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Managing Perishability in the Fruit and Vegetable Supply Chains

Author

Listed:
  • Mervegül Kirci

    (École Polytechnique Fédérale de Lausanne (EPFL), 1015 Lausanne, Switzerland)

  • Olov Isaksson

    (Stockholm Business School, Stockholm University, SE-106 91 Stockholm, Sweden)

  • Ralf Seifert

    (École Polytechnique Fédérale de Lausanne (EPFL) & International Institute for Management Development (IMD), 1015 Lausanne, Switzerland)

Abstract

Spoilage reduction in fresh product supply chains is an important challenge and represents great opportunities for cost savings and reduced environmental and social footprints. The purpose of this paper is to identify the drivers of spoilage and to discuss how these insights can be used to reduce spoilage.We use panel data techniques to quantify the drivers of spoilage in the days-fresh category using daily spoilage and supply chain data (457,539 store-SKU level observations) for fresh fruits and vegetables at Switzerland’s largest retailer. We quantify to what extent inventory, promotions, delivery type, commitment changes, order variations, order cycle, and quality issues influence spoilage. We discuss the mechanisms through which inventory age and product standards impact spoilage of days-fresh products. Our novel findings underline the necessity for specialized supply chain processes, tracking inventory age and damage, and collaboration with supply chain partners in the management of this fundamental product category.

Suggested Citation

  • Mervegül Kirci & Olov Isaksson & Ralf Seifert, 2022. "Managing Perishability in the Fruit and Vegetable Supply Chains," Sustainability, MDPI, vol. 14(9), pages 1-24, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5378-:d:805881
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    References listed on IDEAS

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