Today, we’ll explore an inherent problem of using labeling solutions that strive to provide consumers with fresh produce trace-back information. We’ll also describe the hardware and software requirements that support future PTI milestones and GS1 standards.

Trace-back Deficiency In Consumer-Centric Traceability Solutions

Taking advantage of the produce industry’s move toward a universal supply chain traceability system, many hardware and software vendors have designed trace-back solutions for brand owners. These solutions generate labels which let consumers identify limited trace-back data online. The problem is that such trace-back, while helpful, does not meet GS1 traceability standards.

As a case of produce makes its way through the supply chain, ownership of that case is assumed by a number of operators. Each operator can modify the case’s configuration. The PTI milestones require that brand owners affix GTINs to each case. If the configuration of a case is altered in any way, new GTIN data is used to document the change. The labels that are generated by consumer-centric traceability solutions cannot support this level of trace-back flexibility. As a result, they do not comply with GS1 standards.

How To Comply With GS1 Traceability Standards

The labeling solution that supply chain companies use to produce and encode labels should support RFID technology and at a minimum must have the capability to produce GTIN, SGTIN or SSCC using GS1 128 bar codes which are human readable.  These barcodes enable database synchronization of fresh produce product data, the shipper GTIN data is synchronize perfectly with the receiver’s GTIN data, if it doesn’t, traceability is impacted. The GTIN barcodes must be generated using the unique grower, packer, or brand owner’s GS1 prefix, product number, lot numbers, batch numbers, and harvest or pack dates, and be readable by linear scanners used throughout today’s warehouses. When necessary, such as “field packing” or “re-packing” the labeling solution should also allow brand owners to generate labels “on the fly” which is accomplished using a mobile labeling solution.

How eProduce Supports GS1 Standards

Fortunately, most supply chain operators are aware that many consumer-centric traceability solutions do not comply with GS1 standards. That said, many companies are currently using labeling systems that will need to be replaced in order to meet future PTI milestones.

eProduce supports GTIN, SGTIN and SSCC labeling of trade units and logistic units using  GS1-128 Barcodes. These 128 barcodes can be printed, encoded and applied to the unit with the brand owner’s GS1 prefix, product code and GTIN Application Identifier which identifies GTIN type and specific lot and/or batch numbers, harvest date, pack date, etc. of the fresh produce product.  eProduce captures and/or records Grower cultivation and harvest data, including harvest personnel harvesting the fresh produce product.  Product packing data is also recorded by eProduce, maintaining and relating the grower, lot number and harvest date data with the brand name the fresh produce product is packed as, including recording packaging supplies used to pack the fresh produce product.  eProduce features a product re-packing feature allowing the user to scan the GTIN of the product to be removed from inventory and re-packed as another brand or to maintain product grade, all while maintaining original product data, (grower, lot number, etc).  The ship scan of the fresh produce product enable eProduce to record, relate and/or associate the product SGTIN or SSCC of each pallet of fresh produce product as a detailed line item on the Customer’s bill of lading, recording transportation company, ship date and time of the fresh produce product.  In addition, line item detail is also used to automatically verify fresh produce product that is used to fill the customer order is the actual product on the order and alerts the user if an incorrect product has been scanned.  eProduce trace-back functions allow eProduce users and customers to simply enter the fresh produce product GTIN, SGTIN or SSCC and immediately obtain fresh produce product trace-back data.

There has been some media coverage and excitement surrounding the COOL requirements, but we fear its introduction has also led to confusion among consumers. Supply chain operators already realize that the recent COOL legislation is separate from the Produce Traceability Initiative (PTI). Consumers, on the other hand, may be unaware that the two programs are exclusive of each other.

Today, we’ll take a closer look at the COOL law and how it differs from the Produce Traceability Initiative. While COOL offers consumers a higher level of traceback information about some of the food and produce they buy, there are limitations which should not be overlooked.

Pros And Cons Of COOL Legislation

COOL will provide consumers with more information regarding the country from which their food was sourced. So, milk from China will be labeled as such. Beef from Canada and produce from Mexico will be labeled accordingly. The labels will also let consumers better identify the manner in which their produce was grown, or in the case of meat, raised and slaughtered. As a result, consumers will be able to make better choices regarding the food they buy.

