Smart Food: Toward an Integrated Supply Chain in a Smart City Diana L. Romero-Borbón, Victor M. Larios and Luis F. Romero
Abstract – The populations of today’s cities have increased, causing an imbalance between the resources available, those generated in the field, and the resources necessary for the adequate functioning of a city. A Food Supply Chain (FSC) aims to minimize logistics and production costs by integrating and managing capital and information flows. Information and communications technology can be used to achieve this goal. In this paper, an efficient FSC model is presented that allows processes to more efficiently move crops closer to the urban nucleus, prompting the evolution of a smart city into a smart territory. In this study, the following phases are explored: analysis and selection of a product, development of a model, simulation with real data, analysis of results and comparison with the current situation to determine whether an improvement was achieved. In this project, we are working closely with the Smart Cities Innovation Center at the Universidad de Guadalajara and with its national and international collaborators, including the IEEE Smart Cities initiative, with the goal of sharing the experience and knowledge acquired through efforts to develop Guadalajara as a Smart City.
Index Terms – Supply Chain, Smart Cities, Food Industry, Complex Systems, Modeling and Simulation Systems, Information Technologies, Internet of Things.
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1 INTRODUCTION TUDIES have shown that since 1950, the populations of cities have increased as a
result of the opportunities for growth that cities offer their citizens. In 1950, approximately 750 million people lived in urban areas, increasing to 3.6 billion people by 2011, approximately half the world’s population, and it is expected that by 2030 60% of the world’s population will live in cities [1]. Due to the large populations living in cities, a balance between the resources available and those necessary for the adequate functioning of a city to function adequately does not exist. This creates a window of opportunity for the use of Information and Communication Technologies (ICTs) to ensure that a city can efficiently supply necessary services to its citizens. For a city to progress, it is very important for various sectors within that city to pursue a common goal. This is the purpose of a triple bottom line (3BL), which involves working
together to achieve economic, social and environmental improvements [2]. The difficulty facing the 3BL is the complications involved in measuring various factors using the same standard (profits) [3]. Therefore, it is imperative to ensure that social and environmental factors are measured appropriately. As different measures must be considered, one way to measure environmental factors is by defining carbon footprints. Carbon footprints measure the direct and indirect impacts of how food is grown and produced with respect to water scarcity, climate change, pollution, health and safety [4]. However, each of these factors increases the difficulty for producers of obtaining an efficient supply chain. To produce an efficient supply chain, the city must be treated as a complex system. Complex systems are composed of many subsystems, and supply chains are one such important subsystem. Supply chain management is intended to improve processes. For this study, we will focus on food supply chains. In this context, a city will be established as a customer and the farmland as the supplier; many farms are not fully utilizing technology, and in response to this problem, this study aims to identify the relationship between the field and ICTs and to produce a positive impact.
———————————————— • M.I. Diana L. Romero is a PhD Student in IT at the
With the idea of moving beyond a Smart City toward the creation of a Smart Territory, this study will combine Smart Cities and Food Supply Chains. Through the Smart Cities Innovation Center 1 at CUCEA Universidad de Guadalajara (UDG), several organizations have expressed interest in this project. Figure 1 shows some of these organizations, divided by their sectors and areas of societal impact.
Fig. 1. Beneficiaries from the Project and its Social Impact.
This project is part of the IEEE Smart Cities initiative, which aims to support smart food chains to reduce carbon footprints and waste in all of the supply chain-related processes. This study is performed in collaboration with industry, academia and Jalisco’s State Government to transform Guadalajara’s metropolitan area into a national model of a Smart City. This research also assists a Living Lab dedicated to territorial intelligence and Smart Cities Solutions, which is officially recognized by the Ministry of Innovation, Science and Technology (SICyT)2 in the State of Jalisco and will begin this year, joining efforts with the MIT Media Lab City Farm project3.
2 PROJECT OBJECTIVE The main goal of this project is to develop a study of food supply chains within a territory
1 Centro de Innovación en Ciudades Inteligentes 2 Secretaria de Innovación, Ciencia y Tecnología 3 http://mitcityfarm.media.mit.edu
that aspires to be smart through the use of technology. This smart food supply chain will involve the design of a model that improves the efficiency of relevant processes. More specifically, a primary goal of this project is to reduce food waste and carbon footprints through improvements to supply chain logistics using information technologies, as well as the creation of a model for simulation. As a first step, this work will focus on blueberry production near Guadalajara city as a model of an actual supply chain and consumer markets in the city. A computerized model will assist our search for optimizations using simulations and analytics. Furthermore, we will adapt this simulation model to other food production systems related to the Guadalajara Smart City. This project will also collaborate with the MIT Media Lab City Farm project in Guadalajara City to support technology transfer to food producers.
3 SUBJECT OF STUDY Currently, blueberries are in demand in over 50 countries worldwide and new markets continue to emerge. The biggest blueberry consumers are in America (US and Canada), and new markets are arising in Asia, especially in China; central Europe has also been a longtime blueberry market. Blueberries are used in medicine, human and pet foods and beauty products (such as cosmetics or creams). The growth of the blueberry industry is considered the result of research projects that have identified valuable attributes of blueberries such as their extraordinary nutritional value, fiber content, also effects on increasing good cholesterol, antioxidants, and other features.
