Tag Archives: retailers

Marketside Ground Beef

Nearly 43,000 Pounds of Ground Beef Recalled Due to Potential E. Coli Contamination

By Food Safety Tech Staff
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Marketside Ground Beef

Swedesboro, NJ-based Lakeside Refrigerated Services recalled about 42,922 pounds of ground beef products over concern of potential E. coli O157:H7 contamination. The Class I recall involves raw ground beef products that were produced on June 1.

The issue was uncovered during routine FSIS testing. The products were reportedly distributed to retailers, including Walmart, nationwide. Thus far there are no reports of adverse reactions due to consumption of the affect products.

A full list of the recalled products are available on the USDA’s website.

Tatiana Bravo, INTURN
FST Soapbox

Looking Ahead: The Digital Supply Chain and Fast-Moving Consumer Goods

By Tatiana Bravo
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Tatiana Bravo, INTURN

The global supply chain is changing. The fast-moving supply chains that power many of the world’s top businesses are being transformed before our very eyes, as companies all over the globe compete to beat their competitors through digitalization.

What we’re now seeing is the emergence of a digital supply chain, with processes powered by innovative and exciting new ideas turned into software.

As we look ahead to the coming months and years, we can expect to see incredible changes affecting the supply chains of all manner of businesses. In fact, we’d go so far as to say that any business that’s serious about competing on the global stage will have no choice but to embrace these innovations and go digital.

So, what exactly can we expect to see from the digital supply chain in the near future, and how might these changes affect fast-moving consumer goods?

Advanced Analytics

The potential of analytics is incredible, particularly when you look at supply chains.

Recent years have seen data rise to the forefront of many business leaders’ concerns. Increasing numbers of companies have started to pick up on the impact that informative data can have on their strategies, and ultimately their chances of ongoing success in the marketplace.

The supply chain is no exception to this rule. As the power of analytical software improves, businesses will be clamoring to gain access to, and make use of, the huge amount of data that’s now available.

We’re likely to see those managing data put under increasing amounts of pressure to use that data effectively, helping to inform decisions that impact supply chain processes and limit wastage. This data will also be invaluable in determining the real impact of critical supply chain decisions and informing future strategies.

The Emergence of AI
AI is the next big thing in business, and it’s set to transform the way the digital supply chain works. Artificial intelligence is now emerging as a hugely powerful tool, capable of helping businesses to make the right decisions for their supply chains.

As the potential of AI improves, we can expect to see its impact felt more widely throughout global supply chains. Look out for AI being used to inform businesses on changing customer preferences, disruptions in supply chains, increasing costs and other obstacles to product delivery. Artificial intelligence will predict future problems before they occur, giving business owners plenty of time to steer clear of potential pitfalls and keep things moving.

AI will also prove invaluable when it comes to anticipating the purchasing habits of existing customers and establishing the value of new leads and potential purchasers. If used effectively, this information could have a dramatic impact on the success of a wide range of different businesses—particularly those focused on fast-moving consumer goods.

Automation of Supply Chain Tasks

Automation itself isn’t a new idea, but the way it’s being used in digital supply chains is.

In the coming months and years, we’re likely to see automation transform the way supply chains work. The automation of processes will help businesses to cut costs, improve efficiency and eliminate any skills gaps by which they may be affected.

Supply chain tasks are being automated with the help of something called robotic process automation, or RPA. This form of automation is even smarter than traditional automated processes.

Informed by software bots or AI, RPA is a significant step forward in the world of digital supply chains. It’s highly scalable, incredibly effective and, importantly, it’s been proven to be hugely reliable. So, even businesses dedicated to the very highest standards of quality are now beginning to automate processes using RPA.

Climate Change Challenges

Climate change continues to be a hot topic in the news, and supply chains are likely to feel the impact of these concerns.

Consumers’ purchasing habits are increasingly led by environmental considerations. It’s therefore important that companies consider the environmental impact of their supply chain processes and provide visibility on these, for those who have an interest.

It’s expected that issues surrounding sustainability will become ever more critical in the future. Inevitably, supply chains will be impacted. Companies making use of digitalization will be best placed to prepare for the challenges of sustainability, reducing waste and making speedy adjustments to their processes as and when required.

A Shift in Transportation

The digitalization of supply chain processes has given ecommerce companies and online retailers the edge over traditional high street retailers. And this has led to a shift towards online shopping, which shows no sign of waning. As we continue into 2020 and beyond, we can expect to see more and more consumers choosing to shop online, and that’s going to have a knock-on effect on the transportation of goods.

Experts are predicting a transportation crunch, when demand begins to outstrip the availability of transport for online goods. This is likely to lead to a shift in how goods are transported, which could well align with changes to logistics designed to improve sustainability and reduce the carbon footprint of products.

