The history of the last two hundred years is full of examples of food safety incidents, ranging from foodborne illness to food fraud. We not only continue to struggle with the same problems of the past, but also are facing them at new levels of complexity and scale. From the perspective of economics and systemic risk management, I’d like to talk about how technology and innovation can help us respond to some of these challenges.

Three trends complicate food safety challenges

The first trend is the globalization of food supply chains. One of the greatest achievements of technology is to enable commerce across borders in ways previously unthinkable. Most of the food that we consume comes from all over the world. Take the durian pizza from our Sam’s Club store, for example. It is made from flour from Northern China, durian from Malaysia and Thailand, pineapple from the Philippines, pepper from China, salami slices from Italy, and black olives from Spain. All these ingredients are from different countries.

Closely tied to this first trend is the expanding variety of products demanded by consumers. In the 1990s, the average grocery store in the U.S. had about 15,000 unique food items. By the end of the 2000s, that number nearly quadrupled. Today, we can provide consumers with almost an endless variety of food, but such assortment requires even longer and more complex supply chains.

The third trend is what I call the power of one. To illustrate this, let’s take a look at the 2006 E. coli outbreak found in spinach in the U.S. This food safety incident resulted in hundreds of sick consumers and even, tragically, a few fatalities. Ultimately, it took industry working together with government and research institutes nearly two weeks to find the origin of the outbreak. The incident caused huge losses in time, money and, most tragically, public health. In the end, the investigators found that the outbreak was sparked from one supplier, on one day of production, from one farm.

While there are certainly benefits to centralization, weaknesses become apparent when an unforeseen incident occurs. Technology and innovation in the food system are key drivers to tackle these issues. Within this context, the Walmart Food Safety Collaboration Center (WFSCC) believes that technology can be a key ally in grappling with both chronic, persistent food safety issues as well as those growing on the horizon. Many professionals in this field continue to push the boundary and develop technologies that were unimaginable in the past. I believe the following three principles can help bridge the gap between the potential of new technologies and their impact.

Three principles guiding food safety innovation

The first principle or question we ask ourselves before assessing a new innovation is, “How do we build ecosystems?” We believe that the best solutions typically come from a multi-disciplined approach and an alliance of partners that each contributes their unique talents and perspectives.

The second question is, “How do we create shared value?” Innovation is all about change, but changing can be very difficult. That’s why we need to demonstrate value to all affected parties to provide an incentive for change.

The third question is “How do we advance trust and transparency?” At Walmart, we believe that supply chains run more efficiently and are held to a higher standard when there is greater transparency. In classical economics, there is a principle that the availability of perfect information or transparency of information to all participants drives market efficiencies. At the end of the day, what we are doing will empower consumers to make better decisions within a transparent supply chain.

Walmart Food Safety Innovation Pipeline

The Innovation Pipeline is a signature initiative of the WFSCC. With this initiative, we aim to create a sustainable, collaborative platform to challenge existing companies in food safety technology to think bolder about their solutions as well as encourage new entrants to the space. Though the Innovation Pipeline revolves around an annual innovation challenge, it is more about building a community around food safety innovation.

We hope to transform ideas with great potential into reality. The Innovation Pipeline is open to all companies, regardless of their size or current industry. They need to test their innovative solutions in real supply chains. They also need guidance, investment and partnerships with other industries. The Innovation Pipeline will give companies access to leaders across the supply chain to make sure that they find the right people and the right place to apply their technology.

After two successful rounds, this year we hope to seek a truly global group of applicants and focus on how we connect various stakeholders along the supply chain in new ways to drive food safety and, ultimately, deliver more trust to consumers.

How does the Innovation Pipeline work? Each round starts with a request for proposals that details the target issue and the challenge criteria. It also includes an application to the program. Once we receive all the proposals, the WFSCC will narrow them down to 10-15 finalists. These finalists are then matched with mentors from our partners we call the Innovation Council. These Innovation Council members help to mentor finalists and act as a pool of potential partners for applicants to receive support and guidance. The Innovation Pipeline will culminate in a pitch session, where we gather finalists together to pitch their revised proposals to the Innovation Council. At the pitch session, we will identify winners that will have the opportunity to enter pilot discussions with Walmart and its partners.

The Innovation Pipeline provides a great networking opportunity for our potential partners and applicants to connect with likeminded peers along the supply chain. One of the most obvious benefits is that it is a convenient way to scout for new technologies. It is also a very public way to show your support both for the advancement of food safety and innovation here in China with key stakeholders and consumers. Companies can join us in many ways, including by joining the Innovation Council, co-hosting an event, or simply by referring a candidate company.

More information about the Innovation Pipeline Round Three will be released at the end of this month. Please follow us for more updates!