Traceability = Increased Profits

One of my routine search terms when looking at news is traceability. The ability to trace something back to its point of origin is increasingly important for a variety of reasons that ComTech has covered in other blog posts and white papers but, today two news stories caught my eye. They were about improving traceability to increase profit margins.

The first story is about a brand of Australian grain-fed beef aimed at the Japanese market. By focusing on the brand of Australian grain-fed beef as  safe, natural and quality assured, the company is able to avoid the mainstream, bulk grain fed market which is highly price driven by offering a premium offer with a ‘fully-integrated supply chain story behind the brand’. Essentially, the ability to prove and track origin via traceability allows the company to transcend the beef as a commodity market and offer a premium priced speciality product. In another meat-focused article, a Canadian Cow-Calf operator argues for a feedback loop in the traceability systems being set up in Canada by the Canadian Food Inspection Agency (CFIA), which has proposed changes to the Health of Animals Act regulations that include mandatory animal identification and movement reporting requirements for cattle, bison, sheep, pigs, goats and cervids (deer and elk). “We need a circle of improvement,” he says. “If we could make a circle, I think, in the end, the consumer would be better served, the feedlots would get better cattle and there’d be more money in it for everyone.” Another article discusses a US Shrimp industry initiative to utilize traceability to differentiate its shrimp ‘above the shrimp commodity market.”

In fact, I found many articles in which traceability is identified as the key to enhancing profitability and desirability behind commodities – not just food commodities. It is just another reason why traceability is a key requirement in CTRM software for commodities with supply chains. However, it is also here that distributed ledge technology is catching on rapidly as it also offers a way to prove traceability of commodities and goods along a supply chain in a secure way and there are multiple initiatives in the food industry ongoing already. It is an area we will continue to keep an eye on…

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