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1、REPORTFrom waste to worthUsing technology and AI to drive sustainability and waste reduction in the food and fashion value chainsApproximately 30%of food produced globally is being lost or wasted,costing USD 940 billion annually to producers.Not only does this have significant financial implications
2、,but this wastage also contributes to approximately 8%of global greenhouse gas emissions and results in excessive use of natural resources.Similarly,the fashion industry generates around 92 million metric tons of textile waste annually,with overproduction and poor inventory management leading to sig
3、nificant environmental damage.In this report,we explore how technology,particularly artificial intelligence(AI),can drive waste reduction in the food and fashion industries.AI technologies present promising solutions for waste reduction across both industries.In agriculture,for example,AI-powered pr
4、ecision farming and autonomous robots can optimize resource use and reduce crop wastage.In food manufacturing,AI-driven solutions minimize waste and enhance efficiency.In the fashion industry,AI applications in digital design,inventory management(including forecasting)and recycling show significant
5、potential.Addressing waste is not only an environmental imperative but also a financial opportunity.By adopting AI-powered waste reduction strategies,companies can achieve sustainability goals,unlock cost savings and maintain competitiveness in a rapidly evolving market.Cover:miniseries/GettyImagesM
6、anagement summary2 Roland Berger|From waste to worthContents 1234 IntroductionImportance of combating waste The road to reducing waste in the value chain:Technology and artificial intelligence(AI)3.1/Food value chain3.2/Fashion value chain Conclusion44616Page3 Roland Berger|From waste to worth Intro
7、duction In a world where many economies are struggling,geopolitical tensions high and supply chains disrupted,companies are under intense pressure to grow revenues while ensuring cost competitiveness.However,pressure to do so in a sustainable way is also mounting,driven by regulation,investors,compe
8、titors and consumers.Stakeholders are also getting smarter about companies sustainability claims,making it a field that companies need to prioritize and navigate carefully.One key topic within sustainability that has been under focus is waste.This is an important area to address as reducing waste ca
9、n generate significant cost savings while supporting sustainability goals in parallel.Waste may refer to waste generated throughout the product life cycle,from inputs manufacturing to end-of-life treatment,or the inefficient use of resources(e.g.,water,energy,etc.)during the process.This report will
10、 focus on leveraging technology,and in particular artificial intelligence(AI),to drive out waste generated in the food and fashion industries.We have chosen food and fashion since these are the industries in consumer goods where we see the greatest potential to drive the sustainability and cost redu
11、ction agendas in parallel by reducing waste production throughout the value chain.12Importance of combating waste Almost every step in the value chain,even after it reaches our door,generates waste.And waste has significant negative environmental,humanitarian and financial consequences.The food indu
12、stry and consumers generate a significant amount of waste,in part due to the perishability of fresh food.It is estimated that worldwide,c.30%of all food is lost or wasted1,amounting to economic losses of USD 940 bn per year2.In the US,the average family of four wastes c.USD 1,500 worth of food annua
13、lly3,while in the UK,this figure is c.GBP 700 per year4.This is happening while 1 in 9 people remain undernourished in other parts of the world5.Beyond the economic losses and humanitarian impact,food waste has severe environmental costs:global food loss and waste generate about 8%of global GHG emis
14、sions,almost equivalent to 87%of global road transport emissions6.Producing food also uses up other natural resources,such as water,as c.70%of the worlds freshwater is being used for agriculture7.In addition,water wasted from food waste every year is equivalent to the annual flow of Europes largest
15、river8.However,if the wastage of food already produced was minimized,world economies could save USD 120-300 bn per year9 and a third of the resources used to make new food.Within the fashion industry,the prevalence of waste is equally staggering.Approximately 92 m metric tons of textile waste are ge
