The North American produce industry is about to unveil a swift, efficient system for electronically tracing individual cases back through the supply chain. And it all starts with the humble label.
Peter Bradley is an award-winning career journalist with more than three decades of experience in both newspapers and national business magazines. His credentials include seven years as the transportation and supply chain editor at Purchasing Magazine and six years as the chief editor of Logistics Management.
When E. coli tainted food caused a number of deaths and thousands of illnesses across much of Western Europe earlier this year, one of the greatest problems investigators faced was finding the source of the deadly bacteria. That has been the case in several outbreaks caused by strains of E. coli or salmonella in both Europe and North America.
But containing the damage may get easier in the future. In the last few years, governments, health agencies, and the food, foodservice, and grocery industries have implemented a wide variety of initiatives both to prevent those outbreaks and to respond swiftly when they do occur.
One of the most critical parts of those efforts is quickly tracking down the source of the illnesses and getting the tainted goods out of the supply chain. That has meant added responsibility for managers of food supply chains. To enable investigators to track illnesses from the point of the outbreak back through the distribution network requires good information along each step of the distribution process.
The industry has taken several steps in this direction in recent years. For example, under terms of the U.S. Bioterrorism Act of 2002, passed out of fear that terrorists might try to tamper with the nation's food supply, every facility that handles food is now required to keep records documenting the movement of its products "one step forward, one step back" in the supply chain. However, industry leaders have long felt the need for a more efficient and systematic approach to tracking goods throughout the entire supply chain.
Now, an initiative by trade groups representing produce farmers in North America promises to extend traceability back to the field and day the food was harvested. That effort, the Produce Traceability Initiative (PTI), calls for the electronic collection and storage of tracking data as goods move through the distribution process. The overarching goal is to enable investigators to rapidly track cases back through the supply chain should an outbreak occur.
A common language
The PTI is a joint effort by the U.S. Produce Marketing Association, the Canadian Produce Marketing Association, the United Fresh Produce Association, and GS1 US (formerly the Uniform Code Council). Proponents believe detailed chain-of-custody information would protect producers as well as consumers. Once investigators determine the source of contamination, they could quickly track those products down and remove them from the supply chain while avoiding broad recalls that force companies to dispose of uncontaminated food.
The initiative calls for identifying every case of produce at the time of harvest with a label containing both human readable text and bar-coded information on the source of the food. The PTI is more than just another labeling mandate, however. In addition to extending labeling back to the fields and orchards, it's particularly notable for its establishment of standard nomenclature for product identification—something that's essential to achieving electronic traceability across the entire distribution network. At the heart of the initiative is a provision calling for key pieces of product identification data to be encoded on labels in a common format that can be read by each receiving and shipping facility—including DCs—along the supply chain. Essentially, that would allow food handlers at every stage of the process to capture detailed tracking data for their electronic records with a swipe of a bar code.
The standards adopted by PTI conform with those developed by GS1 US for supply chain management and control. (GS1 US is the U.S. affiliate of GS1, an international organization that develops standards for improving supply chain efficiency and visibility across multiple sectors.) Specifically, each case must be labeled with a 14-digit GS1 Global Trade Item Number (GTIN), which will identify the "manufacturer" or grower, and 2) a lot number identifying the batch from which the produce came.
As for when all this will take effect, the deadline's coming up quickly. The PTI's leadership has set a target of achieving "supply-chain wide adoption of electronic traceability of every case of produce by the year 2012."
David Senerchia, director of new business development for printing and labeling specialist Zebra, says the initiative promises to take tracking and tracing to the next level in terms of both speed and efficiency. "The Bioterrorism Act required a trail of custody, but no specifics on how you did it as long as you could do it," he says. "But a number of events made it clear you had to do it relatively quickly and that made people think about how they have to have electronic data capture. Growers picking product five or six years ago were not labeling the case, though they were keeping records. Now, the case can go from field to the local retailer or a full-scale distribution channel and at each point, we can store data in a common way that all parties in the supply chain can share."
In addition, the PTI allows the industry to get a jump on new food traceability mandates included in the Food Safety Modernization Act, signed into law by President Obama early this year. "The law gives the Food and Drug Administration increased authority to develop and enforce regulations," says Senerchia. "The industry wants to get ahead of that."
Labeling in the great outdoors
With that 2012 target date looming, labeling and printing specialists have been under pressure to bring suitable equipment to market—specifically, portable printers and labelers that can stand up to use in fields and orchards as well as labels that can withstand rugged handling yet remain readable. But equipment suppliers have stepped up to the plate. For instance, Intermec, a manufacturer of printers and related media, offers options such as rugged mobile printers or fixed printers that could be mounted in a vehicle, along with label stock able to hold up under rainy or wet conditions.
Don Blanton, manager of product marketing for Intermec, cites one customer, Washington Fruit & Produce, that uses Intermec scanners and bar-code technology from Washington-based Pacific ID to ship more than 3 million apples a day. The bar codes and readers enable the company to determine the orchard of origin for the apples and to-the-minute data on when the fruit was packed, he says.
