Leveraging PTI Information for Improving FRESHNESS! June 15, 2017 The Journey ~ PTI (Produce Traceability Initiative) 02 04 PTI Label Item Level UPC/PLU ASN/PTI/SSCC-18 Supply Chain Visibility In-stock Traceability 2016 Walmart request 2017 Walmart request Quality Store Level Improvement Freshness Tracking Freshness Sales 01 03 PTI Label – Traceability & Freshness PTI Label Audit Results at Walmart Grocery Distribution Centers ✓ 2017 audit information PTI Label? 97% of produce cases contain a PTI ✓ 10 GDC’s label ✓ 180 + suppliers ✓ 290 commodity/SKU combinations Industry Standard? 75% of the PTI Labels meet the industry PTI or Traceable Label? 01 standard for format and content PTI Label Audit Industry Standard PTI Label? Walmart GDC’s 02 (43) UPC or PLU on Label? UPC/PLU on Label? 03 52% of PTI Labels contain the item level UPC or PLU number PTI Label – Traceability & Freshness Leveraging PTI Information for Improving FRESHNESS! Produce Traceability Initiative enabled by the GS1 – 128 barcode GS1-128 Scannable Barcode PTI Label SSCC-18 (Serial Shipping Container Code) PTI Label & GS1-128 Requirements for Walmart Suppliers Scannable GTIN/Harvest Date/Lot ✓ Effective Case Tracking ✓ Controlled by GS1 Standards Clear Product Info Harvest Date ✓ Case Pack & COO ✓ Freshness ✓ Compliance Management ✓ Contained in Bar Code Packer Information PLU 4087 Voice Pick Code ✓ Shipper Information ✓ Efficient Outbound UPC Bar Code / PLU Tracking ✓ Store Inventory Control & Rotation Scannable & Human Readable Content! PTI Label – Traceability & Freshness PTI Label Produce Age Dating Requirements for Walmart Suppliers Harvest Date (AI-13) • Field/Shed packed produce • Romaine lettuce • Melons • Etc. • “True” harvest date of repacked produce • Cucumbers Pack Date (AI-13) • Peppers • Storage crop produce • Imported repacked citrus • Apples • Etc. • Pears • Onions Best by Date (AI-15) • Potatoes • Packaged processed items • Etc. • Packaged salads, • Broccoli florets • Baby peeled carrots • Etc. PTI Label – Traceability & Freshness GS1-128 Information on ASN and PTI Labels enables value unlock for Walmart & Walmart Suppliers Food Safety • Efficient Food Safety recalls • Whole chain traceability Quality Control Planning • Visibility to harvest date and grower lot • QC sampling prioritization Distribution and Replenishment • Harvest date vs. FIFO rotation • Freshness calculations Stores and Clubs • ‘Real time” receiving accuracy • “Real time” inventory accuracy Primary Driver PTI Label ASN Impact of PTI on Freshness will be felt across the value chain Distribution Center Level Store Level QC System (EDEN) Accuracy Device scanning Store associate receiving accuracy Merchant, Sourcing, FOM, Supplier communication improvement based on scannable cases Visibility Enables whole chain visibility Rotation Prioritize Stocking based on need QC quality rotation decisions Eliminates “Garvey Gun” labels Scan “Best by Dates” in coolers Grower Lot Inventory Tracking at Pallet and case level Accurate store level “real time” inventory Ability to control sourcing at growing lot visibility Accountability Accountability Supplier accountability Better throw-away (waste) management Score-carding and Historical insights Associate level accountability QC Alerts Communication Advance alert capabilities Improved FOM (Fresh Operations Managers) and QC Supplier intelligence and sampling plan communication for store walks Visibility to Quality based on Grower Lot and GLN • ASN & PTI label contains “Grower lot” and “GLN” information • SSCC18 Pallet label provides grower lot information by pallet • Strawberries from different growing regions can be identified to improve quality and freshness Watsonville / Salinas Santa Maria Oxnard PTI Label – Traceability & Freshness Active road map developed for PTI Implementation which combines GS1-128 Bar code and ASN leverage Q3 • Request PTI Label • Vendor score carding standardization for PTI Label • PTI compliance audit • Request all Suppliers for • ROI Review • Bar Code Scan Test Labels and ASNs • QC system road • ASN Onboarding of Top • Supplier compliance mapping 80% Produce suppliers program for Label & ASN • Integrate systems to Q2 unlock use cases Q4 PTI Label – Traceability & Freshness Thank you! Leveraging PTI Information for Improving FRESHNESS!.