Assessment of monetary implications of IoT-based temperature monitoring in supply chains of fresh plant-based produce

Abstract New technologies such as cross-chain IoT-based temperature monitoring will only be adopted if they offer a positive cost–benefit balance. Given the high monetary losses caused by food waste in the fruit and vegetable sector, there is large potential for savings. However, due to the heterogeneity of supply chains, it is not possible to indicate a general threshold for profitability. Therefore, this study aims to investigate the monetary implications of IoT-based temperature monitoring in supply chains of fresh plant-based produce by assessing the corresponding cost and benefits in exemplary application scenarios. Stakeholder interviews were conducted to examine the role of actors, geographical scope and mode of transport, as well as current challenges and potential of digital temperature monitoring from the stakeholders’ perspective. Based on the results, three application scenarios were created: 1) regional vine tomato supply chain, 2) international strawberry supply chain and 3) international apricot supply chain. For each scenario, the implementation costs of IoT-based temperature monitoring were assessed against the benefits of reduced product losses. It was found that considerable net savings are possible depending on the combination of IoT system used, product type, packaging volume, percentage of avoided product loss and IoT hardware reuse frequency. A prerequisite is that the collected temperature data is consistently used for decision-making and shelf life-driven distribution. Nevertheless, the implementation costs for IoT temperature monitoring systems are relatively high and could be reduced drastically with more sustainable, rechargeable IoT sensors. Additionally, further research is needed regarding new, data-driven business models to ensure fair cost and benefit distribution amongst supply chain actors.