Changes in Trade Agreements

Changes in trade agreements between many of the world’s leading economies are likely to impact supply chains in the future. With Brexit looming and trade issues between the United States and China continuing, it’s important that companies remain aware of how political decisions might affect the way they work.

Digital supply chains provide enhanced flexibility for companies, enabling organizations to quickly adapt to changes that could be outside of their control. So, companies that continue to provide a fast and reliable service despite changing trade agreements could well gain an edge over less efficient competitors as time goes on.

Companies making full use of digitalization will be best placed to make the most of new opportunities, and avoid supply chain disruption as a result of changing trade agreements.

Security Concerns

While businesses are beginning to realize the potential of the data that’s now available to them, consumers too are opening their eyes to the data that they share with the world. And this increased awareness has led to consumers being newly concerned about the data they reveal, and how secure that data is once it’s been shared.

Companies looking to make full use of the digitalization of supply chain processes will be incredibly reliant on data to maximize their efficiency. For this reason, it will be vital that companies establish trust with their existing customers and new prospects.

Security measures should therefore be top of the agenda for forward-thinking businesses. Companies that fall foul of security breaches and data losses are unlikely to be trusted with consumers’ data going forward, and this could have a detrimental impact on the efficiency of their digital supply chains in the future.

Digitalization is sweeping through the supply chains of companies all over the planet, and its potential is mind boggling. The automation of supply chain processes has already transformed the way supply chains are managed, massively increasing the speed and efficiency of a huge number of different companies.

In the future, we’re likely to see further improvements to digital supply chains, as companies begin to make better use of artificial intelligence and robotics. Look out for supply chains managed by AI-powered software and RPA, and get ready for astounding productivity from early adopters of these exciting new technologies.

Derek Rickard, Cimcorp Automation Ltd.
FST Soapbox

Up to Speed: How Automated Order Picking Protects Product Freshness

By Derek Rickard
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Derek Rickard, Cimcorp Automation Ltd.

Today’s food producers and retailers are in a constant race against time. This race starts within the four walls of the distribution center, where products must move from receiving, through storage and dispatch—with high speed and accuracy. While the goal (or finish line) is to get these products to stores as fast as possible and meet consumer expectations, speed of delivery also plays a vital role in ensuring the quality of foods—particularly easily perishable ones like fruits, vegetables, eggs, meats, certain dairy products and baked goods.

Namely, efficient product flow means companies can meet shorter lead times and thereby deliver fresher, safer food—with longer shelf lives—to market. It’s a seemingly easy concept, yet many organizations continue to stumble as a result of ongoing operational challenges that slow distribution down, especially in facilities that continue to utilize manual order picking.

Major challenges include:

  • Continued reliance on physical labor with fulfillment speed highly dependent on the endurance of individual employees.
  • SKU proliferation due to product diversification, where facilities must now store and manage more products than ever before in a seemingly shrinking amount of space.
  • Seasonal spikes in business that require order picking staff to work harder and often longer hours to keep up with the influx of orders.

For organizations struggling to address these challenges and meet the need for speed in distribution, now is an opportune time to look at automation. There are now robotic order picking systems that can store, retrieve and move products effortlessly through a facility, ensuring rapid handling and very short lead times.

By choosing to automate, food producers and retailers can realize numerous benefits, including the following.

1. Accelerated Order Fulfillment

Naturally a robotic system can assemble orders and prepare them for outbound shipping far faster than humanly possible. Thus, an automated distribution center is often up to six times more efficient than a manual one. Notably, there are systems now that integrate order picking and product handling in a single solution, rather than separate functions (as traditionally done but which is too slow for fresh food distribution).

Such a system can perform both buffer storage and order picking in one simultaneous operation for significant time savings. Facilities can thereby prepare orders closer to the time of a truck’s arrival, instead of hours in advance. Foods then spend less time in transport and can maintain their quality and consistency. This also helps to reduce chances of spoilage, which in turn cuts back on waste and the supply chain’s impact on the environment.

2. Improved Ergonomics and Workplace Safety

In distribution centers that rely solely on manual order picking, employees have to run up and down long stretches of aisles and lift heavy crates or boxes. In addition to being inefficient, such manual operations make order picking a strenuous and injury-prone job. The risks for injury have only helped further the labor shortage problem seen nationwide, as job seekers show declining interest in material handling careers.

But when automated systems take over the majority of order picking processes, there is less human involvement—which can help fill in any gaps left by labor shortages. Order fulfillment speed also becomes less dependent on the physical capabilities of employees. Existing staff can then be elevated into new roles in managing and overseeing automated systems. These are safer and far more enriching positions that can draw a whole new pool of technical talent.

3. Better Space Utilization

As mentioned, there is a growing trend towards product diversification, where companies are now offering more options to consumers, such as additional sizes, flavors and health-conscious choices. As a result, the number of SKUs in most distribution centers is exploding. Some facilities once designed to house a few hundred SKUs are now dealing with thousands, leaving little room to spare.