16、nerated annually across the world,and this figure is set to reach 148 m metric tons by 203010.The increasingly prevalent trend of over-buying or over-consuming has contributed to overproduction.As a result,c.30%of clothes produced are never sold at full price and are marked down significantly or pas
17、sed on to secondary sales channels11.Part of this overconsumption or over-buying can be attributed to the rise of social media and fast fashion,as retailers produce clothing that is trendy for a short period of time and encourage consumers to keep purchasing.Consequently,the average amount 4 Roland
18、Berger|From waste to worth of clothing purchased by a consumer has risen by 60%between 2000 and 201412.Coupled with poor forecasting and inventory management,excess stock soon becomes a huge source of waste to contend with.Overproduction and disposal post-consumption also have environmental implicat
19、ions,both during the production process and after disposal.The clothing production process is highly resource-intensive and damaging to the environment:growing of materials such as cotton requires 10,000 liters of water to produce 1 kg of cotton13;dyeing and finishing fabrics generate 3%of global CO
20、2 emissions and 20%of global water pollution,while using large amounts of fossil-fuel-generated energy14.Furthermore,after use and disposal,only a limited amount of clothing is recycled.Taking the US as an example,85%of textiles thrown away end up in a landfill or are incinerated15.The rest are recy
21、cled in some form(e.g.,used for stuffing,insulation,etc.16),but less than 1%is used to make new clothing17.These statistics clearly demonstrate the severe economic,environmental and societal impacts of waste,creating impetus for companies to act.Many food and fashion companies have started making an
22、d acting toward sustainability and waste commitments.For example,Nike has committed to diverting 100%of waste from landfills in its extended supply chain,and recycling at least 80%of waste into Nike products and other goods by 2025.It also aims to reduce the volume of fresh water used in textile dye
23、ing and finishing by 25%in the same period18.Nestl has committed to reducing food waste and loss by 50%by 2030,and is trialing several initiatives,e.g.,sorghum-based porridge that upcycles unused by-product from malt production for Milo(a milk drink),and introducing drying technologies to its maize
24、farmers in Nigeria to reduce crop waste19.However,to effectively combat and reduce waste,companies must have a comprehensive understanding of how waste is generated in order to take effective steps to address it.(Over-consumption is a huge challenge,particularly in fashion,but is not in scope of thi
25、s report.)Waste is generated mainly due to three reasons:1.Inefficiencies in production,logistics and other processes,hence consuming excess resources and/or generating excess waste as a by-product 2.Challenges in planning and forecasting,which often lead to over-forecasting and hence over-productio
26、n to meet consumers demands and avoid out-of-stock 3.Lack of circular solutions when waste is generated,e.g.,lack of recycling or repurposing of finished products at their end of life,especially in the case of fashion While the easy solution would be to just produce less,particularly to combat overp
27、roduction,this clashes with companies financial interest to maximize sales.It also does not address the fundamental inefficiencies in processes that generate waste or use excess resources.Thus,there is a need to address these causes so that waste is minimized where possible throughout the value chai
28、n.5 Roland Berger|From waste to worth 3The road to reducing waste in the value chain:Technology and artificial intelligence(AI)Reducing waste throughout the value chain is a huge undertaking,but technology,particularly AI,has potential to help food and fashion companies on this journey.AI-driven tec
29、hnology has evolved greatly in the last decade,and there is now a multitude of applications that companies can use to drive out waste in the value chain,e.g.,AI-powered demand forecasting,computer-vision-enabled waste detection and monitoring,autonomous farming robots,etc.This report will dive into
30、each step of the food and fashion value chains,highlighting the key factors leading to waste generation,AI innovations and inspiring examples of what companies are doing to tackle waste.By adopting solutions to tackle waste,food and fashion companies stand to achieve sustainability goals while unloc
31、king financial savings.For example,a company with GBP 1 bn revenue in either the food retail or fashion industry could achieve the following financial and environmental benefits by adopting waste reduction initiatives:A Source:WRAP,WWF,secondary research,Roland BergerA Examples:Financial and environ
