Tag Archives: Supply Chain

Daniel Erickson, ProcessPro
FST Soapbox

Recall Risk Reduction: An ERP’s Role

By Daniel Erickson
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Daniel Erickson, ProcessPro

Consumer safety is of paramount importance and product recalls are a necessary means to this end. Product recalls are a serious, complex, and costly issue affecting the food and beverage industry in the United States. The FDA estimates that there are around 48 million cases of foodborne illness each year—causing one in six Americans to get sick from contaminated food. In addition to affecting public health, recalls have a dramatic effect on manufacturers by creating economic problems, damaging a company’s reputation, and imposing potential legal penalties and liabilities. In the search for a business management solution to better prepare themselves for and reduce the risk of recalls in their operations, many food manufacturers have discovered that technology, specifically ERP software, is key to lowering the risk of food and beverage product recalls.

An industry-specific ERP solution is a centralized business system with key industry features providing a system of record-keeping, with the tools to support the preparation and reduction of recall risks. While a manufacturer is ultimately responsible for a product recall, an ERP solution is essential in supporting and championing overall recall readiness and reduction. With the streamlined and automated inventory, manufacturing, and quality control processes managed within the software, critical steps and data that assist in recall mitigation are documented—including supplier verification records, audit logs, receipt records, quality testing, lot tracking, and shipment logs. The key to prevention of a product recall is preparation, which can be handled efficiently through an ERP’s functionality specifically in the following areas.

Supplier Management

An ERP facilitates best practices for supplier management and risk assessment within the solution to assure the acquisition of quality raw materials from trusted vendors. Its role is to maintain an approved supplier list for each product ingredient, documenting detailed supplier information, quality control test results, and risk level to ensure in-house and customer-specific standards are met. For approved or activated suppliers, information regarding materials that can be purchased through the vendor, applicable certifications, quality control results, and other pertinent supplier information is stored within the centralized data system of the ERP. A risk assessment for each vendor is also documented to ensure that any potential inherent risk(s) from vendor-issued recalls and to finished goods are limited.

In addition to activated suppliers, an ERP solution also assigns and manages qualified alternates to provide vetted selections should a primary supplier’s materials become unavailable. This positions a company well in the supply chain, as the investigative work has already been conducted on other suppliers, limiting the need and risk associated with onboarding an unknown supplier in a moment of crisis. Vendors are recorded within the system and ranked in order of preference and/or risk level so that they can be identified and put into use quickly if a supplier becomes unavailable—providing the preparation and leverage that companies need to mitigate the risk to safety in the supply chain. In a product recall situation, when a supplier notifies a customer of a contaminated ingredient, the supplier management feature within the ERP solution provides for a qualified replacement vendor that can fulfill the needed raw material quickly and efficiently.

Inventory Control

An ERP system offers end-to-end traceability, maintaining a comprehensive record that tracks raw ingredients, work-in-progress, and final products throughout the supply chain using barcode scanning to link product and lot information to batch tickets, QC testing results, shipping documents, and labels. This full forward and backward lot traceability is necessary to provide a documented audit trail imperative to locating raw materials or finished goods quickly within the initial 24-hour time period of a product recall. With full manufacturing, inventory, and reporting integrations, the ERP supports sound manufacturing practices that assist with recall preparedness – maintaining current Good Manufacturing Practices (cGMP), FDA reporting, GFSI compliance, and other industry-specific regulations to provide a documented audit trail with the ability to adapt as compliance requirements change.

Managing protocols to ensure the quality of inbound and outbound materials is essential in minimizing recall risk across the entire supply chain—from raw materials to the delivered final product. With an industry-specific ERP solution, formulas, recipes and instructions are maintained, scaled and verified to ensure consistency of products within the manufacturing process. This instills preventative measures throughout the production cycle in the form of process steps and quality control test specifications to bolster safety and quality. Quality features such as quarantine status and other status capabilities permit the isolating, removing and disposing of raw ingredients and finished goods that fail to meet quality control standards—triggering an alert to notify the purchasing department to investigate the issue. Having the ability to remove ingredients and finished goods from inventory or production prevents contaminated items from reaching store shelves and consumers, which reduces overall recall risk.

Inventory control practices are an important part of the functionality within an ERP solution that help to reduce overall recall risk. This includes managing and reporting of shelf life and expiration dates to maintain precise and lean control of inventory and reduce variances. Automated inventory transactions with the use of an ERP’s warehouse management solution (WMS) follow industry best practices and improve efficiency to ensure the accuracy of shipments, transfers, and material returns. This real-time visibility allows for the maintenance of FIFO inventory practices necessary to reduce the risk of spoilage.

One of the leading causes of contamination for food and beverage manufacturers that results in a recall event is a lack of allergen control throughout the supply chain and production process. An ERP system helps to track, manage and record the handling, storage and batch steps of raw materials from farm-to-fork. This includes stringent sanitary practices, lot tracking, raw material segregation and process controls to avoid allergen contamination or cross-contamination. Accurate product labeling is also a significant factor in reducing risk and an automated system that generates nutritional and product package labels plays a key role in a company’s recall prevention. To meet the needs of consumers and regulators, an ERP solution automates label creation to include accurate ingredient and allergen statements, nutrient analysis, expiration dates, lot and batch numbers, and regulatory specifications. The labeling history documented in the software allows products to be identified and located quickly in the event of a recall.