Unfortunately, COOL excludes a number of food products. For example, a variety of processed items as well as food and produce served in cafeterias, restaurants, bars, and lounges are largely excluded. Also, the legislation is expected to have an annual cost of $2.5 billion. That will potentially lead to a rise in prices, ultimately reducing the amount of food people buy.

Lastly, knowing the country of origin from which food is sourced does not provide adequate traceback in the event of contamination.

How GS1 Tracking Provides Better Produce Traceability

The GS1 standards that are being used by the Produce Traceability Initiative will provide much better traceback than the COOL law. By the end of this month (March, 2009), each food and produce lot will travel through the supply chain with GS1 prefixes and 14-digit GTIN numbers. Rather than identifying only the country of origin, these numbers will identify each brand owner throughout the supply chain.

If a lot is tainted, the GS1 tracking standards will quickly isolate the source of contamination. The food industry can respond swiftly in a targeted fashion that preserves the public’s health while eliminating the need for expensive widespread recalls.

eProduce’s Fresh Produce Tracing Software Offers Fast GS1 Compliance

With the Produce Traceability Initiative’s first set of deadlines looming (March 31, 2009), many supply chain operators are racing to comply. Suppliers, packers, growers, and distributors must bring their internal traceback systems into compliance with the PTI’s tracking standards.

eProduce’s web-based process management software offers a seamless transition for supply chain companies that still need to comply with GS1 standards. It also provides real-time distribution and inventory management information at their fingertips. Regardless of lot volume, delivery system complexity, or order fulfillment tracking needs, eProduce has been developed to provide flexible, transparent information management.

The March 2009 deadlines are merely the first in a series which extend through 2012. eProduce can help supply chain companies maintain their operations while meeting future PTI traceability standards.

With consumer confidence in food safety battered, it is imperative that every company in the supply chain adhere to universal food and produce traceability standards. The Produce Traceability Initiative (PTI) has launched a sweeping program to bring all supply chain firms into compliance with GS1 tracking and tracing protocols. Over time, as PTI’s improved traceback program help supply chain operators isolate root sources of contamination, consumer confidence will rise.

Potential Threats To The U.S. Food Supply

Consumers often believe that food safety issues are related exclusively to bacteria and other natural contaminants. In reality, there are several potential threats and each represents a risk to public health and safety. For example, national security experts have been concerned for years that extremist groups might act by intentionally contaminating the U.S. food supply. On the other hand, a resentful employee of a supply chain company can introduce harmful toxins and pathogens into a food product at a processing, storage, or distribution center.

While it is impossible to completely remove the possibility of these events occurring, PTI’s GS1 tracking and produce traceability standards seek to control and limit their impact. By requiring supply chain operators to obtain GS1 prefixes and affix 14-digit GTIN numbers to fresh produce products, the tainted food lots can quickly be traced back to the root source of contamination. That prevents threats to the U.S. food and produce supply from spiraling out of control, impacting public health and safety and costing billions of dollars in losses, due to a product category recall.

GS1 Tracking And Produce Traceability

Because the fresh produce industry handles billions of cases of produce each year, the exposure to contaminants – natural or otherwise – is substantial. The risk of tainted food lots will always exist in the supply chain. However, as each operator within the supply chain brings their respective internal record keeping and traceability systems into compliance with industrywide GS1 tracking standards, a new level of accountability emerges. Each industry member, from growers to distribution companies, will be part of a standardized traceability system.

The biggest challenge for many supply chain companies is meeting the PTI’s compliance deadlines.

How eProduce’s Food Tracking Software Eases The Transition Toward Compliance

The Produce Traceability Initiative has established a series of deadlines by which all industry members should comply. By the end of March, 2009, brand owners must acquire GS1 prefixes, assign product codes to all brand name products using the GS1 prefix in preparation to tag each trade unit of fresh produce with a 14-digit GTIN number, which displays the lot number of the produce by the end of third quarter 2010. eProduce, a robust, web-based food tracking, business process management application, already supports the PTI’s seven milestones as outlined in PTI’s ‘Action Plan’ for tracking and tracing of fresh produce.  By using eProduce, brand owners can quickly bring their own traceability systems into compliance with industrywide GS1 standards.

