addition to hindering efforts to feed the world’s growing population, food waste:

  • Retailers and supply chains are very expensive.
  • It wastes resources such as land, water and fertilizer used to produce food.
  • It can release methane, a super-powerful greenhouse gas (GHG).
  • Waste food-related labor and transportation costs and emissions.

Here comes Shipwell’s technology

Shipwell’s vertically integrated transportation technology is built on business analysis, “everything that passes through the platform can be measured and monitored later,” said Traffic. Shipwell, just five years old, has the youngest Transport Management System (TMS). Gartner Magic Quadrant For TMS, Traffic said.

This technology incorporates features that help prevent food spoilage in the supply chain.

According to the ruleset, TMS can alert companies in real time about out-of-range temperatures and shipping delays. According to Traff, in the event of a problem, the system will automatically flag the cargo, send an internal email to the appropriate worker, or use natural language processing technology to call the truck driver. You can call it. He said this would allow businesses to take a proactive approach to the problem without having to constantly respond after the majority of the damage has occurred.

“Being aggressive means reducing food loss, more efficient routes to carriers, and saving money, which companies tend to prefer,” says Traffic.

Save food and money at the same time

Many of Shipwell’s customers are food and beverage companies, and Traffic said they often operate with very narrow margins. For this reason, wasted food can have a significant impact on profits. Trough said many sustainability efforts also lead to overall cost savings.

A large meal kit company using Shipwell’s technology had a return on investment of 75%. In the first year due to lower shipping costs and reduced corruption and loss of goods sold. By optimizing routes and consolidating loads, the company saved 1.7 million miles of transportation. This is equivalent to preventing 5.6 million pounds of CO2 emissions from being released into the atmosphere.

Traff shared an example with workers where multiple ingredients may be waiting for £ 40,000 of red shrimp to appear in the warehouse and put together a meal kit. However, if the lobster does not arrive on time and there is no data showing where it is, the company will buy the lobster nearby so as not to waste the remaining resources.

This costs the company a lot and can waste £ 40,000 of red shrimp somewhere in transit. “All trailers that can be filled with lobster are useful,” Traffic said.

According to Traff, automation and analysis are used to reduce food waste, improve estimated arrival time accuracy, improve on-time shipment rates, load consolidation, route optimization, and reduce supply chain inefficiencies. You can do.

“These are very practical methods, and not only do businesses have a much better impact on the global climate, but they also have a much better impact. [be] Better global citizens, but to save more money, “Trough said.

Impact of unstable freezing market

Food and refrigerated products have been unaffected by the uncertainty of capacity available in the truck industry for the past year.

This Freight Waves SONAR chart shows the reefer outbound bid rejection rate (white) and spot rate (green) over the past year. For more information on FreightWaves SONAR, click here..

The white line in the SONAR chart above shows the national average refrigerated container bid rejection rate.The green line is Truckstop.com National average freezing spot rate. The graph shows that both metrics increased significantly from July 2020 to December 2020 and remain relatively high.

High bid rejection means that carriers are rejecting more refrigerated items, making it more difficult and costly for retailers to get refrigerated food into the hands of stores and consumers. I will.

If the shipper cannot move the goods, the food may be left in the warehouse for a long time before arriving at the destination. Tweaking the supply chain timelines of time-sensitive items, such as produce and other chilled or frozen foods, can result in more food being wasted.

“Today’s consumers really care about the businesses they support,” Trough said in order to become an ethical global citizen with a positive impact on the climate. He said consumers are paying more and more attention to the various sustainability implications of their business, including food waste, GHG emissions and costs.

Advances in technology and tracking can help shippers and carriers address these and other issues in the trucking industry, such as on-time delivery and narrow margins.

Click here for more Freight Waves articles by Alyssa Sporrer.

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Shipwell: Reduce food waste with one on-time shipment at a time

https://www.freightwaves.com/news/shipwell-reducing-food-waste-one-on-time-shipment-at-a-time Shipwell: Reduce food waste with one on-time shipment at a time

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