The urgency of climate change demands transformative action across all sectors, and the food industry is no exception. Food, Agriculture, and Water Day at COP29 underscored the critical link between sustainable food systems and climate mitigation. From agricultural practices to consumer habits, the entire food supply chain impacts emissions, deforestation, biodiversity, and water resources. Innovation, data-driven decisions, and streamlined processes, often enabled by technology, are essential to achieving a more sustainable future for food. Two companies, KWS SAAT SE, a seed producer, and Zespri Group Limited, a kiwi fruit marketer, exemplify this shift towards sustainability through technological adoption.
KWS SAAT SE, a German seed producer with a rich 167-year history, recognizes its responsibility towards future generations. The company’s focus on sustainability aligns with its core business of developing high-performance seeds that cater to diverse climatic conditions and agricultural needs. KWS maintains a vast seed inventory, a testament to its commitment to biodiversity and crop resilience. The company leverages cutting-edge technologies, including SAP S/4HANA Cloud Private Edition, SAP Business Technology Platform (SAP BTP), and AI capabilities, to optimize processes, harmonize operations, and implement sustainable agricultural practices. This digital transformation journey, supported by a clean core strategy, empowers KWS to respond effectively to market demands and contribute to global food security.
KWS’s approach to sustainability extends beyond its internal operations. The company provides expert services to farmers, equipping them with the knowledge and tools necessary to navigate challenges such as heat stress, pest control, and effective catch crop utilization. This collaborative approach underscores the interconnectedness of the food system and the importance of shared responsibility. By empowering farmers, KWS contributes to a broader movement towards sustainable agriculture and reinforces its commitment to a future where food production meets the needs of a growing population without compromising the planet’s resources. Looking ahead, KWS identifies AI as a crucial tool for addressing pressing questions related to resource efficiency and yield optimization.
Zespri Group Limited, the world’s largest marketer of kiwi fruit, demonstrates its commitment to sustainability through its digitally-driven supply chain. Recognizing that technology is integral to every aspect of its operations, Zespri has embraced digital transformation to achieve supply chain excellence. The company’s partnership with SAP, spanning over two decades, has culminated in the adoption of RISE with SAP, encompassing SAP S/4HANA Cloud Private Edition, SAP Integrated Business Planning for Supply Chain, and SAP Commerce Cloud. This comprehensive approach enables Zespri to manage its global operations efficiently, from sourcing fruit from thousands of growers to distributing it to customers worldwide.
Zespri’s digital transformation journey, embodied by the “Horizon” program, has resulted in significant improvements across various business functions. The company has optimized its offshore supply chain, streamlined fruit inspection processes, and enhanced purchase-to-pay invoice processing, resulting in faster vendor payments. By integrating its supply plan with accurate forecasting, Zespri ensures a better balance between supply and demand, a critical factor in maintaining market stability. This focus on efficient planning resonates with Zespri’s origins in the 1980s, when the company was formed to address the challenges of oversupply and price volatility in the kiwi fruit industry.
Zespri’s decision to adopt RISE with SAP stems from its desire for a strategic roadmap that provides access to continuous innovation. The company prioritized investing in business transformation and change management, recognizing that technology implementation requires organizational adaptation. By leveraging SAP’s expertise and infrastructure, Zespri could focus on its core business while benefiting from a cost-effective and secure technology platform. This strategic approach underscores Zespri’s commitment to long-term sustainability and its belief in technology as a key enabler.
Both KWS and Zespri highlight the power of technology in driving sustainability within the food industry. By embracing digital transformation, these companies are optimizing their operations, enhancing efficiency, and contributing to a more resilient food system. These examples illustrate that sustainability is not merely a corporate social responsibility initiative but a crucial business imperative that can drive innovation, improve profitability, and contribute to a healthier planet. Their actions serve as a model for other companies seeking to align their operations with the urgent need for climate action and sustainable food production.
Furthermore, the shared focus on data-driven decision-making emphasizes the importance of transparency and traceability within the food supply chain. By leveraging data analytics and digital platforms, these companies can gain greater insights into their operations, identify areas for improvement, and track progress towards sustainability goals. This data-driven approach also facilitates better communication and collaboration within the supply chain, fostering a shared understanding of sustainability challenges and opportunities. The stories of KWS and Zespri exemplify the transformative potential of technology in creating a more sustainable and resilient food system for the future. They demonstrate that embracing innovation is not just about improving business performance but also about contributing to a healthier planet and a more secure food supply for generations to come.
