The Importance of Digitalization for the Sustainability of the Food Supply Chain

Abstract

This paper aims to define the negative impact of various indicators on the sustainability and functioning of the traditional food supply chain (FSC) in the segment of wholesale and retail activities and to propose a set of measures and incentives for the digitalization of its business processes. After a systematic review of the literature, the most common indicators significant for the functioning of the FSC were defined, primarily in the segment of wholesale and retail activities. Empirical research examined the influence of given indicators on the FSC. The obtained results showed that indicators such as poor coordination and transfer of information among FSC participants, food loss, economic performance, transaction costs, external elements, chemical and microbial contamination, and control of raw material, food, and waste flows significantly complicate the sustainability and functioning of the FSC. Based on the obtained results, a set of measures and incentives is proposed that the management of the supply chain should undertake to digitalize business processes, primarily in the segment of wholesale and retail activities. This paper also lists shortcomings of the research and gives guidelines for future research.