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Food supply

Research Highlights Challenges in Food Supply Chain and Potential Benefits of IoT Technology

Strategic Insights

— 1 min read

A recent study published in the Annals of Operations Research has highlighted the complexities and challenges faced by the food supply chain, including food loss and waste, impact on health and safety, and the intricate web of farmers, producers, distributors, and retailers involved. The research, conducted by Elkafi Hassini and his team at McMaster University, has also explored the potential benefits of integrating Internet of Things (IoT) and blockchain technologies to address these challenges.

Key Takeaways:

  • The food supply chain has distinct challenges, including food loss and waste, impact on health and safety, and complexity of the chain involving multiple stakeholders.
  • The application of IoT and blockchain technologies can help address these challenges by improving decision-making, operations management, and supply chain coordination.
  • The introduction of IoT technology leads to higher prices in the supply chain, but the extent of price changes depends on consumers' sensitivities to price and quality, the nature of the product, and the retailers' quality marketing strategy.
  • Investment in IoT increases the impact of double marginalization, and coordinating the supply chain in the presence of IoT technology is crucial for optimal performance.
  • Deployment of IoT in a food supply chain leads to a reduction in food waste.
  • Food waste depends on where IoT is deployed, and moderate investment in IoT can partially coordinate the supply chain.

Statistics:

  • The research found that the introduction of IoT leads to higher prices in the supply chain, with the extent of price changes depending on various factors.
  • The study revealed that the deployment of IoT in a food supply chain can lead to a reduction in food waste.
  • Moderate investment in IoT was found to partially coordinate the supply chain.

Sources:

  • Modeling the Impact of Iot Technology On Food Supply Chain Operations. Annals of Operations Research, 2025;348(3):1619-1648.

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