Italian wine makers are the first to use DNV GL’s blockchain solution MyStory, which allows consumers “to have instant and in-depth access to key products characteristics such as quality, authenticity, origin, ingredients, water and energy consumption and more, all verified by DNV GL along the entire transformation process,” says DNV GL’s Business Assurance CEO Luca Crisciotti. By scanning a QR-code, consumers can see the full history of the product and its journey from grape to bottle.
From farm to fork, food produced today goes through more hands than ever before. A greater number of players in the production of even a single product could increase that the risk for foodborne illness. Not only do companies need to check incoming and outgoing products from their own facilities, but they also need to consider whether products that they are importing from other countries are compliant with local regulations, and whether the products that they are exporting are compliant with the regulations of the destination country.
The current traceability standard of “one step forward, one step back’”is less and less suited for the current global marketplace, and governments are demanding more. Handling all this information is a challenge for food producers of all sizes, around the world.
Taking Traceability Global with FSVP
Needless to say, with 600 million people contracting foodborne illnesses every year, there is a dire need for food traceability and transparency in the food supply chain. If and when something goes wrong, traceability gives oversight agencies greater visibility investigating the root causes of an outbreak to prevent further risk to the public. It also allows companies to minimize the financial impact of a recall if they are able to pinpoint exactly which lot numbers of their products are affected.
In response to the changes in the food industry, in 2011 the USFDA introduced FSMA to implement a more proactive food safety regulatory system. With FSMA came the Foreign Supplier Verification Program (FSVP), which basically extends FSMA regulations to companies supplying food to the United States. All U.S. importers are now required to monitor and manage their foreign suppliers through six steps of hazard analysis, record keeping and more. Given the complexity of the global food supply chain, this is by no means an easy undertaking and it is clear that technology is crucial to achieving this granular level of data management alone. Blockchain technology, however, might be the answer to this problem—and many other related ones.
What is Blockchain Technology?
Evolving from the digital financial world, blockchains are distributed databases that build a growing chain of ordered records, called blocks. This means that any type of information can be stored in a chronological, consistent and secure way; even if multiple users are involved, it is extremely difficult to alter a blockchain.
Since any information on the blockchain is shared with all of its users, they can view any transactions made historically and in real-time. Theoretically, this could allow authorities to pinpoint food problems within minutes, when previously it would take days, potentially saving many lives in the process.
Blockchain in Action in the Food Industry
In 2016, retail giant Walmart started using a pilot version of the technology in its stores, tracking two products using blockchain: A packaged produce item in the United States and pork in China. Walmart announced that the results were “very encouraging,” noting that using blockchain technology could dramatically increase the speed of traceability from days to minutes. In fact, Walmart is now taking it to the next level with a collaboration with one of China’s largest retailers, JD.com, and their suppliers, to bring a higher level of food safety to China.
Other major food suppliers and retailers—Dole, Driscoll’s, Golden State Foods, Kroger, McCormick and Company, McLane Company, Nestlé, Tyson Foods and Unilever—have also signalled their intention to work with IBM to create blockchain-based solutions. Blockchain technology is even being used to track the movement of tuna through the ocean and all the way to the consumer.
At the same time, implementing blockchain technology throughout the industry is a mammoth task. As of now, blockchain technology has a problem with scaling up and can only process a limited number of transactions per second, which would not be sufficient given the needs of the global supply chain. According to Coindesk, each transaction costs about $0.20, and can only store 80 bytes of data, so the bill might become quite hefty as well.
There’s also the fact that the food industry is traditionally slow to adopt new technologies. It’s not just about big players like Walmart—small, medium, and large businesses alike need to come onboard in order for this to become an industry-wide standard.
Can FSVP Unlock the Potential for Blockchain Technology?
There are several reasons why blockchain technology could be the key to tackling the complex challenge that is tracking and verifying foreign suppliers. Blockchains can help increase transparency and communication across the food supply chain, ensuring that there are no gaps and that records are widely available and up to date. When all the information about suppliers and products is easily accessible, the potential to increase the speed of recall response is very high.
Blockchain technology is also suited to FSVP’s goals, specifically. One of the main goals of FSVP and FSMA generally is to tackle the issues of food fraud, intentional adulteration and bioterrorism that are unique problems of our time, in terms of scale if nothing else. Such a modern problem requires modern solutions. Because the blockchain, forming the basis of cryptocurrencies like Bitcoin, focuses on security, it could mean that blockchains can help close the gaps that would be exploited by food companies employees, or other actors who harbor ill intent.
