Food product return management and food waste prevention for manufacturing and retail companies: case studies in Colombia

It is estimated that annually, one-third of the food produced in the world is wasted. In Colombia, this figure represents more than 9 million tons (approximately 450 pounds per person), which could feed more than 8 million... [ view full abstract ]

It is estimated that annually, one-third of the food produced in the world is wasted. In Colombia, this figure represents more than 9 million tons (approximately 450 pounds per person), which could feed more than 8 million people. This situation entails wasted natural resources disposed in landfills, an increase in solid waste and a contribution to climate change. Social impacts related to hunger are intensified as well. Food waste and undernourishment are primarily related to logistics inefficiencies across supply chains, where 21% of the food waste is linked to distribution and commercialization. The present study analyses return management processes from one retailer and two manufacturers, in a joint work with the Association of Food Banks of Colombia - ABACO. A fieldwork-based method to prevent product loses was design to assess critical aspects, gaps and best practices for businesses. Thus, three main opportunities were identified: 1. Product handling and storage: knowledge and abilities of back store operators on issues like cross-contamination, cold chain and quality standards are vital for proper handling and storage of returned products. 2. Decision making processes: classification and separation of returned products do not make part of the traditional core operations of retailer operators, so there is lack of attention to these activities. 3. Cost and legal issues: donating product returns that are still suitable for human consumption can mitigate food waste and give access to tax benefits. Finally, this study proposes establishing food banks as logistic operators to support product return management processes for manufacturing and retail companies.

Keywords: Reverse logistics, food banks, food, waste, supply chain, returns, and food security.