32、mental benefits through waste reduction initiatives For a GBP 1 bn food retailer 50%reduction in food waste can giveFor a GBP 1 bn fashion retailer 4-5%reduction in initial buying,and buying the right items,can giveGBP 5 m reduction in cost of food wasteGBP 30 m improvement in net profit50-60%reduct
33、ion in Scope 1-3 waste CO2 emissions2-8%reduction in Scope 1-3 CO2 emissions 6 Roland Berger|From waste to worth Source:secondary research,Roland BergerB Food value chain 3.1 FOOD VALUE CHAINThe food value chain comprises several stages,from the manufacturing of agricultural inputs,to production of
34、finished food products and,ultimately,distribution and consumption of food to disposal of food waste.BMuch of the food waste discussion has historically been focused on the last step:waste disposal.While households are responsible for the bulk of food waste at the end of value chain,a significant pr
35、oportion of pre-consumption food waste is generated upstream.Using the UK as an example:c.30%of pre-consumption food waste is from inputs and primary production stages,and over 40%from food manufacturing20.There are many reasons contributing to waste throughout the food value chain,with some factors
36、 being more controllable than others:AgriculturalproductionFood productionTransport&warehousingRetail ConsumptionEnd-of-lifeProduction of agricultural inputs and livestockManufacturing and packaging of finished food products Shipping of finished food products to retail and foodservice customersSale
37、of finished food products to end consumers via retail points of sale or foodservice outletsIndividual consumption of food items at home or out of homeDisposal and processing of food waste to create fertilizer,biogas,etc.Forecasting and planning7 Roland Berger|From waste to worth Agricultural product
38、ionFood waste at this stage is often due to multiple direct and indirect factors.Direct factors that are not easily controlled include environmental and biological factors such as weather,pests and diseases.However,there are also more controllable factors such as improved farming methods and judgmen
39、t of crop maturation,which can be achieved with greater education,technology,and investment.Food retailers also play a role here,as many view the aesthetics of produce to play a role in consumer purchasing.This has led to some farmers not being able to sell all their produce,and hence,many overprodu
40、ce to meet aesthetic requirements.This results in excess supply when there is good weather and conditions21,22.Food production to retailHistorically,food manufacturers typically accept food waste rates of 5%23;however,this cumulatively adds up to a significant amount of waste across the industry.Key
41、 drivers for waste during the manufacturing process includes inefficiencies in the manufacturing lines,manufacturing line changeovers,quality issues,breakage and damage to products24,25.While some waste will always be generated due to production changeovers and human error,avoidable waste can be red
42、uced through use of technology,better planning and forecasting to minimize changeovers,and enhanced monitoring and controlling of production lines.In addition to food waste,energy and resource waste is also a key challenge.In one respect,energy and resources are consumed in the food production proce
43、ss(c.26%of EUs energy consumption is for industrial food processes26)and hence food waste implies energy waste.In another respect,incremental energy and resource waste also occurs when there are inefficiencies in the value chain,such as energy-intensive machinery,use of fossil-fuel-based power durin
44、g production,or limited route optimization and use of petroleum-powered vehicles during logistics.Therefore,there is opportunity to use technology and lean manufacturing techniques to maximize resource efficiency.Further downstream,waste is also generated at the retail stage.Key sources of waste inc
45、lude expired or overripened products,either in grocery displays or commercial kitchens.In markets like the UK,supermarket waste is being scrutinized as it was estimated that 190 million meals per year in 2019-2020 were used for other purposes(e.g.,used for animal feed or biogas inputs,or disposed of
46、),rather than being donated to the hungry27.There is hence a need for food retailers to minimize food waste by adopting solutions such as expiration date management,improving food storage and shelf life,and partnering with food banks and startups28.Consumption and end-of-lifeFood waste generated fro
