Complying with the regulations of the Food Safety Modernization Act (FSMA) is a monumental challenge. Food supply chains are complex, continent-spanning networks, complete with diverse data formats, disparate systems and varying levels of technological sophistication.
However, as companies continue their efforts toward FSMA 204(d) compliance, there’s a hidden gem within it: data. This data presents a wealth of opportunities for businesses to enhance food safety and drive significant return on investment (ROI).
Let’s explore the myriad benefits that companies gain by harnessing the insights from FSMA data, transforming it from a regulatory requirement into a strategic asset for growth and success.
Managing recalls efficiently
Compliance with FSMA 204(d) fosters greater transparency and accountability throughout the supply chain. By maintaining accurate and accessible records, companies can swiftly trace the source of any food safety incidents, minimizing the scope and impact of recalls.
Product recalls can have a significant impact on a company’s bottom line and reputation. In April 2024, PepsiCo announced the closing of its Danville, Illinois-based Quaker Oats factory after a lengthy pause in production related to a salmonella outbreak. According to their year-end statement, Quaker Foods’ operating profit declined 19% due to reduced sales and the recall.
Improved inventory tracking
The FSMA-compliant traceability lot codes (TLCs) associated with key data elements (KDEs) provide a wealth of inventory information as products flow through supply chains. By linking this data, companies gain visibility into how partners treat products upstream and downstream, including analytics on dwell time, turnover and quality for efficient warehouse management.
Freshness and shelf-life management
By analyzing supply chain data (including temperature logs, storage conditions, transit times and handling practices), companies can identify deviations and anticipate potential issues with product freshness and shelf-life risk before they arise. This data can drive automated workflows for at-risk products throughout the supply chain, including accelerating shipments, rerouting, or disposing of products.
Companies can also integrate this data with Internet of Things (IoT) and radio-frequency identification (RFID) sensors to track product conditions (such as location, temperature, humidity and shock) and improve data accuracy.
Sustainable supply chains
Companies can gather comprehensive data on supply chain partners’ scope 3 category 1 sustainability initiatives, such as carbon emissions, energy usage, water consumption, waste generation and other environmental impacts. This approach enables businesses to reduce the risk of greenwashing by validating claims with primary data. By using FSMA compliance for supplier sustainability reporting, companies can drive meaningful improvements in environmental performance while building trust with consumers and stakeholders through credible, evidence-based sustainability initiatives.
Sustainability efforts can also lead to a positive return on investment. Jackson Family Wines, the ninth-largest American winery and owner of brands such as Kendall-Jackson and La Crema wines, recently reported saving over USD 26 million through their sustainability programs.
Product quality
Traceability data and product quality data are complementary and can be correlated to help companies identify actions to address product quality and better understand product quality trends as a whole.
Companies that demonstrate compliance with FSMA Section 204(d) gain market access and bolster their reputation as trustworthy guardians of food safety. By having records of where the food comes from, they can show that quality requirements are met. It also enables quicker and easier FSMA data reports when required by authorities.
Document and certificate sharing
Implementing standardized electronic record keeping systems facilitates FSMA compliance and streamlines day-to-day operations. Centralized data repositories enable faster access to critical information, reducing administrative burdens and optimizing resource allocation.
Today, linking documents to products is often inefficient and insecure. IBM Food Trust® can help companies link certificates and documents to products effectively and securely. Retailers won’t need to request certificates because every product comes with a packet of documentation they need (such as documents to facilities, products and product lots). This streamlined documentation process allows retailers to provide proof of provenance and authenticity to comply with the United States Food and Drug Administration (FDA) or other regulatory requirements.
Fraud detection
Detecting and preventing food fraud is difficult. A large portion of supply chains still using outdated practices make it challenging to track raw materials across all stakeholders in the supply chain. To detect food fraud, there must be a bigger focus on awareness of where and how the products are farmed, stored, transported and packaged. A shared digital food supply chain based on decentralization and immutability offers a transparent and secure way of data storage.
These benefits are just a few of the potential business values that we’ve seen from traceability data, and we continue to see more every day. With the advent of AI technology to derive insights from large data sets, the data collected from FSMA requirements will be invaluable to companies. Solutions such as IBM Food Trust, in particular, enable visibility beyond just the one-up, one-down required by the ruling.
How IBM can help
Together with the FDA, IBM Food Trust is creating a smarter, safer, more sustainable food system for all. IBM Food Trust is a purpose-built solution to help facilitate the exact traceability that the new FDA ruling is mandating. Over the past eight years, the platform has established a network of over 900 partners, including farmers, producers, suppliers, manufacturers, retailers and others, to securely store and share data throughout the global food industry.
The solution supports Global Standards One (GS1) and Global Dialogue on Seafood Traceability (GDST) open standards, aligning with the critical tracking events (CTEs) and KDEs that the FDA defined. This alignment helps businesses effectively meet the traceability requirements they need for regulatory compliance.
To support FSMA Rule 204(d) compliance, the platform offers specific capabilities that make it easier for companies of all types to collect and store the required data. IBM Food Trust continually evaluates the data on the platform, helping you maintain the necessary data and meet your compliance obligations so that you’re prepared when the FDA sends you a request.
After you’ve onboarded your data to IBM Food Trust, the platform can help you trace your products both up and downstream throughout your supply chain to manage an investigation. With the click of a button, it can also generate reports in the exact format required by the FDA.
IBM and iFoodDS have also partnered to offer a joint offering called iFoodDS Trace Exchange with IBM Food Trust®. This offering will provide businesses in the food industry and their suppliers a comprehensive, scalable and secure traceability solution that meets the requirements of FSMA Rule 204.
Under the partnership, IBM will provide the back-end data processing and storage capabilities on the IBM Food Trust network. iFoodDS will provide a suite of applications and deep industry knowledge to assist companies with onboarding and organizational change needed to collect the required KDEs and CTEs.
Learn more about IBM Food Trust or schedule a consultation with an IBM representative.
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