How Lot Tracking and Tracing Can Reduce Food Waste

Every year, approximately 1.3 billion tons of food produced globally goes to waste.

To address this problem, companies have invested in lot tracking and tracing solutions. By focusing on improved supply chain management and accurate inventory control, produce businesses benefit from faster response times to safety issues and increased consumer confidence.

Platforms like help produce businesses more effectively manage and track their lots. By truly knowing your inventory and eliminating the guesswork with Silo, you benefit from unparalleled transparency, letting you act fast when necessary.

This article explores how lot tracking and tracing can reduce food waste and the different ways that technology can be implemented to improve this process.

The Benefits of Lot Tracking and Tracing

Lot tracking and tracing allow for the proper management of products throughout the supply chain. Here are some of the key benefits of lot tracking and tracing.

Improved Supply Chain Management

By tracking products as they move through the supply chain, businesses can identify inefficiencies, bottlenecks, and areas for improvement. This can lead to better collaboration and communication between suppliers, manufacturers, and retailers, resulting in a more efficient and streamlined supply chain. This then translates into less waste.

Accurate Inventory Management

With lot tracking and tracing, businesses can keep track of inventory levels in real time. This means they can more quickly identify shortages, overstocking, and other issues leading to waste. By better understanding their inventory levels, businesses can make better decisions about ordering, production, and sales, reducing the risk of spoilage and waste.

Faster Response Times to Food Safety Issues

Food safety is a critical issue for businesses in the food industry. During a safety recall, lot tracking and tracing allow businesses to quickly identify and remove affected products from the market. This helps reduce the risk of illness and injury to consumers and can also help protect the business’ reputation.

Better Quality Control

Lot tracking and tracing also allow businesses to implement better quality control measures, since businesses can identify potential quality issues early on and take corrective action before products reach consumers.

This helps to ensure that products meet the required standards for safety and quality, reducing the risk of waste and product recalls.

Increased Customer Confidence

Customers are becoming increasingly concerned about the safety and quality of their food. By implementing lot tracking and tracing, businesses can provide customers with greater transparency and visibility into the supply chain. This can help build trust and confidence in the brand, increasing sales and customer loyalty.

Lot Tracking and Tracing Techniques

Lot tracking and tracing can be implemented using various techniques and technologies. Here are some of the most commonly used ones.

Enterprise Resource Planning (ERP) Software Solutions

Enterprise Resource Planning (ERP) software combines the features of multiple business management systems to help keep better track of inventory.

One key function of ERP software is its ability to alleviate lot tracking and tracing demands. This involves tracking the containers or batches of products as they pass through various stages of production. These platforms also streamline demand forecasting and supply chain management processes, which can help to reduce waste.

Barcode Scanning

Barcodes are a widely used technique for lot tracking and tracing. Each product is assigned a unique barcode that can be scanned at each stage of the supply chain. This allows businesses to track the movement of products and quickly identify any issues or inefficiencies.

Radio-Frequency Identification (RFID)

RFID is a technology that uses radio waves to identify and track products. RFID tags are attached to products and can be read wirelessly. This allows for real-time tracking of products throughout the supply chain, leading to greater efficiency and better inventory control.

Global Positioning System (GPS) Tracking

GPS tracking allows businesses to track the movement of products in real time. This is particularly useful for monitoring the movement of perishable goods, such as fresh produce or seafood, as it enables businesses to ensure that products are transported at the correct temperature and within the required timeframe.

Blockchain Technology

Blockchain technology is a distributed ledger system that allows for secure and transparent tracking. Each transaction is recorded on a blockchain, providing a complete audit trail of the product’s journey from farm to fork.

Challenges to Implementing Lot Tracking and Tracing

While lot tracking and tracing can greatly benefit produce businesses, implementing it is not without its challenges. Here are some of the key challenges often experienced.

Resistance from Stakeholders

One significant challenge to implementing lot tracking and tracing is resistance from stakeholders. This can include suppliers who are unwilling or unable to provide the necessary data or employees who are resistant to change.

Businesses need to work to address these concerns and ensure that all stakeholders are on board with new systems.

Limited Technology Infrastructure

Some businesses may not have the necessary technology infrastructure to support lot tracking and tracing.

This can include outdated or incompatible hardware, software, or communication systems. Businesses may need to invest in new technology infrastructure to support the new system.

It’s best to look for platforms that offer integrations, as this can make implementation much smoother.

A Need for Standardized Data Exchange

Businesses implementing lot tracking and tracing need to ensure that they’re using a standardized data exchange format.

This is necessary to ensure that all stakeholders can share and access the necessary information, regardless of the system they are using. Developing a standardized format can be challenging, particularly if multiple stakeholders are involved.

Despite Challenges, Lot Tracking and Tracing is Beneficial Overall

While there are challenges to implementing lot tracking and tracing, it can bring about numerous benefits to produce businesses.

By using the proper techniques and technologies, businesses can reduce food waste, increase efficiency, and improve overall sustainability.