IN Brief:
- Balloon One claims preventable waste costs UK F&B £156,599 per business each year, with 12% of fresh and perishable stock lost annually.
- Warehouse systems average ~six years since upgrade, 60%+ use legacy or manual tools, and only 61% link warehouse and forecasting.
- Managers expect tech upgrades to cut waste in picking, forecasting, and stock rotation, supporting the sector’s aim to halve food waste by 2030.
Balloon One, a technology partner specialising in optimising global supply chains, has unveiled research highlighting a critical waste issue within the UK food and beverage (F&B) sector. The study, titled “Out of Date,” indicates that outdated warehouse technology is a primary contributor to the growing crisis of avoidable food waste, creating substantial financial, reputational, and operational risks.
The report reveals that UK F&B supply chains incur losses averaging £156,599 annually per business due to preventable waste. Approximately 12% of fresh or perishable stock is lost each year, with 7% directly attributed to internal issues such as over-ordering, poor stock rotation, and handling errors. Supply chain managers also acknowledge significant non-financial risks, including reputational damage (27%), negative impacts on customer relationships (20%), and failure to meet sustainability objectives (20%).
Despite these challenges, 64% of managers express confidence in their current warehouse systems’ ability to minimise waste. However, this confidence appears misplaced, as the majority report increasing levels of avoidable loss. The average warehouse system in use today was last upgraded nearly six years ago, with over 60% of businesses relying on legacy, spreadsheet-based, or manual processes.
Craig Powell, Managing Director at Balloon One, stated, “Our research highlights that millions of tonnes of food and drink are wasted annually in the UK. Supply chain managers are aware of the avoidable nature of this waste and the need for more effective management. The reliance on legacy systems conceals the true scale of the problem, which must be tackled immediately to protect sustainability objectives, customer relationships, and business margins.”
The study identifies outdated technology (37%) and lack of system integration (33%) as major contributors to internal waste. Although only 61% of respondents currently integrate their warehouse and forecasting systems, over half plan to upgrade or adopt new systems within five years, with many indicating near-term plans.
Despite the issues, the sector is strategically investing in technology, driven by business growth (33%), customer satisfaction (29%), and employee tools (29%). Nearly 80% of supply chain managers are optimistic that the industry can halve food waste by 2030, aligning with national targets.
Powell adds, “Managers see significant opportunities for waste reduction in picking and packing, forecasting, and stock rotation — areas where modern management systems can have an immediate impact. Savings from reduced waste are likely to be reinvested in sustainability initiatives or further technology enhancements, transforming the warehouse from a cost centre into a strategic asset.”
