Operational Excellence

A Value Stream Mindset Could Reduce Food Waste Globally

March 4, 2015

An enormous amount of food goes to waste in the United States and other developed nations in the journey between our farms and our forks.

If participants in that value stream attacked even a small portion of that food waste—as noted in “How Businesses Can Fight Food Waste”  from the Huffington Post’s business blog—it would go a long way toward feeding the one out of every eight people in our world (over 870 million people) who go to bed hungry every night.

In the United States, 16% of the raw food and materials purchased for manufacturing is lost for a variety of reasons during production and processing, according to the USDA.  In our article, “Four Ways to Uncover Hidden Capacity”, which appeared in Food Manufacturing, we offered some advice to manufacturers on how they could improve yields and reduce food processing waste at the plant level.

Looking holistically from farm to fork, a major opportunity to feed more of the hungry lies in the utilization of the value stream management skills that we’ve developed in our business organizations for initiatives that cross functions for the greater good of the enterprise.   Successful application of the value stream management approach and skills will improve the use of valuable resources by optimizing the food value stream for the greater good of our society as a whole.

The value stream skills developed through presenting factual proposals and negotiating benefits for all stakeholders within an enterprise can be leveraged on a larger scale for the benefit of our society as a whole.  For example, all stakeholders would need to realize financial and social benefits from reducing food waste.  As the food value stream exists today, most of the upstream stakeholders (growers and manufacturers) benefit from downstream waste in the form of higher sales. Likewise, downstream stakeholders—distributors, supermarkets and other retailers—benefit from food waste in our homes and restaurants.

A growing consumer desire to purchase food from retailers that support more sustainable business practices is driving some retailers and manufacturers to reduce waste in their supply chains.  A third-party certification, like the Forest Stewardship Council (FSC) certification for responsible forest management, could also improve consumer awareness and help reduce waste in the food value chain through visible, trusted differentiation of a sustainable value stream at the point of purchase.

State, local and federal governments can also play a role in reducing food waste at the value stream level by offering tax benefits and limited liability for donated food to:

  • Growers that provide non-saleable (but still good) products to outlets where it can be utilized
  • Manufacturers that reduce process  waste through capital and training investments
  • Supermarkets that develop lean processes that reduce waste of perishables and develop outlets for unsaleable but usable product
  • Manufacturers that standardize expiration code formats for ease of use
  • Food service establishments that offer portion size options to reduce waste and develop effective outlets for unsaleable product.

 

Developing and encouraging a broader value stream mindset could allow consumers, manufacturers, growers and government officials to reduce food waste and impact the world in a positive way today and for future generations.

TBM Consulting Group

Frequently Asked Questions

What does it mean to adopt a value stream mindset in food and beverage manufacturing?
Adopting a value stream mindset means managing operations from end to end based on how value is created for the customer, rather than optimizing individual functions in isolation. The article explains that focusing on the full flow—from raw materials to finished product—helps organizations see where waste, delays, and inefficiencies occur. This perspective is critical for identifying the root causes of food waste that are often hidden within siloed processes.
How does a value stream mindset help reduce food waste?
A value stream mindset helps reduce food waste by exposing where losses occur across the entire production process, not just at isolated points. The article highlights that waste often results from overproduction, poor coordination, long lead times, and variability between steps. By managing the flow holistically and improving alignment between processes, manufacturers can reduce excess inventory, rework, spoilage, and other contributors to food waste.
Why is reducing food waste a global operational responsibility, not just a sustainability goal?
The article emphasizes that reducing food waste is both a business imperative and a global responsibility. Food waste drives unnecessary cost, consumes capacity, and increases environmental impact without adding customer value. By adopting a value stream mindset, organizations improve efficiency and profitability while contributing to broader efforts to reduce waste and improve food availability. Operational excellence becomes a practical way to address a global challenge through better execution.

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