Boosting security, safety and sustainability in the food and beverage supply chain
In recent years, the food and beverage supply chain has faced many challenges, from the global pandemic to geopolitical tensions, coupled with the rising frequency of extreme weather events. These disruptions have exposed the fragility of this highly complex network, which relies on seamless coordination among growers, processors, distributors, and retailers.
A global survey conducted by WTW underscores the increasing concern among industry leaders, revealing that 40 percent of decision-makers in leading food and beverage companies view supply chain disruptions as the most significant threat to their success over the next three to five years. However, a McKinsey survey highlights a critical gap: 45 percent of respondents admitted to having either no visibility into their upstream supply chain or limited insights confined to their first-tier suppliers. This lack of comprehensive oversight underscores the urgent need for businesses to prioritize end-to-end supply chain visibility – harnessing accurate, actionable insights at every stage to mitigate risks effectively.
A promising solution to these challenges lies in the adoption of innovative packaging technologies, which are increasingly pivotal in identifying and addressing inefficiencies within the supply chain. Smart labels, equipped with real-time tracking capabilities, enable organizations to monitor goods at every stage of their journey. By leveraging such technology, businesses can proactively identify potential limitations or disruptions and implement measures before these issues escalate.
Theft in the food and beverage supply chain
The food and beverage industry faces an escalating crisis as it emerges as the top target for theft within the global supply chain. According to the BSI’s Supply Chain Risk Insights Report 2024, food now accounts for an alarming one-third of all hijacking incidents worldwide. High-profile heists have highlighted the scale of the issue: from the theft of 22 tons of cheese from Neal’s Yard Dairy, to €200,000 of festive ham stolen from a family-run business in Spain.
Alarmingly, the rise of ‘strategic thefts’ marks a shift from opportunistic crimes to planned operations. These sophisticated schemes see criminals exploiting stolen identities of carriers and brokers to divert high-value deliveries with precision. The scale of the problem is underscored by North America’s staggering 83 percent increase in average loss per shipment during the first half of 2024 compared to the same period in 2023, reflecting the growing expertise of criminal networks in targeting high-value goods.
The way we package goods can play a crucial role in preventing theft. Subtlety in packaging is key, and since smart labels are designed to resemble ordinary barcodes or information stickers, potential fraudsters remain unaware that their actions are being monitored in real time. Furthermore, smart labels can detect unusual activities, such as box openings at an unexpected time or an unexpected location and send alerts to relay this information.
Ensuring food safety
It’s widely recognized that about a third of all food and beverages produced for human consumption is lost or wasted. What might be more surprising is that a staggering 14 percent of food is lost before it even reaches our homes.
The increasing global demand for perishable goods – particularly those requiring temperature-controlled transit (cold chain logistics) – is a major factor. According to Fortune Business Insights, the global cold chain logistics market is projected to grow from USD 324.85 billion in 2024 to USD 862.33 billion by 2032, driven largely by the rise of e-commerce and the growing preference for fresh food. However, maintaining consistent temperatures throughout the supply chain presents significant challenges. Perishable goods can quickly spoil if storage conditions fluctuate, making constant monitoring critical.
Technology plays a vital role in addressing these challenges. Internet of Things (IoT) technology enables logistics companies to monitor temperatures in storage spaces in real time, ensuring optimal conditions for food preservation. The integration of artificial intelligence (AI) with IoT systems also allows companies to automate temperature adjustments or receive immediate alerts if an issue is detected, preventing food spoilage and waste.
Hitting precise delivery windows is essential in cold chain logistics. Fresh produce requires constant refrigeration and cannot be left on the roadside without risking spoilage. This necessity demands seamless coordination and visibility at every stage of the supply chain.
Furthermore, cold chain logistics require detailed documentation of a product’s journey to ensure food safety and quality. In many organizations, supply chain data is often trapped in isolated silos, making it difficult to collaborate effectively or pinpoint where problems have occurred. However, by integrating IoT technology, such as smart labels into the food supply chain, data can be collected, shared, and accessed across connected devices, enabling companies to quickly identify and resolve key issues.
Looking forwards: driving supply chain sustainability
When considering sustainable packaging, IoT technology might not be the first solution that comes to mind. However, the ability to collect and share trusted data is becoming a crucial tool for advancing sustainability within supply chains. Packaging solutions, such as smart labels, offer a unique opportunity to integrate this data directly into logistics and decision-making processes.
Smart labels can provide actionable insights, including information about transportation (allowing the calculation of transport emissions), enabling companies to optimize routes or choose more eco-friendly options. They also offer greater transparency into the product journey, helping businesses collaborate with suppliers who prioritize similar sustainability goals.
Just as important as the data they provide is the sustainability of the labels themselves. Innovations in battery design and energy consumption are paving the way for more durable, and longer-lasting reusable labels.
Looking to 2025 and beyond, the global food and beverage supply chain will continue to face intensifying challenges. The innovative use of technology to enhance transparency using real time data and data accessibility will therefore be key to achieving success in this pivotal sector.
For a list of the sources used in this article, please contact the editor.
Sharath Muddaiah
Sharath Muddaiah is Head of Portfolio Strategy for IoT Solutions at G+D. G+D has been the trusted partner of the most demanding institutions since 1852. Today, the company shapes trust in the digital age – without changing what it always did: creating confidence. G+D engineers customized security tech with passion and precision in three segments: digital security, financial platforms and currency technology.