Gary Nowacki, CEO of TraceGains, suggested, “There are technology solutions available to overcoming the high cost of perishable shrink and they must prioritize inventory and shipments based on FEFO: First Expired, First Out.” The FEFO concept is based on the following core ideas:
1) Temperature control must be monitored.
2) Temperature varies greatly inside a storage room, container or truck.
3) Even slight temperature variation affects the remaining shelf life of produce and temperature exposure has a cumulative effect.
4) Identifying the temperature exposure of individual pallets or cases of produce allows prioritization on the basis of remaining shelf life, instead of simple transit and storage times.
TraceGains is not just about reducing risk; these unique technology solutions help companies turn disparate data into actionable business and value chain intelligence; it turns traceability from a cost center into a profit center. TraceGains customers typically experience a better than 300% return on investment (ROI), and an average profitability increase between 3-5%. Independent, peer-reviewed university studies confirm these findings.
To determine how different temperatures cumulatively affect the remaining life of the product, one must measure the exact temperature accumulations in small granularity within each area of the truck or storage facility in conjunction with shelf-life modeling. Solutions must automatically calculate expiration dates of perishables when received at the dock as well as document trip-level temperature data at item, carton or pallet for a more successful conflict and dispute resolution.
Manufacturing journalist Thomas R. Cutler looks at the ability to overcome perishable shrink in the current issue of Times Food Processing Journal. Perishable shrink costs retailers a tremendous amount of money. Vulnerable items such as meat, dairy, fruit, vegetables, and flowers can expire prematurely due to incorrect temperature handling in the supply chain. Transportation and interim storage at the distribution center all affect the final quality of the saleable product. Consumers are quick to judge based on appearance and remember when a product does not meet their expectations.
Assuring freshness for the entire refrigerated food supply chain requires much more than just a cold chain and cold storage solution. A complete end-to-end temperature traceability is needed for all temperature-sensitive products as well as predicting the remaining shelf-life when products arrive. Traceability programs must be converted from a cost-center to a profit center by using appropriate data collection devices to tie logistical information with temperature data collected at regular intervals throughout transportation and storage on the item, carton or pallet level across any part of the supply chain.
State-of-the-Art Technology via Positively Assured Temperature
It is much more than just temperature readings in the vehicle. Several features to consider include reliable “credit card”-sized temperature tags which can be easily to attach to any container utilizing wireless RFID technology which simplifies tag initialization and data collection as perishables travel through the supply chain. To contain costs battery-powered tags are highly suggested and they are fully reusable and reconfigurable for future shipments (typically for one year). There is no need to compromise on accuracy and quality assurance (every tag must be calibrated) and solutions must address compliance with EPC data standards and global ISO RFID standards.
The ability to set upper/lower limit monitoring and real time alerts directly impacts the percentage of perishable shrink which is often as high as 50%, and regularly 30%.
TraceGains, Inc. (www.TraceGains.com) was founded in 1998 with a 100% focus on Positively Assured Traceability™. The company has a patented delivery system—14 patents granted and growing—and also is an authorized Issuer of United States Department of Agriculture Process Verification Program (PVP) Label.
TraceGains Inc.
www.tracegains.com
Marc Simony, Director of Marketing
traceability@tracegains.com
(303)682-9898
Professional Marketing Firm for the Manufacturing Community and Manufacturing Journalist to most manufacturing magazines