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According to Siap-Sagarpa,4 Jalisco is the primary producer of blueberries in Mexico [5]; therefore, the subject of this study will be the State of Jalisco. Assuming that Guadalajara’s metropolitan area is the customer base, a rural location yet to be chosen will be considered the supplier. Blueberries are an interesting case study for smart food because of their economic impact for the metropolitan area of Guadalajara City, not only in terms of food but also including the related derived products and jobs. Jalisco State was chosen for this study because it has a population over 7 million people [6], and 87% of that population lives in cities, with 70% of the citizens of Jalisco living in the metropolitan area. Additionally, 40% of Jalisco’s economy is based in agroindustry and 82% of its produce is exported [7]. For the Guadalajara Smart City project, we believe that the food supply chains of Guadalajara must be improved.
4 CONTEXT ‘Smart Cities’ is a very broad term that is frequently defined by authorial opinion, from narrow ideas to holistic visions. However, all definitions of smart cities include ICTs as indispensable tools for growth and development. Some researchers define Smart Cities as Self-Sustainable Cities that offer services to elevate the quality of life of their populations through ICTs, by applying technologies to increase competiveness and economic growth. This can be accomplished by improving the products and services cities have to offer, making them more accessible and efficient, and by managing resources more
4 Servicio de Información, Agroalimentaria y Pesquera de la Secretaria de Agricultura, Ganadería, Desarrollo Rural, Pesca y Alimentación.
effectively, among other desirable characteristics [1], [8], [9], [10], [11], [12]. In conclusion, a Smart City is a city that uses ICTs to improve the quality of life of its population, maintaining competitive and sustainable development. To better understand smart cities, a clear definition of Information Technologies (IT) is necessary. Most authors agree that computer systems are indispensable but may have different interpretations of IT as a concept. Most note the importance of IT for successful competition; many cite the ability of IT to acquire, store, manipulate, transmit, recuperate and administrate information, and mention software applications or computer hardware as common subsets of IT [13], [14], [15], [16], [17]. In accordance with the purpose of this research, the following definition can be established: ICTs embrace the use of computational tools to manage and process data and information to increase productivity in an organization and its processes. Information and communication are continually being exchanged between individuals as the use of mobile devices has increased over the last few years. Therefore, users’ need for connectivity technology is constantly growing, which leads to further interactions between users facilitating commerce, science, entertainment, education and other activities [18]. The growth of the Internet as an essential tool for communication and the connectivity of individuals implies that the next step is to connect objects, places, things and any entity that can benefit from such connectivity [11], a concept known as the Internet of Things (IoT). The IoT uses technologies such as Radio Frequency Identification (RFId), labels, sensors, mobile phones and others to allow devices to
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interact and cooperate to reach a common goal; the intention of using the IoT is to assist decision-makers in their professional or personal lives. For example, RFId systems are capable of creating virtual network map traced by GPS, and have a wide range of applications including logistics, e-health, security, and more. [19]. Supply Chains (SC) are not an exception as they have experimented with substantial changes through technological evolution to enable advantageous competition in their markets, as can be seen in Figure 2 and in the examples of mobile phones, e-commerce, and buying songs or renting movies from home.
Before studying the impact of new technology, the concept of SC will be analyzed. SC are considered a holistic network, wide enough to perform operations and to tend to a target market and are used to deliver products and services from raw materials until a final product reaches its final consumer, including flows of information and distribution as well as monetary flows. For the purposes of this research, SC will be defined as global networks used to deliver products and services, including the processes used to acquire raw materials, their transformation, and all subsequent steps until a final product is supplied to the end consumer.
Fig. 2. Knowledge Areas Involved
The lengths of SC depend on how far back raw materials are traced and who is considered to be the final consumer. The complexity of SC also depend on their length. The importance of SC continues to grow, making it possible for different departments in an organization or different processes in an activity to be aligned toward a common goal; although not a simple task, this is achievable, as can be seen in, e.g., automobile manufacture. Mentzer et al. [21] defined Supply Chain Management (SCM) as
the systemic and strategic coordination of traditional business functions and tactics across these business functions within a particular company and across businesses within the SC for the purpose of improving the long-term performance of the individual companies and SC as a whole. FSC is a structured network with the objective of maximizing client satisfaction and minimizing production costs through the
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administration of financial, information and material flows and logistics alignment [19].
5 PROPOSED METHODOLOGY To develop this investigation, System Development Phases will be used as shown in Figure 3.
Fig. 3. System Development Phases [22]
Analyze – In this study, analysis involves identifying all of the components of a system. Design - For this study, a single product will be selected with the aim of studying SC using a systemic approach to determine its components. Integration – A model of SC will be established to evaluate its current state by measuring its performance through selected metrics and indicators. SC are complex networks of suppliers, manufacturing enterprises, warehouses, distribution centers and retailers through which raw materials are requisitioned and transformed with the intent of providing a product to the client. All of these activities can be performed using multi-agent systems due to their autonomy, distribution, collaboration and resource assignments, which can also be found in SC [23]. Operation – Based on the model designed in the Integration phase, a real data simulation will be performed to establish validation and reliability metrics.
