Tag Archives: cold chain

Jeremy Schneider, Controlant

Using Technology for Traceability Adds Dimension to Supply Chain, Promises ROI

By Maria Fontanazza
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Jeremy Schneider, Controlant

“As food safety leaders, it is our responsibility to actively investigate the newest technologies in the market with the goal of providing the highest level of safety for our customers. The regulatory environment is rapidly evolving from a position of hazard management to preventative control, which challenges the status quo while promoting innovation. In addition, we are actively working to build food safety cultures within our operations,” says Jeremy Schneider, business development director, food safety and quality assurance at Controlant. “On top of these mandates, we are consistently being challenged to find ways to improve quality, reduce waste, and assure supply. When taken as a collective mandate, this can be considered a challenge that allows the industry to solve previously unsolvable business problems in new and exciting ways. Utilizing the newest technologies for enhanced supply chain visibility is the solution to some of our most challenging industry-wide problems.”

Schneider has more than 15 years of experience in the food quality, safety, and regulatory sector. His experience spans managing food safety and quality systems within several fast-casual restaurant chains as well as food manufacturing. In a Q&A with Food Safety Tech, Schneider discusses some of the issues that food companies are experiencing surrounding traceability in their supply chain.

Jeremy Schneider, Controlant
Jeremy Schneider, business development director, food safety and quality assurance at Controlant

Food Safety Tech: What challenges are food companies and retailers facing when it comes to real-time monitoring of their supply chain?

Jeremy Schneider: One of the biggest challenges that the industry faces when it comes to real-time monitoring of the supply chain is where to start. As you can imagine, implementing a program that allows for an organization to monitor all shipments, including those that are shipped internationally, by ship, air freight, over the road or by rail, can be daunting.

As with all food safety programs, it is advised to take a risk-based approach to the project. Begin with the highest-risk items within your supply chain and work to your second- and third-tier items or suppliers. When implemented by category over time, you will find implementation less challenging. It is important to remember that when you begin a real-time program, you will start to discover eye-opening information about your supply chain. It’s important that you develop strategies to deal effectively with these incidents.

Another primary concern for the food industry is the cost of implementation, as well as the return on investment. We have found that, by implementing a real-time monitoring solution, an organization is able to dramatically reduce shipping loss because of temperature abuse. Oftentimes, the program provides a net savings for the organization. When considering the cost of wasted food, freight, liability, lost sales and labor, a real-time supply chain visibility solution becomes a cost-effective program very quickly.

FST: Are there any lessons learned from recent outbreaks or recalls regarding traceability?

Schneider: Over the last several years, the industry has made real progress towards a transparent supply chain. However, it must be said that much work is needed to meet regulatory standards and consumer expectations when it comes to traceability. As we have become accustomed to having information that provides insights into all facets of our life, the same is becoming true of the supply chain.

Being able to have business-critical data immediately, such as real-time supply chain and traceability data, is revolutionizing the industry and is allowing enterprise-wide improvements. During a crisis situation, being able to have insights into your supply chain is paramount. Unfortunately, it has become all too common for organizations to take the ‘’out of an abundance of caution’’ approach and remove all products from the supply chain, regardless of lot code or other data, to ensure consumer safety.

The consequence of such an approach is that much more product is removed than necessary, which compounds the effects of the incident. Having had the appropriate traceability information allows organizations to take a precision-focused approach, allowing for organizations to minimize the impact as much as is safely possible.

To help organizations solve this dilemma, there are a variety of technology offerings available to help companies collect and transform data so that it can be easily used. In addition, layering rich data, such as that which is created from real-time Internet-of-Things (IoT) devices and cloud-enabled software technology, helps provide dimensional insights into your supply chain information.

FST: How can companies leverage technology to be proactive in maintaining consistent tracking and tracing throughout the supply chain?

Schneider: As we enter an era of smarter food safety, each organization will be challenged to solve some of the most pressing concerns using state-of-the-art technology. The great thing about having actionable traceability data, beyond its uses to support food safety, is that it allows an organization the ability to gain insights into their supply chain at both the micro- and macro-levels.

As an example, when an organization implements a real-time temperature monitoring program, not only are they able to identify and resolve temperature deviations before they become food safety or quality incidents, logistics can then utilize the data to optimize the shipping lane to reduce costs, and purchasing is able to know exactly where a truck is located on its route. Being able to show the value that location traceability data provides across an enterprise helps to improve the organization at every level.

Gisli Herjolfsson, Controlant
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How Supply Chain Digitalization and Data Helps Prevent Costly Recalls

By Gisli Herjolfsson
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Gisli Herjolfsson, Controlant

Recalls are something that food brands plan for but hope to never experience. They are an important public safety issue, but they also have a significant economic impact as well. At best, a product recall is a benign mistake that causes little more than aggravation and inconvenience for a few angry customers. At worst, the consequences can be tragic, both in terms of human and financial impact.

Industry research conducted by the Food Marketing Institute and Grocery Manufacturers Association places the average cost of a single recall at $10 million. That calculation includes only the direct costs of a recall. For the full, long-term costs, including direct and indirect liabilities, you’d need to further account for the immediate loss in sales, litigation costs, as well as any long-term damage caused from a loss in consumer confidence in your brand.

Consumers’ relationship with food is ever changing. They demand transparency about its contents, origin and safety, and for good reason. The World Health Organization estimates that nearly 1 in 10 people are sickened yearly from eating contaminated food, leading to 420,000 deaths. Consumers have long memories for businesses that poison them. The larger the size of your company and the more attention it receives, the potentially greater impact on your long-term business prospects. With the recent E. coli outbreaks tied to romaine lettuce, food safety is top of mind for consumers, and it is impacting entire market segments.

