Archive for March, 2010

Got No Reason to Hide

March 26th, 2010

Full disclosure is not something we like to offer just to anyone.  But accountability and transparency can actually be a good thing.

We too often hear stories of companies and individuals whose previously hidden faults or misdemeanours have become exposed for all to see.  You know examples.  I won’t list any here.

Then there are organizations and individuals who are committed to doing things right and well, and have put checks and balances in place to help ensure not only are proper procedures followed, but also to protect against activities that would damage reputations and potentially hurt people.

On a personal note, my wife is a bookkeeper and loves to track whatever we spend.  She uses QuickBooks to enter all of our receipts and at the end of the year, she can tell me how many times I went to Tim Horton’s (coffee for you non-Canadians) or Starbucks and how much money is spent on movies, or whatever.

Some of you might be thinking, “Wow! That’s keeping pretty close tabs on things.”  Maybe you wouldn’t want the same level of transparency.  Here’s my point: if I have nothing to hide, it’s fine with me that every dollar I spend is accounted for and visible to my wife.  And with this approach, the level of trust is very high, which is a good thing in a marriage.

On the business side, I have noticed that not everybody wants everything tracked.  I’ve come across a few interesting situations in which there actually is resistance to complete traceability, and the apparent reason is because certain people in the company want to be able to have a way of hiding things.  Yep, they want to be able to have  buffers that can be applied to cover up mistakes or questionable practices.

Some companies in the food industry are taking steps towards transparency.  For example, Cargill Meat Solutions is putting in video cameras into their slaughter facilities to monitor how they are doing regarding animal handling.  Not only does this build confidence and trust in others, but it also will undoubtedly motivate people internally to ensure that they are doing the right things.

In a similar way, a good traceability and visibility solution can help do the same things.  If everything is above board and as it should be, putting in a solution that tracks every movement of product and every activity related to people performing duties with products will be a system to ensure things are done properly.

I expect that transparency will be a driver to help move traceability forward in the next few years.  This accountability to government, to customers, and to consumers will be in the form of several initiatives that have been in the works for some time.  These include sustainability, corporate social responsibility, food safety, supplier scorecards, environment, country of origin, quality, animal welfare, labour, insurance, and regulatory compliance.

Of course, financial benefit and productivity are important as well.  With the exception of strong visionaries, however, I believe it will take the earlier initiatives to drive traceability, and then companies will begin to realize the huge benefits of implementing it.  And one of the benefits of traceability will be a system of accountability that will give transparency and help prevent the unwanted publicity that comes from secrets being brought to light.

We live in a day when we can’t afford to have secrets.  It doesn’t take long  before a whole lot of people find out about something.  Articles like “Supply chain transparency only answer to hostile campaigns” show the importance of this issue.

What the Great Teacher said is very true: “What you have whispered behind closed doors will be shouted from the housetops for all to hear!”  It’s better to not have anything to hide and to have the mechanisms in place to ensure the right things are being done.

Internal Traceability is Hard to Achieve

March 3rd, 2010

One-up and one-down.  You need to know where your products come from and where they go.  That’s the law in the U.S. with the Bioterrorism Act of 2002 and in the E.U. with the Common Food Law put into effect in 2005.

Let’s suppose you comply with that.  Hopefully you do.  This means that if an inspector requested that you show the source of an ingredient or raw material that went into a product, you could do that.  But at what level of certainty?  Would you have to widen a potential recall because you couldn’t limit the source to a particular batch or time period?

That’s why recalls are often so widespread and sometimes are expanded beyond the initial scope.

What you need is a method to positively link the “one-down” with the “one-up” and vice-versa.   Many people expect that they have this capability.

One Up and One Down is not enough

If you’re called on by an inspector to produce records of shipments or received items do you really want to spend a lot of time leafing through papers and file drawers trying to sort this type of thing out?

It seems obvious to many of us in the business of integrated systems and data collection and reporting solutions that a good integrated software and equipment solution brings many benefits.  With such a system, companies can streamline the process of performing traceability, and they can also reduce their risk and gain a lot of significant productivity and cost advantages.

Yet complete systems that provide true internal traceability are rare in the North American food industry.

There are numerous reasons for the lack of a good internal traceability system.  Probably many of them are due to the lack of one or more of the following required elements:

  • Leadership needs to understand the value and make it a priority
  • Corporate culture has to be developed to make it work
  • Processes need to be defined clearly and the system needs to be aligned with them
  • The solution must be adopted by all the parties who will interface with it
  • Proper resources must be allocated
  • The right technology (software and equipment) has to be applied
  • Finances must be available

We’ll review these areas in more detail in later blogs.  As we do, it will become clear that in order to implement a true and complete internal traceability solution, it will take a lot of commitment and hard work.  But we’ll also show how it will be worth the effort and the investment.