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Collaborating to improve efficiency along the whole value chain
Karen Fisher
WRAP
21 November 2017
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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.
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Courtauld 2025
WRAP is bringing
together the most
influential
organisations to help
cut food waste by a
further 20% by 2025 in
the UK
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Courtauld 2025 signatories
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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
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Globally
1.3billion
tonnes of
food waste
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• Financial - $940 billion
• Environmental - 3rd biggest GHG emitter
• Social – 1 in 9 go hungry
Impact
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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.
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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
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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
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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
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1. Prioritisation & awareness
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Understand your exposure: resource hotspots
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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
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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.
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www.wrap.org.u
k/ybifbusiness
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Case for action
http://www.wrap.org.uk/content/business-case-reducing-food-loss-and-waste-0
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2. Look for interdependencies across the supply chain
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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
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Many ways to influence food waste
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‘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
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‘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
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‘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
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“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
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3. Work with peers on things you can’t tackle alone
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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
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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
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Areas of activity Courtauld 2025
Areas of
focus
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More food for thought
http://www.wrap.org.uk/content/food-futures
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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