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NXP Semiconductors

STOP WASTING FOOD - NXP‘s technology solution reduces food waste

Articles | By NXP Semiconductors | 28 August 2017
Food retailers benefit from a holistic NFC or RAIN RFID sensor solution for tracking and tracing, temperature monitoring, moisture and tamper detection, and brand protection. Food retailers benefit from a holistic NFC or RAIN RFID sensor solution for tracking and tracing, temperature monitoring, moisture and tamper detection, and brand protection.

NXP‘s comprehensive technology solution for food retailers reduces food waste, boosts sales, and increases environmental protection

Food retailers face major challenges: non-transparent flows of goods, food waste due to expired products, and dissatisfied customers. Food scandals and product manipulations also pose a risk. A modernisation process could be an answer. But which features do technological innovations need to fulfil to generate benefits and a sustainable ROI for the retailer?

NXP Semiconductors offers a holistic NFC sensor and RAIN RFID Tag IC solution for tracking and tracing, temperature monitoring, moisture detection, tamper detection, and more in food retail. In an interview with “RFID & Wireless IoT Global”, Ralf Kodritsch shows how technological modernisation provides product transparency, product security, optimised internal processes, increased sales, more environmental protection, and enhanced customer loyalty.

Ralf Kodritsch, Director Global Segment Manager RFID Solutions, NXP Semiconductors, in an interview with “RFID & Wireless IoT Global”

Food scandals need to be avoided at all costs

All food retailers – from grocery stores to discounters to wholesalers – face the same daily challenges: improvable inventory processes, nontransparent fl ow of goods from storage to sales fl oor, expired food and beverages, food waste, last-minute discount campaigns, out-of-stocks, and dissatisfi ed customers. Moreover, food scandals and recall actions always pose a risk for the food sector. Loss of trust from the customer side, image problems, and negative customer ratings need to be avoided at all costs. Especially in the high-priced food and beverage sector, product counterfeiting and attempts to manipulate product labels pose major challenges, such as already opened or refi lled products.

Less food waste, optimised processes, satisfied customers

A comprehensive supply chain ensures the quality and freshness of goods. It can also prolong the time products can be off ered for sale. If retailers know the exact best-before dates of all their goods, they can present those with shorter best-before dates on the fl oor and keep those with longer dates in the warehouse. “First in, fi rst out” is replaced by an optimised fl ow of goods. Food products do not have to be destroyed due to undetected expired dates. Moreover, instead of manually checking bestbefore dates on the sales fl oor, additional smart shelf solutions can start discount campaigns automatically due to 100 percent status transparency.

This way, customers can choose from a little more expensive product with a longer best-before date or a discount product with a shorter best-before date tailored to their individual requirements, while having the guarantee that both products are 100 percent fresh, quality-controlled goods. Retailers can boost sales this way while customers benefi t from being able to directly choose from and examine quality-controlled products in person – a feature online food retail cannot provide. Smart shelves can also manage the check-out and replenishment of products as they register which products and how many are taken from the shelves. They can send an automated message to the staff to refi ll the shelves. Thus, the retailer has the optimum amount of products on the sales fl oor at any time and the customer is not faced with out-of-stock situations.

NXP is the only provider shipping RAIN RFID chips on
twelve-inch wafers.„NXP is the only provider shipping RAIN RFID chips on twelve-inch wafers. NXP is now able to fit 250,000 ICs on a single wafer, which not only increases the productivity of the chip manufacturing, but also leads to less packaging and less waste, lowering the environmental footprint.“, Ralf Kodritsch explains.

Food retail needs a holistic approach

However, comprehensive modernisation processes and innovative data solutions appear to be the exception rather than the rule in food retail. Despite increased turnover in both in Germany and in Europe, there are no comprehensive, cross-border roll-outs. What essential features do technological innovations thus need to include to become an interesting and profi table investment for food retailers? “Food retailers need easy-to-install and easy-to-use technology solutions that improve all levels of food retail. The solution needs to optimise external and internal logistic processes, stocktaking, the distribution of goods to the sales fl oor organised by earliest best-before date, and automated discount campaigns.

All modernisation endeavours need to generate a sustainable ROI, boost sales, satisfy customers, and increase environmental protection. More transparency in the supply chain, and protection against manipulation, means more security for food retailers and their customers. Trust between the customer and retailer is established. Ultimately, customers feel safe and valued, resulting in increased customer loyalty and boosted sales for the retailer,” Ralf Kodritsch, Director Global Segment Manager RFID Solutions, NXP Semiconductors, explains.

Sensor tag solution for the entire supply chain

NXP Semiconductors off ers food retailers a holistic approach to increase transparency, reduce waste and boost sales: a cost- and energy-efficient NFC sensor based and RAIN RFID Tag IC solution for the entire supply chain, from production to logistics to the retailer. The solution is of special interest for food retailers with own brands, as the tag solution enables 100 percent transparency and control over their own internal processes, to ultimately boost sales in the retailers‘ own product segments. Flat printed batteries function as the energy source.

The NFC sensor labels are suitable for re-use – when left on the transport boxes – which reduces costs and increases sustainability. The memory chip can be erased several times. “The operation time of the tag solution is limited by the battery life. How long the battery will last depends on the frequency of reading intervals. In food retail, it may last longer as goods usually do not have to be checked in very short intervals. The solution is also suitable for the pharmaceutical industry, where highly sensitive and expensive medication needs to be checked more frequently. The NFC sensor tag IC is a released product.” Ralf Kodritsch explains.

100 percent transparency and control via app

The tags can be applied at the box level for bulk products, such as bananas, where tags on each single item would be too costly. However, the tag solution can also be implemented at the item level in case of valuable single products, such as delicacies or expensive alcoholic beverages.

Ralf Kodritsch: “The label solution allows retailers to check the status of the box or item at any time and any place within the supply chain. The NFC solution can be easily accessed via any NFC-enabled smartphone and an app.NXP offers diff erent security layers with password protected areas so that only authorised personnel can access all data stored on the chip. The NFC solution can also simplify inventory and distribution processes in the warehouse. The warehouse staff can easily check status and best-before dates of all boxes with a simple tap on their smartphone, optimising the storage in the warehouse as well as the distribution to the sales floor.”

Read the full use case published in the July 2017 issue of the leading trade journal "RFID & Wireless IoT Global". Download your personal digital copy of the magazine now and gain exclusive insight into more use cases and the potential of RFID & Wireless IoT technologies for process optimisation in different industries.

Take a look at our subscription offer as well and receive the newest issue of the magazine by mail or by e-mail.

Last modified on Monday, 28 August 2017 17:30
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