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rfxcel CEO Glenn Abood Talks Supply Chain Visibility, Improving Supply Chain Efficiency

rfxcel Co-Founder and CEO Glenn Abood spoke yesterday with Channel 2 News at our headquarters in Reno, Nevada. He fielded questions about supply chain visibility, improving supply chain efficiency, and our rfxcel Integrated Monitoring (rIM) solution. Glenn last spoke with Channel 2 in November 2018, right after we announced that we were moving our headquarters to Reno.

Here’s a recap of yesterday’s conversation.

The power of rIM for supply chain visibility

Glenn explained how rIM improves supply chain visibility by tracking raw materials and finished products in real time as they are transported to their final destinations. rIM helps avoid counterfeits and out-of-stocks, and helps ensure that items get where they need to be, safely and on time.

State of the supply chain

Glenn said the transportation industry was doing a good job of keeping up with demand. There are, however, some problems. “There are certain parts of the supply chain that aren’t functioning as well as they should,” he said. There are also outages along the supply chain.

The key is supply chain visibility. With rIM and other rfxcel solutions, companies can know where everything in their supply chain came from, where it is right now, where it is going and when it gets there. For example, they can find out if an ingredient or raw material sourced from abroad is being delayed due things such as shortages and bottlenecks — whether related to COVID-19 or not.

The benefits of supply chain visibility

Glenn said supply chain visibility benefits everyone, from industry stakeholders all the way to consumers. Manufacturers are empowered to manage inventory issues more effectively. Counterfeit products are targeted and eliminated from the supply chain, resulting in greater consumer confidence.

Final thoughts

It would be impossible to explain rIM and our other supply chain visibility solutions in a 2-minute interview on the evening news. But Glenn did a great job summarizing what we do. It’s all about supply chain visibility. Contact us today to learn more about our solutions and how they can optimize your supply chain, no matter what industry you’re in.

And be sure to check out Glenn’s interview!

rfxcel Takes Big Step as Leader in Russian Aggregation, Serialization & Supply Chain Compliance

If you follow our blog or have seen our articles in industry journals, you know rfxcel is the leader in Russian aggregation, serialization, and supply chain compliance. Now we’ve taken another big step to cement our status: We’ve been named an official integration, software, and tested solution partner with Russia’s Center for Research in Perspective Technologies (CRPT).

This is big news for us, so let’s summarize how we got here and what it means.

The CRPT and Russian aggregation, serialization, and supply chain compliance

The CRPT is a public-private partnership that manages Russia’s National Track and Trace Digital System, known as Chestny ZNAK. To achieve integration, software, and test partner status, we had to show the CRPT that our supply chain software could fully manage and execute all aspects of Chestny ZNAK’s notoriously stringent compliance reporting processes. For example, here are some the requirements for pharma:

    • A 2D barcode must be placed on all units; it must include a GTIN, serial number, a verification key, and a crypto code.
    • All medications must be serialized, including over-the-counter medications.
    • Different requirements for aggregations and batches.
    • Supply chain members must report every change to individual batches.
    • Foreign manufacturers may have to report up to 36 compliance events.

So, our Moscow-based team in Russia had a lot to prove when it met with a CRPT approval board in March. They presented a comprehensive demonstration of our signature full-stack solution, rfxcel Traceability System. They also answered technical questions and share examples of compliance reports.

After an internal evaluation, CRPT notified use that it had validated our solution and designated us as an official integration, software, and tested solution partner on its website. We look forward to working with companies in the pharma, food and beverage, consumer goods, and government industries to help the with Russian aggregation, serialization, and supply chain compliance.

Final thoughts

Our success with the CRPT was due to a lot of hard work and commitment to the Russian market. When Chestny ZNAK became law on December 29, 2017, we began honing our operations in Russia. In August 2019, we reported that we had doubled the size of our team in Russia; since then, we’ve tripled in size. As our CEO Glenn Abood said, “Today, we’re one of a very few supply chain solution providers with active implementations in the country, and we’re working with more and more companies as our reputation for ironclad compliance and supply chain management grows.”

Of course, we’re thrilled about our progress in Russia. It all boils down to the quality of our solutions and the knowledge and skill of our people, who have expertise in key areas of supply chain management and technology. They all speak the Russian, of course, and they know the regulations inside and out. They understand how to meet our customers’ needs while ensuring they’re fully compliant with Russian aggregation, serialization, and supply chain compliance requirements.

Contact us today learn more about how rfxcel can help you with Russian regulations. And be sure to ask about our other track and trace and compliance solutions. Sure, we’re the leader in Russian aggregation, serialization, and supply chain compliance solutions, but we can optimize any supply chain anywhere in the world. Ask us how!

Why F&B Needs Real-Time Supply Chain Environmental Monitoring

The F&B supply chain is becoming more complex. Routes that involve road, rail, sea, and air create many potential points of failure that, until recently, companies could not control or even detect. These “blind spots” include problems safeguarding food safety, deviations from required environmental conditions, theft, food fraud, and poor handling practices. This is why F&B needs real-time supply chain environmental monitoring.

Let’s take a closer look at some of these blind spots and how real-time supply chain environmental monitoring can minimize or eliminate them.

Common blind spots in the F&B supply chain

Food fraud. Food fraud costs the F&B industry at least $65 billion a year. All kinds of foods are counterfeited and incorrectly labeled, from luxury products such as Japanese Wagyu beef to more common items such as olive oil and seafood. Furthermore, buyers and consumers often have no way to trace the origins of what they’re purchasing.

Diversion and theft. Diversion and theft can happen at any supply chain blind spot. F&B cargo is valuable, easy to sell, and often perishable, and evidence of the theft does not last very long. The U.S. Federal Bureau of Investigation estimates that cargo theft costs U.S. businesses $30 billion each year, and food and beverages were among the top commodities targeted by thieves in North America last year, accounting for 34 percent of all cargo theft.

