From The Ground To The Grocer: How The Internet Of Everything Is Transforming Food Retailing

From The Ground To The Grocer: How The Internet Of Everything Is Transforming Food Retailing

By Shaun Kirby, Chief Technology Officer, Cisco Consulting Services

From the ground to the grocer, farmers, food brands and retailers are using the Internet of Everything (IoE) to transform every step of the food and retail supply chains, from how our food is grown, processed, and distributed to how it’s sold in the grocery store.  By connecting people, processes, data and things, food brands and retailers are using IoE-enabled technologies and processes to streamline food production, better monitor food quality and even provide consumers complete traceability of every ingredient in their food.

For example, Barilla brand pastas recently worked with its suppliers to implement IoE technologies that allow consumers to trace the entire chain of production for the ingredients in their pastas and sauces. Using their smartphone, consumers can scan a QR code on the back of select packages of pasta and sauces to follow that specific batch through a detailed analysis of all major phases of its journey through the supply chain. They can follow the dough, for example, starting from the durum wheat field to learn where and how it was sown, cultivated and harvested. They then follow that specific batch of pasta through all the stages of production from the processing of the raw materials to the packaging, labeling and transportation of the finished product. Using IoE technologies, Barilla was able to break down information silos among their suppliers and partners and apply real-time analytics and compliance checks to create a “digital passport” for tracking and tracing each ingredient. The integrated tracking system helps Barilla combat counterfeiting in the food supply chain and gives customers greater transparency and traceability of their food, as well as a deeper connection to where their food comes from.

IoE technologies are also at work in many other ways throughout the food and retail industries. Large-scale farmers are increasingly relying on real-time data in their operations. Some are using drones to gather real-time data and aerial views of thousands of acres of land, and send data on crop growth, ground condition, microclimate weather and more back to the farmer in real-time. The real-time intelligence and insights provided by the data enable farmers to make better decisions that help them produce more food, cheaper while at the same time better preserving the land and water resources. In another example, oyster farmers in Australia used IoE technologies to connect their oysters to the Internet. Using sensors, the farmers monitor everything from the oysters’ heart rates to weather and water patterns and how they affect the oysters’ growth, enabling them to grow more oysters for consumers to eat.

As our food products work their way through the supply chain, they remain connected to the Internet of Everything in many ways. Transportation companies connect their trucks and train cars with sensors and predictive analytics to monitor the freshness of produce in transport. They use real-time data and predictive analytics to keep a close eye on the temperature and humidity levels of the cars, track where the cargo is in its journey and even predict when maintenance will be needed on trucks or train cars before they break down, so foods won’t spoil in transport.  Grocers seeking to minimize waste and avoid spoilage can monitor the freshness of produce on display by using video analytics to judge appearance, sensors to detect gases emitted from aging produce, and even pocket-size devices called spectrometers to determine food freshness from chemical composition. Using these connected technologies, grocers can not only minimize spoilage and waste, but also avoid safety issues such as costly food recalls.  They can even craft dynamic pricing strategies and adaptive promotional campaigns to maximize profit based on ripening trends and changing demand forecasts.

Grocers are also using IoE technologies such as sensors, beacons and real-time analytics to improve the customer shopping experience in the store. Sensing cars entering the parking lot and observing shopping paths through the store for example, retailers can predict as much as 30 minutes in advance when demand for checkout may increase beyond plan.  This gives managers enough time to react and increase staffing before lines even build up.

By connecting people, processes, real-time data and things, the Internet of Everything is already at work in innovative ways, streamlining complex processes and improving consumers’ lives. It is transforming everything about food and retail supply chains – from how food is grown, processed and transported, to providing consumers complete transparency into the origins of their food and how it is handled through the supply chain, to improving their shopping experiences in the store and making food safer to consume.