Reporting

Utilizing the recall functionality in the ERP solution allows companies to plan and test their recall process in advance. Performing mock recalls permits regular measurement and improvement of procedures to ensure rapid, accurate, and thorough responses by all company stakeholders in the event of a recall. A successful simulated exercise identifies 100% of recalled ingredients/products and notifies appropriate entities in a timely manner. Evaluation and documentation of mock recall exercises help expose inefficiencies, process gaps and procedural adjustments, which are designed to improve recall readiness and minimize consumer exposure to potentially dangerous contaminants.

As proof or documentation of adherence to specific processes, reporting is essential to demonstrate that these processes have been completed—without it, an integral component is missing. Across the supply chain and throughout the manufacturing process, documentation and reporting accentuate steps that have been taken to prepare and reduce recall risk. Risk-based assessments in supplier management, lot traceability reports, and mock recall reporting all provide a starting point of analysis to allow for adjustments to be made across the business. In a recall situation, the system is able to create lot tracking reports that encompass raw ingredients through shipped finished goods. These reports can be produced in minutes, rather than the hours it takes if data is stored within separate software programs.

Due to the amount of time and money that food and beverage companies invest in getting their products to market, it is imperative that preventative measures are taken in order to avoid a product recall. Forward-thinking manufacturers can help prepare for and reduce recall risks by utilizing several important features in ERP software—including supplier management, inventory control, and reporting. Using the tools at their disposal, a company can mitigate liabilities and protect their brand to turn a potential crisis into a future filled with opportunities.

Jennifer van de Ligt, Food Protection and Defense Institute, University of Minnesota

Q&A: Pandemic Puts Worker Health & Safety, Leadership Skills and Business Adaptability at Forefront

By Maria Fontanazza
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Jennifer van de Ligt, Food Protection and Defense Institute, University of Minnesota

Issues with the health of frontline workers, supply chain disruptions, and changes in consumer behavior are just a few vulnerabilities that the food industry is experiencing as a result of COVID-19. Food Safety Tech recently had a conversation with Jennifer van de Ligt, Ph.D., director of the University of Minnesota Integrated Food Systems Leadership Program and Food Protection and Defense Institute about the hurdles that the industry is experiencing and where we go from here.

Food Safety Tech: What challenges is the food system facing in light of the COVID-19 pandemic? Where are the vulnerabilities?

Jennifer van de Ligt, Ph.D.: The food system is facing primary, secondary and tertiary challenges right now. I see two main drivers as disruptors as a result of COVID-19. The health and safety of employees is the first primary driver. As COVID-19 has more broadly spread through the U.S., ensuring the health and safety of employees in the food system has become essential; however, the pandemic has shown us the food system has struggled with that.

The other big primary challenge facing the food system has been the swift change in consumer behavior. Pre-COVID-19, nearly half of food was consumed away from home. When restaurants closed, and stay-at-home orders were in place, it put extreme amounts of pressure on our food retail segment, causing supply and demand issues.

Regarding the health and safety of employees: We’ve seen meat processing struggle with production demands because the health of their employees has been impacted by the virus. In mid-April, the beef and pork capacity in this country went down by over 40%. They are making great improvements and are approaching normal harvest capacity range for both [beef and pork production]. Meat cuts being produced are slightly different than normal, as this part of the meat plants are very labor intensive. This has really highlighted the need to make sure that we keep the health and safety of our food system employees front and center.

During the 2020 Food Safety Consortium Virtual Conference Series, Jennifer Van de Ligt will participate in a panel discussion on November 5 about Professional Development and Women in Food Safety | Register Now Now that the meat supply chain is beginning to recover, we’re also beginning to see increasing effects on non-meat supply manufacturing. This isn’t isolated to food manufacturing; as we experience broader community spread, COVID-19 will impact all aspects of our food system.

On consumer behavior: As consumers shifted to food retail, immense pressure was quickly put on our food supply chain logistics, manufacturing timing and processes, the speed to warehouses and delivery, etc.

One example that demonstrates a challenge in manufacturing and consumer demand is the difference in volumes for food services versus retail. I like to use the example of shredded cheese. At a grocery store, you’ll find a one-pound pack, but shredded cheese in food service might be in a 10-pound bag. There are not a lot of consumers who want to buy a 10-pound bag of shredded cheese. Well, why can’t cheese manufacturers just package bulk product into one-pound packs? There are several reasons that don’t allow producers to pivot quickly: They may not have the machinery or packaging to do that. Also, changing packaging from food service to retail requires different labels and regulatory approvals. Examples like this led to many of the spot outages consumers found in grocery stores. In the produce sector, it led to produce being plowed under in fields because they didn’t have the distribution channels to go into retail instead of into food service.

In the Integrated Food System Leadership (IFSL) program, we’ve recently discussed food equity and food injustice as a result of COVID-19. As food retail became stressed and unemployment increased, we saw a huge demand for our food assistance networks. Because food retail is one of the primary contributors to the food assistance networks, there wasn’t enough volume being donated. In addition, food service foods are not appropriately packaged to go into the food assistance networks and food banks, similar to the issue in moving to food retail. This led to tremendous pressure and innovative solutions to source and distribute food to a newly vulnerable population.

As we look ahead into the coming months, many of the vulnerabilities in the food system will be the same. We have to continuously monitor the health and safety of our employees to keep our food system as a whole functional. There’s a growing recognition that our primary agriculture workers are also at risk—the people in fields harvesting and planting. There are many groups providing recommendations on how to protect agriculture employees and communities where they work and reside.