Those challenged by SKU proliferation can consider an overhead robotic system that uses high-density, floor-based storage, where goods are stacked on the warehouse floor. This eliminates the need for racking or traveling around aisles. Plus, it reduces the number of movements required to pick an order. Facilities can store more products within their existing space, offsetting the costs of possible new construction. An overhead robotic system can also clear all products from the warehouse floor for easy, hygienic cleaning.

4. Flexibility to Keep Up During Seasonal Peaks

In all consumer goods industries, there are times of the year when demand spikes and orders come pouring in. For the food industry, companies tend to see spikes during the holiday season and in the summer months—times when people commonly host get-togethers.

Seasonal peaks can take a heavy toll on manual warehouse operations. Some try to hire temporary employees to get by, but that comes with challenges in providing proper training in a short span of time. But automated systems—particularly those with a modular design—are flexible and scalable, enabling facilities to adjust their number of robots to meet fluctuations in order volume—during seasonal highs and lows.

A notable example of a food company that is successfully leveraging automation is grocery leader Kroger. Namely, Kroger wanted to develop a state-of-the-art, automated plant and distribution center to achieve many of the benefits discussed above, including ensuring product quality and reducing employee risks of injury.

Built in Denver, Colorado, Kroger’s “Mountain View Foods” facility processes fresh conventional and organic milk, and packages aseptically processed milk, creams and juices. Within Mountain View Foods, Kroger has installed an end-to-end automated system that can store up to 36,000 crates and pick 32,000 crates per day. Cases are picked according to specified sequences on one end of the facility and then palletized for truck loading at the other, with significant storage buffering in between.

Cimcorp, Kroger, Automation
Having installed an end-to-end automated system, Kroger benefits from orders picked with 100-percent accuracy, at faster speeds, which results in shorter lead times and optimal product freshness for shoppers. Image courtesy of Cimcorp.

A warehouse control system (WCS) controls all robotic movements and serves as the brains behind the automation. The software also collects data on each processed order, giving Kroger traceable information to meet food safety requirements. Kroger benefits from orders picked with 100-percent accuracy, at faster speeds, which results in shorter lead times and optimal product freshness for shoppers.

Kroger’s story demonstrates the power of automation in enabling more streamlined order fulfillment. Those that choose to automate can overcome the many challenges that inhibit efficient product flow and thereby bolster their supply chain velocity. Simply put, faster fulfillment means fresher products in stores. And, fresher products are safer products for consumers to enjoy.

Angela Fernandez, GS1
Retail Food Safety Forum

Can We See Some ID?

By Angela Fernandez
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Angela Fernandez, GS1

Several leading consumer packaged goods (CPG) brands and retailers started collaborating last year to address an issue growing larger by the day—inaccurate product data in the supply chain. They have challenged themselves to better serve customers who are shopping for their groceries more and more with smartphone in hand or shopping online. These companies worked together with the common understanding that standardization is imperative to have a consistent view of product data across the supply chain.

Verified GS1
A new, global cloud-based registry that will help trading partners confirm the unique identity of products. Image courtesy of GS1.

The group led by GS1 and the Consumer Goods Forum focused on the root causes of bad data in the retail grocery industry. Verified by GS1— a new, global cloud-based registry that will help trading partners confirm the unique identity of products—resulted from these discussions. It will serve as a single source for retailers, marketplaces and the solution providers they work with to automatically check core product attributes to help ensure the integrity of product listings.

For these recipients to access trusted data through this registry platform, brands must first provide seven core attributes for an “identification card” for products, similar to the identification card you carry around in your wallet. Much like eye color, hair color and height, products have attributes used by retailers to confirm the product is what a brand says it is. Each one provides a layer of trust to help increase efficiency and accuracy in the supply chain.

Let’s break down the importance of these attributes and learn why they are essential to confirm a product’s unique identity.

The Identification Number

Global Trade Item Number (GTIN) is used to uniquely identify a trade item in the global supply chain. This number is encoded into the U.P.C. barcode used at the point of sale or can be included in online product listings.

The GTIN plays a critical role in a product’s identity due to the way it is constructed. The brand owner selling the product is identified in the number itself in the form of a company prefix, the first few numbers of the GTIN. But over the years, erroneous numbers have plagued the CPG industry. A prefix that has four zeros, for example, is an indicator that the GTIN is not unique and might have been the result of human error. Also, some brand owners have found that GTINs were “borrowed” from other products during the setup process, resulting in duplicate GTINs in the supply chain, often tied to very different products. The GTIN is the key piece of information for a retailer to know they are working with a reputable company and can confidently add a product to their offering.

