Welcome toFresh Connections Monterey

Date: Jan. 13, 2009

Gary FlemingVice PresidentIndustry Standards, TechnologyProduce Marketing Association

Thank you to our event sponsor:

Scott Carr

President & CEOYOTTAMARK

PMA Fresh Connections Eventsv Educate and inform

v Networking

v In your backyard

Bob Gregg

West Coast Director of Business DevelopmentProduce Marketing Association

PMA’s 2009 Fresh Summitv October 2-5v Anaheim, California

PMA’s Year-Round Value: Events

v Leadership SymposiumJanuary 14-16

v Produce Solutions ConferenceMarch 19-21

v Foodservice Conference & ExpositionJuly 24-26

PMA’s Year-Round Value: Services

v Information Resource Center

v Headline News

Traceability

Produce Traceability Initiativev Sponsored by PMA, CPMA and UFPAv 48 participating companies including:

v 10 Foodservice Companiesv 15 Retailersv 23 Growers/Shippers

v 6 additional participating trade associationsv FMI, NGA, NRA, IFDA, CCGD, CHC

Produce Traceability Initiative Missionv To create an Action Plan for the produce industry to

adopt an effective whole chain traceability program byincorporating the use of common standards to serve asthe linkage between internal traceability programs.

Traceability DefinitionsÒ Internal Traceability = confidential or proprietary data and

processes companies use within their own span ofoperations to track/trace product.

Ò External Traceability = the data exchange and businessprocesses that take place between trading partners totrack/trace product.

Ò Whole-Chain Traceability = Internal + External Traceability.

The GS1 Standardsv Used in 145 countries world-wide, by more than 2 million

companies in over 25 different industries.v Has standards for:

v Product identification (e.g. UPC, GTIN)v Asset identification (e.g. AIN)v Location identification (e.g. GLN)

v Already used by every retail operation using a UPC onpackaged goods

What is being asked of industryStep 1. Brand owners must obtain their GS1-issued

Company Prefix.

COMPLETE BY: Q1 2009

What is being asked of industryStep 2. Brand Owners must assign 14-digit GTINs to

all case configurations.

COMPLETE BY: Q1 2009

*NOTE: Use GTIN Assignment Strategy

What is being asked of industryStep 3. Brand Owners must provide and maintain

their GTINs (and corresponding data) to theirbuyers.

COMPLETE BY: Q3 2009

*Note: Use Synchronization Best Practices

What is being asked of industryStep 4. Those packing the product are responsible

for providing human-readable information oneach case (GTIN and LOT #).

COMPLETE BY: Q3 2010

What is being asked of industry

Step 5. Those packing the product areresponsible for encoding the GTIN andthe Lot # in a GS1-128 barcode andhuman readable.

COMPLETE BY:Q3 2010

*Note: Use Case Label Standard

(01) 90614141000415 (3202) 000712

Product of USAFlorida

ORANGESValencia

10 - 4 LB BAGS

Fresh Products1000 Produce BlvdOrlando, FL. 81111(800)555-1212

Lot #022208ABC

CASE Label

Pack Date: 02/22/08

XXXX

Best Practice #1:Supplier information shouldalready be shown on box.Show supplier informationon same facing as label.

Best Practice #2:Country of Origin should beprinted directly on the box orstickered on the same facingas the label.

Pack/Harvest/Batch Date:Optional field based uponInput from the August 20th

Meeting.

Lot #:Eliminate as it is alreadyshown below the barcode.Must educate personnel tolook directly under thebarcode for key traceabilityinformation.

Best Practice #3:Commodity and FurtherDescription (e.g. Variety,Variety Group, Color) toappear on label. Otherwise,must be printed or stickeredon the same facing as thelabel.

Best Practice #4:Pack configuration toappear on label. Otherwise,must be printed or stickeredon the same facing as thelabel.

NOTE: For RPCs, all of the information must appear on the card that will beattached to the RPC, as having separate stickers for individual pieces ofinformation will not work on an RPC.

(01) 10614141000415 (10) 022208ABC (

GTIN Lot #

(01) 90614141000415 (3202) 000712

ORANGESValencia 10 - 4 LB BAGS

Standard CASE label

(01) 10614141000415 (10) 022208ABC

What is being asked of industry

Step 6. Each handler of the CASE mustread and store the GTIN andassociated Lot # for INBOUNDcases.

COMPLETE IN: 2011

*Note: Use Pallet Labeling Best Practices

ISSUE: Reading Every Casev Option A: Use a pallet tag + ASN

v Requires a pallet tagv Requires Electronic Commerce

v Option B: Use a pallet LABELv Requires a pallet tag

v Option C: Hybrid Pallet Labelv Requires a pallet tagv Allows for those using ASNv Allows for those not using ASN

Option reachingconsensus.

Hybrid Pallet Label

What is being asked of industry

Step 7. Each handler of the CASE mustread and store the GTIN andassociated Lot # for OUTBOUNDcases.

