Associated Grocers of Baton Rouge Pioneers Excellence in Food Traceability by Automating FSMA 204 Compliance

Rhea-AI Summary

Associated Grocers of Baton Rouge (AGBR) (Ticker: AGBR) advances food traceability recordkeeping to comply with FDA's FSMA 204 law, using ReposiTrak Traceability Network. The co-op's 240 retailers in 5 states benefit from automation, ensuring transparency, quality, and safety in the supply chain.

Insights

Supply Chain Management Expert

The integration of ReposiTrak Traceability Network by Associated Grocers of Baton Rouge (AGBR) represents a significant enhancement in supply chain management, particularly in the context of compliance with the FDA's FSMA 204 food traceability regulation. The ability to automate the exchange and maintenance of critical tracking information across the supply chain is a proactive measure that addresses the increasing demand for transparency in the food industry. By leveraging a network that requires no additional hardware or software, AGBR is positioned to streamline operations and reduce the risk of non-compliance penalties, which can be substantial.

In the broader context, such advancements in traceability can lead to improvements in the efficiency of recalls, potentially reducing the time and cost associated with these events. For stakeholders, this translates to a mitigation of risk and potential enhancement of the brand's reputation for safety and quality. The low-cost barrier for entry for suppliers and the scalability of the solution are particularly noteworthy, as they suggest a model that can be adopted across the industry, potentially setting a new standard for supply chain management within the sector.

Food Safety and Regulatory Compliance Expert

AGBR's adoption of the ReposiTrak Traceability Network underscores a strategic alignment with the FDA's FSMA 204 requirements, which are designed to protect consumers by ensuring greater traceability in the event of foodborne illness outbreaks. The emphasis on Key Data Element (KDE) records and Critical Tracking Events (CTEs) is crucial for pinpointing the source of contamination quickly and efficiently, thereby reducing the public health impact of such incidents.

From a regulatory perspective, the ability for AGBR to provide end-to-end traceability not only demonstrates compliance but also reflects a commitment to public health. This commitment may provide a competitive advantage as consumers increasingly value food safety and could influence purchasing decisions. Furthermore, the direct access and visibility of traceability data to all stakeholders enhance the transparency and trust in AGBR's operations, which can be a differentiating factor in the market.

Financial Analyst

For investors and analysts monitoring the food retail sector, AGBR's investment in the ReposiTrak Traceability Network could signal a long-term strategic benefit. The potential for cost savings through improved efficiency and the avoidance of regulatory fines can have a positive impact on the bottom line. Additionally, the scalability of the solution implies that AGBR is well-equipped to handle future growth without significant additional investment in traceability infrastructure.

While the upfront costs and the ongoing flat fee for suppliers are not disclosed, the described 'extremely low cost' suggests that the financial impact may be minimal relative to the benefits of compliance and operational efficiency. The direct impact on AGBR's stock performance would depend on the materiality of these costs and savings, which would merit further investigation by financial analysts. However, the strategic positioning and potential risk mitigation suggest a favorable outlook for AGBR's operational resilience and financial health.

Advances in food traceability recordkeeping for the co-op and its members signify a commitment to transparency, quality, and safety throughout its supply chain

SALT LAKE CITY & BATON ROUGE, La.--(BUSINESS WIRE)-- Associated Grocers of Baton Rouge (AGBR), in support of its 240 independent retailers in Louisiana, Mississippi, Alabama, Arkansas, and Texas, has advanced efforts to comply with the FDA’s FSMA 204 food traceability law through automation with the ReposiTrak Traceability Network^®. As the world’s largest operating traceability network, the ReposiTrak solution enables the exchange and maintenance of FDA-required data between the co-op’s suppliers, distribution center and retail locations.

“As an organization, it is our mission to provide our retailers with technologies that drive results and simplify the overall responsibilities of running a retail grocery store,” said David Politz, senior vice president and chief information officer of Associated Grocers, Inc. “Food traceability adds a new layer of complexity to day-to-day operations for many – if not all – of our members, and it was important to us to tackle this problem and find a solution that works for the retailer.”

