Unprecedented pressure on supply chains has led to food buyers in the UK’s biggest organisations reporting a 60% increase in food waste over the last six months.
The surge casts doubt on the food industry’s ability to meet the UN’s Sustainable Development Goal to reduce food waste by 50% by 2030, and hampers progress to net zero.
This is according to a new study commissioned by Sodexo UK & Ireland evaluating how large organisations are navigating the current supply chain crisis and its impact on food waste and carbon emissions. It found 83% of respondents say they have created a more resilient supply chain after the pandemic; however, food waste is increasing for a majority of companies.
Sodexo’s research showed that to increase their resilience, UK food supply chain heads are increasingly diversifying their supplier base by working with smaller suppliers, with over a third (38%) doing so. 35% are also looking to source more food domestically.
SMEs form the backbone of this approach with 81% saying the current supply chain crisis has emphasised the need to source more from SMEs. Some suppliers are eager to collaborate further, with 38% agreeing that the sharing of best practice with SME partners in the supply chain to improve efficiencies will best help address the UK’s supply chain challenges.
Aoife Wycherley, Head of Supply Chain & Food Procurement at Sodexo UK & Ireleand, commented: “Diversifying the food supply chain is essential for building resilience. SMEs can enable greater agility because they’re more flexible, innovative and, tend to drive domestic food sourcing which, in turn, can reduce carbon by cutting down on air and freight usage.
“This makes having SMEs in the supply chain essential for those that need to maintain supply and meet climate targets.
“Carbon data reporting is, however, a huge burden for small businesses, and we need greater industry collaboration from large organisations to support them with this challenge in order to achieve net zero in the supply chain.”
NAM Implications:
- Perhaps a focus on reduction in food waste, without the distraction of carbon measurement…
- …would be more productive.
- Given the looming hyperinflation pressures…
