Can software loosen Big Food’s grip on institutions?

Can software loosen Big Food’s grip on institutions?

Solar-System-1

We love this visualization of the Local Orbit network, which was recently published in piece about  LocalEyes, our Supplier Management Service for institutions, at The New Food Economy.

Increasingly, large institutions are setting food procurement standards that require local sourcing, and they’re vetting vendors and contractors based on their ability to comply.

Erika Block | Local Orbit | Software Company | Food Business

Local Orbit founder and CEO Erika Block

Broadline distributors like U.S. Food, Gordon, and Sysco have been slow to address the emerging trend. But an Ann Arbor, Michigan-based software startup, Local Orbit, is in the process of bringing to market a new service that does what Big Food has struggled to accomplish. It provides streamlined access to local and sustainable food sourcing for high-volume purchasers like hospitals, schools, universities and prisons.

Erika Block, Local Orbit’s CEO, sees a crucial window of opportunity. Last year, for instance, local food co-op Maine Farm & Sea Cooperative lost out to food service contracting giant Sodexo in a multi-campus University of Maine contracting bid. Some viewed it as a blow to the local food movement, but to Block, it’s a sign of change.

Continue reading on The New Food Economy.

LINC Foods and Gonzaga University: A Case Study

LINC Foods and Gonzaga University: A Case Study

LINC Foods and Gonzaga University: A Case Study

The Challenge

Students at Gonzaga University are demanding more local food options and greater visibility into the sources of supply. In response, the University established aggressive goals with its dining services contract operator (Sodexo) to increase purchases of sustainably grown food in Washington, Oregon, and Idaho.

Currently, demand is greater than supply, making it difficult to meet purchasing targets. Increasing the number of local suppliers will help increase supply, but this brings additional challenges for Sodexo-Gonzaga, including identifying qualified suppliers, managing multiple orders and paying multiple invoices.

The Players

LINC Foods is a farmer-owned cooperative focused on building a regional, sustainable food system by linking local farmers to new markets in the Inland Northwest. LINC uses Local Orbit’s tools for suppliers to effectively manage and scale their businesses. They are passionate about growing and expanding their business and sharing their quality products with other local businesses. Recently, LINC has expanded into wholesale distribution, including working with Sodexo at Gonzaga University in Spokane, WA.

Local Orbit is the supply chain platform for people who are creating a new, connected food economy. Local Orbit provides software and services enable businesses to buy, sell and distribute local food through shorter, transparent supply chains.

Sodexo-Gonzaga University Dining Services runs the dining services at Gonzaga University. They serve approximately 2600 students on meal plans across multiple campus locations, which include a deli, diner, vegetarian fare and cuisine from around the world. Faculty, staff and students not on meals plans can also purchase food throughout the dining locations.

Charlie’s Produce supplies a broad range of produce that services an area that covers Northern Idaho, Northeastern Oregon, Montana and Eastern Washington. Charlie’s is committed to supporting local producers and works with LINC to help increase the amount of local produce they offer.

The Solution

Sodexo-Gonzaga was already ordering some local produce from Charlie’s, but wanted to also order local products directly from LINC’s farmers. LINC was able to leverage an existing relationship with Charlie’s to cross-dock (deliver) orders through to Sodexo-Gonzaga.

LINC provides a vetted and consolidated source of local produce with transparent producer stories, growing methods and locations.

Local Orbit provides order aggregation across the multiple growers in LINCs network for efficient order processing and fulfillment.

Charlie’s uses its existing transportation network to provide an extra service to Sodexo-Gonzaga. Charlie’s is also able to generate additional revenue by providing delivery for LINC orders.

University Purchasers

Supply Chain Partners

Farmers

%

Increase in Sales

Here’s How it Works

Sodexo-Gonzaga places an order through LINC’s Local Orbit ordering portal. LINC then invoices Charlie’s for the order and cross-docks the order through Charlie’s, which then invoices Sodexo-Gonzaga with a cross-dock fee included for their service.

Action

As a result of this partnership, Sodexo-Gonzaga was able to begin ordering local produce quickly and easily.

Local Orbit simplifies local procurement for Sodexo-Gonzaga by providing a streamlined ordering process with access to all of LINC’s producers, with increased tracking, traceability and transparency throughout the supply chain.

 

Visible Results

Local Orbit provides Sodexo-Gonzaga with access to both real time and historic data about their local food procurement. This allows them to track their progress as they increase their local food purchases and share these successes – and their community impact – with students and University stakeholders.

And Gonzaga students are more satisfied because they’re eating more local food.

 

Growth

LINC has been able to grow its wholesale business and expand into new sales channels, while maintaining the ability to track products directly from the point of origin to the final customer. This relationship has also benefitted the producers of local foods in the Spokane area who sell product through LINC Foods.

