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.
Congestion on U.S. highways is costing the trucking industry big, according to research from the American Transportation Research Institute (ATRI), released today.
The group found that traffic congestion on U.S. highways added $108.8 billion in costs to the trucking industry in 2022, a record high. The information comes from ATRI’s Cost of Congestion study, which is part of the organization’s ongoing highway performance measurement research.
Total hours of congestion fell slightly compared to 2021 due to softening freight market conditions, but the cost of operating a truck increased at a much higher rate, according to the research. As a result, the overall cost of congestion increased by 15% year-over-year—a level equivalent to more than 430,000 commercial truck drivers sitting idle for one work year and an average cost of $7,588 for every registered combination truck.
The analysis also identified metropolitan delays and related impacts, showing that the top 10 most-congested states each experienced added costs of more than $8 billion. That list was led by Texas, at $9.17 billion in added costs; California, at $8.77 billion; and Florida, $8.44 billion. Rounding out the top 10 list were New York, Georgia, New Jersey, Illinois, Pennsylvania, Louisiana, and Tennessee. Combined, the top 10 states account for more than half of the trucking industry’s congestion costs nationwide—52%, according to the research.
The metro areas with the highest congestion costs include New York City, $6.68 billion; Miami, $3.2 billion; and Chicago, $3.14 billion.
ATRI’s analysis also found that the trucking industry wasted more than 6.4 billion gallons of diesel fuel in 2022 due to congestion, resulting in additional fuel costs of $32.1 billion.
ATRI used a combination of data sources, including its truck GPS database and Operational Costs study benchmarks, to calculate the impacts of trucking delays on major U.S. roadways.
There’s a photo from 1971 that John Kent, professor of supply chain management at the University of Arkansas, likes to show. It’s of a shaggy-haired 18-year-old named Glenn Cowan grinning at three-time world table tennis champion Zhuang Zedong, while holding a silk tapestry Zhuang had just given him. Cowan was a member of the U.S. table tennis team who participated in the 1971 World Table Tennis Championships in Nagoya, Japan. Story has it that one morning, he overslept and missed his bus to the tournament and had to hitch a ride with the Chinese national team and met and connected with Zhuang.
Cowan and Zhuang’s interaction led to an invitation for the U.S. team to visit China. At the time, the two countries were just beginning to emerge from a 20-year period of decidedly frosty relations, strict travel bans, and trade restrictions. The highly publicized trip signaled a willingness on both sides to renew relations and launched the term “pingpong diplomacy.”
Kent, who is a senior fellow at the George H. W. Bush Foundation for U.S.-China Relations, believes the photograph is a good reminder that some 50-odd years ago, the economies of the United States and China were not as tightly interwoven as they are today. At the time, the Nixon administration was looking to form closer political and economic ties between the two countries in hopes of reducing chances of future conflict (and to weaken alliances among Communist countries).
The signals coming out of Washington and Beijing are now, of course, much different than they were in the early 1970s. Instead of advocating for better relations, political rhetoric focuses on the need for the U.S. to “decouple” from China. Both Republicans and Democrats have warned that the U.S. economy is too dependent on goods manufactured in China. They see this dependency as a threat to economic strength, American jobs, supply chain resiliency, and national security.
Supply chain professionals, however, know that extricating ourselves from our reliance on Chinese manufacturing is easier said than done. Many pundits push for a “China + 1” strategy, where companies diversify their manufacturing and sourcing options beyond China. But in reality, that “plus one” is often a Chinese company operating in a different country or a non-Chinese manufacturer that is still heavily dependent on material or subcomponents made in China.
This is the problem when supply chain decisions are made on a global scale without input from supply chain professionals. In an article in the Arkansas Democrat-Gazette, Kent argues that, “The discussions on supply chains mainly take place between government officials who typically bring many other competing issues and agendas to the table. Corporate entities—the individuals and companies directly impacted by supply chains—tend to be under-represented in the conversation.”
Kent is a proponent of what he calls “supply chain diplomacy,” where experts from academia and industry from the U.S. and China work collaboratively to create better, more efficient global supply chains. Take, for example, the “Peace Beans” project that Kent is involved with. This project, jointly formed by Zhejiang University and the Bush China Foundation, proposes balancing supply chains by exporting soybeans from Arkansas to tofu producers in China’s Yunnan province, and, in return, importing coffee beans grown in Yunnan to coffee roasters in Arkansas. Kent believes the operation could even use the same transportation equipment.
The benefits of working collaboratively—instead of continuing to build friction in the supply chain through tariffs and adversarial relationships—are numerous, according to Kent and his colleagues. They believe it would be much better if the two major world economies worked together on issues like global inflation, climate change, and artificial intelligence.
And such relations could play a significant role in strengthening world peace, particularly in light of ongoing tensions over Taiwan. Because, as Kent writes, “The 19th-century idea that ‘When goods don’t cross borders, soldiers will’ is as true today as ever. Perhaps more so.”
