The Smart Supermarket: Using Technology to Reduce Food Waste and Boost Profits
A new wave of startups is leveraging technology and data to assist supermarkets in limiting fresh produce waste, benefitting both businesses and the planet.
Supermarkets are using AI to predict sales
Have you ever wondered how supermarkets manage to keep their shelves stocked with fresh produce that is neither overstocked nor understocked? It’s a delicate balancing act that requires a combination of experience, intuition, and a whole lot of guesswork. But now, thanks to advancements in technology, supermarkets are turning to artificial intelligence (AI) and machine learning to solve this age-old problem.
The Problem of Food Waste
In Europe alone, approximately 60 million tonnes of food waste is generated each year, with a market value of over €1 billion. While the majority of this waste comes from households, retailers, such as supermarkets, still play a significant role. This has prompted the European Commission to urge retailers to reduce their contribution to the food waste problem.
To tackle this issue, a new wave of startups is emerging, offering innovative solutions that can both reduce waste and increase profits. By harnessing the power of AI and fine-grained data, these companies aim to revolutionize the food retail industry.
Predicting Demand with AI
One such startup, Freshflow, has developed a machine learning system that can accurately predict how much fresh food customers will buy in the coming days. This system takes into account various factors, such as in-store promotions, public holidays, the condition of stock already on shelves, and even the weather. Armed with this information, supermarket managers can make informed decisions about how much fresh produce to order, significantly reducing waste.
Freshflow’s system has already been implemented in multiple shops owned by two regional grocery chains in Germany, resulting in a nearly 30% reduction in produce waste. According to Avik Mukhija, co-founder of Freshflow, this is the best waste reduction rate they have achieved so far.
But don’t worry, this AI system isn’t here to replace human workers. It’s designed to enhance the abilities of the fresh produce managers, providing them with data-backed insights so they can make better decisions about ordering produce.
Monitoring Food Freshness with Sensors
Another innovative startup, BlakBear, is focusing on tracking the freshness of food automatically. The company has developed tiny sensors that can detect subtle changes in the atmosphere within sealed food packets. These sensors monitor gases, such as ammonia, volatile organic compounds, and carbon dioxide, which indicate spoilage.
By using wireless communication, these sensors can alert retailers to potential product deterioration, allowing them to take immediate action. This technology not only ensures that customers receive fresh products but also helps retailers curtail waste by avoiding premature discarding of items based solely on their use-by date.
Seeking a Smarter Future
The rise of high-tech tools targeting demand forecasting and food freshness is just the beginning of a major shift in the food retail industry. With the impact of COVID-19, inflation, and the dominance of giants like Amazon, retailers are under pressure to up their game.
According to Patrick Brandtner, a researcher from the University of Applied Sciences Upper Austria, the implementation of AI tools like those developed by Freshflow and BlakBear can greatly enhance the accuracy of demand forecasting and tracking food freshness. However, caution must be exercised, as AI tools are not foolproof and may fail in certain situations.
Nonetheless, this emerging technology is already making a significant impact. Fresh4cast, another startup, is empowering food suppliers with advanced AI algorithms that allow them to experiment with different scenarios and make more informed decisions about sales and promotions. By harnessing the power of data, suppliers can influence retailers’ decision-making and ultimately reduce waste while increasing profits.
The Future is Smart
As we look ahead, the future of the food retail industry is undeniably embracing technology. AI, machine learning, and data analytics are revolutionizing the way supermarkets manage their fresh produce. By reducing waste and optimizing inventory management, these technologies are set to have a lasting impact on both the bottom line and the environment.
So, the next time you visit your local supermarket, spare a thought for the behind-the-scenes tech making the magic happen. And remember, every apple, strawberry, and potato you see on the shelves is there thanks to a little bit of AI and a whole lot of innovation.
Q&A
Q: Are there any other startups working on reducing food waste in supermarkets?
A: Yes, besides Freshflow and BlakBear, there are several other startups making waves in the food waste reduction industry. One notable example is Karma, a Swedish startup that has developed an app that allows retailers to sell surplus food at a discounted price, reducing waste while also providing a cost-effective solution for customers. Another startup worth mentioning is Winnow, which uses AI-powered technology to help commercial kitchens and restaurants track and reduce food waste.
Q: How can these technologies impact the overall sustainability of the food retail industry?
A: The implementation of AI, machine learning, and data analytics in the food retail industry can have a profound impact on sustainability. By reducing food waste, retailers can minimize their environmental footprint and contribute to the global effort to combat climate change. Additionally, optimizing inventory management can help reduce overproduction, which in turn reduces the strain on natural resources and minimizes food transportation emissions. Overall, these technologies have the potential to make the food retail industry more sustainable and environmentally friendly.
Reference List:
- Freshflow: Reducing food waste with machine learning
- Yumes: Turning food waste into money
- Chunk Foods: Securing funding for plant-based whole cuts
- Apple: Offering open NFC payment technology for developers
- WTF Software-Defined Vehicle
- Starship Technologies: Sidewalk Robots
Now that you know how technology is revolutionizing the food retail industry, share this article with your friends and start a conversation about the future of supermarkets. Together, we can make a difference in reducing food waste and creating a more sustainable world! 😊🌍
Image Source: Unsplash
