The extent and drivers of perishable food waste in the retail supply chain industry of South Africa.

Abstract

Food waste is not only the waste of scares resources but also has a negative environmental and social impact. Food waste has a commercial impact on the supply chain, and therefore the management of food waste in the food supply chain is paramount for the sustainability and can become a competitive advantage in a highly competitive industry. The specific drivers of food waste in the supply chain vary drastically depending on the specific condition and situation. The purpose of this study is to determine the extent of waste at the retail level within the supply chain of perishables and the relationship thereof with supply chain factors such as shortages, promotions and price, shelf life and seasonal demand and supply. An improved understanding of the extent of food waste and the effect that specific supply chain factors have on food waste can be used by supply chain managers to better manage the efficiencies in the supply chain to reduce food waste. Quantitative research methods were used to test hypotheses related to the extent of food waste and its relationship with specific food waste drivers. Secondary data were collected from a specific retail group consisting of archived documents of sales, short deliveries, waste and loss of sales for a period of time for all the products in the fruit and vegetable range. Bivariate statistics, linear and multiple regression were applied to determine the relationship between shortages, promotions and price, shelf life, seasonal demand and supply, and food waste. The study indicated the level of food waste in the retail level of the food supply chain in South Africa. It identified food waste drivers with strong relationships with food waste and used that information to build a predictive model for supply chain managers to use to reduce food waste. Retail organisations should make food waste a key performance indicator and use the predictive model to focus on specific drivers of food waste to facilitate improved waste management practice. This study contributes towards supply chain management literature by showing that food waste management can contribute to the efficiencies of the supply chain and should be part of performance measures. Food waste management has a direct positive commercial impact on the organisations, improves food supply chain sustainability and food security as a whole.