TRUETRAC Blog

We’ve been hearing so much lately about traceability that we thought it might helpful to distinguish between the two separate tracking efforts, both underway, both being called traceability.

Traceability efforts need to be distinguished between individual consumer items and the wholesale unit or carton. While item traceability and carton traceability are both important for the fresh produce industry, each is different. Item tracking systems and carton tracking systems each carry a unique method and a unique purpose.

To explain, let’s take a look at enhanced definitions of items versus cartons. Items could be a 5-lb. bag of potatoes, a 1-lb. clamshell of strawberries, or even an individual unit such as a single apple. When items are packaged for individual sale, we often hear the term inner pack to denote the individual item’s package style. Now, the inner pack is not to be confused with the outer pack, which is the unit used to hold several individually packaged consumer items such as a larger master carton or master bag.

• For example, an apple, packed in a “12-3” configuration is where the outer pack holds a dozen 3-lb. bags — the 3-lb. bags are the inner pack — the 36-lb. carton is the outer pack.

Cartons are the palletized and shipped units that are recorded as they travel through the supply chain. When a pallet of apples arrives at a retail outlet, the outer pack (carton) is opened and the inner pack (a dozen bags of apples weighing three pounds each) is placed on display in the produce aisle.

Cartons, as we are defining here, are the outer pack. But in the industry, we should note that outer packs are not limited to cartons. The outer pack could be a sack or bin, and may be used with some products such as watermelons, potatoes or onions.

• Despite the variance of material, we refer to the outer pack in this document as the carton. This carton is the unit that is bought, sold and traded through the network of companies that make up the supply chain.

When the term supply chain traceability is used, it refers to the mechanism that tracks the cartons (outer packs) as they travel through commerce. Conversely, items (inner packs) are rarely touched while traveling through the supply chain, and therefore are not identified while moving through commerce.

Knowing the route that the carton (outer pack) took, how many companies handled the carton along the way, and who was responsible for it as it traveled through the supply chain, is the main objective of carton traceability.

Knowing the participants of the whole supply chain — or chain of custody — is very important when dealing with fresh produce because each handler is responsible for managing the product correctly while it is in their possession. For example, keeping fresh produce cold and at the correct humidity are important post-harvest handling requirements. Proper product handling must remain intact, and it is incumbent upon each supply chain participant to exercise good food safety practices and practice adequate post-harvest handling techniques within their facility.

Whole supply chain traceability is the major objective of the industry-driven Produce Traceability Initiative. It’s all about identification of every carton of fresh produce as it travels through the complex network of companies handling and delivering fresh produce outlets all across North America.

So how does item traceability work? Does it replace supply chain traceability? Why do we have two efforts? Do we really need both?

The short answer is this: Individual consumer items identified with traceability numbers can be complementary to carton traceability. But item numbering is a completely separate effort. It may serve a different purpose and may not be traceability at all.

The way it works is that each consumer item is associated with a number on its packaging at the very beginning of the supply chain, usually at the initial packing operation. Once the item has been numbered, multiple items are packed into a carton. These individual consumer items are not touched again until they’re unpacked and put on display in the grocery store for purchase by the consumer.

Item traceability efforts start with the packer but leap over the entire supply chain and into the hands of the consumer. So if item traceability does little to expose and trace a product through the supply chain, you might be wondering why it’s even called traceability. And what is its purpose?

One of the most exciting purposes of item traceability is the ability of the initial packer or brand-owner to leverage this item-numbering system to establish direct connections with the consumers of their products.

Typically, large retailers control promotional activities and manage the relationships with the consumer. Item numbering systems offer source suppliers the ability to leap past retailers to establish direct links with consumers.

By using an item numbering mechanism, brand owners can encourage interaction between consumers and the source packer/shippers of their products, giving greater visibility to the origin and the ultimate destination of the consumer item.

Item numbering methods vary widely, and could be simple numbers or more complex data matrix codes on consumer packaging. Consumers can look up the number or scan the data matrix code. Through a website or smartphone, the user is exposed to images and messaging that is determined — not necessarily by the retailer — but by the source supplier or brand owner.

For the savvy consumer, item identification systems can be a real benefit. In research we have done here at TRUETRAC, consumers are increasingly interested in learning about the source of the food and the practices of the growers and shippers, particularly in connection with food sustainability and food safety. Knowing how ”green” a company is, or how strongly they stand behind their products, are important messages that many consumers seek.

Under the banner of item traceability, suppliers can even offer consumers transparency into the harvest date, grower, farm or the individual plot of ground where the crop was produced. It gives the supplier a tool to provide deeper explanations to reinforce brand promises. Traditional advertising proclaims, “Our product is the best.” But item identification systems add a “Let me show you why” element that so many of today’s consumers find appealing.

Thus, an item identification program can be an invaluable tool to bolster your marketing efforts. Our clients have benefited by offering better transparency, special coupon programs, targeted promotions, email newsletter signups, videos, links to blogs and more. Clear direction from marketing departments is vital to maximizing the use of item identification as a powerful sales tool. Establishing and fostering a direct relationship with consumers invariably increases brand awareness and increases trust — both leading to the Holy Grail — a lift in sales.

In a future post, we’ll expand on ways to combine case traceability with item identification systems to further increase your compliance, sales and marketing objectives.