Ensuring quality and safety. It’s virtually impossible to ensure food quality and safety when cargo is poorly handled. Products can be exposed to and damaged by water, heat, and cold. Food is susceptible to contamination and spoilage if environmental conditions aren’t just so. Such damage can be particularly acute in the cold chain, where perishable products must be moved quickly under exacting parameters of temperature, humidity, and light.

Routing inefficiencies. Not monitoring traffic? Not using GPS location tracking? Not adhering to local, state, federal, or international transport regulations? No matter how basic or complicated, routing inefficiencies have the same consequences: delayed shipments, product spoilage, shortened shelf life, lost revenue. Plus, routing and environmental monitoring have become even more important as governments tighten oversight of the F&B supply chain. A perfect example is the Food Safety Modernization Act (FSMA), which the U.S. Food and Drug Administration designed to better protect consumers by strengthening food safety systems for foodborne illnesses.

Recalls. Though not a blind spot, per se, recalls can take companies by surprise and are a particularly important consideration. According to a study published in 2012 by the Food Marketing Institute and Grocery Manufacturers Association (GMA), the direct costs of a recall can reach $10 million. A separate GMA-sponsored survey reported that 5 percent of companies incurred more than $100 million in direct and indirect costs.

How does real-time supply chain environmental monitoring work for F&B?

Real-time environmental monitoring solutions give a vibrant and detailed picture of where products are and what is happening to them. Integrated monitoring in the F&B supply chain provides better continuity, visibility, security, and productivity. But how does it work, exactly?

Pallets, cases, or containers are equipped with Internet of Things (IoT)-enabled sensors that send data over communication networks at regular intervals. The sensors provide real-time information about how long an item has been in transit, if the vehicle transporting it adhered to the approved route, and, if the shipment stopped, where and for how long. This is crucial information, especially for highly perishable goods. For example, leafy greens can be ruined if a truck’s engine and cooling system are turned off for hours at a border crossing. With real-time environmental monitoring and tracking, companies can understand and act upon specific risks with detailed, unit-level data.

Data is made available via a software platform, through which users can set parameters (e.g., minimum and maximum temperature) to alert the system of irregularities or generate reports for analysis. This data is associated with the traceability data and becomes part of a product’s pedigree, making it a powerful tool for F&B supply chain visibility.

Environmental monitoring allows F&B companies to monitor their supply chains, protect consumers, protect their brands, and realize considerable return on investment. The technology can show companies how to maximize route efficiencies, change shippers, or detect theft or diversion in real time. The IoT-enabled sensors transmit alerts, empowering manufacturers and suppliers to use data to halt shipments that may have been adulterated, redirect shipments to extend shelf life, and manage food recalls — or avoid them altogether.

Final Thoughts

FSMA has shifted the responsibility for safety to F&B companies. Now, they must be proactive, not reactive. With real-time supply chain environmental monitoring, companies get actionable data that they can deploy to make decisions immediately, not after the fact when it’s too late. When necessary, they can divert or reroute shipments or take actions to remedy temperature excursions and other environmental concerns. Third-party logistics firms and contracted delivery companies can be held accountable for incidents and inefficiencies. This saves money and protects brand reputations.

Our rfxcel Integrated Monitoring (rIM) solution lets you see your products in real time and mine rich unit-level data about more than a dozen environmental conditions. It can integrate with multiple sensor devices or data loggers on land, sea, and air. With rIM, you get a truly complete view of your shipment — at a top-level (e.g., case, pallet, truck) and at an item level (e.g., packet, bottle). You’ll reduce costs and make proactive decisions based on variables such as temperature, tilt, humidity, light, and shock. By mitigating damage, delays, and diversion, your products will arrive safe and on time.

rIM also combats the key blind spots we talked about above: food fraud, diversion and theft, quality and safety concerns, routing inefficiencies, and recalls. Its real-time supply chain environmental monitoring will streamline your operations, prevent waste and financial losses, protect your investments and brand identity, and give you an advantage in the marketplace. If this sounds good, contact us today to talk about rIM with an rfxcel supply chain expert!

Compelling Arguments for Transparency in the Global Seafood Supply Chain

This is the last installment of our global seafood supply chain Transparency Trilogy. Thanks for reading!

If you read our first and second blogs about transparency in the global seafood supply chain, you probably feel that the seafood sector needs to change its tune. Sure, industry thought leaders are re-evaluating how they do business and have taken some initial steps to make transparency the norm — that’s what leaders do — but widespread change has yet to come.

The seafood supply chain remains opaque and complex. There are countless opportunities for products to be compromised as they change hands over and over again on their global journey “from catch to plate.” Fish populations continue to be depleted. Trading partners don’t always trust each other, and they certainly don’t always like to share their data (if they have any data at all). And people continue to be exploited and abused on land and sea.

Let’s look at a few of the most pressing problems facing the industry and how transparency can help solve them.

The specter of slavery

Yes, slavery.

In a 2014 blog post, Human Trafficking Search, an international organization that seeks to raise awareness and help prevent and eliminate human trafficking worldwide, wrote, “It is not a new revelation that slavery plagues the global food system.”

So, six years ago, slavery was “not a new revelation.” Alas, more recent headlines confirm the global seafood supply chain has not dealt with this problem:

If ever there was an argument for change in the global seafood supply chain, this is it. Transparency will combat slavery by shining a light on who is doing the fishing, who is processing and transporting the seafood, etc. We’re all in.

Illegal, unreported, and unregulated (IUU) fishing

UII fishing includes fishing during off-season breeding periods, catching and selling unmanaged fish stocks, and selling fish caught by slaves. It threatens the stability of seafood ecosystems in every body of water where it occurs.