47、m individual consumption is driven by a variety of reasons including improper food storage,aesthetic considerations and misunderstanding of use by versus best before dates.As for foodservice,it can be driven by additional factors such as standard portion sizes which may be too big for some consumers
48、,excess food purchase vs.customers served,and quality standards29.While trying to minimize food and energy waste in the first place is key,what is done with the food waste generated is also important to consider.Historically,although a portion of food waste is composted,most of it has gone to landfi
49、ll.For example,in the US,c.60%of food waste goes to landfills each year30.Dumping food waste in landfills or incinerating it has harmful environmental and societal impacts,and misses the opportunity to use food waste as inputs for animal feed,biogas and insect protein production.In the case of the l
50、atter,food 8 Roland Berger|From waste to worth waste can be fed to edible insect species,which can then be processed into animal feed.It is known that many edible insects have been found to have strong nutritional profiles31,32.The idea of using insects to ensure the circularity of food waste and fe
51、ed livestock is gaining popularity,with large retailers such as Tesco partnering with insect protein companies such as Entocycle33.SOLUTIONSTo combat waste in the food value chain,technology startups and food companies have started implementing technology solutions,with AI-aided solutions offering g
52、reat promise.An overview of the types of technologies being used are shown below:CC Technology use cases along the food value chain Source:secondary research,Roland BergerInefficient processesChallenges in planning&forecastingLack of cir-cular solutions for wasteAgricultural productionFood productio
53、nTransport&warehousingRetailConsumptionEnd-of-lifeAutonomous farming robotsExpir.mgmt.Predictive maintenanceAI-powered energy efficiencyAutonomous stock checks/replen.Autonomous warehousingAI-driven recipe suggestionsSmart irrigationPrecision recipe/flavor formulationDynamic menu suggestionsAI monit
54、oring of biogas plantsFarm resource optimizationReal-time farm/livestock monitoringPrecision farmingAI-driven demand planning&forecastingComputer-vision-powered waste monitoring and analysisAI-optimized by-product upcyclingPrecision insect farmingLogistics/route optimization3 drivers of waste 9 Rola
55、nd Berger|From waste to worth Agricultural productionMany startups such as Hyperplan in France and Benchmark Labs in the US are now offering AI solutions to support precision agriculture,including real-time monitoring of growing conditions,fertilizer and pesticide resource optimization,indoor farmin
56、g monitoring and optimization,smart irrigation,autonomous robotic farming,etc.Example 1:Autonomous crop robotics,which relies on AI-aided technologies such as computer vision,machine learning,etc.,can help production in various ways by:supplementing human labor,preventing crop wastage due to lack of
57、 labor in harvest seasons;reducing water usage with precision technologies,when using water to dilute agrochemical solutions;reducing overapplication and runoff of agrochemicals with precision technologies,reducing pollution to the environment34.Retailers have started embracing crop robotics.For exa
58、mple,Walmart filed six patents in 2018 for farming drones that would serve a variety of functions,including monitoring crop damage and spraying pesticides.One of the patents included the design of a robotic bee that can pollinate crops autonomously,as natural bee populations are declining.By making
59、active efforts in agriculture,Walmart was able to reduce waste and resource use,cut costs and improve crop quality35.Example 2:Benchmark Labs,a California-based startup,is leveraging AI to create environmental forecasts that can help inform agricultural operations.The company collects data from sens
60、ors placed in farms and uses the data to train machine-learning models tailored to each specific farm,so that farmers can get forward-looking,actionable alerts.Users of this solution have reported 10%reduction in water use and 50-100%increase in agricultural yields36.Food production to retailThe foo
61、d manufacturing to distribution and retail stages are less subject to uncontrollable external factors(e.g.,weather)and are more under direct control of food companies.Many players,from consumer packaged goods(CPG)companies to grocers and foodservice companies,are already trialing,or have implemented
62、,AI-based technologies in manufacturing facilities,factories and warehouses to improve operations efficiency,and reduce food waste and energy usage.Example 1:Ocado has put in place a local Internet of Things(IoT)network that works with AI algorithms to reduce its food waste rate to 1 in 6,000 items.
