Hitachi Digital Services and OneThird are transforming produce supply chains

All stakeholders in the supply chain require visibility into the shelf life of the produce. Food wastage occurs at different stages, including production, post-harvest handling, storage, processing and packaging, distribution and retailing, and consumption. Addressing food wastage at every stage of the supply chain is crucial for creating a more sustainable food system, leading to economic savings, resource conservation, and reduced hunger.

OneThird, a specialist company that brings innovative technology focused on reducing food wastage, has a solution that evaluates the shelf life and quality parameters of tomatoes, strawberries, blueberries, and avocados. It collaborated with Hitachi Digital Services (HDS) to leverage its cloud and application expertise. Together, they created Connected Quality Control— a data and analytics integration platform with an interface connected to a mobile app for all stakeholders in the supply chain to interact in real time.

Jointly developed Connect Quality Control to drive sustainability goals

Based on the SDG progress report for 2024, the percentage of food lost after harvest on farms, transport, storage, wholesale, and processing levels globally was estimated at 13.2% in 2021. Effective management of the post-harvest process at the retail and consumer levels requires concentrated efforts from businesses, governments, and all sectors of society. Technology can significantly reduce post-harvest food wastage by helping stakeholders monitor the food supply chain.

Produce shelf life can be evaluated by visual inspection based on appearance and texture, sensory inspection by smell and touch, chemical analysis measuring moisture content, pH levels, ethylene production, and microbial testing that provides insights on bacterial load and fungal growth. There are technology solutions such as IoT and sensor technology to monitor temperature and condition, blockchain for traceability of the supply chain, and mathematical models such as kinetic and Arrhenius equations that also help determine the shelf life of the produce. However, technology that enables real-time insights powers actionables for the stakeholders in the supply chain.

The insights from the Connected Quality Control solution drive consideration of the best distribution routes based on produce shelf life, repurposing items for food banks or processing, providing the best before and expiration dates based on actual shelf life, discounts when produce shelf life is near expiration, and better managing the stock.

Connected Quality Control brings data-backed decision-making power to all the stakeholders in the supply chain

Instead of visual inspection to determine the shelf life of the produce, stakeholders can use real-time visibility to drive a flexible food supply chain. OneThird’s Connected Quality Control uses a spectrometer connected to a mobile app to measure water and sugar levels in fruits. The app takes pictures of fruit batches and analyzes them for mold or other issues. It then communicates with the cloud to access algorithms that calculate shelf life and provide information to growers, warehouse managers, and stores, providing real-time insights for all parties involved in the supply chain.

The solution enables decisions based on real-time insights into the final destination of the produce or redirection of the produce to processes such as dry freezing or processing. As a result, OneThird, backed by HDS, enables a reduction in fresh produce waste by at least 25%.

Co-creation is a powerful strategy for fostering innovation and, in this case, developing a unique solution that can be taken to the market

It all started when Halma chose Hitachi to help its hardware companies upgrade their business revenue streams. OneThird was founded in a digital incubator by Halma plc, a British global group of safety equipment companies. OneThird is also backed by Ocean Insight, which makes spectrometers and whose parent company is also Halma plc.

HDS, Hitachi’s technology arm, has been continuously evolving and developing the solution with client feedback, with plans to expand to other markets.

OneThird’s Connected Quality Control has evolved into a sophisticated solution with image analysis and batch management features. The solution has been well-received by growers, warehouses, and stores, leading to significant savings. It reduces arguments and disagreements in the supply chain by providing objective shelf-life information, saves money by optimizing food waste management, and reduces carbon emissions from unnecessary transportation.

Exhibit 1: Building the solution had to be a combined effort, starting with structuring the idea through workshops, building a product type, creating a PoC, and developing a mobile app

Source: HFS research and Hitachi Digital Services, 2024

The Bottom Line: Both OneThird and HDS leveraged their resources to build a solution transforming the supply chain that proactively reduces food wastage.

Real-time insights can create meaningful interventions at critical stages, reducing food wastage along the production and supply chain. Solutions such as OneThird’s Connected Quality Control can bring efficiency to the food system, improve food nutrition, and contribute to sustainability.

Overall, the collaboration will have a positive social and environmental impact and a potential for further growth. HDS is planning for future projects and partnerships in the food wastage space and is considering collaborating with OneThird to leverage its expertise in IoT solutions.