According to the Food and Agriculture Organization of the United Nations (FAO), IUU fishing “remains one of the greatest threats to marine ecosystems due to its potent ability to undermine national and regional efforts to manage fisheries sustainably as well as endeavors to conserve marine biodiversity.”

Furthermore, the FAO reports that IUU fishing accounts for as much as 26 million tons of seafood annually, valued between $10-23 billion. It capitalizes on corrupt governments and exploits weak management systems. In some countries, it has been linked to organized crime. It depletes resources, which can cause local fisheries to collapse. It threatens livelihoods, intensifies poverty, and increases food insecurity.

Transparency helps mitigate UII fishing because it enables buyers and wholesalers to guarantee the provenance of their product. It will help shrink markets for illegally sourced fish, as more trading partners — and consumers — will demand data that proves seafood is from a legal, regulated source and has been reported to the appropriate government agencies.

Food fraud

Food fraud is the illegal practice of substituting one food for another. It’s very dangerous, and it happens around the world, usually when the supply for a commodity fluctuates. To keep an in-demand product flowing to customers, fishermen and restaurateurs can feel pressure to commit seafood fraud, replacing one species for another.

Studies by Oceana, which works to protect and restore the Earth’s oceans, illustrate how pervasive food fraud is. For example, between March and August 2018:

    • Twenty-one percent of 449 fish Oceana researchers tested were mislabeled.
    • One-third of establishments sold mislabeled seafood.
    • Mislabeling was found at 26 percent of restaurants, 24 percent of small markets, and 12 percent of larger chain grocery stores.
    • Sea bass and snapper were mislabeled the most.

Transparency fights food fraud by holding all nodes of the seafood supply chain accountable for what they’re selling. Put simply, with transparency, there’s nowhere for unscrupulous actors to hide.

Consumer health and food safety

Without a transparent supply chain, it’s difficult to safeguard consumer health and food safety. Imagine what a widespread foodborne illness outbreak and consequent recalls would look like without supply chain transparency and traceability.

As with the problems we’ve discussed above, the seafood industry isn’t fully part of the solution for consumer health and food safety concerns. Food fraud (species substitution) continues to make people sick and cause death. Mishandled seafood continues to carry high histamine levels, posing health risks to millions of people.

People want to assume they are eating safe, authentic food. Transparency will not only give consumers peace of mind, it will go a long way to build — or rebuild — their sense of trust with the seafood industry. In every aspect, transparency is a win-win for everybody.

Final thoughts about transparency in the global seafood supply chain

To wrap up our transparency trilogy, we want the seafood industry to know that supply chain transparency is within reach and that it doesn’t have to be painful.

Forgive the pun, but the world is the industry’s oyster: Help is available all around you. Government and global initiatives such as the GDST want to work with you to become more sustainable, environmentally friendly, and ethical. Consumers are also ready to help; if you build transparency into your supply chain, they will come.

And rfxcel is with you too, here to answer your questions about achieving transparency in your supply chain. We want you to know you have three options that we call “Keep, Replace, Provide”:

    • Keep your current system, but integrate it with new solutions.
    • Replace outdated systems with less complicated solutions that, in the long run, do more for less money.
    • Look to rfxcel to provide a new supply chain system that closes all the gaps and brings you to full transparency.

Take a look at our signature rfxcel Traceability System (rTS), the most complete and flexible raw materials and finished goods traceability solution for the industry. Check out our rfxcel MobileTraceability app, which can track any batch, movement, and handler at any location, putting the power of a digital supply chain at your fingertips. And our rfxcel Integrated Monitoring (rIM) solution lets supply chain actors see their products in real time and mine rich unit-level data about more than a dozen environmental conditions.

Learn more about these and our other solutions for F&B here and contact us to start a conversation about transparency in your supply chain.

How Transparency Benefits the Global Seafood Supply Chain

This is Part 2 of our global seafood supply chain Transparency Trilogy. Check back on Friday for the last installment, as well as other food and beverage news!

In the first part of our trilogy, we talked about why the worldwide call for global seafood supply chain transparency has gotten louder and louder. Now we’re ready to talk about how transparency benefits the supply chain itself.

Spoiler alert: It just makes everything better!

Can a penny-pincher be proactive?

If asked, most seafood companies would probably say their intentions are good and they support a “do no harm” approach in their operations. They see themselves as guardians of a well-managed resource; indeed, they’d argue that it’s in their best interests to promote sustainability, legal fishing practices, environmental responsibility, and supply chain transparency. After all, if fish populations dwindle, they could be out of business.

Many companies have policies that require their buyers to verify (as much as possible) that the seafood they procure meets minimum standards for sustainability, safety, and quality. Such self-regulation is a good first step, but the reality is that enforcing these standards is tough. Very tough.

Lack of transparency in the supply chain is one reason for this. But given its overwhelming “pros,” why do seafood companies continue to view transparency as a cost rather than an investment? Sure, it takes money — sometimes a lot of money — to implement the systems, but there are compelling reasons for actors in the seafood industry to open their wallets and get on board with transparency in a digital supply chain.

The benefits of global seafood supply chain transparency: What stakeholders should know

From “catch to plate,” transparency benefits everybody in the seafood supply chain. Here’s how.

Suppliers. These are the processors and manufacturers. They benefit from transparency because it allows them to protect their business investments and comply with regulations. Suppliers can use transparency data to show their trading partners and consumers that they are doing things the right way, the responsible and sustainable way. Transparency also lets them control their supply chains more accurately and improves the quality of their product, also important selling points for partners and consumers.

Suppliers can also use transparency to build their brand reputations. For example, they can engage with consumers directly, using data to demonstrate that their products are sustainably sourced and legitimate, and that they are responsible corporate citizens. These are qualities that consumers will demand more, not less, as they have ever-expanding ways to verify what they’re buying and more options for where to spend their money.

