Egg Recall, Food Safety Modernization Act, and Technology in the Supply Chain

Thursday, August 26, 2010 by Chad Collins
Eggs are a big hit at my house.  In fact, my wife has declared poached eggs to be her favorite food (while good, I can’t imagine passing up pizza for a poached egg, but that’s just me).  I assume that most families are similar to ours and eggs provide a quick, easy way to get some protein into any meal.  I think this is core to the reason why the current egg recall is hitting a sensitive spot for many Americans.

More than 500 million eggs have been recalled in recent weeks.  Nearly 2000 people report being sick from eggs thought to be carrying salmonella.  The eggs are traced back to a pair of Iowa farms with common ownership.  Like many food products the eggs were then marketed under multiple brand names and through various distribution networks. 

Some troubling information about this event is that despite the first signs of contaminated eggs occurring in May, the recall was not conducted until August.  The finger pointing between producers, government agencies, and consumers continues today.  Based on this recall, recent peanut recalls and growing concern by Americans over food safety, I would guess we will see more strict federal legislation governing food safety soon.  In fact, the timing would be perfect for the FDA Food Safety Modernization Act to pass the senate in September.

While many industries fight additional regulation, many major food brand owners have advocated for this type of legislation.  A CNN Money article highlights some of the financial impact on brand owners when a recall occurs.
•    Kellogg’s took a $34 million hit in their 2008 earnings as a result of the peanut recall.
•    Overall peanut butter sales volume declined by 22% at the beginning of 2009

As with most legislation, the Food Safety Modernization Act is descriptive in terms of authority, but vague in terms of how companies would implement practices to support improved safety in the food supply chain.  Here are a few pieces from the current legislation and my thoughts on how technology can be used to help enforce the process.

“require that each person (excluding farms and restaurants) who manufactures, processes, packs, distributes, receives, holds, or imports an article of food permit inspection of his or her records if the Secretary believes that there is a reasonable probability that the use of or exposure to such food will cause serious adverse health consequences or death”

This bill pertains to the majority of the food value chain.  Food chain participants must be able to create and store records related to the products they handle.  Clearly, technology can assist with the capture and storage of this information.

“Requires each owner, operator, or agent in charge of a food facility to: (1) evaluate the hazards that could affect food; (2) identify and implement preventive controls; (3) monitor the performance of those controls; and (4) maintain records of such monitoring.”

Again, technology will play a critical role implementing preventative controls and monitoring the performance of the controls.  Supply chain technology can help support best practices such as stock rotation (first-in-first-out, first-expired-first-out), lot/batch tracking, product labeling, and quality inspections.

Additional Resources:
Fisher Nuts improves traceability in manufacturing and warehousing operations with HighJump warehouse management (WMS)
Three Components of Product Traceability in the Food and Beverage Supply Chain
Mom’s Foods Case Study

Ensuring Safety in the Food Supply Chain

Tuesday, October 6, 2009 by HighJumper Harry

This year’s conference features nine customer case study presentations, giving customers an opportunity to share the cool things they’re doing with their HighJump solutions.  John B. Sanfilippo and Sons (JBSS), the makers of Fisher Nuts, presented this afternoon on how they use the HighJump WMS warehouse management system to manage its manufacturing operations and allergen and contamination prevention.

Keeping the nuts from comingling is serious business, and the HighJump WMS enables JBSS to enforce a strict allergen control program, including put away logic by nut type.  For example, the system doesn’t allow a worker to put away any nut that isn’t an almond on top of an almond.  These specific rules prevent contamination of allergens.

The system also enables work order processing and picking in the company’s manufacturing operations.  The system tracks the nuts all the way from the supplier through the manufacturing and distribution process.

Thomas Kirkham, Director of Systems Implementations, John B. Sanfilippo & Sons, Inc, highlighted the following benefits from implementing HighJump Warehouse Advantage.

·         Reduced physical inventories from quarterly to annually

·         Inventory accuracy over 99% - up from 80%

·         Service levels up from 90% to 99.5%

·         Picking efficiency increased 50% and rising

·         Inventory levels at record lows

·         Audit scores have increased

·         Food safety has become a selling point

 

 Watch this video to see the HighJump WMS in action at JBSS.

New Video Demonstrates How Technology Ensures Safety in the Food Supply Chain

Wednesday, September 2, 2009 by HighJumper Harry

HighJump Software has partnered with John B. Sanfilippo & Son Inc. (JBSS) to create a video highlighting the use of supply chain management software solutions to improve food safety and traceability of food products for recall management. JBSS is the manufacturer of the Fisher Nuts and various private label brands of nut products. Watch the video at http://www.highjump.com/Sanfilippo/.

Food recalls of recent years – peanut butter and spinach among others – have propelled food safety issues into the national spotlight. Also making headlines is the Food Safety Enhancement Act of 2009 for enhanced traceability and regulation of the food supply chain. Supply chain execution technology is a critical component in adhering to these new regulations and ensuring food safety. For effective recall management, full traceability is required – from the supplier, through production, distribution and last mile delivery.

Read the full release.

Safe Nuts and a Cold Beer

Thursday, May 28, 2009 by Chad Collins
Food Safety in the Nut Supply Chain
I will admit that most of my snack nut consumption occurs when accompanied by a cold beer.  I think the combination of a cold beer and salted snack nuts is fantastic.  Frankly, I hadn’t thought much about safety issues with the nut supply chain until recent news about peanut butter contamination.

Nuts Given the concern about the safety of nuts in the food supply chain, the recent cover story in Modern Materials Handling “Fisher Nuts: WMS cracks into manufacturing success” was quite newsworthy.   The article explains how John B. Sanfilippo & Sons, the manufacturer of Fisher Nuts, is using the HighJump Software WMS warehouse management system to enable supply chain management best practices, improve inventory accuracy, and increase tractability in their manufacturing and warehousing operations.

Fisher Nuts uses the warehouse inventory management system to track both finished products in the warehouse but also delivery of raw materials to manufacturing lines, much like manufacturing execution system software.
 
The results have been positive.  Fisher Nuts has full product traceability using the WMS warehouse management system.  They have also improved inventory accuracy to 99.7% in the warehouse and 99% accuracy in the production area.  

One of the most interesting things about Fisher Nut’s WMS warehouse management system implementation is the unique stock rotation and storage rules required to support the company’s allergen and contamination program.  Because nut allergies can be fatal, there are strict rules that define how product is mixed.  For example, cashews are not permitted to be stored on racking above pecans or almonds.  These complex product mix rules are supported through configurable stock rotation algorithms in the HighJump Software WMS warehouse management system.

Rest assured, next time you have Fisher Nuts with your cold beer you know the product was managed with a state of the art WMS warehouse management system to help facilitate the safe storage and delivery of the product.   Cheers!