The Essential Descriptors

Brand name is another important part of a product’s identity, especially in relation to its GTIN. Verified by GS1 will provide a way for brands and retailers to make sure the right brand name is used in connection with the right GTIN. GS1 worked with member companies to set forth a common definition for brand name to increase consistency in the supply chain. It is a name provided by the brand owner that is intended to be recognized by the consumer as represented on the product.

Let’s say your company makes jam. The brand name would be Sticky’s Traditional, because that is what’s recognizable by the consumer. Some contributors to Verified by GS1 were surprised to find extreme inconsistencies with brand names in their backend systems, which caused confusion for consumers who searched online for familiar keywords and came up with nothing.

Product description is defined as a description of a product using a combination of key elements familiar to consumers, such as flavor or scent. The description should be unique so that consumers can properly distinguish it from other products. In our jam example, the product description is just what it sounds like it would be: Sticky’s Traditional Raspberry Jam, Low Sugar, 18 oz.

Front-facing product, product identifcation
An example of a standard, front-facing product image URL. Image courtesy of GS1.

Much like your driver’s license describes what you look like through eye color, hair color, or whether or not you wear glasses, the product description is what the consumer can visually confirm when they look at the package. Another key attribute in the Verified by GS1 identification card, the product image URL, serves the same purpose. A standardized product image clearly depicts the product being sold, and the industry can now align on a common naming convention for the image as well as how to communicate the image to trading partners.

The Necessary Technical Components

The three remaining parts of the product’s ID card are the components of identification most important for machines to read and understand and are less sought-after by consumers. Global product category, for example, is a classification code developed in accordance with GS1 Standards that provides buyers and sellers a common language for grouping products in the same way. It could be used as classifying option for consumers shopping online. In our jam example, the global product category is “10000581 – Food Glazes (Shelf Stable).”

Net content and unit of measure are essential to commonly represent a product’s weights and dimensions. This attribute makes it clear that metrics and units of measure go hand-in-hand—our jar of jam cannot just say NET 18. It needs to say it weighs NET 18 OZ. Either of these attributes independent of each other are red flags that the data is erroneous.

Country of sale or target market are used interchangeably and both indicate the location where the product is being sold. For multinational companies selling products in more than one country, this becomes important to ensure the right language is on the right product packaging to match the target market where it is being sold. For example, one product that has French on its packaging should signify France as its country of sale/target market, while an identical product with German on its packaging should be coded for Germany.

All seven attributes are pieces of information deemed important to consumer satisfaction and serve as a jumping off point for the transparency initiatives being demanded by consumers. While it is only just ramping up in the retail grocery industry now, Verified by GS1 is designed to help several different types of industries confirm product identity. It has the potential to significantly improve the foundational data that will only grow in importance as more consumers shop digitally.

Ultimately, as more data is shared consistently according to standards, incremental progress will be made toward the ultimate goal of cementing the trust of consumers, no matter where and how they encounter information about the products they purchase.

Lab grown meat

How Plant-Based Foods Are Changing the Supply Chain

By Maria Fontanazza
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Lab grown meat

The plant-based meat market is anticipated to be worth more than $320 million in the next five years, according to a report released last summer by Global Market Insights. As the popularity of meat-alternative products continues to rise, new challenges are being introduced to supply chain management. Joe Scioscia, vice president of sales at VAI explains some of these hurdles and proposes how technology can help.

Food Safety Tech: Is the growing popularity of plant-based foods introducing hazards or challenges to the supply chain?

Joe Scioscia, VAI
“The growing popularity of plant-based foods has presented a new set of challenges for the supply chain,” says Joe Scioscia of VAI.

Joe Scioscia: The growing popularity of plant-based foods has presented a new set of challenges for the supply chain, especially considering many of these organic items are being introduced by traditionally non-organic retailers. Impossible Foods received FDA approval for its plant-based burger in 2019, showing just how new the plant-based movement is to the industry.

Obviously, the organic supply chain and produce suppliers have long followed regulations for handling produce, such as temperature controls, cargo tracking, and supply and demand planning software, so the produce could be tracked from farm to table and in the case of a recall, be traced back to the source. But for meat alternatives that are combining multiple plant-based ingredients, organizations in the supply chain who are handling these products
have new food safety concerns. Considerations on how to store and process meat alternatives, how to treat each ingredient in the product and, most importantly, how to determine temperature controls or the source of contamination are all discussions the food industry is currently having.

FST: How are plant-based foods changing the dynamic of the supply chain from a food safety perspective?

Scioscia: The food supply chain has changed dramatically in recent years to become more complex, with food items traveling farther than ever before, containing more ingredients and required to follow stricter regulations. Many of the changes to the supply chain are for the better—organic and plant-based alternatives offer health benefits for consumers and are a move towards a more sustainable future. But the reality is that the supply chain isn’t quite there yet. Suppliers, retailers and producers at every part of the supply chain need to work together to ensure transparency and food safety compliance—including for plant-based products. Foodborne illnesses are still a real threat to the safety of consumers, and these same consumers are demanding transparency into the source of their food and sustainable practices from brands. All of these considerations are what’s making this next era of the food industry more complicated than ever before.

