Collaborating to improve efficiency along the whole value ... · PDF fileAndy Horrocks,...

Collaborating to improve efficiency along the whole value chain

Karen Fisher

WRAP

21 November 2017

WHAT WRAP DOES

Global Sustainable

Development Goals

Governments

Manufacturers Retailers

Citizens

WRAP

© WRAP 2016

WRAP's vision is a

world in which

resources are used

sustainably.

We work with

governments,

businesses and

communities to

deliver practical

solutions to

improve resource

efficiency.

Courtauld 2025

WRAP is bringing

together the most

influential

organisations to help

cut food waste by a

further 20% by 2025 in

the UK

Courtauld 2025 signatories

A ‘Perfect

Storm’

Increased demand

50% by 2030 (IEA)

Energy

Food Increased demand

50% by 2030 (FAO)

Water Increased demand

30% by 2030 (IFPRI)

Climate

Change

Globally

1.3billion

tonnes of

food waste

• Financial - $940 billion

• Environmental - 3rd biggest GHG emitter

• Social – 1 in 9 go hungry

Impact

Source: WRI analysis based on FAO. 2011. Global food losses and food waste—extent, causes and prevention. Rome: UN FAO.

Food loss and waste is greater nearer “the fork” in developed regions and nearer “the farm” in developing regions (Percent of total kcal lost and wasted per region, 2009)

Note: Numbers may not sum to 100 due to rounding.

UK food waste

The amount of food

being wasted post-farm

gate in the UK is around

10 Mt

ca. 7.5 Mt is ‘edible’,

worth >£17 billion a year

(conservative) estimate

of 2.5Mt in primary

production (£800M)

http://www.wrap.org.uk/sites/files/wrap/Estimates_%20in_the_UK_Jan17.pdf

Return on investment from food waste

prevention

1200 business

sites

200 companies

17 countries

For each $1

invested $14

of financial

benefit

realised

http://www.wrap.org.uk/content/business-case-reducing-food-loss-and-waste-0

WRAP’s experience has shown the following are essential

1. Prioritisation & awareness: where is your biggest exposure?

2. Look at interdependencies across the supply chain

3. Work with peers on things you can’t tackle alone

Unlocking this potential

1. Prioritisation & awareness

Understand your exposure: resource hotspots

Understand your exposure: geographical

sourcing risks

http://rmr.wrap.org.uk

Raw Materials Risks and Opportunities Screening Tool

“The tool contains a great deal of technical information that

would otherwise place an unrealistic time demand on

Kingsland. Currently we are using the tool to develop

geographically targeted audit templates. Our wine buyers are

the people who have most direct contact with wineries, and

when they are ‘in country’ the tool gives them a good feel for

regionally challenging issues.”

Andy Horrocks, Environment Manager, Kingsland Drinks

“We were looking for something which would help us, get

smarter about what the risks are and find a way of simply and

clearly visualising these risks. Our stakeholders have a good

understanding of risk matrices, so the tool has been helpful for

discussions around risk and identifying where to take action”

Sarah Wakefield, Sustainability Manager, Co-op

Raise awareness with suppliers

Start a conversation on food waste

Do they have a food waste policy?

Do they measure food waste at different stages of operation?

Do they set any targets to reduce waste?

Start to raise awareness and business benefits

Embed in whatever communication tools you have – tendering,

evaluation, codes of conduct, etc.

www.wrap.org.u

k/ybifbusiness

Case for action

http://www.wrap.org.uk/content/business-case-reducing-food-loss-and-waste-0

2. Look for interdependencies across the supply chain

Taking a whole chain approach

• We know where losses / inefficiencies occur

• But this masks the nature of the problem and potential solutions

• Decisions in one part of the chain affect another

• It’s easy to just shift the problem elsewhere in the chain

• Look at how your commercial practices can be having an effect on not

only your own waste – but also suppliers / customers

1.7 0.25 c.2.5 7.3 0.9

Many ways to influence food waste

‘Whole chain’ collaboration - example 1

• Project with Co-operative Food and

Farmcare

• Walked the whole supply chain

• Captured water use, energy use and

losses

• Identified improvement opportunities

• Objective: maximise efficiency &

profitability

http://www.wrap.org.uk/sites/files/wrap/Coop%20Potatoes%20Pathfinder%20Project_Case%20Study.pdf

‘Value’ lost in the potato supply chain

(based on 50,000t packed)

* Source: WRAP (2014). Household food and drink waste: A product focus

Scale of losses

Unlocking this lost potential

• More accurate yield forecasts

earlier in the season [Asda-IPL

project to test NIAB tool]

• Variety choice (10% difference in faults)

• Small flex in screen size (2mm

= 5% better grade-out)

• NPD / market development

‘Whole chain’ collaboration - example 2

“By assessing the ideal specification, and how to deliver this, the production yield

increased significantly, reducing energy, labour and material resource inputs and

saving over £370,000 a year”

Key changes:

• Introduction of size-banding

• Dedicated line for smalls to dicing, avoiding rework

• Working with growers to prevent the presence of doubles

• Shift from pure ‘price point’ trading

• Communicating temperature load requirements

http://www.wrap.org.uk/content/whole-chain-resource-efficiency

“Through a collaborative approach and strategy, the team realised a 30%

reduction in store waste for top fruit. Rolling out these changes across all fresh

categories could lead to potential savings of £1.3 million per year”

Key changes:

• Joint range review and strategy

• Range simplification

• Better ordering format

• Changes in display formats to minimise handling damage

• Production of a best practice guide for stores

‘Whole chain’ collaboration - example 3

http://www.wrap.org.uk/content/whole-chain-resource-efficiency

3. Work with peers on things you can’t tackle alone

A practical example: water stress

http://waterriskfilter.panda.org/

• World Economic

Forum’s Global Risk

Report 2017 cited the

water crisis as the 3rd

biggest impact to

business for the 3rd

year running

• Businesses face both

physical & reputational

risks

• But they can’t mitigate

these risks alone

Courtauld 2025 – facilitating collective action

• Initially 6 stressed & vulnerable catchments in

the UK

• Three locations internationally

• All key sourcing areas for food & drink

• Building on mature partnerships already in

place - able to address known issues

• Increase business participation – and spread

the effort

Areas of activity Courtauld 2025

Areas of

focus

More food for thought

http://www.wrap.org.uk/content/food-futures

Key Take Aways

Awareness

Work with peers on things you can’t tackle alone

Whole chain

view

Work with

others

Identify where you are most exposed to resource pressures

Look at how your commercial practices can be having an

effect on your suppliers / customers

Help raise awareness in supply chains

Know where waste is happening along the supply chain

Contact

Thank you

www.wrap.org.uk

@WRAP_UK

#FoodWasteFight

Karen Fisher

karen.fisher@wrap.org.uk