Brands and distributors. Transparency lets brands and distributors know exactly what they’re purchasing, which will give them peace of mind about the origins, sustainability, and legitimacy of the products they offer. Furthermore, like suppliers, they can comply with regulations, such as the U.S. Seafood Import Monitoring Program (SIMP). Brands and distributors can also use transparency to build their reputations and solidify their relationships with customers. Being able to prove the who, what, when, where, how, and why of their products is a powerful tool for branding and communications.

Retailers, food service groups/providers, and consumers. High-quality products with traceable provenance give retailers and food service companies better control over their supply chains and more ways (i.e., data) to protect their brands. Like suppliers, brands, and distributors, they’ll be able to entice customers and secure their loyalty.

At the very end of the supply chain, it’s consumers who stand to gain the most from transparency. They’ll know where their seafood comes from. They’ll know it’s safe, and they’ll feel good about being responsible shoppers. And as transparency really becomes the norm, they’ll be inclined to purchase only products that can prove provenance, and only from companies that can prove they are “doing the right thing” when it comes to the global seafood supply chain.

Final thoughts about global seafood supply chain transparency

rfxcel is part of the transparency solution. If you read our last blog about transparency in the global seafood supply chain, you’ve seen that our solutions optimize traceability, transparency, efficiency, and quality so supply chain stakeholders and consumers alike can reap the benefits.

For seafood and all other F&B supply chains, the latest version of our signature rfxcel Traceability System (rTS) is the most complete and flexible raw materials and finished goods traceability solution for the industry. Our rfxcel MobileTraceability app can track any batch, movement, and handler at any location, putting the power of a digital supply chain at your fingertips. And with our rfxcel Integrated Monitoring (rIM) solution, supply chain actors can see their products in real time and mine rich unit-level data about more than a dozen environmental conditions.

Learn more about these and our other solutions for F&B here.

READ THE LAST INSTALLMENT OF OUR SEAFOOD TRANSPARENCY TRILOGY

The Importance of Transparency in the Global Seafood Supply Chain

This is the first of a global seafood supply chain Transparency Trilogy. Check back later this week for the second and third installments, as well as other food and beverage news!

The seafood you buy at your grocery store or eat at a restaurant made its way to you through one of the most fragmented food supply chains on the planet. The global seafood supply chain is like, if we may, an octopus: It’s many arms are spread out into international waters, are wrapped around waterways within nations’ borders, embrace millions of workers at all social strata, and move up and down through a notoriously opaque and difficult-to-manage supply chain.

For these and other reasons, most notably intense supply/demand and price pressure, the worldwide call for transparency in the global seafood supply chain has gotten louder and louder. From international environmental and conservation groups all the way to final consumers, the chorus is for better management, sustainability, and transparency.

rfxcel is committed to transparency in every supply chain — food and beverage, pharmaceuticals, consumer goods, and government. This is why we’re proud to have been invited to sign a letter of support for an initiative put forth by The Global Dialogue on Seafood Traceability (GDST, or “the Dialogue”). Let’s talk about this and other important programs that want to bring transparency — and much more — to the global seafood supply chain.

The Global Dialogue on Seafood Traceability

The GDST is “an international, business-to-business platform established to advance a unified framework for interoperable seafood traceability practices.” It brings together seafood stakeholders and civil society experts to develop interoperable industry standards. Its goals include improving the reliability of product information, reducing the cost of traceability, helping minimize risk in the supply chain, and facilitating long-term social and environmental sustainability.

rfxcel was invited to be a signatory to its GDST 1.0 Standards. Launched on March 16, 2020, these standards aim to harness the power of data to support traceability and methods to guarantee that seafood products are sourced legally.

GDST 1.0 has two objectives:

  1. Harmonize the data standards so all supply chain actors can share data. To make interoperability possible, it calls for all nodes to create Electronic Product Code Information Services (EPCIS) events. (EPCIS is a GS1 standard that allows trading partners to share information about products as they pass through a supply chain.)
  2. Define the key data elements that trading partners must capture and share to ensure the supply chain is free from illegal, unreported, and unregulated (IUU) fishing and to collect relevant data for resource management.

The Tuna 2020 Traceability Declaration

Tuna is a universally popular protein, found on both the shelves of your local supermarket and at fine restaurants serving high-end sashimi. By 2014, the sector was catching 5 million tons of commercial tuna species worth almost $40 billion. Not surprisingly, such intense demand has put a huge strain on the species and marine systems in general.

The Tuna 2020 Traceability Declaration is dedicated to “stopping illegal tuna from coming to market.” Under the aegis of the World Economic Forum (WEF), which believes traceability and transparency is one of the best ways to ensure a sustainable commercial future for tuna fishing,

the Declaration establishes a set of actionable standards and brings together companies, traders, government bodies, and civil organizations. A non-legally binding declaration, it focuses on implementation of the United Nations Sustainable Development Goal 14, specifically Target 14.4, which is worth quoting in full:

By 2020, effectively regulate harvesting and end overfishing, illegal, unreported and unregulated fishing and destructive fishing practices and implement science-based management plans, in order to restore fish stocks in the shortest time feasible, at least to levels that can produce maximum sustainable yield as determined by their biological characteristics

The Global Tuna Alliance

The Global Tuna Alliance is dedicated to improving the sustainability of the tuna sector. An independent group of retailers and tuna supply chain companies, it supports the Tuna 2020 Traceability Declaration commitments to tuna traceability, socially responsible tuna supply chains, environmentally responsible tuna sources, and government partnerships. It supports developing harvest strategies for tuna fisheries, avoiding products yielded from IUU fishing, and progressing work on human rights in tuna fisheries.

rfxcel is part of the transparency solution in the global seafood supply chain

We’re excited to be part of the team working on the GDST 1.0 Standards. It’s our mission to optimize traceability, transparency, efficiency, and quality so supply chain stakeholders and consumers alike can reap the benefits. We are definitely part of the solution.