The reality, however, is that the level of industry-wide coordination—and voluntary transparency—that would be necessary to deliver real benefits is extremely high. The theoretical possibilities are exciting and hugely impactful; the practical reality is more complex. For blockchain to reach its full potential, it has to be universally mandated, which is highly unlikely given the current circumstances. It seems more likely that adoption in this area could be driven by industry organizations and/or government, but unfortunately, the recently proposed budget cuts for the FDA might block progress in the latter area.
Still, with major food suppliers and retailers leading the charge and taking blockchain technology for a test run, the rest of the industry is waiting with bated breath to see what happens next.
Do you trust your suppliers? What about your supplier’s suppliers? Strengthening the links within your supply chain can be a challenging task, but it is necessary with FDA, and FSMA, recognizing the risk that exists.
Key topics, including vulnerabilities, inspections & audits, traceability, supplier verification, transportation, and recalls will be addressed at the 4th Food Safety Supply Chain conference from June 12–13 in Rockville, MD. The event will be held at the U.S. Pharmacopeial Convention.
This year’s agenda will be posted by March 1. In the meantime, the following are some topics covered at last year’s event:
During seasonal volume and demand peaks in the food and beverage industry, common practice is to increase labor and mobile equipment supplies temporarily. While this works great for small- to medium-sized businesses even in the current landscape, it’s not ideal for larger teams. This is primarily due to the evolution of technology, especially in the automation sector.
Adding more labor and machines can help increase volume, but it comes with a sizeable cost, one that could be shaved with the right process and system updates. As one might expect, adopting advanced automation systems, robotics and processes that can be controlled via machinery or software is the answer. Believe it or not, these systems can be made to work alongside and improve performance of existing laborers and teams.
In fact, automation is taking many industries by storm, and it’s about time food and beverage companies climbed aboard. Automotive, construction and healthcare are just three examples of industries already being disrupted by automation and AI.
But how is the technology being adopted or implemented in the food industry, and how will companies benefit from incorporating such systems?
Better Quality Control
Along the food and beverage supply chain, there are so many involved processes, workers and touchpoints that it can be difficult to not only keep track of food, but also to monitor its quality. As you know, quality is of incredible importance in the industry. You don’t want faulty or contaminated foods entering the market because it can be detrimental. Food must always remain traceable and safe, and it’s difficult to guarantee a system that has so many working cogs.
Automation, however, can change that completely. With the appropriate systems, defects and issues can be noticed much earlier in the supply chain. By detecting problems during packaging or processing, you can cut down on the total number of problematic goods that enter the market. Better yet, you can accurately identify when and where those problems are coming from and remedy the issue for improved performance in the future. If something along your supply chain is the culprit, automation will help you hone in.
Eliminating contamination can be controlled — and achieved — by deploying the appropriate cooling and air compressor systems. However, that also means understanding where this hardware must be utilized for maximum reliability. Automation and analytics systems can be helpful in discerning this information, better protecting foods and goods along the chain.
It’s not a pipe dream, either — systems are already being adopted and implemented to achieve such a thing.
While we touched on the idea of traceability a little in the point above, it’s the lion’s share that’s really going to make a difference. Automation and modern analytics tools can be deployed to track products and goods from inception to fulfillment. Because the systems in question are designed to track and monitor on their own with little to no input, you can tap in anywhere along the chain to seek the information you need.
Have a contaminated shipment that was discovered too late? You can use the modern analytics and automation tools at your disposal to find exactly where they are shipped or headed. This way you can head off a massive health problem before it even starts.
This, in turn, can help alleviate compliance costs and stressors, as well as improve the overall performance of the supply chain and various key processes. You could, for example, see how long a particular stop or touchpoint along the supply chain is taking and use the information provided to speed up performance.
End-to-end traceability and all the data that comes with it is about more than just watching where food comes from, where it is handled and where it goes. You can use the data provided to build an accurate profile and predictive system for future gains.
Improved Worker Safety
Automation systems, AI and modern robotics are often used to control rote, repetitive and sometimes even dangerous tasks. In this way, you can save human laborers from the dangers of a particular activity or even the monotony of busy work. It frees them up to handle more important demands, which is another benefit.
