Leveraging retail automation to reduce food waste in Thailand
The amount of food waste generated in Thailand has become a significant challenge. According to the Office of Natural Resources and Environmental Policy and Planning, more than 60% of Thailand’s waste is food waste.
In 2022, Thailand produced 17 million tons of wasted food: this originates both from spoilage and spills in the supply chain and from waste by retailers, restaurants, and consumers.
These numbers are alarming, particularly when only a tiny amount is recycled. Bangkok is able to recycle only 2% of the food waste collected. The rest end up in landfills, where hygiene is not a priority. The extensive food waste contributes to environmental, social and economic impacts.
When inventory stock exceeds demand, particularly for fresh products, retailers face significant challenges in managing waste, which can result in markdowns or spoilage.
The UN Environment Programme (UNEP) revealed that producing and consuming food is the biggest driver of nature loss. Siloed and manual food systems are using resources inefficiently. In addition to food waste, we also waste the energy and water required for food production, harvesting, transportation, and packaging. The Pollution Control Department has set a roadmap to reduce the proportion of food waste in municipal solid waste from 39 % to under 28 % by 2027, focusing on retail and consumers.
Addressing the particular issue, Onni Rautio, Sales Director at RELEX Solutions, shared, “Food waste is a serious problem that can only be solved through a combination of both individual and collective efforts. Aside from getting smarter about our food consumption to address pressing waste issues, leveraging retail automation presents a promising solution for retailers to contribute to reducing food waste issues in Thailand. Furthermore, automation helps streamline inventory management efficiently, optimise ordering processes, and minimise manual handling, leading to more sustainable and efficient retail practices. By preventing overstocking and accurately predicting demand, automation effectively minimises surplus food items being wasted.”
Effective food waste management strategies are essential to mitigating these impacts. Some of the roles of retail automation in reducing food waste include:
● Demand forecasting helps retailers predict customer demand and adjust inventory levels, ensuring stock levels align with consumer needs. By utilising data analysis and machine learning, retailers can anticipate fluctuations in demand, minimise overstocking, and reduce the amount of surplus food items being wasted, contributing to a significant reduction in food waste.
● Automated expiration tracking improves inventory management by effectively rotating stock and accurately tracking and managing the shelf life of products to reduce the likelihood of overstocking and ultimately prevent expired products from being wasted. It streamlines operations, minimises manual handling, and makes more informed decisions to reduce food waste and improve product rotation.
● Smart inventory management systems feature automated alerts for low inventory levels, shipment delays, and overstocks. They monitor and analyse inventory data to identify slow-moving or obsolete items, using automated tracking software to maintain just-in-time inventory. Creating data-backed product sourcing strategies minimises the risk of overstocking, thereby reducing waste due to spoilage and expiration.
Advanced supply chain planning technology can help retailers reduce food waste, improve forecast accuracy, optimise store orders, track product expiration dates, and decrease food waste by 10–40% while maintaining profitability and on-shelf availability.
A recent report by RELEX Solutions found that in the last year, the company’s AI-driven solutions helped RELEX food retail customers worldwide save a combined estimated 280 million kg of food waste across the supply chain thanks to more accurate forecasting and inventory optimization—the equivalent of more than 950,000 metric tonnes of CO2.
“Implementing retail automation solutions can bring several environmental benefits. Beyond reducing food waste, automation significantly reduces energy consumption and optimises transportation routes to lower emissions. It is also worth noting that Thai customers are beginning to place greater importance on environmentally friendly and sustainable practices. This trend has led to a growing segment of green consumers in the market, which urges retailers to adapt their products and practices to meet this demand, fostering a more sustainable and eco-friendly approach. Without automation, businesses may experience inefficiencies and face a significant potential for financial loss due to their inability to analyse real-time data. Furthermore, the automation of routine tasks allows employees to focus on higher-value activities, contributing to overall cost reduction,” closes Onni.
