Supply Chain Losses:
A Global Challenge
Losses in the supply chain are a global problem that has a brutal impact not only on the environment but also on the economy.
Kilos
Impact of losses on logistics operations
Environmental Impact
The increase in production, caused by food waste, impacts:
- Land: 1.4 billion hectares used for unconsumed food (size of China, 2019).
- Water: 70% of fresh water used in agriculture is wasted (2023).
- Climate change: 3.3 billion tons/year of CO2 emissions from food waste, similar to the U.S. and EU combined.
- Biodiversity: Affected by overexploitation, pollution, and soil pressure for farming.
Social impact
In our global society, there are 783 million people who are hungry, 3.1 billion who cannot afford a healthy diet, and 1 billion who overeat.
One of the reasons for this is that we waste a significant amount of food—from farm to table. Did you know that it is estimated that at least one-third of the food we produce each year is lost? This amounts to about 1.6 billion tons. Fresh fruits and vegetables, essential for a healthy and varied diet, are the most frequently lost.
Economy
If we talk about money, the annual global economic cost is USD $936,000,000,000 without taking into account the social and environmental impacts.
This is a huge amount of money that could be used for other purposes. This amount could reduce, for example, one eighth of global malnutrition problems. Or it could be used to develop innovation, social inclusion, public health programs…
Environmental Impact
The increase in production, caused by food waste, impacts:
- Land: 1.4 billion hectares used for unconsumed food (size of China, 2019).
- Water: 70% of fresh water used in agriculture is wasted (2023).
- Climate change: 3.3 billion tons/year of CO2 emissions from food waste, similar to the U.S. and EU combined.
- Biodiversity: Affected by overexploitation, pollution, and soil pressure for farming.
Social impact
In our global society, there are 783 million people who are hungry, 3.1 billion who cannot afford a healthy diet, and 1 billion who overeat.
One of the reasons for this is that we waste a significant amount of food—from farm to table. Did you know that it is estimated that at least one-third of the food we produce each year is lost? This amounts to about 1.6 billion tons. Fresh fruits and vegetables, essential for a healthy and varied diet, are the most frequently lost.
Economy
If we talk about money, the annual global economic cost is USD $936,000,000,000 without taking into account the social and environmental impacts.
This is a huge amount of money that could be used for other purposes. This amount could reduce, for example, one eighth of global malnutrition problems. Or it could be used to develop innovation, social inclusion, public health programs…
Lack of visibility in the supply chain
Lack of visibility in supply chains causes much of the loss of products and represents a significant challenge for companies.
Companies are unable to identify where losses occur or how to prevent them, resulting in massive environmental and economic impact.
What if we could reduce these losses by applying more accessible and sustainable traceability technologies?
Technology exists to gain near real-time visibility across the supply chain, but it is not accessible for all products, especially those with lower profit margins.
The CLCircular solution is accessible to all products thanks to our circular economy model. We rent reusable sensors and take care of their recovery once they reach their destination.
Thanks to our service, any company can access real-time monitoring, without worrying about sensor recovery. We take care of everything, ensuring that each sensor is reused and that critical data is available when it is most needed, and ensuring confidentiality of the data, even when sensors are reused.
