GrubMarket Acquires Procurant to Bolster Fresh Food Supply Chains – PYMNTS.com

Strategic Acquisition in Food Supply Chain Technology to Advance Sustainable Development Goals

Executive Summary

Food supply chain technology firm GrubMarket has completed the acquisition of Procurant, a prominent software-as-a-service (SaaS) and trading platform for the fresh produce industry. This strategic move is poised to significantly enhance supply chain efficiency and contribute to several United Nations Sustainable Development Goals (SDGs), particularly those concerning food security, responsible production, and industry innovation.

Impact on Sustainable Development Goal 9: Industry, Innovation, and Infrastructure

The acquisition strengthens the development of resilient and innovative infrastructure within the food supply chain. By integrating Procurant’s platform with its own artificial intelligence (AI) capabilities, GrubMarket aims to modernize a critical industry sector.

• Technological Advancement: The merger will create powerful AI-powered procurement solutions, replacing costly and inefficient legacy systems.
• Enhanced Connectivity: Procurant’s platform provides real-time collaboration tools that connect suppliers with major retailers and food service operators, fostering a more integrated and efficient industrial ecosystem.
• Risk Mitigation: The use of predictive AI can identify and quantify supply chain risks, such as those arising from weather events or compliance failures, before they escalate, thereby building a more resilient infrastructure.

Contribution to SDG 2 (Zero Hunger) and SDG 12 (Responsible Consumption and Production)

The combined technological capabilities directly address the challenges of food loss and safety, which are central to achieving Zero Hunger and promoting responsible production patterns.

1. Reduction of Food Waste: By streamlining procurement and logistics, the platform enhances the management of perishable goods. Procurant’s tools for quality control and compliance help minimize spoilage from farm to consumer, directly supporting SDG Target 12.3 to halve food waste.
2. Improved Food Safety: The platform’s dedicated food safety management features ensure higher standards across the supply chain, contributing to the food security and improved nutrition targets of SDG 2.
3. Data-Driven Insights: The technology provides meaningful insights into business partnerships and operations, enabling more responsible and sustainable management of food resources.

Fostering Economic Growth and Partnerships (SDG 8 & SDG 17)

The acquisition represents a significant partnership that strengthens the economic foundation of the food industry and promotes multi-stakeholder collaboration.

• Economic Scale: Procurant’s platform facilitates $5.5 billion in gross merchandise volume annually, involving over 850 customers in 14 countries, thereby supporting sustained economic growth (SDG 8).
• Strengthening Partnerships: The platform serves as a central hub for major retailers, including Costco, Target, Albertsons, and Walmart, creating a powerful network that embodies the principles of partnership for sustainable development (SDG 17).
• Market Modernization: This move accelerates the digital transformation of the fresh food industry, creating a more efficient and equitable market for all participants.

Analysis of Sustainable Development Goals (SDGs) in the Article

1. Which SDGs are addressed or connected to the issues highlighted in the article?

• SDG 2: Zero Hunger: The article discusses modernizing the food supply chain, which is fundamental to ensuring food availability and safety. Procurant’s platform includes tools for “quality control, compliance and food safety management,” which directly contributes to providing safe food.
• SDG 8: Decent Work and Economic Growth: The acquisition and the technologies discussed aim to increase economic productivity within the food industry. By “modernizing how the industry buys and manages perishables” and using AI to streamline operations, the platform enhances efficiency and supports economic activity, as evidenced by the significant gross merchandise volume it facilitates.
• SDG 9: Industry, Innovation, and Infrastructure: The core of the article is about technological innovation (AI, SaaS) being applied to upgrade the food supply chain infrastructure. GrubMarket’s acquisition of Procurant is a strategic move to become a leading “enterprise artificial intelligence (AI) solutions provider for the U.S. food supply chain,” which is a clear example of industrial innovation.
• SDG 12: Responsible Consumption and Production: A more efficient and intelligent supply chain directly addresses the issue of food loss. By using AI to “identify and quantify those risks before they escalate,” monitor “supplier reliability,” and predict “potential delays,” the system helps reduce spoilage and waste along the supply chain, from producer to retailer.

2. What specific targets under those SDGs can be identified based on the article’s content?

• Target 2.1: “By 2030, end hunger and ensure access by all people… to safe, nutritious and sufficient food all year round.” The article connects to this target through Procurant’s offerings that cover “food safety management,” which is a critical component of ensuring access to safe food.
• Target 8.2: “Achieve higher levels of economic productivity through diversification, technological upgrading and innovation…” The article’s focus on integrating “AI-powered procurement solutions” and replacing “costly legacy tools” with a modern SaaS platform directly aligns with achieving higher productivity through technological upgrading in the food sector.
• Target 9.4: “By 2030, upgrade infrastructure and retrofit industries to make them sustainable, with increased resource-use efficiency…” The entire initiative described—using a central trading platform and AI to “streamline global supply chains”—is an example of upgrading industry infrastructure to be more efficient and, by extension, more sustainable.
• Target 12.3: “By 2030, halve per capita global food waste at the retail and consumer levels and reduce food losses along production and supply chains…” The use of predictive AI to manage supply chain risks like “weather, supplier slowdowns, and compliance failures” is a direct mechanism to reduce food loss before it reaches the retail level. By preventing delays and ensuring reliability, the technology helps minimize spoilage.

3. Are there any indicators mentioned or implied in the article that can be used to measure progress towards the identified targets?

• Indicator for Target 8.2 (Economic Productivity): The article explicitly states that Procurant’s platform facilitates “$5.5 billion in gross merchandise volume (GMV) per year.” This GMV is a direct quantitative measure of the economic activity and productivity enabled by the technology.
• Indicator for Target 9.4 (Industry Innovation): The article mentions a “$50 million in a Series G funding round” raised by GrubMarket. This investment serves as an indicator of financial commitment towards developing and scaling innovative AI software and technology within the food supply chain industry.
• Indicator for Target 12.3 (Reducing Food Loss): While not a direct measure of food loss, the article implies an indicator through the platform’s capability to provide “real-time collaboration” and “monitor supplier reliability and regional performance signals.” The ability to “notify planners before production or delivery schedules are impacted” is a key performance indicator for preventing the conditions that lead to food spoilage and loss.
• Indicator for Target 2.1 (Food Safety): The number of customers using the platform’s tools for “quality control, compliance and food safety management” can be an implied indicator. The article states Procurant has “more than 850 customers in 14 countries,” including major retailers, suggesting a broad adoption of these safety and compliance-enhancing tools.

4. Table of SDGs, Targets, and Indicators

Source: pymnts.com