1. PTI Compliance What every Grower Shipper Should Know
March 23, 2011
Todd Baggett
CEO
RedLine Solutions, Inc.

2. RedLine Solutions Introduction
Today’s Agenda
RedLine Solutions Introduction
PTI Compliance – What Every Grower Shipper Should Know
Question and Answer Time

3. RedLine Solutions: Background
Established in 1997
Headquarters – Santa Clara, California
Central Valley Office – Fresno, CA
Southern California – Orange County, CA
RedLine provides complete Whole Chain Traceability Solutions
Hardware, software, professional services, support, and labels
We have automated over 100 fresh produce and fruit facilities
We have production customers doing PTI labeling for field packed items
Over 500 wireless network and mobile computer installations worldwide
North America integration, support, and repairs
Years of experience doing batch and rf mobile applications
Dos
Palm CE
Event Management Applications
Session Access Control
Attendance
Attendee Services
Inventory Applications
Location Control
Asset Tracking
Chemical Tracking

4. RedLine’s Whole Chain Traceability Suite
Managing inventory and traceability from harvest to shipment
Provide PTI compliant case labeling, lot tracking, with electronic records
Barcode driven, standards based
Uses mobile devices over Wi-Fi and Cellular to gather and transmit data
Complete audit log including date, time, action, user
Manages internal traceability and publishes data for external use
Open architecture allows integration with other systems

5. Partnerships and Associations

6. The Food Safety Modernization Act
Mandatory compliance is coming
Most significant legislation since 1938
We owe thanks to the growers, retailers and trade associations that had the vision to create and move on the PTI ahead ahead of this legislation
The focus on prevention means traceability will become a standard part of audits
Implementation will phase in over three years
Retailers will drive PTI adoption in 2011 / 2012
The Tester Amendment will not have any effect on retailer requirements

7. The PTI Mission
“Create an Action Plan for the produce industry to adopt an effective Whole Chain Traceability program by incorporating the use of technology and use of common standards to serve as linkages between internal traceability programs.”
Candace, please replace label with Pti Label

8. The Produce Traceability Initiative
The PTI is:
Providing the FDA with timely access to necessary information when a food borne illness outbreak occurs
Limiting the scope of recalls to specific “Grower Lots of Interest” instead of recalling entire commodity groups
Using standard data structures across the entire supply chain
Case-level traceability
The PTI is not:
A comment about your already existing traceability systems
A centralized database run by or for the FDA with everyone’s traceability information
The ability to use your current proprietary tracking numbers with your existing tracking system
Item-level source tracking
DataBar for item checkout in retail stores

9. The Produce Traceability Initiative
The PTI is:
Labeling the carton, bag, bin at time of packing
About Farm to Store or Restaurant
About Whole Chain Traceability and reducing the time to trace-back and trace forwards
The Produce Industry leading the Government
Reducing risk in your business
Increasing consumer confidence in the produce the eat
The PTI is not:
Changing your systems to use the GTIN as your Item Number
About Farm to Fork
Not about Scanning at the Store or Restaurant
Serialization of lot numbers
Throwing away existing traceability systems

10. Whole Chain Traceability
Source Tracking #
Grower
PTI
GTIN and Lot #
Packer /
Processor
Distributor /
Wholesaler
Distribution
Center
Retail
GTIN and Lot #
GTIN and Lot #
GTIN and Lot #
GTIN and Lot #
Consumer
Item Source Tracking

11. These Milestones are scheduled to be completed in 2011
PTI Milestones 4, 5, & 6
#4 Show human-readable information on cases
Packers are responsible for providing human-readable information on each case.
#5 Encode information in a barcode
Packers are responsible for encoding the GTIN, lot number.
#6 Read and store information on inbound cases
Each subsequent handler of the case will have the systems and capability to read and store the GTIN and lot number from each case of produce received.
These Milestones are scheduled to be completed in 2011

12. PTI is Much More than Putting a Label on a Box
Source lot traceability at the case level, must track co-mingling of lots by pallet (Hybrid Pallet)
Internal Traceability extends from the Field through the Packing Shed and Cooler to customer shipment
Whole Chain Traceability – The GTIN and lot ID are recorded on all inbound and outbound transactions of each supply chain member
Electronic records shared within 24 hours of a request
Correct label on the correct box.
GTIN 1 to 1 and 1 to Many

