Tackling Food Waste: A System Dynamics Approach to Analyzing Food Waste in Wholesale Markets and Developing Targeted Interventions for Sustainable Operations

Abstract

This study addresses the global issue of food waste in wholesale markets, where 1.3 billion tons of food are wasted annually (in the whole value chain) while millions face food insecurity. Our contribution is a preliminary framework to tackle food waste challenges and promote a more sustainable and efficient food supply chain, emphasizing the importance of implementing targeted strategies and recommendations for lasting impact. Partnering with the World Union of Wholesale Markets (WUWM), our goal was to understand food supply chains in wholesale markets and identify opportunities to mitigate food waste. This study uses system dynamics (SD) modeling techniques, including causal loop diagrams and stock and flow diagrams, to analyze supply chain-related food losses and propose potential intervention strategies. We identified five key supply chain dimensions influencing food losses: Market Strategy, Supply Chain Operations, Infrastructure, Partnerships, and Macro-trends (economic, political, and technological). These dimensions underscore the need to balance commercial objectives and environmental concerns, efficient stock management, adequate storage facilities, collaboration among stakeholders, and consideration of broader food waste trends. Through this study, we demonstrate the utility of SD models in analyzing wholesale supply chains, providing valuable insights into managing and mitigating food waste. In addition, we identified key potential solutions such as timely investment in infrastructure, particularly cold storage, partnerships with food banks, and tracking waste against targets.