Of course, increased safety and protection for your loyal workforce can also work to alleviate operation or maintenance costs in the long run. It can lead to faster and more widespread adoption of new standards and regulations for your workforce at large as well. Traditionally, such a change might require additional training, new equipment or even better protection for your workers.
In the case of automation, you can simply update the existing hardware and software to be compliant and save the trouble of maintaining everything else, such as updating safety gear for your workers, which would no longer be necessary.
It’s no secret that when deployed and developed properly, a machine or automation system can perform work faster and better than human laborers, at least in some cases. A machine never tires, never gets bored and can never slack off—unless it has a malfunction. That’s not to say modern technologies will be used to replace workers outright, but instead, they might be deployed alongside them to help them work faster, better and safer.
Take Amazon, for instance, which has deployed an army of AI and automation robots inside their warehouses to improve the efficiency of their order fulfillment process. It has the added benefit of speeding up the entire system, so customers get their items faster. It also improves safety and performance for the workers, effectively eliminating unsafe tasks or rote work.
Automation can provide benefits across the board for the food and beverage industry. It will be interesting to see how technological developments unfold.
The passage of FSMA sparked industry-wide tightening of food safety standards. Perhaps one industry that has been affected more than others is brewing. Prior to the passage of this sweeping legislation, brewers weren’t held to the same standards as other food manufacturers and food processors. The act’s new categorization for brewers as “food” means that the FDA now has some jurisdiction over the industry in conjunction with the Alcohol and Tobacco Tax and Trade Bureau (TTB).
This increased scrutiny, particularly in the event of a recall, has caused many brewers to look to color-coding as a measure to tighten up their quality assurance protocols. Fortunately for brewers, there are many benefits to incorporating color-coding, making the process a worthwhile one.
Perhaps the most immediate effect of incorporating color-coding in a facility is delighting any inspectors that may drop in. A color-coding plan is a documented method for evaluating potential hazards and implementing precautionary measures to preventing contamination—all things inspectors want to see. Failure to live up to these standards can result in follow up inspections and, in some cases, fines.
Proper Tool Usage
A color-coding plan indicates where and when a tool is to be used. While mistakes can still be made, a clear plan that is reflected in all tools and paired with adequate signage and training makes it much more likely that a tool will be used properly. Much of the equipment in a brewery is very expensive and can be easily damaged by using the wrong tool. For example, if an abrasive brush were to be used on a stainless steel tank, there can be irreparable damage.
Tools that are color-coded are generally made at a food-grade, FDA-approved quality. This means they are much less likely to leave behind bristles, a potential contaminant you wouldn’t want finding its way into the product. Additionally, many breweries make use of caustics and acids followed by sanitizers in the cleaning process. A low-quality tool will degrade at a much higher rate as a result of coming into contact with these chemicals than a higher quality tool will. Simply put, higher quality tools last longer, saving you money in the long run.
Less Tool Wandering
A color-coding plan should indicate where a tool is used and where it is stored when it is not being used. When tools have this designated storage area they are much less likely to be carelessly misplaced. And in the event of a lost tool, it becomes much easier to recognize these tool gaps and replace as necessary sooner rather than later to ensure that the proper tool is always used for the task at hand.
When protocols are in place for tool usage, time isn’t wasted finding the correct tool for the job. This may seem insignificant, but over time those lost minutes can add up.
Removal of Language Barriers
For facilities that employ foreign speakers, color-coding is extremely helpful in breaking down language barriers. A brewery production area can be a busy, fast-paced environment, so it is helpful to have a plan in place that is easily recognizable and understood by all employees.
It is however important to consider the fact that you may need to keep in mind the visibility of these colors for colorblind employees. It’s best to try to use high contrast colors in your plan.
Finally, in the unfortunate event of a recall, a color-coding plan helps add traceability potentially decreasing the amount of product that needs to be pulled from shelves. Certainly color-coding helps to prevent contamination issues that can cause a recall.
A well thought out color-coding plan that is carefully implemented can have numerous benefits in breweries both small and large. For questions related to drafting a color-coding plan from scratch or updating an existing plan, contacting a color-coding specialist is recommended.
The Internet of Things (IoT) is changing the way restaurants do business in 2017. Today, business owners can trace products from point-of-purchase to their doorstep using IoT devices that monitor their location and more importantly, their temperature along the way. These devices are helping keep food safe, streamlining inventory management and giving owners the real-time information they need when managing multiple locations.