Because food safety compliance is always top of mind in the food industry to keep consumers safe, this new and complex supply chain has required companies to rely heavily on technology solutions to ensure plant-based products are equally as safe to consume as non-organic alternatives. These same solutions are also helping supply chains become more transparent for customers and streamline food processes to build a more sustainable future.

FST: What technologies can food companies and retailers use to better manage the supply chain risk while supporting the increased consumer demand for meat alternatives?

Scioscia: Utilizing a centralized software system is one tool many food suppliers and distributors can use to better visualize, trace and process products in the supply chain—including for plant-based alternatives. Having access to a central platform for business data to track assets and ensure food safety regulations are being met allows for companies to optimize processes and cut unnecessary costs along the way.

Heading into 2020, many organizations in the food supply chain are also looking at new applications like IoT, automation, and blockchain as ways to curb food safety issues. The FDA has taken steps to pilot blockchain and AI programs to better track drugs and food products, in conjunction with major food brands and technology companies. Other organizations are following suit with their own programs and many are looking at these solutions to improve their food tracking efforts. It’s clear technology has the most potential to make it easier on the industry to comply with food safety regulations while meeting customer demands for plant-based alternatives and organic options—all the while building a sustainable supply chain for the future.

Sasan Amini, Clear Labs

2020 Expectations: More Artificial Intelligence and Machine Learning, Technology Advances in Food Safety Testing

By Maria Fontanazza
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Sasan Amini, Clear Labs

2018 and 2019 were the years of the “blockchain buzz”. As we enter the new decade, we can expect a stronger focus on how technology and data advances will generate more actionable use for the food industry. Food Safety Tech has highlighted many perspectives from subject matter experts in the industry, and 2020 will be no different. Our first Q&A of the year features Sasan Amini, CEO of Clear Labs, as he shares his thoughts on tech improvements and the continued rise consumer expectations for transparency.

Food Safety Tech: As we look to the year ahead, where do you see artificial intelligence, machine learning and blockchain advancing in the food industry?

Sasan Amini: AI, ML, and blockchain are making headway in the food industry through advances in supply chain management, food sorting and anomaly detection, and tracing the origin of foodborne outbreaks. On the regulatory side, FDA’s focus on its New Era of Smarter Food Safety will most likely catalyze the adoption of the above mentioned technologies. On the private side, a few of the companies leading the charge on these advancements are IBM and Google, working in partnership with food manufacturers and retailers across the world.

Along those same lines, another area that we expect to grow is the use of AI and ML in tandem with robotics—and the value of new troves of data that they collect, analyze and distribute. For example, robotics for the use of environmental monitoring of potential contaminants, sorting techniques and sterilization are valuable because they ensure that end products have been through thorough testing—and they give us even more information about the lifecycle of that food than ever before.

At the end of the day, data is only valuable when you can transform it into actionable insights in real-time with real-world applications, and we expect to see more and more of this type of data usage in the year ahead.

FST: Where do you think food safety testing technologies will stand out? What advancements can the industry expect?

Amini: In 2020, technology is going to begin to connect itself along the entire supply chain, bringing together disparate pieces and equipping supply chain professionals with action-oriented data. From testing advances that improve speed, accuracy and depth of information to modular software solutions to promote transparency, the food safety industry is finally finding its footing in a data-driven sea of technological and regulatory advances.

Right now, legacy testing solutions are limited in their ability to lead food safety and quality professionals to the source of problems, providing insights on tracking recurring issues, hence having a faster response time, and being able to anticipate problems before they occur based on a more data heavy and objective risk assessment tools. This leaves the industry in a reactive position for managing and controlling their pathogen problems.

Availability of higher resolution food safety technologies that provide deeper and more accurate information and puts them in context for food safety and quality professionals provides the food industry a unique opportunity to resolve the incidents in a timely fashion with higher rigour and confidence. This is very in-line with the “Smarter Tools and Approaches” that FDA described in their new approach to food safety.

FST: How are evolving consumer preferences changing how food companies must do business from a strategic as well as transparency perspective?

Amini: Consumers are continuing to get savvier about what’s in their food and where it comes from. Research suggests that about one in five U.S. adults believe they are food allergic, while only 1 in 20 are estimated to have physician-diagnosed food allergies. This discrepancy is important for food companies to consider when making decisions about transparency into their products. Although the research on food allergies continues to evolve, what’s important to note today is that consumers want to know the details. Radical transparency can be a differentiator in a competitive market, especially for consumers looking for answers to improve their health and nutrition.

Consumers are also increasingly interested in personalization, due in part to the rise in new digital health and testing companies looking to deliver on the promise of personalized nutrition and wellness. Again, more transparency will be key.