63、The AI algorithms forecast what food customers will order and use this data to ensure no excess food is ordered from suppliers.AI-powered robots are also used to help Ocado increase efficiency in its automated warehouse operations,resulting in less food and energy waste.Additionally,AI helps to opti
64、mize delivery routes in real time,enabling Ocado to reduce food and energy waste even more,and save costs37.10 Roland Berger|From waste to worth Example 2:Climax Foods is an American biotechnology company that uses AI to create a precision formulation process and Deep Plant Intelligence platform to
65、design and manufacture plant-based foods with optimal taste,smell,texture,nutrition and pricing38.It has been widely recognized for its ability to make flavorful cheeses similar to animal-based options,and recently announced that its plant-based alternative to casein uses 500 times less water than t
66、raditional cheese-making39.Example 3:Orbisk is a food waste management system targeted at restaurants,hotels,cafs,etc.,that uses computer vision to analyze food waste and help customers plan purchases.It uses a camera,placed above a waste bin and a weighing scale,to automatically identify what and h
67、ow much food is being thrown away.It then creates customizable reports on food waste for users to review.With this tool,customers are able to reduce food waste by 50%on average,and save 5%on purchasing costs40.Example 4:Too Good To Go has recently introduced an AI-powered solution that assists groce
68、rs with expiration dates.This solution accounts for product information,shelf location,seasonality,shopper behavior,etc.to create a near-expiration product shortlist and suggest a discount rate based on how likely the product is to be sold.This tool not only helps to reduce food waste,but also reduc
69、es manual labor,as store staff now only need to manually check 1-7%of products,and gives grocers the opportunity to gain some sales from these products,rather than dispose of them41.Consumption and end-of-lifeApplication of AI technologies at consumption stage is less prevalent,although it is starti
70、ng to be introduced to reduce food waste at consumption.For example,Unilever recently partnered with Google Cloud AI to launch a Meal Reveal tool under its Hellmanns brand.With computer vision,Google Clouds Vertex AI platform and Unilevers proprietary algorithm,the tool can recommend recipes to user
71、s,encouraging culinary creativity and reducing food waste42.3.2 FASHION VALUE CHAINLike the food value chain,the fashion value chain consists of various stages,from inputs production to disposal.While fashion items are significantly less perishable,there is a lot of in-built overproduction in the in
72、dustry,due to the inherent difficulty of accurately forecasting what and how much to produce.Hence,there is a great need to improve planning processes to reduce the amount of waste generated and resources used.D11 Roland Berger|From waste to worth Source:secondary research,Roland BergerD Fashion val
73、ue chain Raw material to garment productionA significant amount of waste in the fashion value chain starts upstream.It is estimated that upstream pre-consumer waste ranges from c.15%to 35%of the materials used43,44,45.Furthermore,an estimated 47%of all fibers in the fashion value chain become waste
74、because of inefficiencies across various production stages46.This waste occurs due to several reasons.First,many clothing manufacturers already instill waste in the processes by ordering 3-10%more materials than necessary to account for sampling processes,minimum order quantities and safety inventor
75、y.Second,producing textiles in large batches often results in inconsistencies in weaving,color and printing,parts of which are then disposed of.Third,even when trying to optimize fabric cutting for sewing finished garments,c.15%of fabric is often left behind in fabric scraps and offcuts47,48.Raw mat
76、erialproductionYarn and textile productionGarment productionTransport&warehousingRetail Consumer usageWaste disposalProduction of agricultural inputs,e.g.,cotton,silk,woolProduction of textiles,fabrics,trimmingsManufacturing of finished clothing productsShipping of finished clothing products to reta
77、il outlets/warehousesSale of finished clothing products to end consumers via retail points of sale or e-commerceIndividual usage of clothing itemsDisposal and processing of unwanted clothing/textiles Forecasting and planningMaterial recycling12 Roland Berger|From waste to worth Of the textiles left
78、behind,yarn and cotton are the most common.This implies significant energy and resource wastage,as it takes 10,000 liters of water to make 1 kg of cotton49,and a staggering 170,000 liters of water to make 1 kg of clean wool50.Transport and warehousing to retailFashion products are less perishable co
