Opportunities and Challenges in the Implementation of Dynamic Shelf Life in a Food Supply Chain

Abstract: DynahMat is an ongoing project at the Packaging Logistics department at Lund University, which aims to reduce food waste by establishing the true quality and shelf life of chilled goods through a dynamic shelf life prediction (DSLP) service. The idea behind the service is, throughout the entire supply chain, to measure temperature and microbial growth using sensors attached to the package. The information will at certain points in the supply chain be sent to a cloud service that calculates the remaining shelf life by using prediction algorithms. The aim for this study is, from a business perspective, to analyze the opportunities and challenges in the implementation of a DSLP service in a supply chain and also the effect it would have on the studied 4PL company’s business model (Bring Customer Solutions). The method that is used is a single case study on one of the food supply chains that the case company coordinates. The data collection consists of literature findings, interviews and study visits. Six different areas of study are researched which has been put together into a theoretical framework that has served as a basis when developing an analysis framework to answer the research questions. The findings show that there are many opportunities connected to the DynahMat project such as being able to guarantee the quality of the supply chain and the goods it delivers. Other opportunities are increased track- and traceability of the goods and also more visibility, collaboration and information sharing in the supply chain which can have a positive effect on its performance. In addition, the DSLP service offers the possibility to easier measure the supply chain performance. There are also challenges with the DSLP service. For example, it is important to convince all actors to cooperate and make the necessary investments. The increased visibility in the supply chain will also make the actors more exposed and accountable for their performance. Another challenge is the extended requirement on coordination and communication. Moreover, it can be determined that the 4PL’s business model will change on several points. For example, the supply planning needs to be changed to a more reactive approach, new technology needs to be implemented and there will be a higher degree of transparency to the customer and the logistics providers.