FST: Additional comments are welcome.

Amini: Looking ahead, we expect that smaller, multi-use, and hyper-efficient tools with reduced physical footprints will gain market share. NGS is a great example of this, as it allows any lab to gather millions of data points about a single sample without needing to run it multiple times. It moves beyond the binary yes-no response of traditional testing, and lets you get much more done, with far less. Such wealth of information not only increases the confidence about the result, but can also be mined to generate more actionable insights for interventions and root cause analysis.

This “multi-tool” will be driven by a combination of advanced software, robotics, and testing capabilities, creating a food safety system that is entirely connected, driven by data, and powerfully accurate.

Doug MacDonald, Oracle Retail
Retail Food Safety Forum

To Protect Food Quality, Start With the Data

By Doug Macdonald
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Doug MacDonald, Oracle Retail

Last month, the FDA held a public meeting to discuss its New Era of Smarter Food Safety initiative, with a rallying call to create a more “digital, traceable and safer food system.”

FDA Deputy Commissioner for Food Policy and Response Frank Yiannas made it clear that the FDA is not replacing FSMA. Rather, the goal is to build on it, recognizing changes in the food industry over the last 10 years and the technologies available to tackle new challenges.

This isn’t surprising given continuing quality issues resulting in food recalls and shelf withdrawals. Last year, two major outbreaks of E. coli that were tied to consumption of romaine lettuce made a mark on industry perceptions, impacting customer trust, brand loyalty and the bottom line of companies involved were affected. Research by Allianz found recall costs could reach $10,000,000 for significant events.

To achieve the FDA’s goal of end-to-end traceability, the amount of information carried by every food item needs to increase, as will information about its location and condition in the supply chain. Grocers are at the sharp end of the food chain, meaning everything the FDA is proposing will impact them. As well as being merchandisers, they are brand-owners in their own right. They work directly with farmers and growers, they are directly involved in food safety, storage and distribution, and they feel the impact of recalls more than most. Unlike others in the food chain, they interact with consumers daily. This is important to note, since consumers are expecting communication on recalls immediately. In a recent study of more than 15,800 global consumers, 66% of respondents noted that they expect immediate notification of a product recall and another 28% stated they expect notification within a week.1 Furthermore, 88% said if a retailer immediately informed them of an issue, they would be more likely or slightly likely to trust them. The study also found that only 16% of consumers completely trust the product information provided to them from retailers today. In short, the impact of recalls extends far beyond the empty store shelf, and gives the industry even more reason to strive for safety.

High-Tech Next Steps

The FDA plans to publish a strategic blueprint early in 2020 of planned actions to meet its goal, but food brands and grocers need not wait to act. Proven technologies like brand compliance solutions, combined with emerging blockchain track and trace solutions and Internet of Things (IoT) sensors can add new depth and detail to traceability in the food supply chain, and these new technologies are already helping grocers and retailers keep consumers safe.

As retailers have sought a better means to track supply chain movements, blockchain technology has emerged as a potential way forward. Originally developed to manage financial transactions involving cryptocurrency, blockchain has proven to be capable of providing a verifiable record of the movement of goods through a supply chain. In fact, one major retailer has been piloting blockchain for more than a year and has already proven its value on produce items, cutting traceability times from more than a week to a matter of seconds. Some want to go even further and use IoT sensors to monitor the condition (e.g., temperature) of food products in the supply chain. Together, blockchain can help trace the path a product took through the supply chain and IoT can monitor the environmental conditions en route, providing a more cohesive picture of its supply chain journey.

But while supporting a few simple products with one ingredient and a one-step supply chain, such as fruits or vegetables, is one thing, scaling to address the needs of the average private brand retailer—now handling more than 10,000 active products from 2,000 production sites globally—is another. Managing the complexity of a product like tiramisu or a ready-made meal with dozens of ingredients, all coming from different sources, needs a different approach. To address the complexity, many are turning to brand compliance solutions—trusted, real-time repositories of information spanning the entire supply chain. For example, those using brand compliance solutions now have complete visibility of the ingredients in their private label products, helping them ensure labeling accuracy and transparency for consumers. Brand compliance tools also bring improved visibility of the food supply chain, enabling them to verify the status of manufacturing sites and respond quickly to food quality issues.

This combination of detailed product and supplier information makes brand compliance a foundational enabler for any blockchain/IoT-based initiative to improve supply chain visibility and traceability. For example, using brand compliance solutions, grocers can:

  • Confirm the ethical compliance of the supply chain at the point of selection or review, while using blockchain/IoT to monitor the ongoing conformance to these standards
  • Validate shelf life claims during formulation, while blockchain/IoT monitors logistical movement and environments to optimise products’ freshness
  • Record products’ formulation and ingredients to ensure safety, legal compliance and labeling accuracy, with blockchain/IoT monitoring the ongoing conformance to these standards
  • Rapidly identify potential risks across the entire formulation and supply chain, while tracking the affected batches to stores using blockchain and IoT

This convergence of static factual data (e.g., formulation, nutrition and allergens) linked to near real-time traceability and checking offers grocers confidence in the data and supports the consumer’s confidence of an actual product in their basket.

