Wal-Mart tells suppliers to get off the shed - The Packer

Wal-Mart tells suppliers to get off the shed

06/07/2013 10:49:00 AM
Tom Karst

Obviously, not all suppliers moved with the first exhortation and the many that followed.

In coverage published in The Packer in April, Ed Treacy, PMA vice president of supply chain efficiencies and co-chairman of the PTI implementation and the PTI buyers working groups, estimated that about 40% of produce suppliers are using PTI. That, if my math is correct, leaves about 60% who aren’t using PTI.

“Considering there have been very few retailers and foodservice companies taking a hard line and demanding it, that’s a very good voluntary adoption rate,” Treacy was quoted saying.

He said at the time that he thinks the number of suppliers adopting PTI will increase substantially after one of the major chains sets a firm date in requesting its suppliers’ implementation.

Setting a firm date translates to “get off the shed.”

Wal-Mart has delivered the message, and having a big gun lead the way just may work.

Wal-Mart’s letter said that the chain will work with suppliers who are making a “good faith effort” toward standard case labels by using the spec exemption process. Product that is not label compliant (after Nov. 1) will be received as out of spec unless an active exception has been issued by the buyer before delivery.

Beginning in 2014, Wal-Mart says product out of compliance will be rejected unless an active exception has been issued by the buyer before delivery.

Traceability solution providers are surely pleased with Wal-Mart’s letter. Fresh produce suppliers who haven’t put in place PTI compliant labeling should be motivated to do so.

Still, there remains some confusion about what needs to be done by the noncompliant.

One member of the Fresh Produce Industry Discussion Group asked, “What determines a PTI-compliant label? I am seeking a answer based upon Wal-Mart’s intent to accept only PTI-compliant very shortly. If a master carton or container includes PTI on the outside and the consumer pack does not, is it really traceable? Could someone clear this up for me?”

Gary Fleming, vice president of strategic services for RedLine Solutions Inc., Santa Clara, Calif., was ready with an answer to that question. Find what Gary’s answer was here.

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