We’ll see continued adaptation in the food system to the new reality of how restaurants and food service engage with their consumers with the shift in behavior to limited restaurant dining and increases in online ordering.

FST: In what areas do food manufacturers, processors or growers need to adapt moving forward in order to thrive?

Van de Ligt: There are several. First, I think this crisis has really brought worker health and welfare to the forefront, and there will be more emphasis on the essentiality of food system workers. They were previously a behind-the-scenes workforce. The issue of worker health and welfare is going to accelerate in many industries, but I also see a push to more automation. The human workforce is necessary, and people do a really wonderful job, but are there areas that might benefit from automation? I think those go hand in hand.

I also think the global food system needs to rethink how it remains resilient. In the past, there’s been a focus on resilience and efficiency through economy of scale. That still exists and may look different moving forward. Using the meat industry as an example, that economy of scale was also its biggest weakness that had gone unrecognized. Going forward, I think there are many companies that are going to consider alternative supply chains. Should multiple, smaller plants be utilized instead of one large plant to provide a more resilient framework for production? Other companies are going to think about installing equipment or processing lines that could more quickly pivot between food service and food retail. There’s also a huge opportunity now for local and smaller markets to really make an impact as people look for alternative supply chains and sources. We found that many of the local food markets and co-ops, especially those that provided into food service, pivoted pretty quickly to pop-up online marketplaces to provide food direct to consumer. I think we’ll see that trend increase as well.

In order to feed billions of people worldwide, it’s essential that the food industry take a broader systems approach versus the siloed approach path we’ve been using. The pandemic has highlighted how the food system is an intricately functioning balance and requires collaboration. Our food system will only be able to move forward faster with less disruption when we have food system leaders who understand the intricacies and the ripple effects of the challenges we face. Leaders who understand the impacts of decisions outside of their sphere will be essential to plan for impacts from natural disasters, another pandemic, etc.—and to create a more responsive and resilient food system in the future.

FST: Where does this leave folks who are either beginning or rising in their careers in food safety? Do you think the pandemic has changed food safety careers as they’ve historically functioned?

Van de Ligt: I like to say that ‘what got us here is not going to get us there.’ In general, if you think about where food safety careers have been in the past, the roles have been all about consistency, understanding regulations, making sure we do everything precisely right all of the time so we don’t have a food safety outbreak.

The focus on doing things precisely right all of the time will absolutely continue. What I think will shift is the need for food safety professionals to think more broadly than just the regulations that are required for compliance. Food safety professionals need to understand more about the system that is happening outside their facility; the impact of their work going backwards and forwards in the supply chain.

How things have worked historically in a food safety role has been having a consistent supplier network that provides the same type of product every time; you know what to expect, how to produce and distribute safe food for the customers you serve. In a situation like COVID-19, because of the disruptions from farm to fork, the suppliers you need to work with may be different and you need to quickly make decisions spontaneously as supply shifts. Having the knowledge and skills to navigate changes is essential to ensure the quality and safety of your product.

A highly technical focus that many professionals have when they start their career is often too narrow and won’t be enough for emerging food system leaders. Leadership skills are vital as well. In the IFSL program we teach food system professionals how to explore proactive viewpoints, not just managing people or responsibilities. Managers make sure things are done things correctly; leaders make sure we do the right thing. In order to learn how to do the right thing, we teach skills and tools on how to navigate uncertainty; practicing active listening, constructive feedback; and understanding the concerns of a supplier or customer are examples.

We emphasize and teach in the IFSL program that food system professionals and leaders need to be much more proactive. This means equipping them with the food system knowledge and leadership skills so they can predict and prepare for how decisions affect upstream and downstream. Having a broader viewpoint is critical to adaptivity, which will build resilience and help limit disruption.

Food Safety Consortium

2020 Food Safety Consortium Virtual Conference Series Agenda Announced

By Food Safety Tech Staff
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Food Safety Consortium

The agenda for the 2020 Food Safety Consortium Virtual Conference Series has been released. The announcement about the annual Food Safety Consortium being converted to a virtual series due to the COVID-19 pandemic was made last month. Due to a demand to provide attendees with even more content, the event has been extended a full month and is running into December. Food Safety Tech is the media sponsor.

The event will begin every Thursday at 12 pm ET, beginning on September 3 and continue through December 17. Each week will feature three educational presentations, two Tech Talks, and a panel discussion. Weekly episodes include food defense, food labs, pest management, sanitation, food fraud, listeria detection, mitigation & control, professional development, women in food safety, supply chain management, COVID-19’s impact and food safety culture.

Frank Yiannas, FDA deputy commissioner for food policy and response, will serve as the keynote speaker on Thursday, October 1 at 12 pm ET.

“Human connection is so important for events, and we know we’re not the only game in town. That’s why we’ve invested in a Conference Virtual Platform that can facilitate discussions, discovery, and connection that can continue whether our event is offline or online—and not end with the live streaming,” says Rick Biros, president of Innovative Publishing and director of the Food Safety Consortium. “Simply, the experience other food safety conferences are offering is not conducive to learning, staying engaged or take into consideration that you have a job to do during that week. This is why we have designed the Consortium’s program with short, manageable episodes that are highly educational.”

Registration for the 2020 Food Safety Consortium Virtual Conference Series is open. Keeping in mind that registrants may not be able to attend every week due to scheduling conflicts, there is an option to watch the each session on demand.