COMPLETE IN: 2012

Endorsed by:

v The following companies have publiclyendorsed the Action Plan and professed theirintent to execute the milestones andcorresponding timelines part of the Action Plan:

Amerifresh Frontera Produce Schnucks MarketsBallantine Produce H-E-B Supervalu/W. Newell Co.C.H. Robinson Intl Foodsrvce Distrib Assoc Sysco CorporationConsumers Produce L&M Companies Tanimura & AntleDomex Superfresh Growers Mann Packing Company The Kroger Co.Driscoll s National Grocers Assoc The Oppenheimer GroupDuda Farm Fresh Foods Naturipe Farms Taylor FarmsFood Services of America Pandol Brothers Tom Lange CompanyFoodlion Pro*Act U.S. FoodserviceFresh Express Procacci Brothers UniPro FoodserviceFresh Innovations Safeway Wal-Mart StoresFriedman s Freshmarkets Wegmans Food & Pharmacy

Table Exercise

v Challenges

v Shortcuts

v Questions

Beverage Break

Today s event sponsored by:

GS1 DataBar

Bar Coding is divided into:

1. Data Structures

2. Data Carriers

Data CarrierData Structure

1

4

DataBar Family of Symbols:

UPC-Afor size comparison

DataBar-14

DataBar Limited

DataBar Expanded DataBar Expanded Stacked

DataBar Truncated DataBar Stacked

DataBar Stacked Omnidirectional

00614141999996

(01) 00614141999996

00614141999996 00614141999996

00614141999996

00614141999996

(01) 00614141999996

1

2

3

POS

14 Digits 14 Digits

Up to 74 DigitsUp to 74 Digits

12 Digits

For Produce:Most viable DataBar barcode: DataBar Stacked Omnidirectional

Courtesy of GS1 - US

Advantages With the DataBar:v Accurate ticket rings (Organic vs Conventional)v Movement data by supplierv Specific item identificationv Better category managementv Accurate shrinkv Increased traceabilityv Quicker throughput at cashiers

DataBar Activityv Wal-Martv Loblawsv Wegmansv Kroger

v COUPONS

Item level traceability realitiesv DataBar will HELP with traceability, not solve itv Consumers throw away packaging/stickers after

consumptionv Epidemiological study done within 2 weeks of

consumptionv Multiple growers commodities in one bag poses

problemsv Can track a known recall to consumer using frequent

shopper cards

Table Exercise

v Challenges

v Shortcuts

v Questions

Lunch Break

Today s event sponsored by:

Floral GTIN Webinarv February 19

v 2:00-3:30 p.m. Eastern

v $25 PMA members, $50 non-members

v For more information, visit:www.pma.com/events/webinars.cfm

RFID(Radio Frequency ID)

How does RFID work?

Step 1: Embed INLAY onto substrate (e.g. adhesive label)

Smart Label =RFID Tag + Barcode

How does RFID work?

Step 2: Affix RFID tag to container

How does RFID w

v Step 3: RFID Reader generates signal and path

RFIDReader

Antenna

Portal

How does RFID work?

Flat Panel Antennae

How does RFID work?

v Step 4: Tagged product passes through read pathcreated by RFID reader and antennae

How does RFID work?

v Step 5: Signal wakes up RFID tagRFID Antenna

RFID Antenna

TOPVIEW

How does RFID work?

v Step 6: Signal gathers info from tag and makes itsway back to the Antennae

RFID Antenna

RFID Antenna

TOPVIEW

How does RFID work?v Step 7: Information fed to computer systems for use

Tracking an EPC from Manufacturer toSupermarket

Dwell Time in14 days, 17 hours, 19 min

ManufacturingPlant

Dwell Time inSupplier DC

10 days, 6 hours, 57 min

Supplier DC

Transit Time from ManufacturerPlant to Supplier DC

1 Day, 17 hours, 57 min

Transit Time from Supplier DCto DC

20 hours, 15 min

Total Time in supplier Supply Chain26 days, 18 hours, 3 min!

RetailerDistribution

Center

Tracking an EPC from Manufacturer toSupermarket

Transit Time from retailer DC toretail store

10 hours, 49 min

Time on Shelf Prior toFirst POS

6 days, 5 hours, 37 min

Total Time To First Sale38 days, 18 hours, 37 minutes

Distribution Center

4 Days, 11 hours, 52 min

Retail StoreDwell time in store

backroom

1 minute

RFID Challengesv Water absorbs signal

v Does not allow signal to reach readerv Metal retracts signal

v Does not allow signal to reach tag

Possible Solutionsv Passive Tag

v Least expensivev Shortest read distance

v Semi Active / Semi Passive Tagv Battery powered to excite chipv More expensive than passive tag

v Active Tagv Battery powered to elongate signalv Greater read distancev Much more expensive

Table Exercise

v Challenges

v Shortcuts

v Questions

Beverage Break

Today s event sponsored by:

Data Synchronization

Why synchronize your data?v To prevent transmission of bad datav To prevent capture of bad datav To prevent reception of bad datav To prevent errors caused by bad data

NOTE: If you automate something first before synchronizingyour data, your automated process will come to a halt becausethe data will kick out as being bad.

Data Synchronizationv Data Synchronization ensuring the item information in

the buyer s database is the same as the information inthe seller s database

v Data Alignment ensuring that the information getsloaded into the correct item number

v GDSN (Global Data Synchronization Network)v Owned by GS1v Based on SUBSCRIPTION / PUBLICATION processv Buyers subscribe to informationv Information published to subscribersv Requires a GTIN

Data Synchronization

1SYNC WWRE ECCnet DataPool A

DataPool B

GLOBAL REGISTRY

GTIN GLN Attributes Data Source

Standard Attributes

D A T A P O O L SWhere the source data resides

SUPPLIER ITEM INFORMATION

GDSN

Publication/Subscription Model

GDSN/DataPool

Apple Supplier #1

1. Load appleinformation

Apple Buyer

2. Subscribe to receiveapple data

Apple Supplier #2

1. Load appleinformation

Apple DataApple Data Changes

Apple DataApple Data Changes

Table Exercise

v Challenges

v Shortcuts

v Questions

PMA’s Year-Round Value: Productsv Check out the free stuff!

v Check out the discounted stuff!v Advantage Programv Event registration

v Business efficiency solutions

PMA Gold Circle Programv Additional $1,000 per year

v Receive recognition throughout the year

Thank you for coming!