Here ’ s how traceability , visibility , safer supplier sourcing and collaboration help companies maintain integrity |
Most of the US meat processors depend
on spreadsheets that do not offer any
real-time insights , says Quantzig experts .
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across the entire global cold chain . |
Since these meat products are highly |
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There are many facets to a resilient |
perishable , meat supply chain managers |
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supply chain – stringent operational |
need complete visibility on supply chain |
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processes , enhanced supplier sourcing , |
operations to make the right decision . |
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strong company relationships and the drive |
But then , as the pandemic hit , |
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to conduct business in the most ethical |
“ Customer buying habits caused |
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way possible at all times . |
demand for additional frozen foods to |
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But , when a global pandemic such |
grow even more . The protein areas were |
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as the coronavirus disease ( Covid-19 ) |
hit the hardest , as employee health issues |
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hits , even the most resilient supply chains |
at process plants and uncertainly with |
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become challenged in ways never |
export shipments created considerable |
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imagined . |
disruption ,” says Bernard Biolchini , chief |
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• For instance , imports at major US |
executive officer for Dematic Americas . |
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retail container ports are expected to |
“ This made for a very unstable and |
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remain significantly below last year ’ s |
somewhat unpredictable flow of material |
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levels as the impact of the Covid-19 |
in and out of operations and limited ability |
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pandemic continues , according
to the monthly Global Port Tracker
report released by the National Retail
Federation and Hackett Associates .
• The online grocery market stole the
spotlight from brick-and-mortar stores ,
surging at a 23 % CAGR , as outlined in
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to manage inventory levels and speed-tomarket
,” says Biolchini .
Plus , the temporary closure of meat
processing plants further disrupted the
meat supply chain , causing severe
shortages of meat and poultry across the
United States . “ The meat processing plants
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Creative Commons |
Consumers and regulators alike are demanding greater transparency in the food supply chain and improved traceability of food ’ s journey from farm to fork . |
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a study from Future Market Insights .
• The consumer confidence index
dropped 18.1 points in early
April ; March saw an 11.9-point
decline , according to the 31st annual
State of Logistics Report produced
by the Council of Supply Chain
Management Professionals ( CSCMP );
and
• 32 % of consumers surveyed in NPD
Group ’ s NET Covid-19 Pantry & Food
Strategy Tracker are still experiencing
out-of-stocks months after the
Covid-19 outbreak began .
Case in point : Covid-19 has been more
economically damaging than a standard
recession or an escalation of trade
tensions , says the CSCMP report .
So , what does this mean for the future
of supply chains ? What does this say about
cold chains pre-covid-19 ? Were cold
food chains really underscoring honesty ,
consistency and accuracy , enough to at
least survive a global pandemic ?
That ’ s why , for a cold food supply chain
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in the US were already facing tremendous
pressures due to the complex production
environments and changing consumer
demands ,” adds Biolchini . According
to Quantzig ’ s supply chain analytics
experts . “ To stay ahead of competitors ,
the meat processing firms must focus on
developing strategies for smart planning
and ensuring customer loyalty .”
Furthermore , inadequate crossfunctional
visibility of supply chain
operations often resulted in unfulfilled
orders and scarcity of raw materials .
“ The largest impact of Covid-19 is the
attention it has drawn to the fragility of
supply chains when they are subjected to
unexpected shocks ,” says Mark Toohey ,
managing director Aglive ( Pty ) Ltd .
“ Anecdotal evidence shows that we are
starting to rethink what we source and
where it comes from .”
That ’ s why Aglive collaborated
with DB Schenker to complete a beef
traceability trial from Australia to China .
With support from Meat and Livestock
Australia , the trial used blockchain-based
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“ How can it be that we now live in a
world where a significant proportion ,
if not the majority of , some products
may be unethically or unsustainably
produced or may contain inferior or even
bogus ingredients ? The commitment to
ethical standards has increased , but at
a more visceral level , many of us are
more and more concerned about our
dwindling ability to actually get what
we pay for . The ability of blockchainprotected
information to inform , assure
and ensure buyers and consumers is
something that is increasingly valued .
The perceived value will rise as both
consumers and producers become
more familiar with the concepts , more
comfortable when using the technology ,
more confident about its value and more
convinced of its ability to protect supply
chain integrity .”
FOOD SAFETY AT FOREFRONT POST-PANDEMIC
Before Covid-19 , harsh working conditions
in sub-zero temperature freezers and cold
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could greatly enhance this program .
However , companies are hesitant to
move forward until more education and
acceptance on cybersecurity is in place .”
Biolchini recommends implementing
automated software solutions to provide
greater visibility and management of
inventory to assure food safety and proper
rotation of product .
“ Simple strategies to provide product
integrity outside of storage areas include
managing and tracking times of products
on docks , performing thermal temperature
scanning , documenting pallet arrival /
departures and monitoring of truck
refrigeration temperatures ,” he adds .
At the same time , the FDA
announced a New Era of Smarter Food
Safety initiative , which is a blueprint
designed to enhance traceability ,
improve predictive analytics , respond
more rapidly to outbreaks , address new
business models , reduce contamination
of food and foster the development of
stronger food safety cultures .
“ This is especially critical with the
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to enforce integrity , it must incorporate |
monitoring alongside Internet of Things ( IoT ) |
storage units presented its own set of |
global demand for year-round access |
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blockchain , traceability , visibility , safer |
capabilities to track cattle from Macka ’ s |
challenges with regards to finding – and |
to perishable products ,” says Andre |
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supplier sourcing , food safety and |
farm in regional New South Wales to a |
retaining – good , quality employees . |
Patenaude , director , solutions integration , |
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collaboration . |
local abattoir . |
The truck driver shortage also |
cold chain for Emerson . “ Regardless |
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Companies must re-tool , regroup |
Aglive ’ s platform then traced the |
remained a Top 10 concern , as outlined |
of season or geographic location , |
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and invest in technologies designed to |
frozen beef products to ensure they were |
in the American Transportation Research |
consumers demand an increasing variety |
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enhance the way a product moves along |
kept under safe conditions as they were |
Institute ’ s 2018 Top Industry Trends report . |
of fresh produce throughout the year . |
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the cold chain . For many , the actions |
transported by land freight to Brisbane and |
And , food safety continues to be a |
Achieving this feat can require fresh |
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taken today set the precedence for how |
then shipped to Shanghai to be distributed |
frontrunner of concerns for cold chain |
produce to be transported by land , |
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cold chains will recover tomorrow .
FOOD SUPPLY CHAIN HIT HARD
The food supply chain was one of the
hardest-hit segments by Covid-19 , and is
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expected to lead to acute shortages of
certain product categories , according
to Quantzig supply chain analytics experts .
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to local supermarket shelves .
“ Greater use of IoT devices to monitor
shipping conditions will help ensure food
safety and quality . Extremely useful data
collected by IoT devices needs to be
stored and distributed in a reliable and
trusted manner – a role that blockchain
can comprehensively fill ,” adds Toohey .
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operators .
“ The Food Safety and Modernisation
Act ( FSMA ) has structured a phased plan
to ensure end-to-end track-and-trace of
the food supply chain ,” says Biolchini . “ The
need for integrated software solutions
is critical to the success of this program .
Implementing blockchain technology
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sea and air , encompassing the point of
harvest , processing , cold storage and
distribution – all before it ever begins the
last-mile delivery to a store or restaurant
or consumer . Overseas shipments can
last anywhere from two to four weeks . It ’ s
staggering to realise that there can be
potentially as many as 20-30 individual
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