Modification – An analysis of results will be performed by comparing the current situation with the proposed parameters for the established model to determine whether improvements were made to the relevant SC. Analytics and big data can be used to examine the results.
6 SCHEDULE OF ACTIVITIES The activity schedule for the satisfactory completion of this study is shown in Figure 4. A brief description of each activity is as follows: Literature Review – Using the database available at the Universidad de Guadalajara, perform a systemic search to identify relevant previous work. Project Scope – Based on the literature review, define and delineate the scope of this study. System Identification – Identify all system elements involved, such as components, entries, exits, interactions, scope and limitations, and others.
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Modeling – Establish an adequate system representation and validate its functionality. Experimentation – Using the model, perform a simulation to measure the current state of the system; modify the parameters of the model to obtain a satisfactory solution.
Information analysis – Analyze the results from modeling and experimentation, and draw appropriate conclusions. State of the Art Publication – Publish at least one article or white paper. Experimental Publications – Publish at least one article based on modeling, experimentation and information analysis.
Fig. 4. Activity Schedule
7 PERSPECTIVES This project will be performed in coordination with the Smart Cities Innovation Center and their network of national and international collaborators. The scope of this study is limited to that of a PhD thesis, whereas the network has a different scope. It is expected that this project will receive financial support for the necessary technology for the proposed experiments, publications, and student travel accompanying the project. We are working together with INADEM, PROSOFT 2.0 budget, and CONACYT; it is anticipated that the SICyT of the State of Jalisco will construct a budget to support the expected relevance and social impact of this project. During the first semester of the project we anticipate submitting a white paper publication on our review of the literature and the delineation of the appropriate context in which to solve this problem.
ACKNOWLEDGEMENTS We acknowledge the University of Guadalajara and its Smart Cities Innovation Center at
CUCEA Capus for hosting and supporting this project. We also thank CONACYT for its grant in support of the PhD students in the UDG IT PhD program. We appreciate Intel Educational for providing their support and advice on IOT, as well as HP Guadalajara for their analytics proposal, and the government of Zapopan for their Grant to connect with the MIT Media Lab City Farm project.
REFERENCES
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[19] L. Li, "Application of the Internet of Things in Green Agricultural Products Supply Chain Management," 2011.
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[23] Q. Liu and H. Min, "A Collaborative Production Planning Model for Multi-Agent Based Supply Chain," IEEE Computer Science and Software Engineering, 2008.
M.C. Diana Lucía Romero Borbón is currently a PhD student in Information Technologies at Universidad de Guadalajara. Her areas of interest are modeling and simulation, smart cities, supply chain, quality, analytics and big data. She received her master’s degree from the Universidad de Sonora in the field of Industrial Engineering, specializing in quality. Diana has national and international publications and has been a member of IEEE since 2014. Victor M. Larios received his PhD, a DEA (the French version of a MS program) in Computer Science at the Technological University of Compiegne, France, and a BA in Electronics Engineering at the ITESO University in Guadalajara, Mexico. He works at the University of Guadalajara (UDG) holding a Full Professor-Researcher position at the Department of Information Systems and he is the director of the Smart Cities Innovation Center at CUCEA UDG Campus. Dr. Victor M. Larios founded the UDG PhD in Information Technologies in 2007, and has been leading projects in Guadalajara combining academia, government, and the high tech industry, including IBM, Intel, and HP, focusing his research on distributed systems, parallel computing, data analytics and visualization, serious games, and smart cities. During 2013, Dr. Victor M. Larios was a consultant and elected Director of Science and Technology for the Guadalajara Ciudad Creativa Digital A.C. project. Since July 2013, Dr. Victor M. Larios has volunteered as the Guadalajara City Local Leader for the IEEE Smart Cities
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Initiative. In addition, Dr. Victor M. Larios has been an IEEE Senior member for 22 years and is the current secretary of the IEEE Computer Chapter, Guadalajara Section.
Dr. Luis F. Romero received his Ph.D. in Engineering from The University of Warwick, U.K., and his M.B.A. and B.Sc. in Administrative Industrial Engineering at the University of Sonora, Mexico. Dr. Romero serves as a professor at the University of Sonora and holds a Full Professor Research position in the Systems and Industrial Engineering Department. Currently, he is a lecturer in the Systems and Industrial Engineering B.Sc. and the Systems and Technology Engineering M. Eng. programs. His research interests are in modelling, simulating, and improving supply chain operations and information analytics. Additionally, he has authored and co-authored various scientific publications in the areas of production improvement, simulation, supply chains, and analytics. Recently, he completed a book on simulation and joined the IEEE Smart cities program at Guadalajara Jalisco. He currently serves on the committee on Systems and Technology Engineering for its Masters Program. He is a member of the Institute of Industrial Engineering, the American Production and Inventory Control Society, the American Quality Association, and the International Association of Engineers.