Looking Ahead

It seems clear that the food business is moving in the same direction as airlines and banks and becoming much more data driven. For grocers looking to keep pace, they will need to:

  • Treat data as a core competency. This means hiring information experts, investing for the future, and using data to identify ways to deliver better, safer products.
  • Create a customer-centric value promise. Grocers must go beyond regulatory compliance and use data to improve consumer transparency, support ethical sourcing initiatives, expand sustainable packaging and speed innovation.
  • Go above and beyond. Rather than waiting for FDA direction or simply complying with requirements, brands should take matters into their own hands, hold themselves to high markers and get started now.

In the future, improving the way that we manage the food supply chain is not just about how well we work with trucks and warehouses; it’s about how use information. The FDA’s initiative makes a clear statement that now is the time to modernize our food supply chains. As we look ahead to a new decade, the industry can come together to improve food safety and protect consumers, and we need not wait for the FDA’s blueprint or even the new year to get started.

Reference

  1. Setting the Bar: Global Customer Experience Trends 2019. (2019). Oracle Retail. Retrieved from https://go.oracle.com/LP=86024.
3M Food Safety

Industry Experts Discuss FSMA Supply Chain Challenges

By Food Safety Tech Staff
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3M Food Safety

Last week a panel of industry authorities gathered to share their perspectives on the importance of transparency in the supply chain and the challenges that food companies experience in managing different aspects, from their suppliers to once product reaches retailers.

“Understand that food safety today has changed significantly and will continue to change. It’s a dynamic field and regulations have only accelerated,” said Jorge Hernandez, chief food safety officer at The Wholesome Company. “You need to be more proactive internally and externally.”

Moderated by John Wadie, U.S. marketing operations manager for 3M Food Safety, the other panelists were Melanie Neumann, president of Neuman Risk Services, LLC and Terry Levee, Senior Director, Giant Eagle.

The panel is being rebroadcast as a free webinar, “Challenges Seen in Implementing and Executing Supply Chain Management”, on Tuesday, June 20 at 1 pm CT. It is part two of the 3M Food Safety FSMA Webinar Series: From Rules to Tools. Register here

product recall sheet

Effective Supplier/Retailer Communication Eases Pain of Food Recalls

By Holly Mockus
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product recall sheet

Food recalls are not 100% avoidable, and they are costly. The hit to an individual food company or retailer, on average, can run to tens of millions of dollars. Annually, millions of consumers become ill as a result of contaminated food products, and the dollar costs in terms of lost productivity, medical treatment and deaths run into the tens of billions.1 More than 20% of consumers have said that they would not purchase any brands from a company suffering a food recall.2 At best, damage to a company’s brand and reputation could take a long time to repair. Clearly, the need to prevent food contamination is obvious and should be the ultimate goal of all food safety professionals.

But despite the best industry efforts, recalls inevitably occur. And since they aren’t 100% avoidable, suppliers and retailers must continue to look for ways to minimize the safety and financial impact of the recall events that do occur. It’s good to begin that process by understanding some statistics surrounding the most common recalls. Globally, 46% of food recalls are for chemical hazards or the introduction of non-food-grade ingredients. 79% of these are due to undeclared allergens. 26% of recalls are for food-borne pathogens, and 8% are due to physical hazards (metal, glass, plastic, paper, wood, etc.). The remaining 20% are generally quality-based recalls and withdrawals.3

Head Off Recalls Before They Occur

Knowing the numbers helps suppliers and retailers home in on their most likely problem areas and get a leg up on potential product contamination problems. Since chemical hazards are the single biggest culprit, and because most of these instances are due to allergens, food companies should closely examine their cleaning and sanitation practices during production line changeovers. Keep in mind the potential role of contract service providers as sources of adulteration. Regarding pathogens, evaluate raw and ready-to-eat segregation procedures, staff access points, and  good manufacturing practices and employee traffic patterns.

Many companies focus their efforts on passing food safety certification audits, but faithful adherence to food safety measures just to pass an audit misses the point. Focus on the development and implementation of comprehensive food safety systems to guard against contamination and food safety incidents, and not just avoid non-conformances to certification codes. Preventing food safety incidents and recalls before they happen must be the priority.

Supplier Best Practice: The Mock Trace

Manufacturers, suppliers and certification bodies have evolved a set of best-practice recommendations that will go a long way toward reducing the number of food safety incidents and recalls. These include conducting regular internal audits of food safety plans and procedures, including approved supplier programs and environmental monitoring programs, both to re-evaluate their effectiveness and discover new or previously overlooked gaps.