For seafood and all other F&B supply chains, the latest version of our signature rfxcel Traceability System (rTS) is the most complete and flexible raw materials and finished goods traceability solution for the industry. Our rfxcel MobileTraceability app can track any batch, movement, and handler at any location, putting the power of a digital supply chain at your fingertips. And with our rfxcel Integrated Monitoring (rIM) solution, supply chain actors can see their products in real time and mine rich unit-level data about more than a dozen environmental conditions.

Learn more about these and our other solutions for F&B here.

READ PART 2 OF OUR SEAFOOD TRANSPARENCY TRILOGY

COVID-19 and the Retail Food & Beverage Supply Chain: Industry Update

March 31, 2020: Chances are your life isn’t the same as it was just two or three weeks ago. In the time of COVID-19, you might be self-quarantining. Your local government may have closed your neighborhood playgrounds and parks. Or maybe your governor has issued a stay-at-home order.

There’s also a very good chance that many of your favorite restaurants and bars are closed. In fact, all the “non-essential” or “non-life-sustaining” businesses in your community might be shut down.

One thing hasn’t changed, however: You can still go to the grocery store. You may have to wait in a line, standing on lengths of tape or spray-painted lines spaced at the proper social distance (six feet). Your store may limit how many people are allowed inside at one time. It may have set up special hours for senior citizens to shop.

But your grocery store is still open. This means the food and beverage supply chain continues to operate during the COVID-19 pandemic. Let’s take a look at a few things you should be aware of today.

1. The Basics: What is the CDC saying about grocery stores and COVID-19?

The Centers for Disease Control and Prevention (CDC) doesn’t have specific guidance for grocery stores; instead, it provides “Interim Guidance for Businesses and Employers to Plan and Respond to Coronavirus Disease 2019 (COVID-19).” It clearly states that businesses and employers can prevent and slow the spread of COVID-19.

The CDC’s key recommendations are summarized below. See the full details here, and visit the CDC website regularly to get the latest news about COVID-19 and recommendations for staying safe.

Reduce transmission among employees

    • Actively encourage sick employees to stay home.
    • Identify where and how workers might be exposed to COVID-19 at work.
    • Separate sick employees.
    • Educate employees about how they can reduce the spread of COVID-19.

Maintain healthy business operations

    • Identify a workplace coordinator who will be responsible for COVID-19 issues and their impact at the workplace.
    • Implement flexible sick leave and supportive policies and practices.
    • Assess your essential functions and the reliance that others and the community have on your services or products.
    • Determine how you will operate if absenteeism spikes (e.g., from employees getting sick or having to stay home to care for family members or to watch children).
    • Establish policies and practices for social distancing.
    • If you have more than one business location, give local managers the authority to take appropriate actions outlined in their COVID-19 response plan based on local conditions.

Maintain a healthy work environment

    • Consider improving the engineering controls using the building ventilation system (e.g., increase ventilation rates and the percentage of outdoor air that circulates into the system).
    • Support respiratory etiquette and hand hygiene for employees, customers, and worksite visitors.
    • Perform routine environmental cleaning.
    • Perform enhanced cleaning and disinfection after people suspected/confirmed to have COVID-19 have been in your place of business.

2. What are industry associations saying about COVID-19?

Grocery workers are being hailed as heroes and front-line fighters; they are the penultimate link the retail food supply chain, the people who literally hand products to consumers. Here is what some industry associations in the United States are saying about COVID-19.

The National Grocer’s Association provides best practices for its members. These follow the CDC guidance, but also have grocery-specific recommendations, such as:

    • Assigning employees to regularly sanitize shopping carts and other high-traffic or high-touch areas
    • Increasing or adding hand sanitizing stations around stores for customers and employees
    • Changing store hours to encourage shopping at times with fewer people
    • Scheduling specific hours of operation for vulnerable populations to shop without other customers

The Food Industry Association provides extensive resources about COVID-19. Visit its “Key Resources” page here. It also offers two excellent publications for download: Guidance for the Food Industry: Coronavirus Outbreak: I. Best Practices and Planning for the Immediate Situation (March 17, 2020) and Guidance for the Food Industry: Coronavirus Outbreak II. Short-Term Best Practices (March 26, 2020). Both offer guidance and information about the food supply chain, including:

    • Evaluate receiving and delivery practices to minimize human-to-human contact. For example, limit the sharing of pens or equipment.
    • Work with suppliers to identify local manufacturers and producers of essential products.
    • Coordinate with buying departments or retail customers; learn about their plans to “bulk up” on core items so facilities can be secured for emergency storage.
    • Increase volumes in-demand items such as pasta, sauces, canned foods, instant noodles, frozen meals/foods, cleaning detergents, alcohol, hand sanitizer, and paper products.
    • Offer to collect from suppliers where stock is available; agree on basic commercial terms to cover costs.
    • Accept deliveries when they’re available from suppliers and prioritize inbound bookings.
    • Relax on-time performance metrics.

The American Beverage Association is one of 60 signatories to a letter advocating for a national public framework in which food, beverage, and consumer packaged goods manufacturers and their transporters are exempt from bans and curfews. It called for “uniformity and consistent policies,” noting that food, beverage, and other packaged goods manufacturing facilities have been exempted from bans and curfews in some states but not others. These groups say a uniform national policy will “ensure continuous delivery of essential services.”

