Smarter planet: Food supply


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It’s a new world— retailers and consumer products organizations are key players in an economy that demands increased value, sustainability and accountability. (1) Deliver a smarter shopping experience, (2) Build smarter operations, (3) Develop smarter merchandising and supply chains.

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Smarter planet: Food supply

  1. 1. George Mattathil -4/14/2011Let’s build a smarter food supplySmarter food. Technology is shaping how it grows, how it tastes andhow it gets to your plate. © 2010 IBM Corporation
  2. 2. Part of IBM’s efforts to help build a smarter planetSetting the table for a smarter planet How do we put food on our tables? Today, we depend on a global web of growers, fisheries, packers, shippers, manufacturers, retailers as well as government and industry bodies. As the world becomes smaller and "flatter," countries that at one time seemed distant are now primary sources of our food supply. Many of those countries do not have consistent standards for quality, process and accountability. The result is an opportunity for our food system to get a lot smarter. We need to make sure our food system is safe. In the U.S. alone, 76 million cases of food-borne illnesses occur each year. Imports account for nearly 60% of the fruits and vegetables we consume, and 75% of the seafood. Yet only 1% of those foods are inspected before they cross our shores. And we need to make it more sustainable and efficient. At the same time, 50% of all food in the world ends up going to waste. Trying to manage these problems in isolation is no longer an option. Fortunately, a smarter global food system—one that is more connected, instrumented and intelligent—is at hand. A smarter food system means end-to-end visibility across the entire global supply chain. So scarce resources can be more thoughtfully managed. So people can have more confidence in the quality of their food. So the whole world can put healthy meals on the table. Lets build a smarter planet. © 2010 IBM Corporation
  3. 3. Part of IBM’s efforts to help build a smarter planet © 2010 IBM Corporation
  4. 4. Part of IBM’s efforts to help build a smarter planet  Pet food. Lettuce. Peanut butter. Baby food. Milk. These are just some of the high profile recalls weve seen in the last year.  Consumers worldwide are worried—and rightly so. Is their food safe? And where did it come from?  One solution is track and trace technology, including 2D and 3D barcode and radio frequency identification (RFID). This allows us to track food from "farm to fork."  And now government regulations and industry requirements for quality and traceability are driving food producers worldwide to provide more detail on products.  With an increasingly global supply chain, that detail must be comprehensive and reliable. And with that detail, companies can realize added value as well, such as a streamlined distribution chain and lower spoilage rates.  In fact, consumer product and retail industries lose about $40 billion annually, or 3.5% of their sales, due to supply chain inefficiencies © 2010 IBM Corporation
  5. 5. Part of IBM’s efforts to help build a smarter planetA sampling of consumer product recalls within the past two years © 2010 IBM Corporation
  6. 6. Part of IBM’s efforts to help build a smarter planetLess waste. Smarter supply chains. Safer food. © 2010 IBM Corporation
  7. 7. Part of IBM’s efforts to help build a smarter planetA healthy appetite for innovation Food is as fundamental as it gets. And our relationship with it has changed with every year. Just ten years ago, most consumers were focused on eating a diet low in fat. Biotechnology was extremely limited in its application and considered somewhat dangerous. And few people knew what organic meant or why it mattered. Today, the picture is one of heightened challenges. Food prices are soaring. Shortages have sparked unrest the world over. And every year, ten million people die of hunger and hunger-related diseases. At the same time, consumers are hungrier than ever for information about their food. They are better informed about nutrition and more aware of the environmental and societal impacts of everything they buy. In fact, according to an IBM Institute for Business Value survey, two of every five U.S. and U.K. consumers say safety concerns dictate what food they will—and wont—purchase. © 2010 IBM Corporation
  8. 8. Part of IBM’s efforts to help build a smarter planetSo what does IBM have to do with food? Food technology.  When Cyclone Nargis struck in May 2008, the people of Myanmar lost an estimated one third of their rice supply.  Investigators in the United States were baffled by a mysterious salmonella outbreak that infected more than 1,300 people and cost tomato growers more than $100 million.  These events illustrate the vulnerability of the food supply chain as well as the fragility of food supplies in general.  With innovative digital technology and powerful solutions, IBM is making sure food is traced properly as it passes though an increasingly complex global supply chain. IBM is also making that food heartier through biological research. The future of food starts today. © 2010 IBM Corporation
  9. 9. Part of IBM’s efforts to help build a smarter planetFarm to forkThe average meal has been through a complex supplychain by the time it reaches the dinner table. Dozens ofcompanies are involved in the production of just a singlerib eye steak.In the Canadian Province of Manitoba, IBM helpeddevelop full traceability solution, providing businessconsulting and project management services, workingmore than 16 supply chain partners, including beef andpork producers, animal feed ingredient producers, feedmanufacturers, farmers, processing plants, truckers anda retail grocery chain.Using Global Traceability Network (GTNet) software fromIBM Business Partner TraceTracker, Manitobas projectshows it is possible to securely and accurately gatherand crunch data about a piece of meat from a variety ofsources and share that information, at any step in theprocess. © 2010 IBM Corporation