The FDA’s FSMA 204 food traceability regulation requires manufacturers, processors and those who pack or hold foods on the Food Traceability List (FTL) to establish and maintain Key Data Element (KDE) records for specific Critical Tracking Events (CTEs) in a product’s journey through the supply chain. As that product changes hands or changes form, a compounding string of data must be transferred between trading partners to provide full, end-to-end traceability. The AGBR supply chain consists of hundreds of suppliers, a distribution center and more than 240 independent retail locations operating under multiple banners.

“The ease of use and extremely low cost are what drew us to the solution,” Politz continues. “Through the ReposiTrak Traceability Network, there is a level of comfort in knowing that we’re capturing the data required by the FDA and that it’s being assembled and stored for us according to the FSMA 204 law. Additionally, we, and our suppliers and retailers, have direct access and visibility to that information. Lastly, the ReposiTrak solution enables us to shoulder as much of the burden as possible and, therefore, ease the obligation of our retailers.”

The ReposiTrak Traceability Network is the only solution that’s scalable for the total food supply chain, without the need for new hardware, software or even labeling systems. It is built upon the largest, already-connected network of more than 110,000 individual supplier facilities, making the onboarding process faster and easier for retailers. In addition, ReposiTrak’s team of experts is prepared to have real conversations with food supply chain operators to understand each company’s unique challenges and determine the best approach. There is no cost for retailers and suppliers can connect to an unlimited number of customers and begin sharing data for a low, flat fee.

Food supply chain operators interested in discussing the impact of FSMA 204 on their business should contact Derek Hannum (DHannum@repositrak.com).

About Associated Grocers of Baton Rouge

Associated Grocers, Inc., is a wholesale distributor to 240 independent retailers spanning the Louisiana, Mississippi, Alabama, Arkansas, and Texas regions. AG provides retail operations support and solutions to its members, which allow independent supermarkets to compete with the national chains while providing their unique hometown flavors and fast, friendly service. To view a list of Associated Grocers retail stores, please visit https://www.agbr.com/store-locator/.

About ReposiTrak

ReposiTrak (NYSE: TRAK), formerly Park City Group, provides retailers, suppliers and wholesalers with a robust solution suite to help reduce risk and remain in compliance with regulatory requirements; enhance operational controls; and increase sales with unrivaled brand protection. Consisting of three product families – food traceability, compliance and risk management, and supply chain solutions – ReposiTrak’s integrated, cloud-based applications are supported by an unparalleled team of experts. For more information, please visit https://repositrak.com/.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240102523873/en/

David Politz

Senior Vice President and Chief Information Officer

Associated Grocers, Inc.

dpolitz@agbr.com



Derek Hannum

For ReposiTrak Sales Inquiries

435-645-2230

dhannum@repositrak.com



Ron Margulis

For ReposiTrak Media Inquiries

908-337-0020

ron@rampr.com

Source: ReposiTrak

FAQ

What is the purpose of AGBR's advancement in food traceability recordkeeping?

AGBR is advancing to comply with the FDA's FSMA 204 food traceability law, ensuring transparency, quality, and safety in the supply chain for its 240 retailers in Louisiana, Mississippi, Alabama, Arkansas, and Texas.

How does ReposiTrak Traceability Network help AGBR in food traceability?

ReposiTrak Traceability Network enables the exchange and maintenance of FDA-required data between AGBR's suppliers, distribution center, and retail locations, ensuring compliance with FSMA 204 law.

What are the benefits of using ReposiTrak Traceability Network for AGBR?

ReposiTrak's solution provides ease of use, low cost, direct access and visibility to required FDA data, and scalability without the need for new hardware or software, benefiting AGBR's supply chain and retailers.

How does AGBR aim to support its retailers with food traceability?

AGBR aims to provide technologies that simplify the responsibilities of running a retail grocery store, including tackling the complexity of food traceability and finding solutions that work for the retailers.

What regulations drive AGBR's efforts in food traceability?

AGBR's efforts are driven by the FDA's FSMA 204 food traceability regulation, requiring compliance from manufacturers, processors, and those who pack or hold foods on the Food Traceability List (FTL).