Furthermore, on March 18, the association sent a letter directly to President Trump “advocating for common-sense actions to help our industry operate and deliver products during this challenging time.” These include (quoted verbatim):

    • Exempting employees involved in the manufacture, distribution, delivery, and stocking of food and beverage items from federal, state, or local restrictions to ensure continuous delivery of essential services.
    • Putting forth an executive action to lift truck weight limits, historically governed by state law, to facilitate meeting the critical need of delivering essential goods in response to COVID-19.
    • Clarifying ambiguity surrounding the Federal Motor Carrier Safety Administration’s (FMCSA) hours of service guidance. Specifically, requesting the FMCSA clarify in writing that the restocking of grocery store shelves by delivery drivers is included in what constitutes direct assistance for supporting emergency relief efforts.

3. What is the U.S. Food and Drug Administration (FDA) saying about COVID-19 and the food supply chain?

The FDA released its latest statement concerning the food supply chain on March 28. In it, the agency said it was “working around the clock to make sure that Americans have access to safe food and medical products.” Here are the key statements concerning the food supply:

    • Retail supply chains remain strong.
    • The FDA is working with food manufacturers and grocery stores to identify shortages in the human and animal food supply chain. It is in contact with industry and trade associations about supply chain issues.
    • There are “no widespread disruptions reported in the [human and animal food] supply chain.”
    • “Empty grocery shelves” resulted from “unprecedented demand,” not shortcomings in the ability to produce, process, and deliver goods.

On March 26, the FDA released “Temporary Policy Regarding Preventive Controls and FSVP Food Supplier Verification Onsite Audit Requirements During the COVID-19 Public Health Emergency: Guidance for Industry” (Docket No. FDA-2020-D-1108). It states the FDA’s “current intent … in certain circumstances related to the impact of the coronavirus outbreak (COVID-19).” It contains nonbinding recommendations, not a legal pronouncements; companies “can use an alternative approach if it satisfies the requirements of the applicable statutes and regulations.”

The document address regulations in three areas

    1. Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventive Controls for Human Food
    2. Current Good Manufacturing Practice, Hazard Analysis, and Risk-Based Preventive Controls for Food for Animals
    3. Foreign Supplier Verification Programs for Importers of Food for Humans and Animals

Final Thoughts

The situation is changing every hour, every day. Like all responsible companies, rfxcel is monitoring the spread and affects of COVID-19. Foremost in our minds is the well-being of our employees and their families and our customers and their employees and families.

As for the F&B supply chain, we have powerful solutions to help keep things moving. The latest version of our signature rfxcel Traceability System (rTS) is the most complete and flexible raw materials and finished goods traceability solution for F&B. And our rfxcel MobileTraceability app can track any batch, movement, and handler at any location, putting the power of a digital supply chain at your fingertips. Learn more about these and our other solutions for F&B here.

And we want our customers to know we are open and operating at full capacity. Our supply chain solutions are designed to keep working under extraordinary circumstances. If you have any questions or concerns, contact your rfxcel account and project managers.

Please keep an eye out for further updates via email and on our website, and contact us if you have any questions, We are here to help and answer your questions.

COVID-19 (Coronavirus) and the Global Supply Chain: 5 Things to Know

COVID-19 has affected a wide array of industries and their supply chains. A February 7 article in Forbes reported that 421 global companies, including 394 based in the United States, had discussed the COVID-19 outbreak in China during calls about first-quarter earnings. Their conclusion? The virus could have a negative impact on financial performance for that timeframe.

rfxcel is monitoring news about COVID-19. Below, we summarize five of the most recent developments. As we all know, the situation is changing every day — as do the key takeaways about how the virus is affecting global supply chains — so these are snapshots, not analyses, predictions, or conclusions.

We’ll continue following the situation, so check back often for updates.

1. Monday, Feb. 24: Potential U.S. Supply Chain Disruptions as More COVID-19 Cases Reported in China, Japan, and South Korea

China, Japan, and South Korea are major U.S. trading partners. Combined, these countries accounted for more than 25% of total American imports in 2019. Let’s break down the numbers from the U.S. Census Bureau to get an idea of the potential impacts on U.S. supply chains if factories in these countries were shut down for long periods.

China: No. 3 in total trade value in 2019
    • From 2018 to 2019, China’s trade with the United States fell 15.15 percent, from $654.36 billion to $555.25 billion.
    • In 2019, exports totaled $106.63 billion and imports totaled $448.62 billion (deficit of $342 billion).
    • Top 10 exports: civilian aircraft, parts; computer chips; soybeans; motor vehicles for transporting people; machinery, parts for semiconductor manufacturing; medical instruments for surgeons, dentists, vets; oil; plasma, vaccines, blood; medical equipment for physicals; medicines in individual dosage
    • Top 10 imports: cell phones, related equipment; computers; toys, children’s bicycles, games; TVs, computer monitors; motor vehicle parts; furniture, parts; seats, excluding barber, dental; electric water, space, soil heaters; lamp and lighting parts; computer parts
Japan: No. 4 in total trade value in 2019
    • Trade totaled $218.29 billion. Exports totaled $74.65 billion and imports totaled $143.64 billion (deficit of $68.98 billion).
    • Top 10 exports: civilian aircraft, parts; petroleum gases, other gaseous hydrocarbons; medical instruments for surgeons, dentists, vets; medicines in individual dosages; corn; machinery, parts for semiconductor manufacturing; pork meat, fresh, frozen or chilled; coal, briquettes; plasma, vaccines, blood; oil
    • Top 10 imports: motor vehicles for transporting people; motor vehicle parts; machinery, parts for semiconductor manufacturing; self-propelled heavy construction machinery; defense-related aircraft, parts; printers, all types, parts; value added to a returned import; medicines in individual dosages; motor vehicle engines; aircraft engines, engine parts
South Korea: No. 6 in total trade value in 2019
    • Trade totaled $134.41 billion. Exports totaled $56.9 billion and imports totaled $77.51 billion (deficit of $20.61 billion).
    • Top 10 exports: oil; machinery, parts for semiconductor manufacturing; computer chips; petroleum gases, other gaseous hydrocarbons; civilian aircraft, parts; motor vehicles for transporting people; frozen beef; medical instruments for surgeons, dentists, vets; gasoline, other fuels; acyclic alcohols
    • Top 10 imports: motor vehicles for transporting people; motor vehicle parts; gasoline, other fuels; computer parts; cell phones, related equipment; computer chips; plasma, vaccines, blood; unrecorded media for audio; rubber tires; refrigerators, freezers