  10. 10. Part of IBM’s efforts to help build a smarter planetThe smart freezer Butchers at Germanys METRO Future Store do more than dress roasts. They also apply RFID smart labels in a solution designed with IBM. Each package is identified and recorded when it is placed into the refrigerated display case, which is fully equipped with readers and antennas to scan the label of each product as it goes in, as it sits on the shelf and as it goes back out with a consumer. The information helps the store maintain fresh products, control the environment in which they are stored and manage inventory levels with real-time sales data. © 2010 IBM Corporation
  11. 11. Part of IBM’s efforts to help build a smarter planetGood grains Rice is the main food staple of more than half the worlds population. According to the Food and Agriculture Organization of the United Nations, 20% of the total food energy intake for every man, woman, and child in the world comes from rice. So what if food technology could make rice—a dietary staple for most of the world—a stronger crop that is more nutritious? First, we have to study the structures of the proteins that make rice itself. The Computational Biology Research Group at the University of Washington has developed state of the art software that does just that. The researchers plugged into IBMs World Community Grid. With the processing power of 167 teraflops, the World Community Grid can harness the donated and otherwise unused power from nearly one million individual PCs. Using the Grid, the project can be completed in less than two years—as opposed to over 200 years using more conventional computer systems. © 2010 IBM Corporation
  12. 12. Part of IBM’s efforts to help build a smarter planetGood taste is in the genes Few things are as clear-cut as a candy bar. But there is a lot of science behind something so simple and sweet. IBM Research, the U.S. Department of Agriculture and Mars, Incorporated are teaming up and through their collaboration, they hope to sequence the genome that makes cocoa, the key ingredient of chocolate. Researchers plan to use IBMs computational biology technology and expertise to develop a detailed genetic map, identifying the specific genetic traits that produce higher cocoa plant yields and resist drought or pests. But like any sweet treat, the results of this research will be better when shared. Mars will make the genome information available for free through the Public Intellectual Property Resource for Agriculture (PIPRA), which supports agricultural innovation for both humanitarian and small-scale commercial purposes. © 2010 IBM Corporation
  13. 13. Part of IBM’s efforts to help build a smarter planet How do you provide end-to-end visibility across a supply chain that can span thousands of miles and cross international borders? How do you reduce waste and loss—which today stand at 50% between field and fork—in a world where 820 million people are undernourished? How do you build a smarter food system? Matiq, a subsidiary of Norways largest food supplier, is developing just that. Theyre working with IBM on a technology infrastructure to potentially track every chicken breast, every pork chop, and every beef filet they produce for the Norwegian food market from the farm to the supermarket shelf. As a result, Norwegian food suppliers and supermarkets will have more and better information about the meat they sell, and will be able to use software to trace the food anywhere in the supply chain. Matiqs smart food system can help suppliers and grocers reduce costs and improve safety. Even more importantly, it can increase consumers confidence in the quality of the food they purchase by providing detailed information on where any given animal has lived and what it has eaten. Lets build a smarter food system, for a smarter and healthier planet. © 2010 IBM Corporation
  14. 14. Part of IBM’s efforts to help build a smarter planetIt’s a new world— retailers and consumer products organizations arekey players in an economy that demands increased value,sustainability and accountability. Deliver a smarter shopping experience. Capture and analyze shopper and consumer data to invoke more successful new product and service launches. RETAILER / CONSUMER PRODUCTS Build smarter operations. Develop smarter Improving cost efficiencies merchandising and through streamlined processes supply chains. and intelligent technology with Shifting to value-based services for stakeholder collaboration, and suppliers, distributors and retailers; inter-industry standards methodologies and transparent development. information channels to support better decision-making and sustainability. © 2010 IBM Corporation
  15. 15. Part of IBM’s efforts to help build a smarter planet The companies are becoming instrumented, interconnected and intelligent. + + = An opportunity for food systems to think and act in new ways. Deliver a smarter Develop smarter Build smarter shopping experience. merchandising and operations. supply chains. © 2010 IBM Corporation
  16. 16. Part of IBM’s efforts to help build a smarter planetWe’ve only just begun to uncover what is possible on asmarter planet. The world will continue to become smaller, flatter and smarter. We are moving into the age of the globally integrated and intelligent economy, society and planet. To thrive in a Smarter Planet, we need a Smarter Food System that supports a profitable and growing value chain. There’s no better time to start building. And there’s no better time to invest in creating the kind of planet we all desire. Let’s work together to drive real progress in our world. © 2010 IBM Corporation
  17. 17. Part of IBM’s efforts to help build a smarter planetTrademarks and notes IBM Corporation 2011  IBM, the IBM logo and are registered trademarks, and other company, product or service names may be trademarks or service marks of International Business Machines Corporation in the United States, other countries, or both. A current list of IBM trademarks is available on the Web at “Copyright and trademark information” at  Adobe, the Adobe logo, PostScript, the PostScript logo, Cell Broadband Engine, Intel, the Intel logo, Intel Inside, the Intel Inside logo, Intel Centrino, the Intel Centrino logo, Celeron, Intel Xeon, Intel SpeedStep, Itanium, IT Infrastructure Library, ITIL, Java and all Java-based trademarks, Linux, Microsoft, Windows, Windows NT, the Windows logo, and UNIX are trademarks or service marks of others as described under “Special attributions” at:  Other company, product and service names may be trademarks or service marks of others.  References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates. © 2010 IBM Corporation