One of the easiest ways to prevent recalls associated with perishable foods is to ensure that food and beverage products are safely produced and continually kept at the right temperatures. Sounds easy, right? In reality, it is far from it.
Gaining end-to-end supply chain visibility can help you prevent costly recalls altogether. Data that today’s technology provides will be important for mitigating risk and protecting a brand’s reputation.

Get Proactive

The idea of prevention is paramount to FSMA. It’s clear that the FDA expects that once a producer or supplier discovers that something has gone wrong, they go back and figure out exactly what happened so that they can put measures in place to prevent it from happening again.

While current FDA guidelines and various EU safety regulations generally require that food can be tracked one step up and one step down the supply chain, this remains a very siloed approach to traceability and is open to risks—risks that producers, food retailers and restaurant brands cannot afford to take.

For USDA-regulated products, HACCP employs a similar process. Prevention is key, and if your monitoring measures miss an issue that could compromise food safety, you’ll need to go back and determine the root cause of the problem.
A cold food manufacturer can do a lot to control risks under its own roof, but how do you avoid costly recalls with ingredients or with temperature abuse after a product leaves the facility? Regulations or not, knowing where your ingredients and food products come from and being assured of their safety is critical in protecting your brand and company from the financial and reputational damage caused by a food recall.

Looking forward in the supply chain, maintaining the cold chain is necessary for many products, including fresh produce, frozen and deep frozen foods, and also those that must be kept at room temperature but still require temperature control. Even if you and your suppliers are incredibly careful and practice prudent safety measures, you may not have full visibility over who else is handling your products. If temperature mishandling by someone else necessitates a food recall or results in a food safety incident, it is still associated with your brand, even if you weren’t the direct culprit.

For many food retailer and restaurant chains, it is common practice for them to share their internal food safety guidelines with their suppliers and partners, and require that they prove a product’s source of origin, lifespan, how those products are stored and transported from point A to point B, as well as the environmental conditions in which foods are kept. Allowing suppliers and logistics partners to self-manage their supply chain does nothing to proactively ensure that they and a food brand aren’t in the headlines due to a food safety incident.

Digitally Connect the Supply Chain

This is where technology and data can play a critical role in managing your temperature-controlled food and beverage products. More and more food enterprises are utilizing Internet of Things (IoT) technologies that talk to the internet so they can collect supply chain data into dashboards and access it on demand.

IoT can be considered as a central nervous system for the supply chain. Through IoT, you can track shipments or trace temperature, moisture or other factors that can have an impact on food quality. Not only can you discover problems more rapidly with this technology, you can narrow the scope of recall. For businesses transporting temperature-sensitive products, this means they can manage product movement data in real-time and respond to issues before they lead to a food safety incident or product waste.

From a food production standpoint, IoT solutions can substantially reduce recalls from issues like labeling, processing and contamination. One of the primary causes of a food recall is microbiological in nature, with the majority of cases involving fruits and produce. IoT data can help detect issues further upstream in the supply chain and, since products will change hands several times before they reach a consumer, it can give you a complete picture of the product’s lifecycle—something that cannot be done with clipboards and ad hoc or periodic inspections.

Through cloud technology, food businesses can connect their end-to-end supply chain, analyze data, discover trends, illuminate weak points and directly respond to them to improve their overall processes.

Track and Trace Everything

Continuous and consistent tracking and tracing through technology not only simplifies recalls, it helps prevent them altogether. The only thing worse than being faced with a food recall is not knowing which products are affected or where exactly they are located.

Real-time temperature monitoring and product movement traceability technology can give you the confidence that foods are continuously kept at their required temperatures and remain safe for consumption. When you need to track and trace an ingredient or product, time is often of the essence. Delays may mean more resources and efforts are spent in producing something that may be rejected, or worse, recalled, or that the potentially impacted product isn’t isolated in time.

The digital integration of suppliers and other partners is vital if a food enterprise wants to have more control over its cold chain. Consumer demand for social responsibility and ethical business operations means that businesses need to provide greater visibility and transparency into the origins of their products. With today’s supply chains, having data—essentially, a horizontal IT layer that lets people share and access data—removes the barriers of communication among stakeholders.
IoT serves as a tool to remove the barriers to collaboration between food manufacturers, food logistics businesses, restaurant and food retail chains, regulatory agencies, and the end consumer. It increases the transparency of information and helps to deliver better products throughout the food supply chain.

Get Started

Acknowledging that most food companies have limited resources, food brands can still face their efforts only on the suppliers and customers that are of the greatest concern. Often this means looking at the combination of “high-risk product” with “high-risk supplier/partner” and prioritizing that part of the supply chain. This prioritization will help food brands allocate their resources and focus their time and money on the highest risks to their customers and brand. Once they’re able to reap the benefits of a preventive food safety program, they’re better able to justify allocating additional resources to other parts of the cold chain.

While IoT, cloud monitoring and traceability technology has been around for some time, real-time data is now becoming standard. Traditionally, the cost of IoT technology and data infrastructure could be quite expensive. However, different business models like subscription are on the rise, which lower the cost of entry for new prospects and can connect a broader range of products, not only high-value goods.

Although many food brands already have some proactive food safety programs in place, it only takes one incident to lead to a major food recall—even if it isn’t your company’s product—and it can negatively impact your business.
As an industry, food brands need to continue raising the bar in terms of what is considered standard and “best practice” when building an effective, proactive food safety strategy. Utilizing best-in-class technology can ensure the delivery of safe foods to the market, prevent recalls, protect business interests, and most importantly, protect consumers.