PTI Compliance What every Grower Shipper Should Know March 23, 2011 Todd Baggett CEO RedLine Solutions, Inc. [email protected].

PTI ComplianceWhat every Grower Shipper Should Know

March 23, 2011

Todd BaggettCEORedLine Solutions, Inc.

[email protected]

Today’s Agenda

RedLine Solutions Introduction

PTI Compliance – What Every Grower Shipper Should Know

Question and Answer Time

RedLine Solutions: Background

Established in 1997

Headquarters – Santa Clara, California

Central Valley Office – Fresno, CA

Southern California – Orange County, CA

RedLine provides complete Whole Chain Traceability Solutions

Hardware, software, professional services, support, and labels

We have automated over 100 fresh produce and fruit facilities

We have production customers doing PTI labeling for field packed

items

Over 500 wireless network and mobile computer installations worldwide

North America integration, support, and repairs

RedLine’s Whole Chain Traceability Suite

Managing inventory and traceability from harvest to shipment

Provide PTI compliant case labeling, lot tracking, with electronic records

Barcode driven, standards based

Uses mobile devices over Wi-Fi and Cellular to gather and transmit data

Complete audit log including date, time, action, user

Manages internal traceability and publishes data for external use

Open architecture allows integration with other systems

Partnerships and Associations

The Food Safety Modernization Act

Mandatory compliance is coming

Most significant legislation since 1938

We owe thanks to the growers, retailersand trade associations that had the vision to create and move on the PTI ahead ahead of this legislation

The focus on prevention means traceability will become a standard part of audits

Implementation will phase in over three years

Retailers will drive PTI adoption in 2011 / 2012

The Tester Amendment will not have any effect on retailer requirements

The PTI Mission

“Create an Action Plan for the produce industry to adopt

an effective Whole Chain Traceability program by

incorporating the use of technology and use of common

standards to serve as linkages between internal traceability

programs.”

The Produce Traceability Initiative

The PTI is:

Providing the FDA with timely access to necessary information when a food borne illness outbreak occurs

Limiting the scope of recalls to specific “Grower Lots of Interest” instead of recalling entire commodity groups

Using standard data structures across the entire supply chain

Case-level traceability

The PTI is not:

A comment about your already existing traceability systems

A centralized database run by or for the FDA with everyone’s traceability information

The ability to use your current proprietary tracking numbers with your existing tracking system

Item-level source tracking

DataBar for item checkout in retail stores

The Produce Traceability Initiative

The PTI is:

Labeling the carton, bag, bin at time of packing

About Farm to Store or Restaurant

About Whole Chain Traceability and reducing the time to trace-back and trace forwards

The Produce Industry leading the

Government

Reducing risk in your business

Increasing consumer confidence in

the produce the eat

The PTI is not:

Changing your systems to use the GTIN as your Item Number

About Farm to Fork

Not about Scanning at the Store or Restaurant

Serialization of lot numbers

Throwing away existing traceability systems

Consumer

Grower

Whole Chain Traceability

Item Source Tracking

GTIN and Lot #

DistributionCenter

Distributor /Wholesaler

Packer /Processor

Retail

Source Tracking #

PTI

GTIN and Lot # GTIN and Lot #GTIN and Lot # GTIN and Lot #

PTI Milestones 4, 5, & 6

#4 Show human-readable information on cases

Packers are responsible for providing human-readable information on each case.

#5 Encode information in a barcode

Packers are responsible for encoding the GTIN, lot number.

#6 Read and store information on inbound cases

Each subsequent handler of the case will have the systems and capability to read and store the GTIN and lot number from each case of produce received.

These Milestones are scheduled to be completed in 2011

PTI is Much More than Putting a Label on a Box

Source lot traceability at the case level, must track co-mingling of lots by pallet (Hybrid Pallet)

Internal Traceability extends from the Field through the Packing Shed and Cooler to customer shipment

Whole Chain Traceability – The GTIN and lot ID are recorded on all inbound and outbound transactions of each supply chain member

Electronic records shared within 24 hours of a request

Correct label on the correct box.

PTI Compliance Requires Time and Planning

Field Combining geography, item, and date information on a single label

Different types of harvests require different PTI processes

The harvest plan can change multiple times per day

Packing Volume and span of packing operations

Source lot control

Multiple concurrent pack configurations per packer and\or packing line

Cooler Tracking pallet consolidation of partials from the field or packing shed

Tracking consolidation \ building of mixed pallets for specific customer orders

Tracking of product through required processes

You will need to pilot process changes A well trained staff using effective system does not lose productivity

Process Improvements

Traceability (and PTI compliance) will require closing the gaps in current processes

Source lot control at bin level

Ad hoc sourcing (Order Substitution)

Delays between action and entering information

Inventory is not accurate in the system

Misses In-process visibility

Audits will reveal weak process links

Leverage your investment in PTI to improve operations

Improve visibility

“Cut to Cool” and other valuable cycle times

Real Time View into Packing for Sales and Operations

Automate receipt at the Cooler

Eliminate data entry errors

Reduce the time required to check in and receive a field truck

Data Analysis and Reporting

Wealth of new data available to help you better manage your operations

Differences in harvested quantity to received quantity at the Cooler

– “Lost Pallet” issue

Use Information to Better Manage

Harvest and Pack Operations

Treatments and Resources (cooling tunnels, Hydrovacs, ripening rooms)

People

Order fulfillment

Real Time Visibility of Harvest and Pack

Ability to see planned, labeled, packed and received product in real time

Ability to see details on what is being harvested / packed

Ability to anticipate arrival times for special orders

Ability to track the changes to harvest plans

Sales can provide better information to customers

Operations can better manage staffing and resources

One Size Does NOT Fit All

Effective solutions differ for different Companies

Commodities

Scope and Span of Operations

Fulfillment Model

Effective solutions differ for different areas of operation

Field

Packing Shed

Cooler

PTI Best Practices are Evolving

Approved by Working Groups

Case label standards are being updated

Clarity on dimensions and quality of bar codes

Hybrid pallet tags

Approved by Leadership Council

PTI voice pick code

Not Approved by Leadership Council

Base GTIN’s for traceability

What Should I be doing?

Understand and take action on the PTI Milestones

www.producetraceability.org

Get started now

Define products for testing

Start small, test the new processes

Talk with your customers to understand their expectations and timelines

Talk to your peers who have already been testing

Talk with traceability vendors to scope your needs

Stay connected

Customers

Trade Associations

Industry Events- National and Regional

www.producetraceability.org

RedLine Solutions is Your Partner for PTI Compliance

RedLine Solutions provides complete traceability solutions

Hardware, software, professional services, support, and labels

Field Harvest through the Packing Shed to the Cooler and customer shipment

Print what you need, whenever and wherever you need it

Capture and transmit key information for early visibility

Create and manage electronic records for traceability

Our Solutions are designed working with leading produce companies

While others are talking about solutions, RedLine is delivering

Webinar Series

Join Us on April 20, 2011, 11am PST

“PTI Labeling in the Pack Shed-Insights from PTI Pilots”

Register at

www.redlineforproduce.com/events

Come see us at Booth 1454 at United Fresh in New Orleans

Questions?

Contact us at

[email protected]

or 888-801-2039

Questions and Answers

Thank you for attending!

To register for other events:

www.redlineforproduce.com/events

RedLine Solutions for Produce