Towards the shortest supply chain

We're seeing this boom of hydroponic production kitsin kitchens, which will become more popular when people realise they can produce their own food at home, without taking up too much space," believes Deborah Dull, circular economy and supply chain specialist at GE Digital. According to her, this is "the shortest supply chain we can have: one metre from the dining room table we have products growing. It comes through empowering people to produce their own food. It becomes more attractive if we take into account the scarcity of products that we are witnessing", she reveals through Dinheiro Vivo.

The pandemic has highlighted the complexity and fragility of supply chains in the global economy and has fuelled the movement towards a more circular economy. The expert believes that the way and where we produce goods will change, as food produced within 50km of where it is consumed becomes cheaper than food produced far away and then transported. "When we think about the way cities work - by 2050 it is estimated that 80% of the world's population will live in cities - that has to change," she says.

The signs are already visible on the rooftops of New York, Paris or Barcelona, in green buildings with 'edible' walls, or in the boom in indoor farming. A year ago, the Danish Coop announced plans to introduce vertical farms in 35 Irma shops, in collaboration with German Infarm, and in October Whole Foods Market announced that two in London shops would have herb "farms". A month earlier, the German start-up had closed a $170 million investment line to fund the expansion.

In Portugal there is still a way to go, despite showing an enormous capacity to innovate and respond to these new challenges, considers Deolinda Silva, executive director of Portugal Foods, adding that "from innovation in product development to new distribution solutions and the identification and development of new opportunities for consumption moments, there are several good examples of the sector and industry that show this capacity. The proof that it is responding to demands and trends, meeting what markets and consumers want".

Meals at home have increased since the pandemic forced many to telework and others, unfortunately, to unemployment. According to Lantern's EIT food foresight: impact of covid-19 on the food sector in Southern Europe, 38% of Portuguese started working from home, the highest figure in Southern European countries, only surpassed by Italy's 41%. Thus, ordering food from delivery services became habitual: 7% used at least once, 23% used more, 11% less or the same, and 59% never.

"The deliverybusiness model needs a serious change. Right now, it is not profitable for either the platforms or restaurants. The problem is the cost of delivery that the consumer doesn't pay. If the model doesn't work, we will see a greater concentration of platforms and a change in the balance of power", says David Lacasa, from Lantern Consultancy, adding that "restaurants have to modify their business model so that deliveryis a relevant part of the offer. It will be necessary to draw up a defined offer for this channel, with adapted costs, package and so on. "Or new brands and dark kitchens, i.e. kitchens dedicated to the preparation of meals for home delivery.

Portuguese restaurant group SeaMe, owner of Prego da Peixaria, opened its third dark kitchen in Almada in January and plans to open two more "in the next two months". By 2030, Euromonitor estimates that the segment will reach $1 trillion.

"One service that will change a lot is catering in work centres. We estimate a growth in home delivery of menus as an alternative. The strongest restaurant brands will take the opposite route and develop products to sell in the super.Inthe same way that we now buy Starbucks coffee capsules, we may come to see dishes from Portugália or another brand, ready to eat, on the shelves," anticipates Lacasa.

This article is republished under the partnership between Nova SBE Executive Education and Supply Chain Magazine " Read the original article