79、mpared with food,so most of the waste generated at these stages is packaging waste and waste of energy or resources during last-mile delivery.Energy usage for last-mile logistics is significant with the rise of e-commerce,and can lead to notable energy waste if routes and loads are not optimized.It
80、is also during the retail stage that stock waste becomes evident,either because of inaccurate forecasting processes or in-built excess stock(e.g.,due to minimum order quantities).It is estimated that c.10-40%of garments made every year are not sold or are significantly marked down51.Clothing returns
81、 is also a significant challenge to waste reduction,with return rates averaging at 30%in online and 10%in offline channels52.In the UK,returns cost retailers GBP 7 billion and generate 750,000 metric tons of CO2 emissions per year53.Returns also lead to clothing and resource waste,as returns have to
82、 undergo reverse logistics and complex reprocessing(e.g.,cleaning,sanitisation,etc.)before being put back on shelf.Even then,3%of returns are not resold54,and subsequently have to be recycled or disposed of.However,the recycling process is usually costly and inefficient,leading many retailers to opt
83、 for disposal instead,usually through landfill or incineration or by passing on to a third party.Considering the resources that have been used to create these items,the implicit and explicit waste generated is significant.Consumer usage and disposal(including material recycling)Consumers today wear
84、a piece of clothing seven to 10 times on average,which is 35%less than what they used to 15 years ago54.This can be attributed to various factors,including the rise of fast fashion,consumerism in the age of social media,etc.,leading to rampant overconsumption.As a result,a huge amount of unwanted cl
85、othing is thrown away.For example,in the UK,more than 2 metric tons of clothing are bought every minute,but yet Britons throw away 300,000 metric tons of clothing every year into rubbish bins.Furthermore,a very small amount of this unwanted clothing is recycled,due to the cost and complexity of sort
86、ing,recycling and reprocessing mixed materials55.SOLUTIONSVarious solutions have been established to tackle fashion waste and reduce resources usage.In particular,many AI-backed solutions show promising potential and are starting to be adopted across the industry.An overview of the types of technolo
87、gies being used are:E13 Roland Berger|From waste to worth E Technology use cases along the fashion value chain Source:secondary research,Roland BergerRaw material to garment productionSolutions to reduce fashion and textile waste exist throughout the fashion value chain.In addition to solutions that
88、 assist the agricultural aspect(e.g.,precision farming in cotton agriculture),AI can also be used in digital design,sampling,inspection and inventory planning processes to reduce waste.Example 1:The sampling process is a significant generator of textile waste,worth USD 6 to 8 billion each year.Howev
89、er,its waste can be optimized through 3D sampling processes.Brands typically receive four samples before the final product is made,but with 3D sampling,suppliers can create photorealistic renders of garments with fewer real samples.Optitex is Yarn and textile productionRaw material productionIneffic
90、ient processesChallenges in planning&forecastingLack of circular solutions for wasteAutono-mous farming robotsComputer-vision quality checksPersonalized marketing/stylingPredictive maintenanceAI-enabled fittings on diverse modelsAI-powered energy efficiencyAutonomous warehousingLogistics/route optim
91、izationAI-driven demand planning&forecasting(including customer feedback analysis and returns prediction)Computer-vision-powered waste monitoring and analysisAI-enabled textiles recyclingAutomated clothing sorting&separationAI-powered energy efficiencyDigital 3D samplingSmart returns handlingVirtual
92、 try-onsDynamic pricingSmart irrigation&resource mgmt.AI monitoring of farm states and precision farming3 drivers of waste Garment productionTransport&warehousingRetailConsumer usageWaste disposal14 Roland Berger|From waste to worth an example of a 3D sampling solution that uses AI to support fabric
93、 simulations in the virtual environment56.It has reported that its software enables brands to reduce physical samples and product development timelines by 50%57,58.Example 2:Smartex AI,a Portuguese technology company,uses AI to empower factories working with textiles to produce with full traceabilit