Tech Talk Sponsorship

Companies that are interested in sponsoring a 10-minute technical presentation during the series can also submit their abstract through the portal. For pricing information, contact IPC Sales Director RJ Palermo.

Innovative Publishing has also converted the Cannabis Quality Conference to a virtual event. More information is available at Cannabis Industry Journal.

About Food Safety Tech

Food Safety Tech publishes news, technology, trends, regulations, and expert opinions on food safety, food quality, food business and food sustainability. We also offer educational, career advancement and networking opportunities to the global food industry. This information exchange is facilitated through ePublishing, digital and live events.

About the Food Safety Consortium Conference and Expo (The live event)

Food companies are concerned about protecting their customers, their brands and their own company’s financial bottom line. The term “Food Protection” requires a company-wide culture that incorporates food safety, food integrity and food defense into the company’s Food Protection strategy.

The Food Safety Consortium is an educational and networking event for Food Protection that has food safety, food integrity and food defense as the foundation of the educational content of the program. With a unique focus on science, technology and compliance, the “Consortium” enables attendees to engage in conversations that are critical for advancing careers and organizations alike. Delegates visit with exhibitors to learn about cutting-edge solutions, explore three high-level educational tracks for learning valuable industry trends, and network with industry executives to find solutions to improve quality, efficiency and cost effectiveness in the evolving food industry.

Shub Degupta, Mesh Intelligence
FST Soapbox

Driven by COVID-19 Disruptions to Find a Better, Data-Driven Way to Manage Food Supply Chain Risk

By Shub Degupta
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Shub Degupta, Mesh Intelligence

The COVID-19 pandemic emphatically laid bare the supply chain and supplier vulnerabilities that we face in our increasingly global food supply chains. Last month my company, Mesh Intelligence, convened a group of 14 leading supply chain, risk, sourcing and food safety executives drawn from some of the largest and most innovative food companies around the globe and in all aspects of the supply chain—from manufacturing, importing, distribution, logistics and retail. They volunteered their time to explore new solutions to better manage risk in their global food supply chains and are working together to develop and guide a lasting solution to address the challenges they faced across the past few months and manage supply chain in a more uncertain environment.

Zeroing In on the Need for Practical Solutions to Address Critical Issues

The group discussed how the tools and processes they currently use to manage supply chains are inadequate in identifying the scale, scope and intensity of new issues that arose during the pandemic and, more importantly, how these solutions need to be augmented in the future. To zero in on practical solutions, this group focused on the most critical challenges to address; understanding the best practices to tackle these issues; and guiding the development of data driven, practical and scalable solutions to predict risk.

Key insights from the group discussion include:

  1. The need for early, actionable warning on risk. Food organizations are seeking actionable, early warning signals about upcoming supply chain issues. Risk alerts, if they do exist, currently tend to be disaggregated and dispersed within an organization and executives struggle to understand the full picture.
  2. The need to communicate risk across the organization and the supply chain. Executives are seeking ways to communicate forecasted risk in fact-based and data-driven ways across key stakeholders within and outside the organization. There was clear interest in ways to engage suppliers and parties up and down the supply chain.
  3. Focusing on the most important risks and scenario planning a workable approach. Organizations are seeking ways to future proof their supply chains and increase resilience. By ensuring that their strategies are tested to withstand likely scenarios and situations, organizations improve their ability to work under increased uncertainty.
  4. The ability to continuously monitor and vet suppliers, even in a remote setting. Organizations are looking to get ahead of supplier issues and are seeking ways to work with suppliers to continuously monitor, vet and manage issues as they arise. This requires increased transparency and greater communication across parties in the supply chain.

Participants of the group are also getting early access to the solution and data to support them in their food safety and supply chain risk management efforts. The group will continue to meet on over the next few months to continue to guide the development of a food supply chain risk management solution. We look forward to keeping you updated. If you have insights on this issue, we encourage you to reach out. If you are interested in learning more about us or joining the group, please contact us at nicole@meshintel.com

Are Traasdahl, Crisp
FST Soapbox

How a History of Slow Technology Adoption Across Food Supply Chains Nearly Broke Us

By Are Traasdahl
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Are Traasdahl, Crisp

The COVID-19 crisis has exacerbated existing disconnects between food supply and demand. While some may be noticing these issues on a broader scale for the first time, the reality is that there have been challenges in our food supply chains for decades. A lack of accurate data and information sharing is the core of the problem and had greater impact due to the pandemic. Outdated technologies are preventing advancements and efficiencies, resulting in the paradox of mounting food insecurity and food waste.

To bridge this disconnect, the food industry needs to implement innovative AI and machine learning technologies to prevent shortages, overages and waste as COVID-19 subsides. Solutions that enable data sharing and collaboration are essential to build more resilient food supply chains for the future.

Data-sharing technologies that can help alleviate these problems have been under development for decades, but food supply chains have been slow to innovate compared to other industries. By reviewing the top four data-sharing technologies used in food industry and the year they were introduced to food supply chains, it’s evident that the pace of technology innovation and adoption needs to accelerate to advance the industry.

A History of Technology Adoption in the Food Industry

The Barcode – 19741
We’re all familiar with the barcode—that assemblage of lines translated into numbers and letters conveying information about a product. When a cashier scans a barcode, the correct price pops up on the POS, and the sale data is recorded for inventory management. Barcodes are inexpensive and easy to implement. However, they only provide basic information, such as a product’s name, type, and price. Also, while you can glean information from a barcode, you can’t change it or add information to it. In addition, barcodes only group products by category—as opposed to radio-frequency identification (RFID), which provides a different code for every single item.

