KEEPING TABS

Dairy Field, Apr 2005 by Petrak, Lynn

Advanced distribution software and RFID systems help manufacturers monitor the supply chain.

So much for manually logging and sending products on their way with hope that the items arrive fresh and safe to their destination. Thanks to advanced distribution software and the possibilities of radio frequency identification (RFID) systems, the automatic recognition and tracking of dairy products along the production line, warehouse, loading dock, truck route, store back room, retail case and beyond is continually evolving to a newer, more sophisticated level.

In this sense, Big Brother-style technology isn't so bad. The ability to keep a virtual eye on products throughout the storage and distribution chain can streamline operations, prevent losses and boost profitability, via labor efficiency and reduced out of stocks. On the marketing side of the business, learning more about where, how and when various products are purchased opens up other merchandising and product development opportunities.

Dairy products are at once ideal and challenging for identification and tracking advances. On one hand, such systems can be useful because of the perishable nature of dairy products. "If a product has a very specific shelf life, RFID technology would help them manage that and balance it better," says Steven Dods, product development manager for labeling for Diagraph, a St. Charles, Mo.based division of ITW that specializes in marking, coding and labeling systems and supplies.

Ian Carver, product manager for labeling/RFID systems for product identification equipment supplier Videojet Technologies Inc., Wood Dale, Ill., agrees that this is a market not to be overlooked. "With perishables, the product life is so short lived that RFID is a technology that enables complete inventory visibility," he says.

On the other hand, the application of high-tech identification and tracking programs in the dairy industry is not a given. For one thing, many systems are not inexpensive. "Investment can be hard," says Robert Hochberg, president and chief executive officer of supply chain software provider Numeric Computer Systems Inc. (NCS), Hauppauge, N.Y. "Someone may say, for example, Oh, I have to give you X dollars?' but what needs to be said is, 'Yes, but I will save you.'"

Also at issue is the effectiveness of the technology on dairy products. At this point, dairy products pose certain difficulties for RFID in particular because most dairy foods and beverages are liquid or contain at least some water in their base and hence absorb radio waves and interfere with accurate readings.

For dairy processors, choosing the latest identification and tracking systems can be challenging. Mark Verheyden, vice president of marketing for auto ID system supplier Accu-Sort Systems Inc., a sister company of Videojet based in Philadelphia, offers a few recommendations. "The first step is to understand your objective - do you want to increase visibility as to where things are, do you want to decrease shipment errors or is your biggest problem tracking quality and consistence of temperature? Start with the problem you want to solve," he says.

Carver, for his part, agrees. "It's all about understanding your objective and completing the homework before you decide what to do," he says.

Software Solutions

Manual identification and tracking of products may soon go the way of the proverbial buggy whip, as paper and pens are replaced by high-tech central processors and portable devices. Indeed, there are plenty of software programs and accompanying units that can help dairy processors better manage their warehousing and distribution processes.

For its part, NCS offers a range of front-end and back-end supply chain software solutions for direct store delivery (DSD), route accounting and mobile capability. Among other innovations, the company has developed a new order-to-cash system called "eRMS" and a new mobile solution called "eXpress Route" that ties into the company's existing "eXpress Suite" automating the activities of the merchandiser, delivery and sales teams.

According to Hochberg, the use of handheld units in the cold supply chain has grown in recent years as well. "There have been two significant changes and they are tied to our offerings. First, with wide area access, the handhelds that used to be batch can now be online," he explains, adding that NCS has partnered with the logistics division of one of the nation's top shipping conglomerates on integrated solutions. "That product actually has a GPS tracking system and real-time messaging system, so you can go on screen and see where the truck is and talk to that person. We are leveraging that technology into our product, so people can use our eXpress Route and [that company's] logistics concurrently."

NCS's products also are designed to address customer demand for Service Oriented Architecture. (SOA), an evolving approach in information technology toward collaborative systems that work on a more widespread, or even global basis. "That is a hot term in the computer world right now," Hochberg says. "Everyone wants an SOA approach."