Challenges in implementation of a distributed and localised approach to food manufacturing

Existing large-scale centralised food production practices are often unsustainable due to requirements for significant transportation of both raw materials and finished products. These approaches also require substantial concentrated demands on energy and water. In addition, increasing amounts of food waste are being generated worldwide by manufacturers and retailers due to their dependence on unreliable demand forecasting methods as part of centralised production practices. Regulatory pressures and policy requirements as well as consumer demands for increased variety, improved traceability and healthy diets are forcing manufacturers and retailers to reconsider their ingredient sourcing, production, storage and distribution strategies. ‘Distributed and Localised Manufacturing’ (DLM) aims to provide the food sector with capabilities to improve the efficiency of production systems, to optimise logistics operations across supply chains and to extend the shelf life of products. However, to achieve these potential benefits, the implementation of DLM will involve a number of challenges which need to be carefully considered and addressed. This paper explores these challenges and describes four specific implementation models to aid with the development of innovative and appropriate DLM structures for various food products.