Blanton adds that further enhancements are under way. He reports that technology in the works will allow GPS location information to be integrated into bar-code data. "We're working with several partners on the end game," he says. The goal, he says, is to be able to scan a bar code and know the full history of a case of produce back to where and when it was picked. "We are not quite there yet, but the produce growers are taking the initiative," he says.
In the meantime, developers continue to work on scanners and reading devices that will serve multiple purposes. Thomas Heitman, manager of solutions consulting for systems integrator Peak Technologies, says, "What we really need within the same device is a combination of bar codes that identify the product along with connectivity outside of the four walls—in the truck or in the field—and GPS connectivity that can track where a vehicle has been and track product onto and off the truck. You don't want a person to have five or six things hanging on a belt. One thing is much easier and more cost effective."
Hitting the milestones
As for where the initiative stands to date, PTI leaders say the produce industry is well on its way to meeting its 2012 goals of achieving supply chain-wide electronic traceability of every case of produce. Earlier this year, a PTI survey of its Leadership Council member companies showed 79 percent of participants throughout the supply chain—growers, packers, shippers, retailers, wholesalers, and foodservice firms—were on track to hit PTI milestones by next year.
Applying labels in the field may be a small part of the broader effort to ensure a safe food supply chain. But the ability to capture chain-of-custody data back to the field and orchard should provide an important tool to investigators and the industry alike.
Editor's note: For more info on the PTI and labeling requirements for growers, visit www.producetraceability.org.
As holiday shoppers blitz through the final weeks of the winter peak shopping season, a survey from the postal and shipping solutions provider Stamps.com shows that 40% of U.S. consumers are unaware of holiday shipping deadlines, leaving them at risk of running into last-minute scrambles, higher shipping costs, and packages arriving late.
The survey also found a generational difference in holiday shipping deadline awareness, with 53% of Baby Boomers unaware of these cut-off dates, compared to just 32% of Millennials. Millennials are also more likely to prioritize guaranteed delivery, with 68% citing it as a key factor when choosing a shipping option this holiday season.
Of those surveyed, 66% have experienced holiday shipping delays, with Gen Z reporting the highest rate of delays at 73%, compared to 49% of Baby Boomers. That statistical spread highlights a conclusion that younger generations are less tolerant of delays and prioritize fast and efficient shipping, researchers said. The data came from a study of 1,000 U.S. consumers conducted in October 2024 to understand their shopping habits and preferences.
As they cope with that tight shipping window, a huge 83% of surveyed consumers are willing to pay extra for faster shipping to avoid the prospect of a late-arriving gift. This trend is especially strong among Gen Z, with 56% willing to pay up, compared to just 27% of Baby Boomers.
“As the holiday season approaches, it’s crucial for consumers to be prepared and aware of shipping deadlines to ensure their gifts arrive on time,” Nick Spitzman, General Manager of Stamps.com, said in a release. ”Our survey highlights the significant portion of consumers who are unaware of these deadlines, particularly older generations. It’s essential for retailers and shipping carriers to provide clear and timely information about shipping deadlines to help consumers avoid last-minute stress and disappointment.”
For best results, Stamps.com advises consumers to begin holiday shopping early and familiarize themselves with shipping deadlines across carriers. That is especially true with Thanksgiving falling later this year, meaning the holiday season is shorter and planning ahead is even more essential.
According to Stamps.com, key shipping deadlines include:
December 13, 2024: Last day for FedEx Ground Economy
December 18, 2024: Last day for USPS Ground Advantage and First-Class Mail
December 19, 2024: Last day for UPS 3 Day Select and USPS Priority Mail
December 20, 2024: Last day for UPS 2nd Day Air
December 21, 2024: Last day for USPS Priority Mail Express
Measured over the entire year of 2024, retailers estimate that 16.9% of their annual sales will be returned. But that total figure includes a spike of returns during the holidays; a separate NRF study found that for the 2024 winter holidays, retailers expect their return rate to be 17% higher, on average, than their annual return rate.
Despite the cost of handling that massive reverse logistics task, retailers grin and bear it because product returns are so tightly integrated with brand loyalty, offering companies an additional touchpoint to provide a positive interaction with their customers, NRF Vice President of Industry and Consumer Insights Katherine Cullen said in a release. According to NRF’s research, 76% of consumers consider free returns a key factor in deciding where to shop, and 67% say a negative return experience would discourage them from shopping with a retailer again. And 84% of consumers report being more likely to shop with a retailer that offers no box/no label returns and immediate refunds.
So in response to consumer demand, retailers continue to enhance the return experience for customers. More than two-thirds of retailers surveyed (68%) say they are prioritizing upgrading their returns capabilities within the next six months. In addition, improving the returns experience and reducing the return rate are viewed as two of the most important elements for businesses in achieving their 2025 goals.
