Food Logistics serves the entire food supply chain industry with targeted content for manufacturers, retailers, and distributors.
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www.foodlogistics.com FOOD LOGISTICS • MARCH 2015 23 a system that improves the efficiencies of man- aging inventory throughout the supply chain. A key component of improving traceability in the supply chain is implementing uniform inventory data standards. As food processors, distributors, operators and retailers adopt uniform inventory data standards in pursuit of traceability, many will find that uniform standards enable them to track inventory faster throughout the supply chain. And as data standardization expands among players across the supply chain, users will find they are able to provide supply chain partners more accurate information faster. In addition to improving traceability, data standardization also make it easier for compa- nies to comply with food safety regulations, which are increasing. Data standardization and warehouse automation A review of traceability initiatives indicates that food safety, data standardization and warehouse automation are all part of the same discussion. "A good food traceability system not only protects the consumer, but also benefits compa- nies throughout the entire food chain because it reduces business expense and can lead to greater brand satisfaction and even increased profits," states the book, "Food Traceability For Dum- mies," a cooperative effort of Ontario, Canada- based Carlisle Technology, Orlando, Fla.-based Datamax O'Neil and Shaumburg, Ill.-based Motorola Solutions. Integrated traceability systems include identi- fication technology, data capture, network infra- structure, and data analysis software. Traceability software can track, label and ship products with specific characteristics. The soft- ware can automatically generate bills of lading and verify shipments. Some systems allow the user to track and organize products by pallet, lot and case and even by location. This gives com- panies the flexibility to move inventory among their warehouses, including repeated commin- gling and re-boxing at any point in the process, without losing traceability. "The retailer expects immediacy, and the gov- ernmental agencies are more and more expect- ing immediacy," says Carol Golsch, director of product management at Redline Solutions, the Santa Clara, Calif.-based provider of traceability software. Golsch stresses the economic benefit of accurate traceability in the event of a recall. "If you don't know where the implicated lots were shipped, you're obligated to pull everything that was shipped in the suspect date range. Trace- ability is a huge cost saving for companies since it allows you to narrow down the recall to only the lots that are implicated." But she points out another benefit as well: "If you do not have a traceability plan in place, you risk a lot more than money. You are risking your brand." Produce leads the food industry The produce industry took a pioneering role with traceability management in response to widely publicized recalls. A 2006 spinach recall forced many produce companies to take a closer look at their traceability capabilities, says Angela Fernandez, vice president of retail grocery and foodservice at GS1 US, a global organization that develops and maintains sup- ply chain standards. Prior to that, the perish- able segment of the food industry had lagged in adopting GS1 standards, which are designed to uniquely identify products moving through the supply chain and provide continu- ous synchronization of accu- rate data between businesses. In 2008, the produce industry identified GS1 standards as the basis for its Produce Trace- ability Initiative (PTI), providing case-, lot- and www.POLB.com/subscribe There's a lot going on in and around the Port. So much that you need to know. Get the latest happenings by signing up for our electronic newsletters. Just visit polb.com/subscribe and sign up for alerts on Port news, cargo statistics and our award-winning Tie Lines monthly newsletter. Port News. Your Inbox. Better Together. GS1 standards make whole-chain trace- ability possible due to the fact that they provide interoper- ability between existing systems and solutions.