EDI First Multi-Industry Standards – 19812
Electronic data interchange (EDI) is just what it sounds like—the concept of sharing information electronically instead of on paper. Since EDI standardizes documents and the way they’re transferred, communication between business partners along the supply chain is easier, more efficient, and human error is reduced. To share information via EDI, however, software is required. This software can be challenging for businesses to implement and requires IT expertise to handle updates and maintenance.

RFID in the Food Supply Chain – 20033
RFID and RFID tags are encoded with information that can be transmitted to a reader device via radio waves, allowing businesses to identify and track products and assets. The reader device translates the radio waves into usable data, which then lands in a database for tracking and analysis.

RFID tags hold a lot more data than barcodes—and data is accessible in remote locations and easily shared along the supply chain to boost transparency and trust. Unlike barcode scanners, which need a direct line of sight to a code, RFID readers can read multiple tags at once from any direction. Businesses can use RFID to track products from producer to supplier to retailer in real time.

In 2003, Walmart rolled out a pilot program requiring 100 of its suppliers to use RFID technology by 2005.3 However, the retail giant wasn’t able to scale up the program. While prices have dropped from 35–40 cents during Walmart’s pilot to just 5 cents each as of 2018, RFID tags are still more expensive than barcodes.4 They can also be harder to implement and configure. Since active tags have such a long reach, businesses also need to ensure that scammers can’t intercept sensitive data.

Blockchain – 20175
A blockchain is a digital ledger of blocks (records) used to record data across multiple transactions. Changes are recorded in real-time, making the history unfalsifiable and transparent. Along the food supply chain, users can tag food, materials, compliance certificates and more with a set of information that’s recorded on the blockchain. Partners can easily follow the item through the physical supply chain, and new information is recorded in real-time.

Blockchain is more secure and transparent, less vulnerable to fraud, and more scalable than technologies like RFID. When paired with embedded sensors and RFID tags, the tech offers easier record-keeping and better provenance tracking, so it can address and help solve traceability problems. Blockchain boosts trust by reducing food falsification and decreasing delays in the supply chain.6

On the negative side, the cost of transaction processing with blockchain is high. Not to mention, the technology is confusing to many, which hinders adoption. Finally, while more transparency is good news, there’s such a thing as too much transparency; there needs to be a balance, so competitors don’t have too much access to sensitive data.

Cloud-Based Demand Forecasting – 2019 to present7
Cloud-based demand forecasting uses machine learning and AI to predict demand for various products at different points in the food supply chain. This technology leverages other technologies on this list to enhance communication across supply chain partners and improve the accuracy of demand forecasting, resulting in less waste and more profit for the food industry. It enables huge volumes of data to be used to predict demand, including past buying patterns, market changes, weather, events and holidays, social media input and more to create a more accurate picture of demand.

The alternative to cloud-based demand forecasting that is still in use today involves Excel or manual spreadsheets and lots of number crunching, which are time-intensive and prone to human error. This manual approach is not a sustainable process, but AI, machine learning and automation can step in to resolve these issues.

Obtaining real-time insights from a centralized, accurate and accessible data source enables food suppliers, brokers, distributors, brands and retailers to share information and be nimble, improving their ability to adjust supply in response to factors influencing demand.8 This, in turn, reduces cost, time and food waste, since brands can accurately predict how much to produce down to the individual SKU level, where to send it and even what factors might impact it along the way.

Speeding Up Adoption

As illustrated in Figure 1, the pace of technology change in the food industry has been slow compared to other industries, such as music and telecommunications. But we now have the tools, the data and the brainpower to create more resilient food supply chains.

Technology adoption, food industry
Figure 1. The pace of technology change in the food industry has been slow compared to other industries. Figure courtesy of Crisp.

Given the inherent connectivity of partners in the food supply chain, we now need to work together to connect information systems in ways that give us the insights needed to deliver exactly the rights foods to the right places, at the right time. This will not only improve consumer satisfaction but will also protect revenue and margins up and down food supply chains and reduce global waste.

References

  1. Weightman, G. (2015). The History of the Bar Code. Smithsonian Magazine.
  2. Locken, S. (2012). History of EDI Technology. EDI Alliance.
  3. Markoff, R, Seifert, R. (2019). RFID: Yesterday’s blockchain. International Institute for Management Development.
  4. Wollenhaupt, G. (2018). What’s next for RFID? Supply Chain Dive.
  5. Tran, S. (2019). IBM Food Trust: Cutting Through the Complexity of the World’s Food Supply with Blockchain. Blockchain News.
  6. Galvez, J, Mejuto, J.C., Simal-Gandara, J. (2018). Future Challenge on the use of blockchain for food traceability analysis. Science Direct.
  7. (2019). Crisp launches with $14.2 million to cut food waste using big data. Venture Beat.
  8. Dixie, G. (2005). The Impact of Supply and Demand. Marketing Extension Guide.
Mike Edgett, Sage

COVID-19 Leads Food Companies and Meat Processors to Explore AI and Robotics, Emphasize Sanitation, and Work from Home

By Maria Fontanazza
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Mike Edgett, Sage

The coronavirus pandemic has turned so many aspects of businesses upside down; it is changing how companies approach and execute their strategy. The issue touches all aspects of business and operations, and in a brief Q&A with Food Safety Tech, Mike Edgett of Sage touches on just a few areas in which the future of food manufacturing looks different.