However, retailers also must balance meeting consumer demand for seamless returns against rising costs. Fraudulent and abusive returns practices create both logistical and financial challenges for retailers. A majority (93%) of retailers said retail fraud and other exploitive behavior is a significant issue for their business. In terms of abuse, bracketing – purchasing multiple items with the intent to return some – has seen growth among younger consumers, with 51% of Gen Z consumers indicating they engage in this practice.
“Return policies are no longer just a post-purchase consideration – they’re shaping how younger generations shop from the start,” David Sobie, co-founder and CEO of Happy Returns, said in a release. “With behaviors like bracketing and rising return rates putting strain on traditional systems, retailers need to rethink reverse logistics. Solutions like no box/no label returns with item verification enable immediate refunds, meeting customer expectations for convenience while increasing accuracy, reducing fraud and helping to protect profitability in a competitive market.”
The research came from two complementary surveys conducted this fall, allowing NRF and Happy Returns to compare perspectives from both sides. They included one that gathered responses from 2,007 consumers who had returned at least one online purchase within the past year, and another from 249 e-commerce and finance professionals from large U.S. retailers.
The “series A” round was led by Andreessen Horowitz (a16z), with participation from Y Combinator and strategic industry investors, including RyderVentures. It follows an earlier, previously undisclosed, pre-seed round raised 1.5 years ago, that was backed by Array Ventures and other angel investors.
“Our mission is to redefine the economics of the freight industry by harnessing the power of agentic AI,ˮ Pablo Palafox, HappyRobotʼs co-founder and CEO, said in a release. “This funding will enable us to accelerate product development, expand and support our customer base, and ultimately transform how logistics businesses operate.ˮ
According to the firm, its conversational AI platform uses agentic AI—a term for systems that can autonomously make decisions and take actions to achieve specific goals—to simplify logistics operations. HappyRobot says its tech can automate tasks like inbound and outbound calls, carrier negotiations, and data capture, thus enabling brokers to enhance efficiency and capacity, improve margins, and free up human agents to focus on higher-value activities.
“Today, the logistics industry underpinning our global economy is stretched,” Anish Acharya, general partner at a16z, said. “As a key part of the ecosystem, even small to midsize freight brokers can make and receive hundreds, if not thousands, of calls per day – and hiring for this job is increasingly difficult. By providing customers with autonomous decision making, HappyRobotʼs agentic AI platform helps these brokers operate more reliably and efficiently.ˮ
RJW Logistics Group, a logistics solutions provider (LSP) for consumer packaged goods (CPG) brands, has received a “strategic investment” from Boston-based private equity firm Berkshire partners, and now plans to drive future innovations and expand its geographic reach, the Woodridge, Illinois-based company said Tuesday.
Terms of the deal were not disclosed, but the company said that CEO Kevin Williamson and other members of RJW management will continue to be “significant investors” in the company, while private equity firm Mason Wells, which invested in RJW in 2019, will maintain a minority investment position.
RJW is an asset-based transportation, logistics, and warehousing provider, operating more than 7.3 million square feet of consolidation warehouse space in the transportation hubs of Chicago and Dallas and employing 1,900 people. RJW says it partners with over 850 CPG brands and delivers to more than 180 retailers nationwide. According to the company, its retail logistics solutions save cost, improve visibility, and achieve industry-leading On-Time, In-Full (OTIF) performance. Those improvements drive increased in-stock rates and sales, benefiting both CPG brands and their retailer partners, the firm says.
"After several years of mitigating inflation, disruption, supply shocks, conflicts, and uncertainty, we are currently in a relative period of calm," John Paitek, vice president, GEP, said in a release. "But it is very much the calm before the coming storm. This report provides procurement and supply chain leaders with a prescriptive guide to weathering the gale force headwinds of protectionism, tariffs, trade wars, regulatory pressures, uncertainty, and the AI revolution that we will face in 2025."
A report from the company released today offers predictions and strategies for the upcoming year, organized into six major predictions in GEP’s “Outlook 2025: Procurement & Supply Chain” report.
Advanced AI agents will play a key role in demand forecasting, risk monitoring, and supply chain optimization, shifting procurement's mandate from tactical to strategic. Companies should invest in the technology now to to streamline processes and enhance decision-making.
Expanded value metrics will drive decisions, as success will be measured by resilience, sustainability, and compliance… not just cost efficiency. Companies should communicate value beyond cost savings to stakeholders, and develop new KPIs.
Increasing regulatory demands will necessitate heightened supply chain transparency and accountability. So companies should strengthen supplier audits, adopt ESG tracking tools, and integrate compliance into strategic procurement decisions.
Widening tariffs and trade restrictions will force companies to reassess total cost of ownership (TCO) metrics to include geopolitical and environmental risks, as nearshoring and friendshoring attempt to balance resilience with cost.
Rising energy costs and regulatory demands will accelerate the shift to sustainable operations, pushing companies to invest in renewable energy and redesign supply chains to align with ESG commitments.
New tariffs could drive prices higher, just as inflation has come under control and interest rates are returning to near-zero levels. That means companies must continue to secure cost savings as their primary responsibility.