Monitoring Food Safety
Nothing gets the attention of a restaurant owner quicker than a foodborne illness outbreak. When it happens, they need to know which products were involved.
IoT devices allow owners to track their food from the time they order to the time it arrives. Even in the back of a tractor-trailer rolling down the highway, owners can check to see the temperature of their food, and can obtain the data trail during its entire journey to see how it was handled, and to ensure safety standards were met.
This data is especially important since the U.S. Federal Government enacted the Food Safety Modernization Act (FSMA) in 2011, which intends to protect public health by reinforcing the U.S. food safety program. Food-based businesses are now required to establish preventative control systems modeled after HACCP (Hazard Analysis and Critical Control Points) guidelines and prove their compliance by maintaining at least two-years of documentation.
Traceability measures utilizing IoT efficiently gathers and manages this information, giving owners the peace of mind they need to ensure their food has been handled properly. Not only that, but they have the data to prove it.
Inventory Control and Management
IoT devices help manage the cost of inventory by providing the real-time data that owners need when ordering stock and forecasting needs based on their menu. The data collected by the IoT devices ensures the freshest ingredients are available for dishes, and expired products are disposed of properly.
Tracking inventory from farm-to-fork prevents food waste, deters in-house theft and helps manage the cost of inventory.
Other questions and action items that IoT devices can help manage include:
- Who placed the order, authorized the purchase, and accepted the delivery?
- What was ordered and what are the products’ proper temperature ranges?
- When did the order take place and when did it arrive? When is its expiration date?
- What is the origin of the product and how did it travel to get to you?
This can help specifically within the restaurant retail market where pick-up and deliveries are becoming more prevalent.
For example: If a customer changes their scheduled pick-up, or drop-off times, retailers must have technology in place that will monitor food safety best practices. Deli, produce and dairy related products could use pre-determined checklists that will verify items were picked correctly, bagged properly and temperatures are checked to FDA regulated standards. While FDA regulations pertaining to FSMA are stricter than ever, it has never been more important for food safety technology to be integrated within the adoption of omnichannel restaurant practices. The likes of digitalized checklist management, temperature control and traceability will have a tremendous impact on continued growth and service within the marketplace.
IoT Devices and Temperature Control
Utilizing the IoT is a critical aspect of quality control. These devices are equipped with a temperature probe, barcode scanner and RFID infrared temperature reader that monitors and tracks your food throughout its journey in the supply chain.
Here’s how it works:
- The probe, infrared and RFID scanner track and measure the temperature of each product.
- The IoT software prompts employees to complete checklists, including temperature checks on a regular basis.
- Each time the data is collected, it is immediately uploaded to a secure cloud and is accessible anytime, from anywhere.
- While in the cloud, you can customize, store, filter and analyze the information.
- Users are alerted immediately if any steps are overlooked, like non-observed items, missed checklists and violations, in addition to any corrective actions that address temperature concerns.
- Should an issue arise, you have the detailed, automated audit trail to prove your company followed proper food safety protocol.
IoT Devices Can Create Modern Dining Experiences
Aside from helping to streamline and manage day-to-day operations, IoT devices can create a unique dining experience for your customers.
For example, if you love seafood – some restaurants are using IoT devices to track where and when seafood is harvested. One example of this kind of initiative is the Boat-to-Plate project funded by a grant from the Mid-Coast Fishermen’s Association. This project developed an app for anglers to upload information regarding their catch. Restaurant owners are using IoT information like this to create unique dining experiences.
IoT and You
How do you plan to use IoT technology in 2017? Integrating IoT practices gives your business the food safety solution needed to help keep food safe, improve supply chain traceability, manage your inventory and gain better control over your bottom-line.
Food defense is the protection of food products from intentional contamination or adulteration, as well as biological, chemical, physical or radiological agents. It addresses additional concerns including physical, personnel and operational security. A traditional food defense program is generally perceived as a program that includes site security, visitors control or even on-site personnel monitoring. However, with the new FSMA Preventive Controls Rules and GFSI Guidance for all the recognized schemes, additional to consumer demand on product transparency, we must now take food fraud into consideration within our food defense program.