13. PTI Compliance Requires Time and Planning
Field
Combining geography, item, and date information on a single label
Different types of harvests require different PTI processes
The harvest plan can change multiple times per day
Packing
Volume and span of packing operations
Source lot control
Multiple concurrent pack configurations per packer and\or packing line
Cooler
Tracking pallet consolidation of partials from the field or packing shed
Tracking consolidation \ building of mixed pallets for specific customer orders
Tracking of product through required processes
You will need to pilot process changes
A well trained staff using effective system does not lose productivity
Field
Combining geography, item, and date information on a single label
Geography – Grower / Ranch / Field / Planting (Block)
Item – Commodity / Variety / Pack Style / Size / Label / GTIN
Date – A printed label is only valid for one day – 365 days per year
Different Item Names between sales, accounting, and the field
Change – The harvest plan can change multiple times each day
Driven by customer needs and market conditions
Driven by changes to harvest location and crop condition
Harvest Type – ground, harvester, value added, table, etc.
Different commodities require different harvest methods
Different methods require different labeling and data capture
Growing districts / infrastructure / weather / packaging
Packing
Volume and Span of the Packing Operations
Packing up to hundreds of bulk containers each day with a need to track source lot(s)
Multiple packing facilities and multiple packing lines per facility
Source Lot Control
Must tie Source Lots to Pack Lots
Pack Lot ID links to Source Lot ID both of which change throughout the day
Bins/Totes from multiple lots can be mixed in the packing shed
You cannot always get a clear “cut off” on the line between lots
Pre-Pack and Re-Pack Runs add additional complexity to source lot control
Complexity of Pack Configurations
Concurrently packing multiple items: Pack Style/Size/Grade/Label > GTIN
Can be packing multiple items (GTINs) into identical cartons on each line
Getting the right GTIN on the right carton is difficult
Building multiple pallets off the same line

14. Process Improvements
Traceability (and PTI compliance) will require closing the gaps in current processes
Source lot control at bin level
Ad hoc sourcing (Order Substitution)
Delays between action and entering information
Inventory is not accurate in the system
Misses In-process visibility
Audits will reveal weak process links
Source Lot Control
If you lose traceability control at the source lot, all of your downstream traceability effort is wasted
Current handling practices can lead to co-mingling by accident
Without controlling or validating source lot as bins are introduced to the line, there is no true source control
An auditable process is a documented process
Ad Hoc Sourcing (Substitutions)
Need to maintain source lot control and traceability of purchased product
Need to communicate the product GTIN and Lot Info to your customer
The best practice in this area is still evolving
Audits
Traceability will be added to Audit scope over time
Either by FDA, Customers, or 3rd Parties
Will need to demonstrate documented process control for all traceability processes

15. Leverage your investment in PTI to improve operations
Improve visibility
“Cut to Cool” and other valuable cycle times
Real Time View into Packing for Sales and Operations
Automate receipt at the Cooler
Eliminate data entry errors
Reduce the time required to check in and receive a field truck
Data Analysis and Reporting
Wealth of new data available to help you better manage your operations
Differences in harvested quantity to received quantity at the Cooler
“Lost Pallet” issue
Use Information to Better Manage
Harvest and Pack Operations
Treatments and Resources (cooling tunnels, Hydrovacs, ripening rooms)
People
Order fulfillment
Productivity and Process
Enables you to develop data driven standards that can then be used to measure performance and improvement

16. Real Time Visibility of Harvest and Pack
Ability to see planned, labeled, packed and received product in real time
Ability to see details on what is being harvested / packed
Ability to anticipate arrival times for special orders
Ability to track the changes to harvest plans
Sales can provide better information to customers
Operations can better manage staffing and resources

17. One Size Does NOT Fit All
Effective solutions differ for different Companies
Commodities
Scope and Span of Operations
Fulfillment Model
Effective solutions differ for different areas of operation
Field
Packing Shed
Cooler
Scope and Span
Field – Harvester is different than ground harvest is different than value added
Packing – High volume line is different from value add line is different from repack
Fulfillment Model
Sector Served (Food service, Retail, …)
Type of org – grower, packer, shipper? Integrated or contract or purchase
Fulfillment Model – Contract –vs- Spot market

18. PTI Best Practices are Evolving
Approved by Working Groups
Case label standards are being updated
Clarity on dimensions and quality of bar codes
Hybrid pallet tags
Approved by Leadership Council
PTI voice pick code
Not Approved by Leadership Council
Base GTIN’s for traceability

19. What Should I be doing?
Understand and take action on the PTI Milestones
Get started now
Define products for testing
Start small, test the new processes
Talk with your customers to understand their expectations and timelines
Talk to your peers who have already been testing
Talk with traceability vendors to scope your needs
Stay connected
Customers
Trade Associations
Industry Events- National and Regional

20. RedLine Solutions is Your Partner for PTI Compliance
RedLine Solutions provides complete traceability solutions
Hardware, software, professional services, support, and labels
Field Harvest through the Packing Shed to the Cooler and customer shipment
Print what you need, whenever and wherever you need it
Capture and transmit key information for early visibility
Create and manage electronic records for traceability
Our Solutions are designed working with leading produce companies
While others are talking about solutions, RedLine is delivering
Candace – change pictures to show field, packing and cooler
Candace – please add all three logos (on bottom)

21. Webinar Series Join Us on April 20, 2011, 11am PST
“PTI Labeling in the Pack Shed-
Insights from PTI Pilots”
Register at
Come see us at Booth 1454 at United Fresh in New Orleans
Chris: what is the next event going to be called? We have “Case Labeling Update” in the meeting notes.

22. Questions? Contact us at info@redlineforproduce.com or 888-801-2039
Questions and Answers
Questions? Contact us at or
RedLine Solutions Proprietary & Confidential

23. RedLine Solutions for Produce
Thank you for attending! To register for other events:

24. Webinar Series Join Us on May XX, 2011, 11am PST
“PTI Case Labeling Best Practices Update”
Come see us at Booth 1454 at United Fresh in New Orleans
Register at
Chris: what is the next event going to be called? We have “Case Labeling Update” in the meeting notes.