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.
Supply chain planning (SCP) leaders working on transformation efforts are focused on two major high-impact technology trends, including composite AI and supply chain data governance, according to a study from Gartner, Inc.
"SCP leaders are in the process of developing transformation roadmaps that will prioritize delivering on advanced decision intelligence and automated decision making," Eva Dawkins, Director Analyst in Gartner’s Supply Chain practice, said in a release. "Composite AI, which is the combined application of different AI techniques to improve learning efficiency, will drive the optimization and automation of many planning activities at scale, while supply chain data governance is the foundational key for digital transformation.”
Their pursuit of those roadmaps is often complicated by frequent disruptions and the rapid pace of technological innovation. But Gartner says those leaders can accelerate the realized value of technology investments by facilitating a shift from IT-led to business-led digital leadership, with SCP leaders taking ownership of multidisciplinary teams to advance business operations, channels and products.
“A sound data governance strategy supports advanced technologies, such as composite AI, while also facilitating collaboration throughout the supply chain technology ecosystem,” said Dawkins. “Without attention to data governance, SCP leaders will likely struggle to achieve their expected ROI on key technology investments.”
The U.S. manufacturing sector has become an engine of new job creation over the past four years, thanks to a combination of federal incentives and mega-trends like nearshoring and the clean energy boom, according to the industrial real estate firm Savills.
While those manufacturing announcements have softened slightly from their 2022 high point, they remain historically elevated. And the sector’s growth outlook remains strong, regardless of the results of the November U.S. presidential election, the company said in its September “Savills Manufacturing Report.”
From 2021 to 2024, over 995,000 new U.S. manufacturing jobs were announced, with two thirds in advanced sectors like electric vehicles (EVs) and batteries, semiconductors, clean energy, and biomanufacturing. After peaking at 350,000 news jobs in 2022, the growth pace has slowed, with 2024 expected to see just over half that number.
But the ingredients are in place to sustain the hot temperature of American manufacturing expansion in 2025 and beyond, the company said. According to Savills, that’s because the U.S. manufacturing revival is fueled by $910 billion in federal incentives—including the Inflation Reduction Act, CHIPS and Science Act, and Infrastructure Investment and Jobs Act—much of which has not yet been spent. Domestic production is also expected to be boosted by new tariffs, including a planned rise in semiconductor tariffs to 50% in 2025 and an increase in tariffs on Chinese EVs from 25% to 100%.
Certain geographical regions will see greater manufacturing growth than others, since just eight states account for 47% of new manufacturing jobs and over 6.3 billion square feet of industrial space, with 197 million more square feet under development. They are: Arizona, Georgia, Michigan, Ohio, North Carolina, South Carolina, Texas, and Tennessee.
Across the border, Mexico’s manufacturing sector has also seen “revolutionary” growth driven by nearshoring strategies targeting U.S. markets and offering lower-cost labor, with a workforce that is now even cheaper than in China. Over the past four years, that country has launched 27 new plants, each creating over 500 jobs. Unlike the U.S. focus on tech manufacturing, Mexico focuses on traditional sectors such as automative parts, appliances, and consumer goods.
Looking at the future, the U.S. manufacturing sector’s growth outlook remains strong, regardless of the results of November’s presidential election, Savills said. That’s because both candidates favor protectionist trade policies, and since significant change to federal incentives would require a single party to control both the legislative and executive branches. Rather than relying on changes in political leadership, future growth of U.S. manufacturing now hinges on finding affordable, reliable power amid increasing competition between manufacturing sites and data centers, Savills said.
The British logistics robot vendor Dexory this week said it has raised $80 million in venture funding to support an expansion of its artificial intelligence (AI) powered features, grow its global team, and accelerate the deployment of its autonomous robots.
A “significant focus” continues to be on expanding across the U.S. market, where Dexory is live with customers in seven states and last month opened a U.S. headquarters in Nashville. The Series B will also enhance development and production facilities at its UK headquarters, the firm said.
The “series B” funding round was led by DTCP, with participation from Latitude Ventures, Wave-X and Bootstrap Europe, along with existing investors Atomico, Lakestar, Capnamic, and several angels from the logistics industry. With the close of the round, Dexory has now raised $120 million over the past three years.
Dexory says its product, DexoryView, provides real-time visibility across warehouses of any size through its autonomous mobile robots and AI. The rolling bots use sensor and image data and continuous data collection to perform rapid warehouse scans and create digital twins of warehouse spaces, allowing for optimized performance and future scenario simulations.
Originally announced in September, the move will allow Deutsche Bahn to “fully focus on restructuring the rail infrastructure in Germany and providing climate-friendly passenger and freight transport operations in Germany and Europe,” Werner Gatzer, Chairman of the DB Supervisory Board, said in a release.
For its purchase price, DSV gains an organization with around 72,700 employees at over 1,850 locations. The new owner says it plans to investment around one billion euros in coming years to promote additional growth in German operations. Together, DSV and Schenker will have a combined workforce of approximately 147,000 employees in more than 90 countries, earning pro forma revenue of approximately $43.3 billion (based on 2023 numbers), DSV said.
After removing that unit, Deutsche Bahn retains its core business called the “Systemverbund Bahn,” which includes passenger transport activities in Germany, rail freight activities, operational service units, and railroad infrastructure companies. The DB Group, headquartered in Berlin, employs around 340,000 people.
“We have set clear goals to structurally modernize Deutsche Bahn in the areas of infrastructure, operations and profitability and focus on the core business. The proceeds from the sale will significantly reduce DB’s debt and thus make an important contribution to the financial stability of the DB Group. At the same time, DB Schenker will gain a strong strategic owner in DSV,” Deutsche Bahn CEO Richard Lutz said in a release.
Transportation industry veteran Anne Reinke will become president & CEO of trade group the Intermodal Association of North America (IANA) at the end of the year, stepping into the position from her previous post leading third party logistics (3PL) trade group the Transportation Intermediaries Association (TIA), both organizations said today.
Meanwhile, TIA today announced that insider Christopher Burroughs would fill Reinke’s shoes as president & CEO. Burroughs has been with TIA for 13 years, most recently as its vice president of Government Affairs for the past six years, during which time he oversaw all legislative and regulatory efforts before Congress and the federal agencies.
Before her four years leading TIA, Reinke spent two years as Deputy Assistant Secretary with the U.S. Department of Transportation and 16 years with CSX Corporation.