Food Safety Tech: How are food manufacturers and meat processors using AI and robotics to mitigate risks posed by COVID-19?

Mike Edgett: Many food manufacturers and meat processors have had to look to new technologies to account for the disruptions caused by the COVID-19 pandemic. While most of these measures have been vital in preventing further spread of the virus (or any virus/disease that may present itself in the future), they’ve also given many food manufacturers insight into how these technologies could have a longer-term impact on their operations.

For instance, the mindset that certain jobs needed to be manual have been reconsidered. Companies are embracing automation (e.g., the boning and chopping of meat in a meatpacking plant) to replace historically manual processes. While it may take a while for innovations like this to be incorporated fully, COVID-19 has certainly increased appetite amongst executives who are trying to avoid shutdowns and expedited the potential for future adoption.

FST: What sanitation procedures should be in place to minimize the spread of pathogens and viruses?

Edgett: In the post-COVID-19 era, manufacturers must expand their view of sanitation requirements. It is more than whether the processing equipment is clean. Companies must be diligent and critical of themselves at every juncture—especially when it comes to how staff and equipment are utilized.

While working from home wasn’t a common practice in the manufacturing industry prior to March 2020, it will be increasingly popular moving forward. Such a setup will allow for a less congested workplace, as well as more space and time for bolstered sanitation practices to take place. Now and in the future, third-party cleaning crews will be used onsite and for machinery on a daily basis, with many corporations also experimenting with new ways to maintain the highest cleanliness standards.

This includes the potential for UV sterilization (a tactic that is being experimented with across industries), new ways to sterilize airflow (which is particularly important in meatpacking plants, where stagnant air is the enemy) and the inclusion of robotics (which could be used overnight to avoid overlap with human employees). These all have the potential to minimize the spread of pathogens and, ultimately, all viruses that may arise.

Mike Edgett, Sage
Mike Edgett is an enterprise technology and process manufacturing expert with 20+ years leading business strategy for brands such as Infor, Quaker Oats and Bunge Foods. At Sage, he leads the U.S. product marketing team focused on the medium segment.

FST: How is the food industry adjusting to the remote working environment?

Edgett: While the pandemic has changed the ways businesses and employees work across most industries, F&B manufacturers did face some unique challenges in shifting to a remote working environment.

Manufacturing as a whole has always relied on the work of humans, overseeing systems, machinery and technology to finalize production—but COVID-19 has changed who and how many people can be present in a plant at once. Naturally, at the start of the pandemic, this meant that schedules and shifts had to be altered, and certain portions of managerial oversight had to be completed virtually.

Of course, with employee and consumer safety of paramount concern, cleaning crews and sanitation practices have taken precedent, and have been woven effectively and efficiently into altered schedules.

While workers that are essential to the manufacturing process have been continuing to work in many facilities, there will likely be expanded and extended work-from-home policies for other functions within the F&B manufacturing industry moving forward. This will result in companies needed to embrace technology that can support this work environment.

FST: Can you briefly explain how traceability is playing an even larger role during the pandemic?

Edgett: The importance of complete traceability for food manufacturers has never been greater. While traceability is by no means a new concept, COVID-19 has not only made it the number one purchasing decision for your customers, but [it is also] a vital public health consideration.

The good news is that much of the industry recognizes this. In fact, according to a survey conducted by Sage and IDC, manufacturing executives said a key goal of theirs is to achieve 100% traceability over production and supply chain, which serves as a large part of their holistic digital mission.

Traceability was already a critical concern for most manufacturers—especially those with a younger customer base. However, the current environment has shone an even greater spotlight on the importance of having a complete picture of not only where our food comes from—but [also] the facilities and machinery used in its production. Major budget allocations will surely be directed toward traceability over the next 5–10 years.

FDA

FDA Unveils Blueprint for New Era of Smarter Food Safety

By Food Safety Tech Staff
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FDA

Today FDA released the New Era of Smarter Food Safety Blueprint. The much-anticipated document was originally scheduled for release in March but was delayed due to the agency’s response to COVID-19. Although the agency’s plan places a lot of focus on the use of new technology, FDA Commissioner Stephen Hahn, M.D., stressed that it is also about enabling more effective methods and processes.

FDA’s Blueprint for the Future breaks down the four core elements of the plan:

  • Tech-Enabled Traceability. A lesson learned during the coronavirus pandemic was that there is a need for greater traceability and visibility in the supply chain. “One of the challenges we’ve faced over the years is recurring outbreaks of illnesses associated with the consumption of certain foods,” said Hahn. “What this daunting problem underscores is the critical importance of the FDA working with industry so that we can rapidly trace a contaminated food to its source. And when I say rapidly, I mean minutes, not days, weeks, or even longer.
  • Smarter Tools and Approaches for Prevention and Outbreak Response. Here, the FDA is emphasizing the “power of data”. “The plans embraced by the blueprint include strengthening our procedures and protocols for conducting the root cause analyses that can identify how a food became contaminated and inform our understanding of how to help prevent that from happening again,” said Hahn.
  • New Business Models and Retail Modernization. This element address food production and delivery, as well as food safety in restaurants and the retail setting.
  • Food Safety Culture. “The pandemic has given us a new perspective on what we mean by food safety culture,” said Hahn. He stated that beyond influencing human behavior, food safety culture must also address worker safety and consumer education.

View the New Era of Smarter Food Safety: FDA’s Blueprint for the Future.

