Food waste burdens finances and the environment
The goal of Leipurin is to reduce its environmental footprint by minimizing food waste and the volume of waste. Food waste, i.e. unnecessarily produced food, presents a problem to the environment, as it causes unnecessary greenhouse gas emissions. Hospitality services account for roughly 20% of total food waste in Finland. Discarded food also burdens the finances of companies.
Leipurin is closely monitoring food waste in its supply chains and aims to analyze any reasons for this waste.
Slightly more than half of Leipurin’s food waste comes from the disposal of product batches expired in Leipurin’s warehouses. The most usual reason for the expiration of product batches is incorrectly estimated demand, particularly regarding new and seasonal products and products with a short shelf life. With regard to some products, large minimum manufacturing volumes in relation to supply increase this risk.
Slightly more than one fourth of food waste is caused by damage to packages resulting from incorrect handling during storage and transportation.
The third common reason for food waste is associated with the delivery of incorrect products or batches, either due to a mental error on the part of the customer, an error made when entering an order or when collecting products from the warehouse.
Reducing food waste is one of Leipurin’s key goals, and its fulfillment is monitored on a monthly basis. In 2018, food waste decreased by roughly 10% by speeding up the storage turnover rate by seven days, by specifying handling instructions and by improving monitoring processes.
In 2019, the goal of purchasing, sales and logistics is to reduce food waste by at least 25% and to improve the utilization of waste by increasing the amount of waste used as feed and recycled waste.