What is food fraud? According to the study from Michigan State University, food fraud is a collective term used to encompass the deliberate and intentional substitution, addition, tampering or misrepresentation of food, food ingredients or food packaging, or false misleading statements made about a product, for economic gain. It becomes not just a potential for food safety issues, but also a severe issue that could potentially damage your brand reputation. It is hence critical to have appropriate protection and prevention, as the umbrella encompasses both food defense and food safety.
What does this mean to food manufacturers? The awareness of traceability and transparency certainly should rise. Most facilities should have a food defense program in place to comply with any GMP or GFSI requirements. To make it more competent for food fraud, what could we do? Here are some quick tips to strengthen your food defense program with food fraud prevention:
- Tip 1: Review your entire supply chain one more time, considering fraud risks
- Tip 2: Use the HACCP concept for food fraud risk analysis
- Tip 3: Double-check incoming goods
- Tip 4: Make the entire supply chain transparent
- Tip 5: Document all records
Tip 1: Review your entire supply chain one more time, considering fraud risks
The unknown could potentially hurt you or your program. You would prefer to be aware of what might go wrong before it goes wrong, which is why a review should be one of the key steps in your food safety program. It might be a familiar terminology in the industry; however, we could not eliminate its importance to your entire food safety management system. To maintain product authenticity, understanding where your ingredients come from and who your business partners and suppliers are become the first step to success. It also gives you an excellent opportunity to analyze the risks and potential risk sources. A thorough review should include all the approved suppliers and vendor information. Knowing the source of your product provides you with a good foundation for your food defense program. How can we efficiently review our own supply chain?
- List all approved suppliers and contract vendors
- Make sure all ingredients are used accordingly and as intended
- Keep the supplier registration list up to date
The more you understand your own supply chain, the more helpful it will be to your food defense program.
Tip 2: Use HACCP concept for food fraud risk analysis within supply chain
Hazard Analysis Critical Control Point (HACCP), as defined by FDA, is a management system in which food safety is ensured by addressing through the analysis and control of biological, chemical and physical hazards throughout the entire supply chain. This mentality of HACCP could be used and very helpful to analyze the potential fraud risks. Its seven principles and 12 steps could be implemented to identify your own fraud risks. And it is important for us to identify the hazards from potentially adulterated ingredients to determine the next step for what needs to be controlled. Utilizing the 12 steps, we can list all the key points and steps that could potentially impact your products’ authenticity. The risks can come from personnel, visitors or the ingredients themselves. There are many resources out there; for example, US Pharmacopeia (USP) has developed a global food fraud database that is a good resource for all ingredients that have been falsely used in food products.
Ready or not – here comes organic demand! Consumers everywhere are demanding certified organic products in their homes and on their tables. TraceGains’ latest eBook, An Organic State of Mind, sheds light on the trends and demands that are shaping the organic industry today and how automation technology is changing the game for many organic food manufacturers and producers.
Tip 3: Double-check incoming goods
Many articles address the importance of vulnerability assessments to prevent food fraud plus any documentation your suppliers have provided. Yes, it is critical; however, as one of the important steps in the HACCP program, verification is also important to make sure what goes into your finished products is safe and guaranteed. This could be addressed and monitored by implementing genetic testing. Each product and ingredient has its own DNA, just like our fingerprints. Nowadays, there are many methodologies developed for this type of test. The DNA testing could be a helpful tool to help your facility verify the authenticity of your incoming raw materials. Genetic testing using techniques like polymerase chain reaction (PCR) technology to detect the DNA of the product upon receiving the incoming goods. Moreover, as fast as it can be, facilities can now receive the test results within one to two hours. The testing itself might seem like an extra step with more effort and labor. However, the return is a huge saving on damages caused by food fraud. You can now start to verify and control your supply chain from the beginning to avoid any potential adulteration.
Tip 4: Make the entire supply chain transparent
This transparency not only applies to internal employees but also outward to your customers and vendors. That way you can familiarize yourself with your own supply chain, while at the same time establish brand reputation and confidence to your customers.
Tip 5: Keep all records documented
The records you should keep, besides a registration list of all your ingredients and vendors, should include the inventory list, how ingredients are used, whether it is used outside of its intended use and authorized personnel signatures. The following are some tips for an efficient document control:
- Make it clear and straightforward
- Categorize it based on your own facility operations
- Keep the records in the same order of your supply chain from ingredients to end consumers
After all, with the newly released requirements, as QA professionals, we need to start developing a mindset that considers food fraud as a type of hazard, and develop monitor and control strategies for mitigating it. Just like we are now so familiar with the physical, chemical and biological hazards within our production facilities compared to decades ago, food fraud will no longer be a scary term once it is proficiently understood and properly controlled.