Chris Keith, FlexXray
FST Soapbox

COVID-19: We’re In This Together

By Chris Keith
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Chris Keith, FlexXray

It’s no secret that the COVID-19 pandemic had a major impact on industries and individuals around the world. According to the World Health Organization, as of June 21, 2020, there have been 8,708,008 reported cases of COVID-19 globally, including 461,715 deaths. In a recent article by Forbes, healthcare contributor William Haseltine stated that we are gathering personal stories and statistics right now around COVID-19 survivors who have suffered permanent injuries from the virus. Many experts believe that COVID-19 is also an economic downturn trigger. Author and financial planner Liz Frazier says that even as recessions are a normal part of the U.S. economic cycle, lasting about five and a half years on average, the possibility of a recession starting due to the outbreak would be unprecedented.1 The COVID-19 pandemic is a natural disaster that rocked the world and is a reminder of how connected people are in a global economy.

As quarantine regulations and temporary closures happened across the United States, businesses had to mobilize quickly, pivoting their strategies, distribution efforts, products and beyond to accommodate the new safety measures and external pressures. The food and beverage industry was no different. Although food manufacturers were deemed essential in the United States by Cybersecurity & Infrastructure Security Agency (CISA), manufacturers had to adapt to a new normal during the shutdown.2 Some of the biggest changes that occurred in the food manufacturing industry include fluctuating customers, prices, product and ingredient availability, packaging, distribution, and food quality and safety.

Shifting Demand, Customers and Food Pricing

Sharp changes in food prices and product availability shocked supply and demand and impacted the entire food supply chain across the United States. According to the USDA, there were record levels of demand for food at grocery stores, and, on the supply side, there has been a reduced supply of meat products over the period of quarantine as meatpacking plants faced temporary closures, decreased slaughter pace, and slower production due to COVID-19 regulations.3 Poultry prices took a sharp dip and have been rebounding, hot dog prices are at an all-time high due to increased demand, and beef prices have been climbing due to scarce supply and limited fresh production. Food pricing fluctuation is one of the largest food industry impacts felt directly by the general public and the on-premise sector. Restaurants and bars were crushed by the skyrocketing ingredient prices and mandatory temporary closures due to COVID-19.

As restaurants, school cafeterias and hotels were temporarily shut down due to quarantine restrictions, the food manufacturing industry’s most prominent customers practically disappeared. Before COVID-19, the USDA reported that in 2018, restaurants provided approximately 50% of meals consumed on a daily basis, up from 41% in 1984.4 When COVID-19 hit, consumer trends showed a monumental shift to eating at home. During the height of the pandemic, more people ordered take out from fast-casual dining places and ate from home. A recently published study reveals survey findings that suggest American’s food habits are shifting, as 54% of respondents confirmed they are cooking more, and 46% of respondents, baking more.5 As customers and demand changed, products and packaging had to follow suit.

Scores of manufacturing facilities had to rapidly respond with different products to meet changing consumer demand, despite already being in mid-production for products for restaurant kitchens, cafeterias, and the like. Most of these large-scale and wholesale products would never make it to their original, intended destinations. Manufacturers swiftly adapted their production, creating retail-ready goods from product made or intended for restaurant or fast food supply. These food production facilities had to creatively find ways to change product packaging sizes, salvaging good product with take-home cartons and containers. Some processors pre-sliced deli meat for grocery stores around the country, as markets were unable to slice the meat in-store, dealing with restrictions on the number of people who could work at any given time. The food manufacturing industry showed great ingenuity, repurposing food and getting creative in order to keep the country fed and bridge the gap in convenience shopping that consumers have grown used to.

New Distribution Pressures

There were also disruptions in the food industry’s distribution channel, and the logistics of distribution were adversely affected. Facilities faced increased pressure to have tighter production turnarounds from new consumer behavior and out-of-stock situations as many markets dealt with temporary panic shopping at the beginning of the crisis. Food manufacturing facilities have always faced tight deadlines when dealing with fresh and refrigerated product. However, COVID-19 introduced new critical, immediate needs to the food supply, and, more than ever before, facilities were pressed for time to deliver. Some facilities didn’t have enough dock loading time, and certain cold storage facilities could not meet the raised demands for dock times, making it harder to get product through the distribution channel to consumers. Shipping and logistics came at a premium. Drivers and logistics companies were at capacity with their service offerings, and unable to mobilize to meet the needs of every manufacturing company.

On top of the pressures from consumer demand, manufacturing facilities had to procure PPE (personal protective equipment) in mass for all employees and adjust employee schedules to meet new national and state-wide quarantine restrictions that strained the system. The PPE requirements are part of the distribution logistics, as plants are unable to distribute safe product without adhering to the system’s regulations. Senior Vice President of Regulatory and Environmental Affairs for the National Milk Producers Federation, Clay Detlefsen, said in an article for Food Shot Global that the whole food industry’s system has been turned on its head, as manufacturers are concerned that if they start running out of PPE and sanitation supplies, they would ultimately be forced into shutting down their food processing plants.6

Regulating Food Quality and Safety

Perhaps one of the biggest concerns surrounding the food supply chain during the height of COVID-19 for both producers and consumers was food safety. While safety and quality are always a high priority in the food industry, rising concern around the transmission of COVID-19 became a new and unprecedented challenge for food quality experts. In February the FDA declared that COVID-19 is unlikely to pass through food or food packaging, but that didn’t stop public concern.7 It was critical for food manufacturers and producers to ease public fear, keep the food supply stable and eliminate foreign material contamination that would adversely affect consumers and brand reputation. A mass recall due to foreign material contamination would have dire consequences for the strained food supply chain during this historic crisis. At the same time, the pandemic limited quality and food safety teams, as key teams had to work remotely, shift schedules had to drastically change to meet new safety regulations, production lines cut in half, and quality and safety teams had to make rushed decisions when it came to reworking product.

