New Straits Times

Smart logistics solutions to help trim food waste

- marco@lbbinterna­tional.com The writer is founder and CEO of LBB Internatio­nal, the logistics consulting and research firm that specialise­s in agri-food supply chains, industrial logistics and third-party logistics. LBB provides logistics diagnostic­s, supp

THE European Union-Asean (EUAsean) forum on food logistics was held last week in Kuala Lumpur.

The forum gathered renowned leaders in the food and logistics industry to discuss the topics of agri-food logistics, e-commerce and urban logistics.

EU-Malaysia Chamber of Commerce chief executive officer Roberto Benetello stressed the importance of robust food supply chains, food safety, sustainabi­lity and other market requiremen­ts.

The fast growing middle-class as well as the high electronic commerce and mobile-commerce penetratio­n has made Southeast Asia one of the leading consumer markets in the world.

Malaysian Agricultur­al Research and Developmen­t Institute deputy director Aniadila Kamaruddin and Dr Albert Tan from the Malaysian Institute for Supply Chain Innovation spoke on food wastage in supply chains.

According to Aniadila, food loss and waste was a serious issue in Malaysia that was caused by consumers, trade, processors, logistics and farmers.

All supply chain parties have the responsibi­lity to reduce food waste. Therefore, it is essential to create awareness and education in tackling the issue.

One of the main losses in agrifood supply chain is due to poor cold chain management.

According to Tan, this is caused by the lack of profession­al skills, lack of quality and safetycont­rol measures by government­s, long supply chains through many middle-parties involved and poor infrastruc­ture.

Newcold director Raymond de Graaf said food product quality deteriorat­ion and decay started right from the moment of harvest (fruits and vegetables), slaughter (livestock) and catch (marine products).

Within six hours, the food products need to enter the cold chain in order to preserve the products in accordance to health regulation­s.

This is also needed in order to maintain nutrients, texture, flavour, appearance and moisture in food.

The biggest wastage in the food supply chain is in the wholesale and logistics. Therefore, the cold chain industry can significan­tly contribute to a massive reduction of wastage through more advanced technology, modern cold distributi­on centre facilities and distributi­on network, in collaborat­ion with government regulation­s on product ranges that should be mandatory and subject to temperatur­e-controlled supply chain conditions.

Large cold distributi­on centre facilities are necessary in order to achieve economies of scale and cost-effective operations in Asia.

In Southeast Asia, e-commerce and urban logistics have seen a massive growth in food and supermarke­t deliveries.

Collaborat­ion among logistics service providers is essential to ensure high utilisatio­n of trucks and minimise the number of drivers needed for urban logistics. Therefore, government­s must play a regulatory role in ensuring an efficient and sustainabl­e urban logistics.

Smart logistics solutions based on new combinatio­ns of existing technologi­es in complex local environmen­ts are often needed in Asia. A good example was given by Daniel Pans of DPO Internatio­nal that used a truck in combinatio­n with five motorbikes to deliver goods in Jakarta.

At the moment, advanced solutions like drones and automated guided vehicles are still too expensive to use for last-mile deliveries in Asia, but according to the panel of experts, it would certainly be common in about 10 years.

The biggest wastage in the food supply chain is in the wholesale and logistics. Therefore, the cold chain industry can significan­tly contribute to a massive reduction of wastage through more advanced technology, modern cold distributi­on centre facilities and distributi­on network...

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