94、y and zero waste.It produces computer-vision-powered hardware that can detect textile defects in real time,and also has a digital factory management platform where users are able to gain visibility over their textile operation59.Through early detection of defects,Smartex is able to minimize textile
95、waste.Smartex estimated that it has been able to reduce fabric waste by 1 million kg since its founding in 2018 up until March 202460.Transport and warehousing to retailSmart forecasting and inventory management can help retailers reduce waste from the start and reduce the need to overbuy.AI can tak
96、e in a vast amount of data points and assist forecasting,planning and purchasing with higher accuracy.Resources used in transportation and warehousing can also be optimized and reduced.Example 1:Heuritech is a technology-based market insights company that uses computer vision on a large number of fa
97、shion images to quantify what people are wearing globally and anticipate market shifts.Its algorithm analyzes more than 3 million social images a day and detects 2,000 fashion attributes.Heuritechs technology enables it to assist fashion clients such as New Balance and Dior to produce only what cons
98、umers want,thereby reducing unsold products and waste61.Example 2:RFID technology is becoming increasingly commonplace among retailers,with players such as Zara and Uniqlo62 being well-known adopters.On a basic level,RFID allows retailers to identify and track multiple items simultaneously,and AI is
99、 being introduced to detect and correct errors in tracking data63.RFID adoption brings several benefits to retail operations,such as improved stock control and inventory visibility,which can help retailers make decisions about replenishment,markdowns,etc.,to prevent overstocking and reduce waste.Exa
100、mple 3:AI is being incorporated into last-mile delivery route optimization to make journeys more efficient.AI-powered GPS systems analyze factors such as past delivery routes,traffic,weather,order volume,etc.,to determine the most efficient route that will save fuel and cut down on travel time and o
101、verall delivery costs64.Some solutions providers estimate that route optimization can reduce fuel usage by 10-30%65 due to reduced distance traveled and shorter waiting time in traffic.Consumption and disposal(including material recycling)Consumers can leverage the support of AI when making purchasi
102、ng decisions to reduce overbuying and overconsumption.There is also a need for innovation in clothing recycling processes to make recycling a more viable option for businesses.15 Roland Berger|From waste to worth Example 1:The fashion industry has historically faced challenges in model diversity,as
103、photographing clothing on models of different shapes,ethnicities,ages,etc.,for e-commerce is very costly.Veesual.ai uses its proprietary,AI-driven Image Generation Engine to deliver high-quality product imagery that can be adapted onto any model.With its Switch Model experience,shoppers can choose a
104、 model they identify with and Veesual.ais algorithm will be able to fit the clothing onto the new models body66.This helps shoppers to better visualize the clothing and potential ways to style it,which reduces the likelihood of returns and increases the probability of usage,therefore reducing waste.
105、Example 2:French company CETIA has introduced an AI-powered mechanical solution that can separate mixed materials in preparation for textile recycling.Its machine can rapidly sort clothes by color and composition and remove hard elements like zippers and buttons67.Separation is historically a labori
106、ous and hand-operated process,but CETIAs innovation demonstrates how the recycling process could become more automated and cost-efficient to facilitate recycling adoption,and thus reduce waste.4Conclusion Evidently,waste in both the food and fashion industries is a significant issue that needs to be
107、 tackled,not only for environmental reasons,but also because there are clear financial benefits for doing so:companies can not only reduce costs,but also be more competitive and stay relevant to consumers.While eradicating waste is a daunting task,there are a myriad of AI-powered solutions that can
108、help companies get started.There will be much to do,from understanding the companys current sources of waste,to scoping out and implementing solutions.Roland Berger has significant experience in reducing food waste for retail and consumer goods clients,and in markdown reduction as well as process wa
109、ste reduction and returns reduction for fashion clients.Regardless of sector,we leverage AI and technology-based solutions to achieve impactful results.16 Roland Berger|From waste to worth Footnotes 1 One-third as measured by weight.FAO,2011.Global Food Losses and Food Waste Extent,Causes and Preven