Charlie’s Produce also earns additional revenue, while fulfilling its mission to support local producers.

As a result of this successful partnership, three additional Sodexo operated, university dining services locations have started ordering from LINC as well. This relationship has resulted in 25% increase in business for LINC and its producers.

 

Impact

LINC has been able to grow its wholesale business and expand into new sales channels, while maintaining the ability to track products directly from the point of origin to the final customer. This relationship has also benefitted the producers of local foods in the Spokane area who sell product through LINC Foods.

Jason Houston’s Farm Photos on Local Orbit

Jason Houston’s Farm Photos on Local Orbit

We love the farming and food production photos on our homepage which are the work documentary photographer Jason Houston, who writes:

For over a decade I photographed farms and farmers in the Berkshires in Western Massachusetts where I lived from 2000-2012. I started this project because I believed that food and where it comes from and how it is made is one the most urgent, universally important issues our world faces today. And the more time I’ve spent on this work, the more I have come to understand…

…that we really are also in serious trouble: Issues of personal health and global hunger, the instability and injustice of an oil-dependent economy, terrorism and increasing agricultural trade surpluses, the lack of knowledge around genetic engineering, the loss of traditional knowledge and regional varieties in our crops, the ethical treatment of animals and the impact on our environment… all are part of the dynamic we participate in each and every day, every time we eat.

Proponents of industrial agriculture will insist we are too far-gone and must buy into technological solutions. But a growing number of communities around the world are challenging this assumption, and farmers on small, independently owned, and community focused farms are helping local economies grow and sustainable agriculture take hold in legitimate and effective ways. Such farmers represent real alternatives and I photograph them to help open up the critical conversations we need to be having about where our food comes from and the sustainability and vitality of that system.

We’re grateful to Jason for sharing his work. Check out his site to see the breadth of his work (and maybe purchase something!).

Local Orbit CEO Erika Block Discusses Supply Chains in Detroit, Chicago and LA

Local Orbit CEO Erika Block Discusses Supply Chains in Detroit, Chicago and LA

Techonomy Detroit

Techonomy Detroit

Food, farming and technology organizations are gathering at a number of events this fall to discuss the future of the way we eat. CEO Erika Block is participating in several of these conversations around the country, sharing Local Orbit’s perspective on building the New Food Economy.

On November 6, Erika will be at the Local Food Association’s Local Food Buyers Exchange Midwest in Chicago, where she will moderate a conversation on Catalyzing Growth Through Supply Chain Managementl, with Dave Rand, head of Sales and Operations at Local Foods Grocer, and Rick Terrien, founder of Innovation Kitchens.

They’ll discuss how traditional mainline distributors, regional distributors, food hubs and other types of processing, aggregation and distribution businesses are creating new possibilities for commercial-scale market penetration of local and regional foods.

On November 12, Erika will travel to Los Angeles to participate in The Role of Grower and Food Maker as Entrepreneur and Change Maker in Strengthening the Local/Regional Food System at Seedstock’s Reintegrating Agriculture: Local Food Systems and the Future of Cities conference. She will appear alongside a distinguished set of panelists including Dwight Detter of Whole Foods Market, John Mesko of the Sustainable Farming Institute of Minnesota, Michel Algazi of Food Centricity, Freshology and L.A. Prep, and former Secretary of the California Department of Food and Agriculture A.G. Kawamura, of Orange County Produce.

Erika also participated in Techonomy Detroit’s What is Farming? panel discussion in September.  Moderated by Justin Fox of the Harvard Business Review, Erika joined Marilyn Davis of K2S Advisors LLC, Dickson Despommier of Vertical Farm Project and Columbia University, and Jordan Motzkin of Big Box Farms in a frank conversation about the economic viability of vertical agriculture and urban farming, as well as the role of technology in addressing the challenges of local food distribution.

Erika Block Speaks About Local Ag Innovation at Grow Riverside

Erika Block Speaks About Local Ag Innovation at Grow Riverside

At the recent Grow Riverside Conference in Riverside, California, Erika Block shared the stage with other innovators to discuss new technologies and business models that are supporting sustainable, small scale farming. Over 400 people spent two days exploring how to grow the new food economy in Southern California.

Erika’s presentation illustrates how the consumer demand for local food is growing despite distribution challenges and the recession. She introduces the concept of a shifting landscape whereby restaurants, hospitals and governments are creating initiatives to increase their local buying power. Erika also shares Local Orbit’s vision for relinking the food chain.

Erika spoke alongside Pierre Sleiman of Go Green Agriculture and David Rosenstein of EVO Farm. The panel was moderated by Robert Puro of Seedstock — one of our favorite publications about sustainable agriculture innovation. You can view the entire presentation, including audience questions, here.

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