2. Monday, Feb. 24: Shanghai introduces measures to help companies resume production and mitigate impact of COVID-19 outbreak

Local authorities in Shanghai’s Pudong New Area have introduced rent reduction, rent exemption, and other policies to help companies affected by the virus. The Pudong New Area is home to the Lujiazui Finance and Trade Zone and the Shanghai Stock Exchange, as well as the Port of Shanghai, the Shanghai Pudong International Airport, and the Zhangjiang Hi-Tech Park.

The Pudong New Area State-owned Assets Supervision and Administration Commission said more than 1 billion yuan (approximately $142 million) in rent reduction and exemption would benefit about 8,000 companies in the industry, retail, commerce, and technical services sectors.

According to officials, 66 percent of industrial enterprises, 93 percent of software information service companies, and more than 85 percent of foreign trade enterprises have resumed work in this key economic area.

In the nearby Lingang Special Area of China (Shanghai) Pilot Free Trade Zone, 971 companies have resumed operation and more than 40,000 employees have returned to work. Key sectors here include integrated circuits, artificial intelligence, biomedicine, aerospace, and new energy vehicles.

3. Friday, Feb. 21: Chinese President Xi Jinping says manufacturing supply chains should get help to resume output

At the meeting of the Communist Party Politburo on February 21, the Chinese president said the country must work to both contain the spread of COVID-19 and ensure that industry can resume output and meet economic targets. These comments came as businesses question Chinese suppliers’ ability to meet demand and consider finding other places to source materials.

“Priority should be given to ensure leading companies that are important in the global supply chain restore production and supply, maintaining the stability of the supply chain,” he said to the 25-member Politburo. “It is necessary to help key export enterprises resume work and production as soon as possible.”

4. Monday, Feb. 17: China has issued 1,600+ “force majeure certificates” to protect companies from legal damages arising from the COVID-19 outbreak

The China Council for the Promotion of International Trade (CCPIT) has issued 1,615 force majeure certificates to companies in more than 30 sectors, covering a total contract value of 109.9 billion yuan (approximately $15.7 billion).

Furthermore, China’s Ministry of Commerce has instructed six trade associations in the healthcare, textile, machinery, mining and other sectors to help with legal counseling and applying for the certificates.

A certificate protects a company that does not perform or only partially performs contractual duties by proving it is being affected by circumstances that are beyond its control. The CCPIT says its certificates are recognized by governments, customs organizations, trade associations ,and enterprises in more than 200 countries and regions.

5. Tuesday, Feb. 11: Dun and Bradstreet release white paper about COVID-19’s effect on global business

Here’s what the commercial data and analytics company estimates:

    • Approximately 90% of all active businesses in China are in the regions affected by COVID-19.
    • At least 51,000 companies around the world have one or more direct or Tier 1 suppliers in the affected region; 163 of these are Fortune 1000 companies.
    • At least 5 million companies have one or more Tier 2 suppliers in the affected region; 938 of these are Fortune 1000 companies.
    • Currently, 49,000 businesses in the affected region are branches or subsidiaries of companies headquartered outside China. Nearly half of these are based in Hong Kong, 19% are in the United States, 12% in Japan, and 5% in Germany. Other countries include the United Kingdom (including the Virgin Islands), the Cayman Islands, the Netherlands, Switzerland, and France.

 

PMA Fresh Summit Convention + Expo Roundup

rfxcel’s Food and Beverage team attended the PMA Fresh Summit last month in Anaheim, California. From October 17-19, we talked about the latest in food production, distribution, and marketing, and how companies that harness supply chain data will win the future. Here’s a rundown of the key takeaways!

1. New product innovation aimed at specific segments

Focusing on consumer interests and personalizing experiences continue to gain traction with food and beverage companies. For example, the ketogenic — or “keto” — diet has piqued the industry’s interest. It limits foods that are high in carbohydrates, such as sugar, bread, and pasta, in favor of foods with higher fat and protein content, such as meat, fish, cheese, eggs, and nuts. Leafy greens (e.g., spinach, kale, chard, collards) are also okay on keto.

2. Cauliflower and nuts make a (gluten-free) splash

The industry is taking notice of gluten — or, more precisely, a lack thereof. Producers are taking a commodity, cauliflower chief among them, and making it a value-add raw material to cater to brands making gluten-free products. Consumers want alternatives to traditional wheat- and flour-based products such as bread, pasta, rice, and snacks. Foods with rye and barley are also no-no’s in a gluten-free diet. We’re talking whole grains (e.g., quinoa, brown rice, oats), fresh fruits and veggies, red meat, poultry, seafood, plant-based proteins (e.g., legumes, nuts, seeds), and traditional soy foods such as tofu and edamame. Cauliflower rice has been grabbing headlines lately, and nut crusts have also become very popular.

3. Functional ingredients are trending

A functional ingredient is a bioactive compound typically recovered through separation, purification, or concentration techniques. Medium-chain triglyceride (MCT) oil is a popular example. It’s made from coconut or palm kernel oil, is easy to digest, and the body readily turns it into usable energy. Today, it’s added to smoothies, bulletproof coffee, and salad dressings. Look for functional ingredients to continue to gain steam as consumers see them as nutritional must-haves.