110、tion.2 FAO,2015.Food Wastage Footprint&Climate Change.3 Buzby,J.C.,Farah-Wells,H.,and Hyman,J.(2014)The estimated amount,value,and calories of postharvest food losses at the retail and consumer levels in the United States,SSRN Electronic Journal Preprint.doi:10.2139/ssrn.2501659.4 The secret to savi
111、ng 700 a year on your food bill.Available at:https:/www.bbc.co.uk/food/articles/Rupy_food_waste(Accessed:23 April 2024).5 Hunger Statistics.Accessible at:https:/www.wfp.org/hunger/stats(Accessed:25 March 2024).6 Food Wastage Footprint&Climate Change.Available at:https:/www.fao.org/fileadmin/template
112、s/nr/sustainability_pathways/docs/FWF_and_climate_change.pdf(Accessed:23 April 2024).7 Chart:Globally,70%of Freshwater is Used for Agriculture.Available at:https:/blogs.worldbank.org/open-data/chart-globally-70-freshwater-used-agriculture(Accessed:25 March 2024).8 Food wastage footprint:Impacts on n
113、atural resources.Available at:http:/www.fao.org/3/i3347e/i3347e.pdf(Accessed:25 March 2024).9 Strategies to achieve economic and environmental gains by reducing food waste.Available at:https:/newclimateeconomy.report/workingpapers/wp-content/uploads/sites/5/2016/04/WRAP-NCE_Economic-environmental-ga
114、ins-food-waste.pdf(Accessed 25 March 2024).10 Waste Is it really in fashion?Available at:https:/www.fashionrevolution.org/waste-is-it-really-in-fashion/(Accessed:26 March 2024).11 The extent of overproduction in the fashion industry.Available at:https:/fashionunited.uk/news/fashion/infogra-phic-the-
115、extent-of-overproduction-in-the-fashion-industry/2018121240500(Accessed 26 March 2024).12 Overconsumption in the fashion industry.Available at:https:/www.fashionrevolution.org/over-consumption-in-the-fashion-industry(Accessed:25 March 2024).13 Cotton farming water consumption.Available at:https:/ Ma
116、rch 2024).14 Statistics about fast fashion waste.Available at:https:/earth.org/statistics-about-fast-fashion-waste/(Accessed:25 March 2024).15 Textiles:Material-Specific Data.Available at:https:/www.epa.gov/facts-and-figures-about-mate-rials-waste-and-recycling/textiles-material-specific-data(Access
117、ed:25 March 2024).16 Why clothes are so hard to recycle.Available at:https:/ March 2024).17 How the circular economy is redesigning fashions future.Available at:https:/www.weforum.org/agenda/2019/02/how-the-circular-economy-is-redesigning-fashions-future/(Accessed:26 March 2024).18 Sustainability.Av
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124、h 34 How crop robotics can make our food system more sustainable.Available at:https:/ March 2024).35 Autonomous robot bees are being patented by Walmart.Available at:https:/www.weforum.org/agenda/2018/03/autonomous-robot-bees-are-being-patented-by-walmart/(Accessed:28 March 2024).36 AI-powered perso
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136、 How to improve last-mile deliveries by incorporating AI.Available at:https:/ April 2024).65 Route optimization helps to reduce fuel costs by up to 30%.Available at:https:/ April 2024).66 Veesual.AI.Available at:https:/www.veesual.ai/(Accessed:23 April 2024).67 Innovative technology reshaping clothi
137、ng recycling.Available at:https:/ April 2024).18 Roland Berger|From waste to worth AUTHORSFurther reading BLACK SWAN SCENARIOS AND IMPACTS ALONG THE FASHION VALUE CHAIN SUSTAINABLE FASHION-CHALLENGES,SOLUTIONS AND A PATH TO NET ZERO CONSUMER GOODS,RETAIL&AGRICULTURESiobhn GhinSenior Partner Emily Wu
138、Senior Project Manager Charmaine LeongSenior Consultant We would also like to thank Neha Shah for her contribution to this report.This publication has been prepared for general guidance only.The reader should not act according to any information provided in this publication without receiving specifi
139、c professional advice.Roland Berger GmbH shall not be liable for any damages resulting from any use of the information contained in the publication.2024 ROLAND BERGER GMBH.ALL RIGHTS RESERVED.05.2024ROLANDBERGER.COM19 Roland Berger|From waste to worth24_2161_REPROLAND BERGER is one of the worlds lea
140、ding strategy consultancies with a wide-ranging service portfolio for all relevant industries and business functions.Founded in 1967,Roland Berger is headquartered in Munich.Renowned for its expertise in transformation,innovation across all industries and performance improvement,the consultancy has set itself the goal of embedding sustainability in all its projects.Roland Berger revenues stood at more than EUR one billion in 2023.PublisherRoland Berger GmbHSederanger 180538 MunichGermany+49 89 9230-0