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
The third-party logistics provider (3PL) market is expected grow at a compound annual growth rate of more than 5% through at least 2024, according to Hexa Research. In addition, Aberdeen Research reports that industry leaders have increased the number of 3PLs they work with by more than 20% since 2013. Clearly, companies are outsourcing more of their logistics activities, and there are many factors to consider when choosing a 3PL, especially in the food industry. This article discusses a few essentials to take into account before betting your company reputation on a new 3PL relationship.
Transporting food is a serious and complex business, and it’s one place you don’t want to be a trailblazer. If the 3PL you’re considering doesn’t have extensive experience with products similar to yours, you are better off looking elsewhere. After all, it’s your reputation that will take the hit if things go wrong. This is one area where it pays to check references.
A company’s supply chain can be the weakest link in its food safety program. Learn how to mitigate these risks at the Food Safety Supply Chain conference | June 5-6, 20172. Familiarity With Food Safety
First and foremost, ensure your 3PL understands the ramifications of the latest legislation regarding food handling — including FSMA and HACCP. It should be able to point to material handling data sheets for every item of food it handles. Give the 3PL bonus points if it can personalize the handling instructions to each shipper.
Make sure the 3PL understands the rules in all the geographic areas where you ship, since local regulations can vary.
3. Certified Processes
FSMA requires specific documentation. The 3PL you choose should already be aware of the rules and have processes in place for compliance. It should have taken the initiative to have its processes audited for compliance. After all, compliance with regulations is part of the service it provides for you.
Ask the provider to show you its method for conveying handling instructions to carriers, and how it ensures that carriers follow the instructions. The burden of proof for cold-chain integrity or HACCP compliance falls to you, so don’t entrust your business to a 3PL that doesn’t understand it.
4. Track and Trace, Lot and Expiration Controls
Recalls happen. Your 3PL should have technology in place to provide visibility throughout the supply chain, including the ability to track and trace from end to end. Ask to see its picking process, and how it ensures first-in-first-out (FIFO) lot picking so you minimize spoilage. How does it handle expired or soon-to-expire lots? Can it segregate the goods so it doesn’t actually ship them? How does it notify you of upcoming expirations? Proactive alerting is the ideal mechanism.
5. Size and Locations
Once the 3PL you are considering has proven it understands how to handle food products safely and legally, the next step is to ensure it can provide the coverage you require. It should have offices in or near your distribution points. Ask to see the 3PL’s customer list. You don’t want to be much larger than its current largest customer because it may not be equipped to deal with your volumes. You also don’t want to be among its smallest shippers, because you may not get the attention you deserve.
Make sure the provider is fiscally sound, especially if you are entering this relationship for the long term.
Technology is fast becoming the biggest differentiator for a 3PL. Ask about the systems it uses for collaboration and visibility. Does it have automated picking capabilities? Are your business systems easily compatible if you want to integrate, or does it provide a shipper portal for 24/7 access? What are its future technology plans? A good 3PL should be excited to talk about its technology because it would know it’s a key differentiator. If the provider is reluctant to talk about it or lagging in the technology arena, it will not be a good long-term partner.
Your business depends on a great 3PL, and your customer’s health and safety may rely on it as well. Take the time to thoroughly vet any 3PL you are considering before signing on the dotted line.
The food we eat is a lot less secure than we would like to imagine. According to PricewaterhouseCoopers, food fraud is estimated to be a $40 billion a year problem, with instances of fraud becoming worryingly frequent—from wood shavings discovered in our parmesan to the 2013 horsemeat scandal in the UK.1-3 Not only do these incidents damage the faith consumers have in their food, but as seen in the 2009 salmonella peanut butter outbreak, which resulted in the death of 9 Americans and sickening of 714, they can have fatal consequences.4 Indeed, the World Health Organization estimates that nearly 1 in 10 people become ill every year from eating contaminated food.5
While it may be uncomfortable to imagine our food supply can be susceptible to such high profile attacks, what is more unsettling is that our food supply chain has grown so complex that it has become almost impossible for food producers to guarantee the provenance of their products—meaning consumers can never entirely trust in the food they eat. In this article I will identify five main issues the global food supply chain faces, and what steps can be taken to address them.
