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Think Backward

May 13, 2009

In the area of food safety, we need to think from the
perspective of the consumer backward. Consumers typically expect
their food to be safe. With all the visibility now, they are making
a purchasing decision on what goes into the food, the source of
their food and the product compliances a company deploys.
Processors, on the other hand, need to demonstrate their food
safety claims by implementing testing, auditing and traceability
for ingredients and finished products through each step of the
supply chain. The key is being rigorous about collecting and
verifying information from suppliers.

The return on investment really comes in the form of access to new
customers and new markets. Retailers, food service companies and
manufacturers are mandating the compliance to the Global Food
Safety Initiative (GFSI) standards. Those companies at the
forefront of ensuring food safety are also focused on quality
through differentiating their brands and proving brand claims to
consumers.

Track and trace technologies are being touted as the solution to
the dangerous and costly challenge of tainted food recalls for both
the industry and governments. There is no doubt that information
technologies can and will provide track and trace functionalities
to address certain aspects of food recalls. However, when you
consider the configuration of a complete supply chain, it becomes
apparent that there are indispensible features required that cannot
be delivered by current solutions.

The lack of end-to-end visibility from manufacturing to consumption
complicates the recall process and can contribute to unnecessary,
dangerous exposure for consumers. As advanced as our technology is
in 2009, a complete traceability system needs to address the
following challenges across the manufacturing supply chain:

• Data Collection and Identification
– Uniform international standards for data collection in the
food supply simply do not exist. The sophistication of technology
used in food manufacturing is at various stages depending upon the
industry, product, geographies and companies involved.
• Supply Chain Complexity
Farm-to-fork supply chains involve numerous participants that add
complexity to the tracking.
• True End-to-End Visibility Throughout Product
Lifecycle
– Interoperability of IT systems and
business processes is difficult across all supply chain
participants to identify the presence and location of tainted food
products in the event of a food recall. 

Given the numerous recent reference events (e.g., peanut butter,
beef, tomatoes, pork, spinach), there is significant movement in
the food supply chain to adopt visibility technologies to
effectuate targeted recalls. The removal of untainted foods results
in significant costs and benefits to industry participants. These
include brand/product recognition and customer loyalty over buying
substitutes. All can be avoided simply by being proactive across
the supply chain with swift, targeted recall management. And by
thinking backward.

Posted by David Cahn on May 13, 2009 | Comments (2)

June 12, 2009
In response to: Think Backward
Mary Homemaker commented:

I work in the food industry and I'm very aware daily of the food safety issues, product recalls, and the seemingly impossible task of keeping our food safe and quickly tracking where it came from should it be deemed unsafe. And given all of that exposure, you would think that I take the time to examine every product I buy from the grocer and that I question it's origin and handling through every step of the supply chain. But the simple truth is that I do not. and I don't see a lot of other shoppers who are either. In mainstream grocery-shopping American, we are looking for food that looks fresh, well-packaged, and the quality we expect for the dollar we are able to spend. Maybe I have become in some way the exception to the rule when it comes to grocery shopping... but I don't believe so. Manufacturers and grocers and restaurant operators seem to think the consumer will make the final call on what products they can safely buy and eat. BUT in truth, consumers are putting their faith in the grocers and the restaurants to not serve or sell us unsafe products. So ultimately who is responsible?


June 12, 2009
In response to: Think Backward
Scott Charles commented:

Agreed. Your first paragraph should be required reading.
Whether we like it or not, or believe it or not, in our society (e.g., "free market capitalism") the consumer rules. Each individual is responsible for managing their own wealth, and the individual purchase decisions drive the whole free market chain. Which in my opinion accounts for the strength of our society. But to each his own worldview.
I'm not sure we can ever get to a fully-transparent food supply chain, but we have at our disposal barcodes, RFID, mobile phones with barcode readers, and ubiquitous communications media. So I think we're close.
Best Wishes,
Scott Charles
PlumbBob Research

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