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Internet of Things scanning technology and the future of food

Demands for food safety and traceability can make it difficult for manufacturers to ensure they maintain the quality of their produce.

Following the recent frozen berry hepatitis A outbreak, the Australian food manufacturing industry has been under the spotlight with increasing demands for better food quality and labelling. 

These demands, coupled with a wide range of transportation and storage facilities that differ across Australia, makes it difficult for manufacturers to ensure they maintain the quality of their produce. There is increased pressure on manufacturers to ensure that existing processes allow them to fulfil customer orders in an efficient and safe manner.

A global Internet of Things (IoT) study by Forrester Consulting  in 2014 revealed that senior IT decision makers inside key industries like food manufacturing believe that the IoT will be  transformational and will play a key role in streamline the process in the food-chain.

Benefits of location tracking and traceability

Food manufacturers today recognise the need for real-time visibility of their products as they move through the supply chain.  One of the best ways to address the need for visibility in the supply chain is through the implementation of IoT scanning technologies such as RFID and Real Time Location Services that can provide manufacturers with greater visibility over the entire supply chain, and better manage their assets.

For example a Zebra Technologies customer in the baking industry reduced their inventory and distribution costs by $3 million in the first year after installing an automated pallet labelling and identification system. The company, which operates six warehouses and previously was not able to measure and balance inventory throughout its operations, began printing and applying barcode labels to all its cases and pallets and then scanning the bar codes to capture quantity, location and product identification numbers, including lot codes.

The system enabled the company to gain an accurate, timely view of inventory and to increase the average number of pallets per shipment from 47 to 61, a 30 percent improvement. By increasing load yields, the company significantly reduced the need for less-than-truckload shipments to customers to fulfil orders.

Shortly after implementing the system, the company recalled some products because it received a bad batch of ingredients from a supplier. Using the lot number information captured from bar code scanning, the company traced its shipments and conducted a highly targeted recall by contacting only those customers who had received the affected products. The recall was completed quickly, with minimized cost, and without having to pull unaffected products from store shelves.

1. Streamlined warehouse management

Food manufacturers can use bar coding and RFID with warehouse management system (WMS) software packages, to improve labour productivity, documentation, and efficiency within the supply-chain. For example, a basic function of a WMS can calculate the most efficient picking and put away inventory sequences, which will reduce required labour and handling. When supported with timely, accurate information, a WMS scan can manage inventory by expiration dates to reduce spoilage. 

2. Simplify returns management

Distributors need to have plans and processes in place to execute recalls quickly and efficiently. The degree of traceability that suppliers and distributors have over their products is what determines the size, scope and expense of a recall. Having clear visibility over the entire supply chain allows for product recalls to be completed in a more expeditious manner as the source of the problem in the manufacturing process can be detected almost instantaneously.

Production control systems and auditing procedures using RFID technology can enable manufacturers to isolate quality or compliance problems at the lot level. By making lot-level traceability available throughout the supply chain with a barcode scan, businesses can recall specific quantities and shipments. This degree of traceability limits the logistics handling costs and administrative burden, so recalls can be resolved more quickly. 

3. Tighten container management

Automatic identification systems can track pallets, milk cartons, trays and other returnable containers which can provide a strong return on investment by lowering operating expenses. Many producers and distributors lack accurate information about the quantity and location of their shipping containers because the assets often dwell at customer facilities, and are not returned promptly. As a result, food manufacturers can purchase more returnable containers to ensure they have an adequate supply, creating excess capacity and locking capital into fixed assets.

Identifying returnable containers and tracking them to customers provides the information businesses can use to improve returns and recoveries. The first step is to permanently identify each asset with a bar code label or RFID tag. Workers can scan the assets when they are loaded onto trucks at the distribution centre, or in the field upon delivery. Systems could record the information in the customer record or order management system, or in a separate database. Returned assets would undergo scanning to check them back into the distribution centre, similar to a video rental return.

Managers could consult the system software to get a real-time view of container availability. The customer could track outstanding containers, with documentation provided to aid return and recovery.

David Arkles is ANZ regional sales director, Zebra Technologies

 

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