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Posts tagged ‘John Rhodes’

Tapping the Potential of IoT in the Food Cold Chain

John Rhodes_Blog John Rhodes |Group President, Cold Chain
Emerson Commercial & Residential Solutions

In a recent Progressive Grocer article, I described how business leaders are leveraging the internet of things (IoT) and connected technologies to achieve much tighter integration along every step of food’s journey to consumers, addressing some of the most challenging problems currently plaguing the food cold chain: food safety and food waste.

Consider what’s involved in bringing food to our tables. The process typically starts at a farm; proceeds to a processing plant; enters the transportation and logistics stream; arrives at a storage or distribution facility; and is delivered to retailers. Think about the many opportunities for errors along these steps — such as time in transport, temperatures and humidity. It’s easy to see how quickly and easily food quality can be impacted. We’re often reminded that these problems can lead to food safety issues for consumers and businesses. But too often, the related problem of food waste is overlooked.

A fully IoT-connected and integrated cold chain has the potential to change that.

Mitigating the cost of food waste

According to a recent study by the Boston Consulting Group (BCG), 1.6 billion tons of food — the equivalent of $1.2 trillion — are wasted each year, essentially reducing total global food production by one-third. It’s a staggering amount that if left unchecked, could reach costs of $1.5 trillion by 2030.1

The study looked at the potential for loss at every stage of the food supply chain. IoT can help combat the food waste crisis at every step.

In the article, I cited one area that’s particularly problematic: fresh produce, which represents 46 percent of the total output lost each year. To illustrate how IoT sensors provide real-time tracking, monitoring and analytics of food conditions, I tracked the journey of a single strawberry from the moment of its harvest to a retailer’s shelf, showing how producers can use IoT to greatly extend perishable shelf life and improve the quality of fresh produce.

IoT can connect historically disconnected supply chain providers to make a real difference in maintaining food quality and freshness and combat food waste. Per the BCG study, “An unbroken, temperature-controlled ‘cold chain’ can help to reduce spoilage significantly.”2 By boosting the food supply chain’s efficiencies and its underlying infrastructures, the potential exists for $270 billion in food preservation gains annually. Simply put, reducing food shrinkage translates into significant bottom line increases for producers and retailers alike.

Building a more sustainable cold chain

Emerson is actively collaborating with leading cold chain providers who are embracing IoT for its potential to match fresh food with growing consumer demand. Our connected solutions draw on decades of global experience in refrigeration, controls, communication, analytics and insights. We work to track, trace and monitor critical data points, making the connections needed to ensure the appropriate handling of perishable foods from farm to table, creating sustainable solutions that are good for businesses, consumers and the global food supply chain.

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References

  1. https://www.bcg.com/en-us/publications/2018/tackling-1.6-billion-ton-food-loss-and-waste-crisis.aspx
  2. Infographic from BCG report; available upon request

 

A Digital Transformation in the Cold Chain

John Rhodes_Blog John Rhodes |Group President, Cold Chain
Emerson Commercial & Residential Solutions

Integration of digital technology has dramatically changed the cold chain landscape. This blog summarizes my recent article, “Digital Transformation Helps Drive Tighter Cold Chain Integration”. Read the full article here.

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Digital technologies, data mining and analytics tools are dominating the modern economy, transforming nearly every aspect of how we operate. Businesses are beginning to realize the power of data and how it can be used to improve the customer experience, grow market share and improve operational performance — all culminating in what’s commonly being referred to as the digital transformation. This transformation has the potential to bring significant benefits to several areas of the industry, including food safety, energy conservation and refrigerant management, to name a few.

Today, retailers have access to more data than ever before, allowing for new opportunities to innovate and implement more comprehensive management in the cold chain. Rather than narrowing focus onto one section of the business, operators can now think across entire enterprises and supply chains for broader insights and deeper intelligence into how their stores are operating and learn where they can improve and innovate.

One factor that makes this transformation so interesting is the amount of commitment industry leaders are putting into developing deeper, stronger relationships with their customers, rather than using the newfound data to exploit sales opportunities. Customers have rewarded this dedication and innovation with increasing loyalty — which translates into better sales.

A recent example of the potential data has to help solve problems in the cold chain was the concern surrounding an outbreak of foodborne illness from romaine lettuce purchased at grocery outlets. After customers got sick and the story hit the 24/7 news cycle, many demanded to know where the contamination had occurred. In this case, technology and data were essential in tracking the instance of contamination to a specific farm. But this example is just the tip of the iceberg.

A similar, data-driven approach can allow retail stores to reduce their energy costs during peak demand periods. By connecting building management systems (BMS) to the local energy provider, companies can limit or avoid “peak time surcharges” that are assessed when the greatest amounts of energy are required. The BMS receives notices from the utility when demand reduction opportunities arise and, through a demand response program, retailers can automatically shut down non-essential equipment and optimize energy use.

The amplitude of data available from this digital transformation is ushering in an intriguing period in cold chain history. At Emerson, we see this happening not in grandiose, intangible, all-consuming approaches, but in the expansion of existing, proven technologies coupled with the use of emerging digital assets to create new insights.

As the iterative development of connected, adjacent systems accelerates and becomes more powerful, there will be opportunities to revolutionize how companies operate. We at Emerson are here to help you make this critical cold chain transition a reality for your business.

 

The Rubber Meets the Road

Final rulings signify start of next phase of transition

 For two years, the commercial refrigeration industry has been reeling from a one-two regulatory punch from the Department of Energy and the Environmental Protection Agency. This convergence of aggressive regulations was unprecedented for our industry.

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