RCM, in Partnership with Can-Trace Develops Business Tool to Help Companies Understand the Benefits and Costs of Food Traceability to Their Organization

Business Wire, Jan 19, 2005

TORONTO -- RCM Technologies Canada, a leader in the area of supply chain optimization, has developed a decision support tool that will enable companies to better evaluate and understand the benefits and costs of traceability to their organization. This decision support tool is the result of work that broke new ground in food and produce traceability standards in projects for Can-Trace, the Produce Marketing Association (PMA) and the Canadian Produce Marketing Association (CPMA).

Due to the regulatory requirements in the U.S. Bioterrorism Act, as well as incidents of BSE in North America, and other global drivers, tracing the path of agricultural products from farm to consumer has become an increasingly important business and public health issue.

In 2004 RCM was the primary consultant in three pilot projects in partnership with Can-Trace (a national food supply chain tracking and tracing initiative), the Canadian Produce Marketing Association and the Produce Marketing Association (U.S.).

"Working with Can-Trace, the CPMA and the PMA," said Brian Sterling, Vice President, and RCM Technologies Canada, "our efforts focused on understanding and completing the development of standards to meet requirements for whole-chain traceability. Every producer, processor, re-packer, distributor and retailer is being affected by the demand for product tracing and tracking. Food industry organizations face significant risks if found non-compliant with regulatory requirements that are changing rapidly.

From a business perspective, however, enterprises can also use traceability to grow their markets and to make their business processes more effective and efficient as they strive to achieve compliance. To achieve that goal from a more practical standpoint, we produced a "decision support tool" so companies can better understand the benefits and costs of traceability to their organization."

RCM's Business Case report examines the costs and benefits of implementing traceability. Evidence from several pilots demonstrated that improving product traceability in the Canadian food value chain can deliver net business benefits. Based on these findings, RCM developed their decision support tool.

Four major categories of benefits were identified in the project:

--Benefits relating to maintaining business and achieving regulatory compliance;

--Market benefits related to meeting market or customer requirements;

--Risk and recall benefits from mitigation of potential liabilities; and

--Supply Chain improvement benefits, from using traceability as a tool to improve business operations, increase product quality and reduce costs.

What distinguishes these pilot studies and the resulting traceability standard is that it is inclusive and adaptable to all North American food manufacturers.

"Can-Trace's Canadian Food Traceability Data Standard Version 1.0 is groundbreaking - we are not aware of any other country that has attempted to bring together the entire food chain and build a single national traceability data standard. Further, the pilot project results confirmed that the Can-Trace data standard is sufficient to establish traceability," said Jane Proctor, Can-Trace's elected chair, and Director of Industry Technology & Standardization at the Canadian Produce Marketing Association. Can-Trace is a collaboration of food supply chain stakeholders from across Canada that convened in response to the Agricultural Policy Framework goal of 80% traceability of food sold in Canada by 2008.

Adaptable to different food and agriculture sectors, these standards are based on a one up/one down model of sharing traceability information, using international data carrier standards. Can-Trace has released reports on the results of beef, pork and produce traceability pilot projects (for which RCM was also involved), the business case for implementing traceability solutions, and traceability requirements specific to Canadian small and medium enterprises (SME).

RCM was also the primary consultant for the PMA on their traceability pilot, primarily to ensure that produce industry programs were in harmony within North America. "It is critical that the traceability pilot accurately reflects the needs of both Canadian and U.S. marketplaces," said Gary Fleming, PMA Vice President of Industry Technology and Standards, "as well as any regulatory and voluntary requirements. Both industries are integral trading partners and it is important that traceability solutions work together in a cohesive manner. Having RCM as our partner in this program ensured that traceability efforts are unified and consistent throughout North America."

Copies of the Canadian Food Traceability Data Standard Version 1.0, all Pilot Reports, the Business Case, and SME Report can be downloaded from the Can-Trace web site at www.can-trace.org.

About RCM Technologies

RCM Technologies, Inc. (NASDAQ:RCMT) is a premier provider of business and technology solutions designed to enhance and maximize the operational performance of its customers through the adaptation and deployment of advanced information technology and engineering services. RCM has been an innovative leader in the design, development and delivery of these solutions to commercial and government sectors for more than 30 years. RCM's offices are located in major metropolitan centers throughout North America. Additional information can be found at www.rcmt.com.