This industry report identifies best practice for the quantification
and reporting of food loss and waste (FLW), while accounting for
the cost implications of those losses, across the food supply chain.
Measurement is central to the prevention of FLW; accurate quantification and impact are essential as the basis of developing a business case for FLW
reduction. Best practice knowledge has been used to inform the development and
commercialisation of the decision support tool (DST), DIRECT.
• Aligning with the UN’s Sustainable Development Goals (SGD), the Fight Food
Waste Cooperative Research Centre (FFW CRC), RMIT University and Empauer
have created DIRECT (through Project 1.1.1) as a business-ready and cloud-based
DST that quantifies the ‘true cost of waste’ by identifying where food and non-food
material losses flow across the food supply chain. DIRECT operationalises the globally recognised Food Loss and Waste Accounting and Reporting Standard (FLW
Standard). Also, DIRECT implements the approximation of the monetary cost of
material flows of FLW, in line with aspects of ISO 14051, a general framework for
material flow cost accounting (MFCA). This level of granular attribution enables,
both, consistency in output and flexibility in the analysis of material flows and costs,
regarding product and non-product/waste destinations, in the food supply chain.