intelligent waste management - toshiba presentation v2

Copyright © 2010 TOSHIBA TEC Australia Pty. Ltd. All rights reserved.

Intelligent Waste Management

Fresh Food Retail Perspective

Brendan Trewartha

Managing Director – Toshiba TEC Australia


Food Waste: From the Field to the Kitchen

Food waste is a global issue

• In Western Europe and the US it is estimatedthat the average household throws awayover 130 KGs of food each year, at a cost ofA$625 / year.

• In Australia it is estimated that households are throwing out A$5.2billion worth of Food each year, at a cost of $616 / household and $239 per person.

• A recent UN report details that over 50% of the globally produced food is lost, wasted or discarded


Food Waste in Retail – Some Dutch figures

• 35% of Fresh Produce is wasted in the supply chain.

• Retailer food waste accounts for 3%-6% (with excesses to 12%!)

• It is estimated that Food Waste costs retailers €300- € 500 million annually

(Approx. A$422 – A$704million)


Evolution, rather than revolution

• The most preferred options are to Prevent and Minimize waste

• Optimising the food supply chain and reducing waste is considered “low-hanging fruit”

– This can be achieved without addressing consumer attitudes to

household waste

Prevention

Minimisation

Reuse

Recycling

Energy Recovery

Disposal

Most

Preferred

Least

Preferred


Sustainability Important in Buying Decisions

A recent study conducted by Capgemini in Europe concluded that 85% of consumers will pay at least a small premium to shop with retailers that address sustainability over the coming years.


What can Retailers do?

• Analyse sell through and stock levels constantly

• Prevent overstock situations before they occur by:

– Promoting stock to consumers

– Dynamically reduce pricing to adjust demand

Optimise Replenishment

Promote and Discount Early to prevent Waste

Reuse

Recycling

Energy Recovery

Disposal

Prevention

Minimisation


How can Technology assist Retailers?


1. Dynamic Pricing and Promotion


1. Dynamic Pricing and Promotion

Paper based Shelf Labelling

Pricing typically changed weekly

With extra printing for specials

Digital Electronic Labels

Dynamic pricing updated as often

as required.

Manual Paper based Signs

Pricing Typically changed daily,

sometimes twice per day

Electronic LCD Screens

Dynamic pricing & promotions

updated as often as required.


Successful solution:

EHI Retail Technology Award 2010 – Best in-store retail

solution

An EHI Awarded Solution

Part of

For the solution

provided to :

Key Partner:

10

http://www.ehi.org/?1&L=0


Albert Heijn Waste Management Trial

Albert Heijn

– Leading food retailer in the

Netherlands founded in

1887.

– over 800 stores and

75,000 employees

The Trial

– 2400 m2 store located in

Amersfoort (NL)

– Focus of the trial is to

prove a healthy business

case, a short ROI and to

determine the impact for

head office, store

employees and shoppers

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2. Interactive Shopping


2. Interactive Shopping

• Customers Scan goods as they add them to the shopping cart

• Personalised promotions & targeted offers are presented throughout the store

• Special emphasis can be given to items in store that could contribute to waste

• In-store production can be tailored to demand, ie. “start baking in 5 minutes”


What can we achieve?

Based on our experience in Europe we see the following as realistic goals if retailers are willing to consider an Intelligent Waste Management Solution1:

• Reduce Retail Food Waste by 50%, an estimated saving of over A$250 million for Australian retailers.

• Realise a Return on Investment in less than 12 months

• Increase Operating Profit by over 10% due to the ongoing reduction in waste

Realistic Goals if Australian retailers were to adopt an

Intelligent Waste Management Solution

1. Estimated based on recent results and modelling in Europe.

intelligent waste management - toshiba presentation v2

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