Exchange knowledge about managing your supply chain at the Best Practices in Food Safety Supply Chain conference | June 5–6, 2017 | LEARN MORE1. Consumer demand for traceability
Traceability is no longer a request from consumers, but a demand, and one that is only growing stronger. A recent transparency survey found that consumers want to see everything from a complete ingredient breakdown to sourcing information, with 94% of respondents saying they are likely to be more loyal to a brand that offers complete transparency.6 While a new study discovered that more than half of Canadians are concerned about food fraud.7
If we take seafood products as an example, almost half (46%) of respondents to an independent research survey conducted by the Marine Stewardship Council (MSC) agreed that they trust brands that use ecolabels (a form of third-party certification) more than those that do not.8 The survey also found that 66% of respondents felt that traceability of the product was the primary factor determining seafood purchasing decisions.
This kind of consumer driven, high-quality information opens up a world of possibilities for companies that recognize the significance of its demand. Brand protection, demand forecasting and consumer loyalty all becomes possible for early adapters who show themselves to be taking practical steps to guarantee the authenticity of their products.
2. Lack of communication between actors
One of the biggest challenges preventing full traceability of our food is the fragmented nature of the supply chain. For even the most seemingly simple of food items there can be a huge number of actors involved that are spread around the globe with little to no knowledge of one another’s actions.
For instance, to trace your hamburger from farm to fork may involve tracing your lettuce back to the farm in which it was grown (but not what happens to it before it reaches your supermarkets shelves), tracing the beef back to the cattle (with no guarantee, as seen with the horsemeat scandal, that the end product is 100% beef) and any number of logistical barriers.
It is vital then that stakeholders within the chain prioritize communication with their suppliers, either through the implementation of traceability solutions, or the commitment to engage only with suppliers they know they can trust. Not only is this beneficial to the end consumer, but to the food producers themselves, allowing them to ensure that their organizational reputation remains solely their responsibility and not left in the hands of unknown and uncontrollable third parties.
3. Influence of organized crime
When one thinks of the Mafia, it’s rare that olive oil is the first thing that comes to mind. Currently, however, it is the fraudulent manufacture of this and many other Italian exports (cheese, wine, etc.) that is fueling organized crime and ending up on our shelves.9
High-scale food fraud is not a naturally occurring phenomenon but rather exists as a result of highly organized criminal activity. In his 2014 UK government report, Professor Chris Elliot notes that “food fraud becomes food crime when it no longer involves random acts by “rogues” within the food industry, but becomes an organized activity by groups that knowingly set out to deceive and or injure, those purchasing food”.10
This is not just a problem for Italy; counterfeit food and drink occurs on a massive scale throughout the whole of Europe. A joint initiative by EUROPOL and INTERPOL last year led to the largest ever seizure of fake and adulterated projects. This project, known as OPSON V resulted in 11,000 tons and 1,440,000 liters of hazardous fake food and drink seized across 57 countries.11
In order to combat the growing threat organized crime has on our food supply, it is vital that governments devote resources to organizations with the sole responsibility of identifying food crime. In response to the horsemeat scandal, the UK government launched its National Food Crime Unit within the Food Standards Agency in London, while the FDA has a special focus on food defense.
The establishment of these organizations is important, as police forces traditionally have struggled to combat food fraud, either through a lack of time, resources, or simply understanding of the complexities of how fraud affects the supply chain. The creation of specialist taskforces not only legitimizes the fight against food fraud, but allows for easier intelligence share.
4. Lack of transparency throughout the supply chain
In her work on trust for the digital age, Racheal Botsman tells us that trust has evolved from an institutional based system to a distributed system. Nowhere has this more potential than with our food supply.
In such a complex system it becomes necessary to consider how the food industry can begin to move away from traditional systems of centralized trust. As Botsman points out, “institutional trust is not designed for the digital age”, the emergence of new technologies, most notably the blockchain, highlights the potential to introduce more trust in our food.12
Originally the technology underpinning Bitcoin, the blockchain has wide ranging applications beyond the world of FinTech. Blockchain is a transformative tool in the fight against food fraud, allowing an open and transparent ledger of our food products journey. This allows unalterable trust to be introduced into an untrustworthy system, ensuring every actor in the chain records and shares their interactions with our food.
