Why Effective Traceability Systems Utilize Automated Data Collection
By Melissa Lind, contributing writer
Whether it is mislabeling an ingredient known to be an allergen or a contamination event, immediate response is needed to maintain safety in the food supply chain, but many companies may be using out-of-date tracking systems. With any possibility of a food-safety event resulting in dangerous allergic reactions or illness, recall efforts must be put forth post haste, but antiquated systems make timely response impossible.
A study completed by Red Prairie indicates only about half of food companies could actually conduct a recall within hours. This may be because many companies are only partially automated or are still using paper tracking systems. Automation data-collection processes can help companies dramatically increase responsiveness to a compromise in food safety.
New government regulations, such as the Food Safety Modernization Act (FSMA), have been implemented to increase food safety at every level of the supply chain. These regulations require that companies be able to track and trace food products. However, the regulations, like many government rules, do not say how to do perform the task. Customer demand is also driving the need for increased visibility in food’s supply chain as more consumers want to know about their food products.
A food-safety event necessitating a recall can have cost implications well into the millions and, depending on the scope and severity, can have far-reaching business impacts. More than one food company has been forced to shut its doors due to costs of a recall and its impact on consumer confidence. Even if a company is able to withstand the cost of the recall itself, trust in the brand may be irreparably damaged. This may be exponentially compounded if a safety response cannot be immediately implemented. Bad publicity caused by threats to public safety and lack of company response can spread to other products within the same organization. Using a paper tracking system may provide the data required, but that information cannot be accessed in an efficient and effective manner when an emergency demands it.
Use of older enterprise resource planning (ERP) systems may allow for computerized compilation of data, but employees may be required to manually input data, such as batch and lot numbers, into that system. Automated data collection can eliminate the paper and prevent the lag time as data enters the system and when it is extracted in the need for a recall or other event.
New technology does have a price, but no company can easily withstand the cost caused by a lack of responsiveness. Not only will failure to act attract increased regulatory attention, long-term damage can be much greater. Automated data collection dramatically decreases the time required to effectively trace food through the supply chain. Newer systems can be integrated with labeling at the point of harvest, through processing and packaging all the way to delivery.
In addition to providing the necessary information for food-safety events, automated tracking may enable a company to provide the consumer with more of the “what, when, and how” information that they want to know about the origin and processing of their food. The ability to automatically integrate this information can give a company the competitive edge needed to succeed in a tight market.