RFID partnership formed
the University of Florida's Center for Food Distribution and
Packaging. The partnership was formed to develop the requirements
for using Radio-Frequency Identification (RFID) technology in the
food industry.
This joint study with the University of Florida is designed to be the most extensive scientific research specifically targeting the food supply chain. The objective of the project is to explore both the technology and the hardware designs needed to implement RFID systems in the food industry.
An advisory board has been set up to review and provide feedback on the developments. This board includes such major food industry leaders as Wal-Mart and Royal Ahold, a Dutch retailer.
"RFID technology offers significant opportunities in the distribution of food products," said Franwell president Jeff Wells. "These include more accurate inventory tracking and controls as well as real time inventory traceability. This study will ultimately validate the requirements for implementation of RFID on a broad basis."
Franwell is a technology provider for the food processing industry and a major systems integrator for RFID technology. The company has developed Agware, a logistic and supply chain software solution specifically designed for the processors.
"The experience Franwell has in all facets of food distribution has helped us rapidly integrate RFID technology into our existing software," said Wells. "We are excited to have accomplished our goals toward making the implementation of RFID with other warehouse management systems more effective."
Traceability is a major concern for food manufacturers. By the end of the year, all processors in the EU will be required by law to prove that they can trace all their processes along the supply chain.
This could have a dramatic impact on the industry. Escalating costs could drive some out of business, force some smaller companies to merge with larger ones and complicate the issue of EU accession for those countries whose systems are not yet up to scratch.
But despite this, Mark Baillache, a partner at consultancy firm KPMG responsible for the UK food sector, believes that the move towards greater traceability in the food chain is something that, by in large, should and will be welcomed by the industry.
"This legislation is one aspect of a drive towards accountability, and, the people who will most welcome this will be the large food manufacturers who have always felt accountable," he told FoodProductionDaily.com. "But now each individual link of the food chain will be accountable, and this accountability is the key issue."
Baillache accepts that cost is likely to be a factor, and that some smaller companies might suffer financially as a result of having to install means of tracing their production processes. But he thinks that if any company goes under, the cost of ensuring traceability will be just one of a number of causes.
"It is possible that some smaller companies might also join up with larger companies as a result," he said. "They are less likely to have personnel dedicated to this issue."
Supermarkets have been a key driving force behind the issue of traceability. As Baillache points out, retailers have historically been the ones to bear the brunt of any public backlash over food safety, and Wal-Mart and Tesco are leading the way in demanding that suppliers provide them with full fully traceable stock.
"Wal-Mart is redefining the way people do business, and what they want they generally get," said Baillache. "But I think if you look at RFID (radio frequency identification), I thinks that this is ultimately the smart way to go. They are the future, and they will have a role to play."
Baillache believes that traceability, especially RFID technology, could be of great benefit to manufacturers as well as retailers. "This will help manufacturers when they need to see where their stock goes," he said. "It increases visibility: they can see when it hits retailers, and can therefore help them in their planning, supply and distribution."