This represents a huge opportunity for those companies who see the advantage of early adoption of blockchain infused traceability systems. Indeed by 2022, Gartner estimates an innovative business built on a blockchain will be worth $10 billion.13
5. Need for strong legislation
Steps have already been made in legislation to allow for earlier prevention of food safety incidents occurring, such as FSMA. While it is important that lawmakers are proactive in their response, the focus has primarily been on food safety, and there is still a difficulty in treating food fraud as its own separate entity.
Legislation regarding food labelling could also be more stringent, especially in Europe. At present only olive oil, fish (unless it’s canned or prepared), beef (fresh, chilled, frozen or minced), fresh or frozen poultry of non-EU origin, wine, most fresh fruit and vegetables, honey and eggs are required to be labelled. This means that origin information is largely missing on foods such as meat products (e.g., ham and sausages), yogurts and cheese, kitchen staples (e.g., oil, flour, sugar and pasta), biscuits and confectionery, or ready-meals.
Tighter legislation, leading to significant punitive measures taken against actors found to be committing fraud, would be a vital catalyst in ensuring that food in our supply chain is as secure as possible.
The growth of the global food supply chain may bring with it complexity and challenges, but also great opportunities. If actors can interject their processes with the kind of joined up thinking outlined above, with the help of technological tools that are becoming more and more accessible, the benefits will be significant, not just for them, but for all of us.
- PWC. (2016). Fighting $40bn food fraud to protect food supply [Press Release]. Retrieved from http://press.pwc.com/News-releases/fighting–40bn-food-fraud-to-protect-food-supply/s/44fd6210-10f7-46c7-8431-e55983286e22
- Mulvany, L. (February 16, 2016). The Parmesan Cheese You Sprinkle on Your Penne Could Be Wood. Retrieved from https://www.bloomberg.com/news/articles/2016-02-16/the-parmesan-cheese-you-sprinkle-on-your-penne-could-be-wood
- Grierson, J. (August 26, 2016). Three men charged over UK horsemeat scandal. Retrieved from https://www.theguardian.com/uk-news/2016/aug/26/three-men-charged-over-uk-horsemeat-scandal
- Andrews, J. (April 16, 2016). 2009 Peanut Butter Outbreak: Three Years On, Still No Resolution for Some. Retrieved from http://www.foodsafetynews.com/2012/04/2009-peanut-butter-outbreak-three-years-on-still-no-resolution-for-some/#.WD7tE6KLTpJ
- World Health Organization. (2015). WHO’s first ever global estimates of foodborne diseases find children under 5 account for almost one third of deaths [Press Release] Retrieved from http://www.who.int/mediacentre/news/releases/2015/foodborne-disease-estimates/en/
- Label Insight (2016). The 2016 Label Insight Transparency ROI Study. Retrieved from https://www.labelinsight.com/hubf /2016_Transparency_ROI_Study_Label_Insight.pdf?t=1486676060862
- Sagan, A. (February 21, 2017). Study finds 63 per cent of Canadians are concerned about food fraud. Retrieved from http://www.theglobeandmail.com/news/national/study-finds-63-per-cent-of-canadians-are-concerned-about-food-fraud/article34094664/
- MSC (2014). MSC Consumer Survey 2014. Retrieved from https://www.msc.org/newsroom/news/new-research-shows-increasing-appetite-for-sustainable-seafood
Bacchi, U. (February 21, 2017). Italian police break mafia ring exporting fake olive oil to U.S. Retrieved from http://www.reuters.com/article/us-italy-crime-food-idUSKBN1602BD
- HM Government (2015) Elliot Review into Integrity and Assurance of Food Supply Networks. Retrieved from https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/350726/elliot-review-final-report-july2014.pdf
EUROPOL (2016) largest ever seizures of fake food and drink in INTERPOL-EUROPOL operation [Press Release]. Retrieved from https://www.europol.europa.eu/newsroom/news/largest-ever-seizures-of-fake-food-and-drink-in-interpol-europol-operation
- Botsman, R. (October 20, 2015). The Changing Rules of Trust in the Digital Age. Retrieved from https://hbr.org/2015/10/the-changing-rules-of-trust-in-the-digital-age
- Panetta, K. (October 18, 2016) Gartner’s Top 10 Strategic Technology Trends for 2017. Retrieved from http://linkis.com/www.econotimes.com/Zk8mh