4. Using supply chain data to make business better

rfxcel is all about the data, so we were very excited to exhibit our latest track and trace innovations, which work together to yield real-time validated data at the unit, case, pallet, and lot levels.

We ran a live demo of our Integrated Monitoring (rIM) solution, which works with any sensor and gives users an array of super-rich data, from cut-to-cool time to in-transit conditions on land, sea, and air. We brought our improved MobileTraceability app along to show how it captures and reports on data when and where it happens and builds trust by empowering consumers to validate a product’s provenance. And, of course, we showcased our signature Traceability System (rTS), which has been empowering supply chain excellence since 2003.

Visitors to our booth saw how our solutions harness mobile technology and the Internet of Things (IoT) for the most complete view of production and distribution. Growers can collect and report accurate data from the field. All trading partners have access to high-quality, real-time data — including data from sensors — that they can use to improve operations and customer experiences. It’s too much to get into here, but check out our short video to see some of what we can do!

Conclusion

As consumers demand more diet-specific products and diverse raw materials and functional ingredients continue to enter the supply chain, you need to proactively manage risk and traceability/visibility. If you’re looking for supply chain solutions that yield the data you need and can adapt to industry trends, look no further than rfxcel. It doesn’t matter which consumers you need to reach or how you need to configure and track your supply chain. From keto devotees and gluten-free consumers to people who just want to know where their produce was grown, we’ve got you covered. Contact us today to book an appointment.

How a Full-Stack Supply Chain Track-and-Trace Solution Benefits the Food & Beverage and Pharma Industries

The food & beverage (F&B) and pharma industries aren’t quite polar opposites, but they are very different. This includes their supply chains.

For example, F&B companies must get their products to grocery stores, hotels, airports, restaurants, and other “consumer-centric” clients, while pharma companies’ primary customers are hospitals, clinics, pharmacies, and other stakeholders in the health care system. Their products also have different environmental and compliance requirements.

But there are similarities. Both industries want to ensure the purity and safety of their products. Both want to get their products to end users quickly, securely, and on time. Both work with diverse trading partners, including wholesalers and distributors. Both want their supply chains to optimize operations and boost bottom lines.

And there’s one more similarity: Both can benefit from a full-stack supply chain solution — like our signature rfxcel Traceability System (rTS) platform.

What is a “full-stack” supply chain solution?

A full-stack supply chain solution gives customers a complete, integrated set of technologies to control their entire supply chain. rTS is a full-stack solution comprising software that empowers companies to see deeply into their supply chains in real time. It yields data that can optimize operations, and gives peace of mind because everything is managed and accessible in one secure, private cloud-based location.

Furthermore, full-stack solutions are easily customizable and system validation is automated based on customer requirements. Users determine the features they need and choose the appropriate components. For example, rTS includes solutions that are critical for both F&B and pharma, such as rfxcel Serialization Processing, rfxcel Compliance Management, and rfxcel Analytics. But it also includes products designed for each industry, such as rfxcel Raw Ingredients Traceability for F&B and rfxcel Verification Router Service (rVRS) for pharma.

What are the benefits of a full-stack solution?

Probably the greatest benefit of a full-stack supply chain solution is “all-in-one” power and convenience. Instead of a piecemeal approach to supply chain management — using different providers for different solutions — a full-stack solution centralizes your operations.

F&B and pharma companies have to ask themselves, “Do I really want to spend my time finding a different tool for every task? One for compliance, one for serialization, one for data analytics, one for scanning, and on and on and on?”

They also have to ask what problems this approach might cause. Can they be certain their solution providers can communicate with one another? Are the providers actually in competition with one another? Can they share data quickly and securely? If something goes wrong with one solution, will the problem cascade throughout the supply chain — and can they find the right person to fix it?

Another advantage is that a full-stack solution provider will understand your needs much better than a disparate collection of providers. They can analyze your entire supply chain, identify your needs, and tailor just the right combination of solutions to meet your goals. It’s a holistic approach that sees both the individual components of your supply chain and the end-to-end “big picture,” from manufacturing to the consumer.

Plus, you’ll have just one point of contact for all your inquiries and support. If you have a question or a problem, you’ll know that you’re contacting the right person and you’ll get answers quickly.

rfxcel’s full-stack traceability solutions in action

Let’s illustrate some benefits of our full-stack traceability solution by highlighting rTS, rIM, and our MobileTraceability app. With these, pharma and F&B companies have all bases covered in a seamless, integrated, end-to-end supply chain traceability solution.

With rTS, pharma companies will know they’re compliant with regulations everywhere they do business, such as the Drug Supply Chain Security Act (DSCSA) in the USA, the Falsified Medicines Directive (FMD) in the EU, as well as regulations in Russia, Saudi Arabia, China, Brazil, and other countries. F&B companies will know they’re meeting the requirements of the U.S. Food and Drug Administration’s Food Safety Modernization Act (FSMA), the UK’s Food Standards Agency, the Canadian Food Inspection Agency, and others. They’ll also be compliant with GS1 standards and their customers’ requirements.

Using rIM to monitor products in real time as they move through the supply chain, both industries can ensure they’re meeting environmental requirements, such as temperature and humidity parameters. If a problem arises, rIM sends an alert and they can take immediate action.

Key actors at every node of the supply chain can use our MobileTraceability app to scan and record events, track products, and manage items down to the unit level. For example, using the app on a smartphone with a scanner, pharma stakeholders can verify, decommission, and aggregate serialized products at any stage of the supply chain. A F&B stakeholder can record data about raw materials (e.g., batch number, supplier, date of arrival, expiration, and analytics) and trace any ingredient that’s part of the finished good.

A full-stack supply chain solution has numerous benefits for F&B and pharma — as well as any other industry that wants to simplify, coordinate, and optimize its supply chain. To learn more about how our full-stack rTS platform can transform your supply chain, contact us today!