In 2018, Americans wasted over $165 billion of food - 40% of the entire US food supply (CNBC). In the meantime, 40 million Americans were listed as "food insecure" (USDA). What's creating this waste? According to Maersk Growth, 75% of food waste happens before product reaches retail shelves. The culprit: inefficiencies created by poor or missing data.
There are four emerging technologies that can save billions of dollars and reduce financial, reputational and health risks. They include IoT sensors (to gather data), 5G networks (to connect that data), blockchain data ecosystems (to share that data), and artificial intelligence (to operationalize that data).
In this keynote from the 2019 Emerging Technologies Conference, Transparent Path CEO Eric Weaver shares how these four emerging technologies are beginning to work together to leverage data in ways that identify and limit waste earlier in the supply chain.
4. ISSUE#1
TRACEABILITY
IS TOUGH
9 of 10 farms are small
family farms & generate
80% of world’s food supply
WORLD RESOURCES INSTITUTE
No records, paper records,
human error
GLOBAL FOOD TRACEABILITY CENTER
A single import shipment
uses 30-100 paper
documents on average
CARGOSMART/IBM FOOD TRUST
11. ISSUE#5
NO SAFETY
NET
<2% of US food
imports are inspected
Checks for bio
contaminants, no
chemicals/metals
Extensive bribery
among inspection
teams
TEXAS A&M UNIVERSITY STUDY, 2014
12. Why do these
problems exist?
• No one has time to add data
collection to their day
• Data still largely resides in silos
• Global supply chain hasn’t caught up with
technology that’s available
• Traceability is slow
• Companies often use leverage to
push blame elsewhere
• Margins are razor-thin
14. ANDFINALLY…
How do we get
people to change?
In order to incent people to adopt
new tech and processes, the business
must provide FINANCIAL &
REPUTATIONAL REWARDS for data
transparency and sharing. We need to
reward people for collaborating.
20. CONNECTING THE DATA
5G creates the
web that enables
interoperability
• Scalability: allowing millions of
sensors to communicate
simultaneously
• More data to verify regulatory compliance
• Inter-device communication will drive cost
out of the supply chain
• Interoperability: by inter-connecting
wifi, Bluetooth and NFC devices and
servers, we will have new levels of
routing and managing data for
auditing, analysis and storage
• Connectivity to AI: getting more data
into more intelligent apps more
quickly to provide greater operational
insights
21. CONNECTINGTHEDATA
Where are
we with 5G?
• Three main applications
• Mobile broadband/fixed
wireless
• Mission-critical comms
• Massive IoT
• Lots of spectrums = lots
of confusion
• Marketing BS
• Slower rollout for rural
areas
• Most device innovation
coming via startups; lots
of duds out there but
time-to-market is
compressed — 2020
23. SHARING THE DATA
Blockchain is
built for a world
without trust
TRADITIONAL DATABASE
Centralized data controlled by one
company (e.g., Costco, Kroger, etc.)
BLOCKCHAIN DATABASE
Data is stored across all the
computers accessing it. Everyone
contributes and can see every
transaction. No one entity controls
the data. It cannot be changed (nor
hacked).
24. SHARINGTHEDATA
During a recall, isolated databases slow the forensics
required to identify the source of the problem.
SUSPISH FARMS 20 BLACK ANGUS
SOLD TO PACIFIC
8/20/2018
“NON-GMO FEED,
HUMANELY RAISED”
SNL LOGISTICS
20 BLACK ANGUS
PICKED UP 8/20/18
DELIVERED TO PACIFIC
8/21/2018
NO INCIDENTS
SLEEPYTIME
TRUCKING CO.
40 CARCASSES
PICKED UP 8/22/18
DELIVERED
8/24/2018
“CONSTANT 40°F”
PACIFIC PROCESSORS
20 BLACK ANGUS
ARRIVED 8/20/18
SLEEPYTIME PICKED UP
8/22/18
SLAUGHTERED
8/22/18
LIBBY’S (CONAGRA)
40 CARCASSES
ARRIVED 8/24/18
SOLD TO SAFEWAYCANNED 8/28/18
SAFEWAY WAREHOUSE
550 CASES
CORNED BEEF
DISTRIBUTED 9/18/18
PURCHASED FROM
LIBBY’S 9/12/18
SAFEWAY STORE 1508
40 CASES OF
SIGNATURE SELECT
SOLD TO CUSTOMER
9/28/18
ARRIVED 9/20/18
25. INABLOCKCHAIN-ENABLEDSUPPLYCHAINECOSYSTEM…
Everyone has the same real-time data and can benefit.
Fast tracing of issues, and faster reduction of risk.
SUSPISH FARMS 20 BLACK ANGUS
SOLD TO PACIFIC
5/20/2019
“NON-GMO FEED,
HUMANELY RAISED”
SNL LOGISTICS
20 BLACK ANGUS
PICKED UP 5/20/19
DELIVERED TO PACIFIC
5/21/2019
NO INCIDENTS
PACIFIC PROCESSORS
20 BLACK ANGUS
ARRIVED 5/20/19
SLEEPYTIME PICKED UP
5/22/19
SLAUGHTERED
5/22/19
SLEEPYTIME
TRUCKING CO.