Some plants that faced potential foreign material contamination risked sending their product into distribution without a thorough rework, up against tight deadlines. And some plants adopted a multifaceted strategy and did something they’ve never done before: Reworked product on hold for potential foreign material contamination themselves. Many of these companies reworked product with their extra available lines, to keep as many of their workers as possible, despite the fact that food production employees are untrained in finding and extracting foreign contaminants. Inline detection machines are also typically limited to metal detection, often incapable of consistently catching many other types of contaminants such as glass, stones, plastic, bone, rubber, gasket material, container defects, product clumps, wood and other possible missing components. Food safety is of the utmost importance when a crisis hits as the food supply chain is crucial to our success as a nation and as an interconnected world. Facing new pressures on all sides, the food industry did not neglect food safety and quality, even while adopting new strategies. There was never a doubt that the industry would overcome the new challenges.

Looking Forward

The food industry has rapidly switched business strategies, swiftly turned around new products, found new ways to align product traceability and work remotely while still meeting industry standards and production expectations. Manufacturing facilities repackaged and repurposed food to keep the country fed, maintained job security for many employees and procured PPE in mass. The food industry is also full of manufacturers and plants that accomplished things they’ve never done before. There are shining examples of heroism in the food and beverage space as a growing list of food businesses, restaurants and delivery services have donated to healthcare workers on the front lines. Many large companies donated millions of dollars and pounds of food to feed their teams, their communities and the less fortunate.8 In the midst of a large obstacle, we have reached new heights and discovered new capabilities.

The challenges aren’t over. The food industry is still facing the effects of COVID-19 shutdowns on businesses even during this period of re-opening in different parts of the country. A lot of places and companies have been hit hard, some even closing their doors for good. Forbes reported at the onset of the pandemic that Smithfield Foods shut down one of its pork processing plants after hundreds of the plant’s 3,700 employees tested positive for coronavirus.8 Tyson Foods also shut down several meat processing plants under threat of the virus.8 Smithfield and Tyson were not the only ones. Food Dive has a compiled tracking system for coronavirus closures in food and beverage manufacturing facilities, recording reduced production, temporary closures, and permanent shutdowns across the industry. We expect some of the COVID-19 challenges to alleviate over time and hope that business will slowly return to normal and previously closed facilities will be able to re-open. However, we strongly hope some changes to the industry will remain: Creativity, ingenuity, resilience, adaptability, and a strong commitment to customers and partners. The bottom line is we’re in this together––together, we’re resilient.

References

  1. Frazier, L. (April 21, 2020). “How COVID-19 Is Leading The US Into A New Type Of Recession, And What It Means For Our Future.” Forbes.
  2. Krebs, C. (May 19, 2020). “Advisory Memorandum on Identification of Essential Critical Infrastructure Workers During COVID-19 Response.” Homeland Security Digital Library.
  3.  Johansson, R. (May 28, 2020) “Another Look at Availability and Prices of Food Amid the COVID-19 Pandemic.” USDA.
  4. Stewart, H. (September 2011). “Food Away From Home.” The Oxford Handbook of the Economics of Food Consumption and Policy. 646–666. Oxford University Press. doi: 10.1093/oxfordhb/9780199569441.013.0027
  5. The Shelby Report. (April 17, 2020). “New Study Reveals Covid-19 Impact On Americans’ Food Habits.”
  6. Caldwell, J. (April 16, 2020). “How Covid-19 is impacting various points in the US food & ag supply chain”. AgFunderNews.
  7. Hahn, M.D., S. (March 27, 2020). Coronavirus (COVID-19) Supply Chain Update. FDA.
  8. Biscotti, L. (April 17, 2020). “Food And Beverage Companies Evolve, Innovate And Contribute Amid COVID-19 Crisis.” Forbes.
FDA

FDA Expects to Release Blueprint for New Era of Smarter Food Safety Soon

By Food Safety Tech Staff
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FDA

On October 1, Frank Yiannas will be the keynote speaker for the 2020 Food Safety Consortium Virtual Series || The series takes place during the weeks of September 3 through December 17Expect the much-anticipated blueprint for FDA’s New Era of Food Safetyto be released soon. The agency has not provided an exact date but in an update prior to the July 4th holiday, FDA stated it would be rolled it out “in the coming weeks”.

“The challenges we’ve faced during the pandemic have made it clear that the goals we set forth in the New Era blueprint are more important now than ever. Some of them, like enhanced traceability, are particularly meaningful in light of recent events,” Frank Yiannas, FDA’s Deputy Commissioner for Food Policy and Response, stated in an agency consumer update. “What we have learned from the pandemic is that we’re on the right track with the New Era of Smarter Food Safety. The steps that we’ll take will prepare us to protect the safety of our food supply, no matter what challenges we face.”

In addition to the focus on emerging digital technologies, traceability in the supply chain, ensuring safety in the home delivery of food (e-commerce), and food safety culture, FDA will be including the lessons learned from the COVID-19 pandemic as part of the blueprint structure.