Suppliers should consider taking things to the next level. SQFI’s LeAnn Chuboff suggests that suppliers “make their retailers happy” through the use of mock trace exercises.3 These “dry runs” are invaluable for reinforcing the close examination and evaluation of recall plans and to become intimately familiar with the necessary procedures in the event of an actual adulteration event. Mock trace exercises should be intensive: They are particularly effective in identifying gaps when they occur during off shifts. Making the exercise challenging rather than check-the-box easy helps companies reveal and close critical gaps. Conduct the mock trace in both directions, from raw materials to finished goods, and vice versa.

Include every department in the company. For mock trace exercises to be completely effective, review all documentation for errors or omissions. All employees should be interviewed to determine whether they fully understand food safety and documentation procedures. Review training modules and observe manufacturing procedures for evidence of knowledge or operational gaps. Examine bulk material receiving and storage, employee and material traffic patterns, packaging materials and procedures, and cleaning and maintenance chemicals.

Speed as well as accuracy and thoroughness are critical in the event of an actual recall event. Companies should practice rapid response. Take advantage of all the accumulated experiences from the mock exercise to improve every aspect of the company’s food contamination response tools and practices.

Randy Fields, Repositrak
Retail Food Safety Forum

The Fresh Food Supply Chain and Product Safety

By Randy Fields
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Randy Fields, Repositrak

Attend the Food Safety Supply Chain Conference, June 5–6, 2017 in Rockville, MD | LEARN MOREFresh foods are critically important to grocery retailers because these categories help create a point of differentiation from competitors. Store operators highlight the fresh sections in ads, promote the categories with in-store signage and now support the departments digitally and through social media. This isn’t to say the center store dry grocery items aren’t marketed, but they don’t get the advertising and promotional love that the produce, meat, dairy, deli, bakery and floral areas receive.

Given this focus, retailers and their suppliers work diligently to ensure the safety of the fresh products offered. They know that one slipup in produce or the deli can wreck the company’s reputation for months or longer. This is particularly true for the many fresh products that don’t have a brand standing behind them to share the impact (or blame).

Ask retail food safety directors where they spend most of their time and the answer 90+ times out of 100 is in the fresh areas. There are simply more things that can potentially go wrong in fresh and less that can go wrong with dry grocery. Sure there is the occasional ingredient issue, but the center store doesn’t have to worry about spoilage or even packaging problems now that nearly everything is tamper proof.

The bioterrorism act mandates that each link in the supply chain knows where their ingredients or product came from and where it was distributed. Recently, much effort has gone into developing traceability technologies and processes with the produce supply chain taking the lead. Growers and their trading partners are piecing together systems that allow practitioners to follow each batch of product through to the retail store, but the operative phrase is “piecing together.” Very few technologies can provide complete farm-to-fork traceability without standard product identification codes used by all participants in the supply chain. When a participant does not use the standard product identifier, visibility to the path of a product ends.

On the regulation front, the seven FSMA rules move the emphasis of the FDA from detection and response to prevention, which impacts both fresh and shelf-stable products. On a practical level, however, compliance with the rules is often more challenging for fresh products because of their limited shelf life. Also, some of the rules apply specifically to produce, meaning retailers and their produce suppliers need to pay special attention to preventing foodborne illness in the department.

At the recent Produce Marketing Association’s Fresh Summit in Orlando, Bob Whitaker, Ph.D., the trade group’s chief science & technology officer, and Jim Gorny, Ph.D., vice president, Food Safety & Technology, both emphasized the importance of communicating each retailer’s and supplier’s compliance with the FSMA regulations to the consumer. The North American Meat Institute, International Dairy-Deli-Bakery Association and other trade groups representing the marketers of fresh products have also been very active in helping both retailers and suppliers comply with the new regulations.

Beyond FSMA, retailers and their fresh foods suppliers need to do more work to not only ensure a safer supply chain, but to let consumers know they are working on food safety every day. Transparency needs to extend throughout the supply chain so suppliers and carriers can report on any potential safety issue from the farm to the checkout stand, because retailers are requiring more support from suppliers and more documentation for each load received. And, audits need to be periodically conducted to ensure accepted industry best practices are being followed.

Technology is helping the food safety process, especially in the fresh area, by organizing documentation for FSMA compliance and by providing supply chain transparency. The systems now available integrate all product and vendor information into a retailer’s ordering systems to ensure every requirement is met before a purchase is completed. They also send out alerts when additional details are required and they confirm that each lot shipped adheres to accepted best practices for food safety.

At the end of the day, all items sold in a supermarket or online must be safe for the consumer. The challenge is somewhat bigger with fresh foods than it is with dry grocery, so retailers and their suppliers must work that much harder to ensure the safety of products sold to their customers. A combination of accurate document management, compliance audits and traceability technology is now the most likely scenario to accomplish this goal.