Hyster-Yale Materials Handling today announced its plans to fulfill the domestic manufacturing requirements of the Build America, Buy America (BABA) Act for certain portions of its lineup of forklift trucks and container handling equipment.
That means the Greenville, North Carolina-based company now plans to expand its existing American manufacturing with a targeted set of high-capacity models, including electric options, that align with the needs of infrastructure projects subject to BABA requirements. The company’s plans include determining the optimal production location in the United States, strategically expanding sourcing agreements to meet local material requirements, and further developing electric power options for high-capacity equipment.
As a part of the 2021 Infrastructure Investment and Jobs Act, the BABA Act aims to increase the use of American-made materials in federally funded infrastructure projects across the U.S., Hyster-Yale says. It was enacted as part of a broader effort to boost domestic manufacturing and economic growth, and mandates that federal dollars allocated to infrastructure – such as roads, bridges, ports and public transit systems – must prioritize materials produced in the USA, including critical items like steel, iron and various construction materials.
Hyster-Yale’s footprint in the U.S. is spread across 10 locations, including three manufacturing facilities.
“Our leadership is fully invested in meeting the needs of businesses that require BABA-compliant material handling solutions,” Tony Salgado, Hyster-Yale’s chief operating officer, said in a release. “We are working to partner with our key domestic suppliers, as well as identifying how best to leverage our own American manufacturing footprint to deliver a competitive solution for our customers and stakeholders. But beyond mere compliance, and in line with the many areas of our business where we are evolving to better support our customers, our commitment remains steadfast. We are dedicated to delivering industry-leading standards in design, durability and performance — qualities that have become synonymous with our brands worldwide and that our customers have come to rely on and expect.”
In a separate move, the U.S. Environmental Protection Agency (EPA) also gave its approval for the state to advance its Heavy-Duty Omnibus Rule, which is crafted to significantly reduce smog-forming nitrogen oxide (NOx) emissions from new heavy-duty, diesel-powered trucks.
Both rules are intended to deliver health benefits to California citizens affected by vehicle pollution, according to the environmental group Earthjustice. If the state gets federal approval for the final steps to become law, the rules mean that cars on the road in California will largely be zero-emissions a generation from now in the 2050s, accounting for the average vehicle lifespan of vehicles with internal combustion engine (ICE) power sold before that 2035 date.
“This might read like checking a bureaucratic box, but EPA’s approval is a critical step forward in protecting our lungs from pollution and our wallets from the expenses of combustion fuels,” Paul Cort, director of Earthjustice’s Right To Zero campaign, said in a release. “The gradual shift in car sales to zero-emissions models will cut smog and household costs while growing California’s clean energy workforce. Cutting truck pollution will help clear our skies of smog. EPA should now approve the remaining authorization requests from California to allow the state to clean its air and protect its residents.”
However, the truck drivers' industry group Owner-Operator Independent Drivers Association (OOIDA) pushed back against the federal decision allowing the Omnibus Low-NOx rule to advance. "The Omnibus Low-NOx waiver for California calls into question the policymaking process under the Biden administration's EPA. Purposefully injecting uncertainty into a $588 billion American industry is bad for our economy and makes no meaningful progress towards purported environmental goals," (OOIDA) President Todd Spencer said in a release. "EPA's credibility outside of radical environmental circles would have been better served by working with regulated industries rather than ramming through last-minute special interest favors. We look forward to working with the Trump administration's EPA in good faith towards achievable environmental outcomes.”
Editor's note:This article was revised on December 18 to add reaction from OOIDA.
A Canadian startup that provides AI-powered logistics solutions has gained $5.5 million in seed funding to support its concept of creating a digital platform for global trade, according to Toronto-based Starboard.
The round was led by Eclipse, with participation from previous backers Garuda Ventures and Everywhere Ventures. The firm says it will use its new backing to expand its engineering team in Toronto and accelerate its AI-driven product development to simplify supply chain complexities.
According to Starboard, the logistics industry is under immense pressure to adapt to the growing complexity of global trade, which has hit recent hurdles such as the strike at U.S. east and gulf coast ports. That situation calls for innovative solutions to streamline operations and reduce costs for operators.
As a potential solution, Starboard offers its flagship product, which it defines as an AI-based transportation management system (TMS) and rate management system that helps mid-sized freight forwarders operate more efficiently and win more business. More broadly, Starboard says it is building the virtual infrastructure for global trade, allowing freight companies to leverage AI and machine learning to optimize operations such as processing shipments in real time, reconciling invoices, and following up on payments.
"This investment is a pivotal step in our mission to unlock the power of AI for our customers," said Sumeet Trehan, Co-Founder and CEO of Starboard. "Global trade has long been plagued by inefficiencies that drive up costs and reduce competitiveness. Our platform is designed to empower SMB freight forwarders—the backbone of more than $20 trillion in global trade and $1 trillion in logistics spend—with the tools they need to thrive in this complex ecosystem."