By 2012, wide-scale adoption of a universal electronic traceability system will lower costs for brand owners while improving consumer confidence. As the food and fresh produce industry race to meet the PTI’s traceability requirements and deadlines, supply chain companies will find eProduce to be a cost-effective solution for the transition.

As the food distribution supply chain becomes increasingly globalized, there is a heightened risk of contamination. Potential poisoning of the country’s food supply by extremists, food counterfeiting, and the spread of natural contaminants are top priorities for the food and produce industry. The Produce Traceability Initiative will inject a higher level of security, improve produce traceback, and instill accountability throughout the entire supply chain.

The Produce Traceability Initiative And Supply Chain Traceback

To aggressively protect the public health, the Produce Traceability Initiative (PTI) has mandated a series of deadlines by which all supply chain firms must adopt standardized traceback procedures. As mentioned last week, by the end of the first quarter 2009, every supply chain brand owner – from growers to delivery companies – must acquire GS1-issued prefixes and 14-digit GTIN numbers. The goal of the Produce Traceability Initiative is to improve the traceback for each lot of food and produce as it makes its way throughout the supply chain.

Current traceability systems are often exclusive to each individual supply chain company. A grower maintains traceability protocols that are disconnected from those used by a storage facility down the supply chain. The storage facility’s protocols are typically disconnected from the trucking company which delivers individual lots to retailers.

That makes isolating contaminants which have found their way into the food supply extremely difficult, time-intensive, and expensive. Each day that passes without identifying and containing the root cause represents additional risk to consumers. Because the food industry lacks closed-system standardized traceback, expensive wide-scale product recalls often result. Untainted food and produce is discarded unnecessarily because the original source  of contamination remains a mystery.

It is critical that once toxins, pathogens, and natural contaminants have been discovered, their point of introduction along the supply chain is identified. That way, tainted food items can be separated from untainted food and immediately destroyed. That is what the Produce Traceability Initiative seeks to achieve through improved supply chain traceback. By assigning the 14-digit GTIN numbers to each brand owner, contaminated food and produce lots can be identified quickly and systematically.

eProduce Helps Supply Chain Companies Comply With PTI Standards

Unfortunately, making the necessary changes in order to bring internal traceability standards into compliance with the Produce Traceability Initiative can be difficult for supply chain companies. Modifying internal controls can be expensive and require a significant investment of time. What’s more, the ISO-GS1 regulations that are to be met by the end of the first quarter 2009 represent only two of a series of PTI standards.

eProduce’s traceback software is already in compliance and helping brand owners race to meet the PTI deadline. ISO-GS1 traceability measures have already been integrated into the application. Supply chain firms who use eProduce to accelerate their transition to PTI standards can rest, knowing that they are not only currently in compliance, but will be so for future deadlines.

The Cost of Running a Recall

If you have never been involved in a recall, it can be hard to imagine just how expensive it can be. Even if you are a local producer whose goods are only sold on local shelves, you will have to spend time and resources to collect all of your product and dispose of it. You will have to allocate personnel to manage the recall, tracking your product across the country and ensuring all retailers return any stock. You’ll lose some of your valuable team members to the process, which will force them to shift their focus for weeks or months at a time.

Your staff isn’t the only thing stressed during a recall: your finances will feel the strain too. There is no way to go through a recall without losing money. You have already spent the capital to produce what you put on the shelves, but now you are recalling it completely. You’ll lose everything you spent to produce it. There is no way around that. If you are a small company or only have one major product, and that product gets recalled, you could be in serious financial trouble.

Long Term Costs of Product Contamination

Unfortunately, even after you’ve completed the recall, the problem of contamination doesn’t just go away. Consumers will be acutely aware that your company had to remove your product from the shelves, and they will wonder about the safety of the food in the future. They may choose to buy less — but most will choose not to buy at all. This effect can last for weeks, months, or even years; consumer reaction depends on what foods were impacted and how badly contaminated they were.