40 CARCASSES
PICKED UP 5/22/19
DELIVERED
5/24/2019
“CONSTANT 40°F”
LIBBY’S BRAND
40 CARCASSES
ARRIVED 5/24/19
SOLD TO SAFEWAYCANNED 5/28/19
SAFEWAY WAREHOUSE
550 CASES
CORNED BEEF
DISTRIBUTED 6/18/19
PURCHASED FROM
LIBBY’S 6/12/19
SAFEWAY STORE 1508
40 CASES OF
SIGNATURE SELECT
SOLD TO CUSTOMER
6/28/19
ARRIVED 6/20/19
26. BEYOND $10M
Consumer lawsuits
Government fines
Lost sales
Share price slide
Employee
retraining
Policy changes
Reputational
impact
$10M AVG
DIRECT COSTS
Investigations
Disruption of
operations
Crisis
management
Reverse logistics
Product
destruction
Notification costs
FOOD MARKETING INSTITUTE;
GROCERY MANUFACTURERS
ASSOCIATION, 2016
TRACEAPROBLEMFASTERANDSTOPRECALLSEARLIER
Recalls cost an average $10M — plus
27. SHARING THE DATA
Where are we
with blockchain?
• Third-generation chains removing
speed & power issues
• “Blockchain for food”: so much PR!
• Tokens distract from the mission
• General conflation with crypto
continues to stymie investments
and enterprise adoption
• Hitting both startups and investors
• However, use cases and enterprise
efforts continue to move forward
28. BRINGINGITALLTOGETHER
Pallet, case and item sensors collect and share time,
date and enviro data at each step in the supply chain
PHYSICAL SUPPLY CHAIN FLOW
SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR
CLOUD COMPUTE SERVER
TEMP CLOUD STORAGE
transaction layer
5G, OR MVNO
29. TOP-LINEOPPORTUNITY
If you could see the truth about your food’s origins and
provenance, would you pay more?
PHYSICAL SUPPLY CHAIN FLOW
SENSOR
5G, OR MVNO
SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR
CLOUD COMPUTE SERVER
TEMP CLOUD STORAGE
PENTA PUBLIC
CHAIN
transaction layer
PENTA PRIVATE
CHAIN
PREDICTIVE ANALYTICS
SERVER
VIDEO CONTENT CDN PRICE PREMIUM FOR
TRANSPARENCY &
PROVENANCE
LOOKUP;
“SHARETRADE”
REVENUE STREAMS
CONDITION ALERTS
REDUCE WASTE &
RISK: ANALYTICS
CREATE
EFFICIENCIES
PROOFSCAN
MOBILE APP
ADMIN DASHBOARD
PARTNER DASHBOARD
CONSUMER-FACING TOP-LINE OPPORTUNITY
SUPPLY-CHAIN-FACING BOTTOM-LINE OPPORTUNITY
31. BOTTOM-LINEOPPORTUNITY:REDUCERISK,FRAUD,ILLNESS
Upstream alerts stop downstream waste & illness;
shared real-time data can be processed via ML/AI
PHYSICAL SUPPLY CHAIN FLOW
SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR SENSOR
CLOUD COMPUTE SERVER
TEMP CLOUD STORAGE
transaction layer
PENTA PRIVATE
CHAIN
PREDICTIVE ANALYTICS
SERVER
CONDITION ALERTS
REDUCE WASTE &
RISK: ANALYTICS
CREATE
EFFICIENCIES
ADMIN DASHBOARD
PARTNER DASHBOARD
SUPPLY-CHAIN-FACING BOTTOM-LINE OPPORTUNITY
5G, OR MVNO
32. OPERATIONALIZING THE DATA
Individual players can apply AI to the chain for
forecasting and resource planning
“When should I expect the next shipment?”
“When should I put in the next order?”
“What kind of logistics do I need to line up?”
“How many reefers will I need in November?”
“With flooding in Brazil, should I line up other sources?”
“I am not hitting my service level agreements.”
“What size herd should I be investing in?”
35. ENABLINGCOMPLIANCE
ProofScore: a “credit score for transparency”
Calculated based on
amount of certifiable
information shared with
consumers and supply
chain partners
Sensor-based
environmental data,
verifiable certifications (fair
trade, organic), and behind-
the-scene videos all
increase a product’s
ProofScore.
Why ProofScore?
• Promotes open sharing of
food origin, logistics and
environmental data
• Dissuades bad or “opaque”
actors
• Builds consumer trust
• “Transparently” produced
food commands higher
prices; 94% of consumers
willing to pay more for
visibility into their food
LABEL INSIGHTS, 2016
• Premiums can be used to
incent supply chain players
OUR PROOFSCAN™ MOBILE APP
37. Our first PoC:
Michigan Apples
April 2019
CUSTOMER: Jack Brown Produce, Sparta
MI
GOAL: test numerous sensor candidates,
connect candidates to a blockchain, and
create complete trace from retailer to
farm
SENSORS: Digital Matter (South Africa);
Roambee, Avery Dennison, Identiv (US);
CCP (India)
BACK END: BigChain, InfluxDB, Penta
blockchain, AWS Cloud, Grafana
visualization engine
DESTINATIONS: Successful traces to
Publix DC (ATL), Horrocks Markets (BTL);
Andrews Brothers (DTW).
42. Key learnings
• LTE & Bluetooth workable in the field;
RFID & NFC not workable.
• Some radio sensors will not penetrate
a refrigerated trailer.
• We don’t need all the bells and
whistles. Simple GPS, date/time,
temp, humidity will do.
• People systems: drivers will need
incentives to comply.
• Food safety regs mean sensor
placement has limitations.
• The holy grail of traceability (being
able to trace upstream of
commingling) is possible (!) via APIs
with legacy inventory software