Loss And Waste Management In Supply Chains
Red Hat News, April, 7th 2023
Businesses have to implement disciplined methods to manage loss and waste in their inventory. This article provides an overview of how businesses might do so, focusing on the two main forms of loss and waste: environmental exceptions such as the failure of refrigeration and product contamination, or sub-par quality, both of which result in a recall.
But first, let's consider the business problem in more detail.
Business problem
In the context of this article, loss and waste management is principally focused on ensuring that food and food-related products remain fit for consumption at the time they are sold to the end consumer. However, external factors outside the control of the business can cause food items to be marked as spoiled or damaged. The problem faced by the business is ensuring the overall loss and wastage is minimized.