Preventing Costly Recalls By Preventing Food Contamination

In today’s economic climate, companies need to avoid anything that could damage profits. As it is, many corporations are struggling under the strain of the recession and have enough trouble without adding problems with contamination. That’s why we feel so sad whenever we see a company recalling food: they’re very likely incurring huge financial debt, yet the thing that forces them to take that risk was entirely preventable.

Companies that use software to track, maintain, and manage produce can stop contamination before it ever becomes a risk. They never have to expose themselves to the dangerous and destabilizing impact of a recall, and they never put the consumers in danger. When companies use software, everybody wins.

Even if there turns out to be no danger from the product, they’ve no doubt worried about it and been scared about having eaten it. But the thing that makes us most frustrated about recalls is how the vast majority of them could have been avoided.

Why Are Mass Scale Recalls Still Happening in This Modern Age?

In general, recalls happen when there’s some kind of mistake made in the growing, handling, packing, or shipping of produce. Mistakes happen when there isn’t proper guidance for employees and when the produce itself isn’t properly tracked and documented. Record keeping catches small problems with produce before they become big — keeping any potentially mishandled produce off of shelves and stopping it from doing any damage.

Yet although contamination is preventable, we see new contamination cases almost weekly. This week, it was peanuts and mushrooms that threatened customers. Across the country, top grocery stores pulled peanut butter and trail mix off of their shelves. Products containing mushrooms were quick to follow as concern rose.

The Social Cost of Product Recalls

A recall like this is costly for grocery stores and food companies alike. Not only is getting all of those products off the shelves a logistical nightmare, but the potential danger makes customers afraid. A recall sends a message that a particular food is unsafe, and damages sales of that food for months, and in some cases, for years afterward.

Demand for Better Farm to Farm To Fork Tracking

How can companies save money and ensure consumer safety? Paper record keeping is an outdated anachronism compared with what a custom software solution can provide. With the technology available today, there is no reason that companies shouldn’t be using food tracking software other than the fact that there is no pressure to change.

With eProduce food tracking software, fresh produce can be tracked through every step of the growing and shipping process, catching any errors before they become too big to contain. Growers and distributors will know if something goes wrong almost as soon as it happens, rather than months later when a costly recall is required to contain the problem.

But even more importantly, software gives companies a way to ensure that employees remember and follow proper procedure. Checklists can be created to guide workers through picking, packing, and storage, ensuring that proper temperatures and other specifics are always observed. This kind of oversight stops problems before they start.

Why don’t more companies use this software? We’re as confused as you are. Management software saves time and money, and protects the customers. That’s exactly what companies want to do, and new software innovation makes it easier than ever. Let’s stop these recalls and dangerous problems once and for all by holding distribution centers, packaging centers and growers accountable.

Peanuts, like some other grains are harvested from multiple growers and then grouped together in a drying and/or curing facility if you will… well the problem as stated by the packers of these nuts is, “I cannot separate one grower from the other grower during the drying process”, all nuts are kept together … ‘no pun intended’… Well, I guess it is time to upgrade your packing facility and talk to a plastic bin supplier.  Not only will these bins allow air to flow through the product, but using RFiD tags or simple bar-coded tags (GS1 Databar, SSCC or GTIN), the packing facility of these nuts can clearly identify any grower’s product that was used in any manufacturing process of peanut oils, butter or other peanut products that were shipped to other manufacturers of peanut products, such as the Baklava assortment I purchased 2.5 months ago from my favorite club store and just received the re-call notice dated January 22, 2009 on Monday.

So while one packing facility of peanut products receives all the attention and rightly so, because salmonella was found in the facility on more than one occasion according to record, the entire peanut industry suffers!  Just notice your own attitude when you walk down the grocery isle that has the peanut butter, you look at it and notice the rack is quite full, and you certainly did not pick-up a jar… , well hello Mr. Tomato, Mr. Spinach, Mr. Green Onion and Mr. Lettuce

“Farm to Fork Tracking in Minutes, Not Days!”, eProduce v4.0, developed by Next Version Software, LLC., enables producers of fresh produce products to track and trace any food product in accordance with ISO GS1 standards, including ingredients used to manufacture a food product.