Produce Traceability Initiative gains momentum

The pace of U.S. packers and shippers implementing the Produce Traceability Initiative (PTI) continues strong. Meanwhile, the number of retailers re-examining their implementation dates and expecting suppliers to comply is also increasing – especially since Walmart’s November 2013, and Whole Foods Market’s June 2014 compliance dates were announced. Canadian, Mexican and South American packers are busy implementing PTI to meet U.S. retailer requirements. Canadian retailers are also evaluating implementation plans in light of the pending Safe Food for Canadians Act.

In other words, a lot is happening in the produce world when it comes to PTI and its goal of one day achieving supply chain-wide adoption of electronic traceability of every case of produce. (For more on the basics of PTI, see sidebar.)

There’s also progress on the product identification side of the industry, especially with respect to retailers moving away from generic UPCs to company-specific UPCs, and also moving toward DataBar on PLU stickers. As PTI and other advancements in standards and product identification take hold, industry members are finding it pays — in dollars and time saved — to be educated, strategic, and proactive when making changes in their operations.
 

The bottom line on costs

PTI is not price prohibitive. System providers have developed low-cost PTI solutions for less than $3,500 and low-cost, web-based monthly solutions. However, the best advice for saving money is to be proactive. Far too often, companies wait to act, then rush when customers suddenly call requesting cases and pallets labeled by a certain date. Solution providers may charge rush premiums and may not be able to help you quickly enough. Plus, needless disruption to your operation resulting from a rush to comply causes inefficiencies that waste time and money. Being proactive, you’ll be able to optimize PTI to create operational advantages. Many suppliers who planned ahead for PTI are now finding benefits beyond electronic traceability that offset implementation costs through improved efficiencies.
 

How suppliers are saving money

Early adopters of PTI are realizing lower costs by minimizing risk during a recall. Playing key roles in this risk minimization are automated and enhanced manual procedures for labeling cases and pallets, and improved employee performance stemming from individual accountability. One shipper limited the scope of a recall to just 12 percent of the total cilantro cases in stores, whereas before PTI they would have had to pull 100 percent. Another shipper saved $200,000 per year by using PTI labels to eliminate Country of Origin and other printing on cardboard boxes. A third shipper used the barcode label on the case to replace manual tracking of packing information (who packed it, how many were packed, when cases were packed, etc.). As a result, this company eliminated the need for one payroll clerk. Furthermore, quality claims dropped from more than 5 percent to less than 1 percent because of the packer’s identification on the PTI label. The savings resulting from these efficiencies paid for the entire cost of this company’s PTI implementation.

To build the best PTI plan for your operation, and to avoid costly mistakes, educate yourself on PTI. The PTI website, www.producetraceability.org, houses a library of information including best practices, case studies, advice for choosing providers, pilot-test findings, implementation guides, company contacts for PTI, checklists, and calculators. PTI also updated three of the best practices to better reference additional helpful hints; those include “Best Practice for Use of Hybrid Pallet Labels by Receivers,” “Guidance on Benefits of Advance Ship Notice versus Hybrid Pallet Labels,” and “Why and How to Use EDI 856 Advance Ship Notice/Manifest Transaction.”
 

Additional resources to note

Two new e-Learning modules have been launched by the CPMA, PMA, United Fresh Produce Association, GS1 Canada, and GS1 US. The modules are: 1) Traceability in the Fresh Produce Industry and 2) Product Identification in the Fresh Produce Industry. These modules offer foundational knowledge designed to assist produce industry stakeholders in implementing traceability processes and identifying their products along the supply chain. They can be used as training tools for new employees or as a refresher for industry veterans seeking a clearer understanding of key concepts for day-to-day operations. Both modules can be found on the PTI website, as well as on www.pma.com.

Two important tools relating to product identification are also available from PMA. UPC Link aids the transition from generic UPCs to company-specific UPCs, while DataBar Online serves as a central repository for communication of data related to the transition to DataBar.

 

About UPC Link

With technology on the rise, and traceability and food safety of great importance, use of company-specific UPCs is increasing. Currently, packaged produce can be labeled with a generic UPC or a company-specific UPC. A generic UPC begins with the manufacturer’s prefix of “033383” and a company-specific UPC begins with a GS1 assigned company prefix. This GS1-assigned company prefix identifies the brand owner of the produce.

UPC Link from PMA is a simple tool for suppliers to upload their generic and brand-owner Global Trade Item Numbers (GTINs) for packaged produce currently being labeled with a generic UPC for retailers to download into their point-of-sale systems. It streamlines the exchange of necessary data by providing a single source to communicate data between trading partners in one consistent file format. Suppliers using UPC Link see a significant reduction in the number of transactions required to communicate data needed for transition, saving time and creating efficiencies. Those utilizing the tool are also seeing improved category management, increased inventory accuracy, enhanced traceability, and a reduction of “no scans” or “not on file” errors. It’s important to note this tool is only used for packaged produce, not loose/bulk items or cases.

About DataBar Online

With implementation of DataBar on the horizon, PMA’s DataBar Online allows for data synchronization of item-level GTINs with PLU codes. This easy-to-use tool enables sellers of produce to communicate their GTINs and corresponding PLU codes to buyers, and allows buyers to download this information into their point-of-sale systems to scan the DataBar on loose or bulk items currently labeled with PLU stickers. This saves having to physically enter the PLU code to identify the product. DataBar Online also reduces “no scans” or “not on file” errors, and an automatic download feature ensures retailers always have the most accurate and complete list of supplier data. Retailers can also search for suppliers who provide a specific commodity. This tool is designed only for loose produce presently labeled with PLU stickers, not case-level identification.

There are multiple resources on www.pma.com pertaining to UPC Link and DataBar Online. Both are free for retailers and wholesalers.

Of interest to those serving the Mexican market, PMA’s Mexico Country Council is supporting the steering committee, formed by key representatives from across the Mexican produce supply chain, to lead the implementation of standardized PLU and DataBar labeling in Mexico. These standards have been used in the United States and other countries for well over 20 years. The Mexican industry’s goal is to increase sales and opportunities through better category management and improved operational efficiencies.

Watch for more information from PMA as progress develops.

Ed Treacy is vice president, supply chain efficiencies, for the Produce Marketing Association.