Many return on investment calculations are easy. Most are not in my experience and you end up in the world of “soft” dollars (i.e., dollars you can’t actually put in the bank). In general, and in the produce industry in particular, the debate continues about the ROI of end-to-end supply chain traceability. Is it an expensive, soon-to-likely-be mandated compliance cost that growers have to pay whether they like it or not, or will it pay for itself, plus?
Elliott Grant is the chief marketing officer for a company called YottaMark Inc. They specialize in product authentication and unit-level traceability. In an opinion column in The Packer, Mr. Grant outlines his ROI model for traceability and generally concludes the investment is worth it, even when sidelining the possible added benefits of a quick recall and the resulting improvement in brand image and so forth.
Growers of produce, of course, aren’t the only ones with an interest in the ROI of traceability. Everyone is. Therefore, many of you may want to scan Mr. Grant’s analysis.
Filed under: C-Level Issues, GS1, Global Standards, Track & Trace
Chris,
What that analysis does not mention is that the least expensive way to go with Mr. Grant’s solution “begins” in the $2000 range. With our solution at Top 10 Produce LLC, the growers can sell under our 100% traceable label and comply with the PTI for $180 per year, plus what they pay for labels (about 6/10 of a cent per item). For the smaller growers this is an important consideration that should not be ignored in a complete analysis of the “I” in ROI.