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Cloud-based technology upgrades supply chain management
NSF TraQtion® software pairs with real-time insights.
September 5, 2024
4 Min Read
Sponsored Content
Sponsored by NSF
According to Packaged Facts, 53 percent of consumers are still “very concerned” about food prices. Supply chain disruptions continue to contribute to rising food costs, and as a result, advanced technology solutions are increasingly being implemented.
The most prevalent supply chain issues impacting supermarkets today include:
Climate Change: Extreme temperatures, flooding and wind are predominant disrupters to crops, impacting production, processing, manufacturing and shipping. Natural disasters impact labor and critical infrastructure, creating unpredictable shortages of goods and extreme supply and demand challenges.
Cyberattacks: For both U.S. and multinational companies, cyberattacks can halt and disrupt operations while creating a huge, costly distraction for legal, HR, IT, facility and communications teams.
Geopolitics: The ongoing Russia-NATO tensions continue to impact supply chains at multiple points (raw materials/key agricultural commodities, logistics, production, etc.). Consequently, increased prices and shortages impact labor when insolvency is rising, increasing volatility and instability. Food security is increasingly being weaponized via the “threat of hunger.”
The Food Allergy Epidemic: 33 million Americans have food allergies (one in 10 adults and one in 13 children). 51 percent of adults and 40 percent of children with food allergies have experienced a severe reaction. Claim line diagnoses of anaphylactic food reactions increased 377% between 2007 and 2016. The risk and impact of negative brand reputation, viral social media posts and loss of sales for supermarkets, is significant.
Upcoming Regulations: With regulations such as the Food Safety Modernization Act (FSMA) 204 Rule, EU Directive for sustainability reporting, PFAS bans and evolving dietary supplement policies on the horizon, software solutions to support the growing number of directives and regulations are essential to efficiency, growth and profitability.
To mitigate these issues, NSF, an independent, global public health organization dedicated to improving human and planet health, recently began offering its cloud-based software solution, NSF TraQtion®, to the supermarket industry. The innovative technology allows companies to manage complex, critical data more confidently. It also helps grocers of all sizes stock high-quality products for customers across digital platforms and brick-and-mortar stores.
Digitizing Supplier Management
Supplier management should no longer be handled manually, as it can lead to missing or lost information, human error and issues in contacting numerous suppliers all at once (e.g. during a recall). Solutions such as NSF TraQtion® use one online portal for supplier registration, uploads and communication. This proactive approach minimizes overhead, providing suppliers with insights that identify potential issues by cross-referencing against company requirements. The resulting data allows retailers to assess risks, analyze supplier performance and allocate resources effectively. Moreover, a supplier portal enhances collaboration, fostering improved communication and consistency.
“We’ve set our suppliers very high standards of quality and food safety. We need them to demonstrate their compliance quickly and efficiently. We also needed a system to handle food product specifications, and to efficiently capture all the ingredients used by our manufacturers globally,” said the Senior Director of Quality Assurance, Papa Johns International, which includes all the company’s operations outside North America. “To keep our customers safe, we needed to create a reliable database of all allergens to create a trusted allergen list for our menus anywhere in the world. NSF brings technical expertise, wide experience and the ability to listen. And we get value from their focus on the food industry — that’s a differentiator for us.”
Ensuring Compliance
Supermarkets are tasked by both consumers and stakeholders with upholding high safety and quality standards. Using cloud-based technology, retailers can better track compliance with industry and regulatory requirements.
For supermarkets with private-label products, which continue to grow in popularity, software can trace ingredient sources, monitor allergen and food safety issues, and manage recalls while implementing corrective actions. Centralized solutions also allow for enhanced brand visibility and transparency from packaging to sustainability reporting, adapting seamlessly to evolving regulations.
Data Security
With cyberattacks on the rise, it’s important to select digital tools that can both meet your performance requirements and also have built-in security features to help protect you against data loss and threats. Consider a tool that is certified to ISO/IEC 27001, a high-security certification, combined with compliance to Payment Card Industry Data Security Standards (PCI-DSS) to ensure data confidentiality and integrity.
Adapting to a Changing Landscape
As the grocery industry navigates new regulations and supply chain risks, retailers should consider leveraging innovative technology solutions to support their businesses. Tools such as NSF TraQtion® can help supermarkets to simplify complex supply chains, manage suppliers effectively and enhance consumer protection. With such comprehensive solutions, grocery businesses can confidently face the challenges of today’s market while ensuring the highest standards for their customers.
