Chipping at the traceability sculpture to create value
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Chipping at the Traceability Sculpture to Create Value. The Natural Product Show March 13 2010 - Anaheim, CA. Training - Design - Implementation. www.traceability-institute.com. 1. About the Traceability Institute. www.traceability-institute.com. 2. Traceability Institute.

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Chipping at the Traceability Sculpture to Create Value

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Chipping at the traceability sculpture to create value

Chipping at the Traceability Sculpture to Create Value

The Natural Product Show

March 13 2010 - Anaheim, CA

Training - Design - Implementation

www.traceability-institute.com

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Chipping at the traceability sculpture to create value

About the

Traceability Institute

www.traceability-institute.com

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Traceability institute

Traceability Institute

  • Headquartered in Colorado Springs, USA and Brussels, Belgium

  • We assist businesses worldwide to master the traceability opportunities and challenges, and leverage its benefits and return on investment across supply chains

www.traceability-institute.com

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Traceability institute1

Traceability Institute

  • Main areas of expertise:

    • Training: in-company and open enrollment

    • Facilitation: in-company, suppliers, solution providers, whole chain

    • Readiness and performance assessment

    • Consulting and solution design

    • Implementation and project management

www.traceability-institute.com

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Chipping at the traceability sculpture to create value

Key Concepts

www.traceability-institute.com


Traceability is part of food safety

Traceability is Part of Food Safety

  • Two aspects to consider at all levels of the supply chain:

    • Proactive food safety

      • GAP, GMP, GDP, HACCP, ISO and Industry Standards, etc.

    • Reactive food safety

      • Traceability, Withdrawal and Recall

  • Both must be covered = zero risk does not exist !

www.traceability-institute.com

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Global supply chains demand traceability

Global Supply Chains Demand Traceability

The more partners in the supply chain, the more complex business processes and information systems

www.traceability-institute.com

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Traceability impact

Traceability Impact

Economical Impact

Reduce the negative economic impact on identification, location and removal from commerce defective products in an efficient and effective way.

Enables inventory visibility across the supply chain and synchronization of consumption and procurement.

Consumer Safety Impact

Could save lives by validating presence or absence of contaminants and attributes important for consumer health. Preserves consumers trust in Quality. Critical for Brand Protection.

Legal Impact

Provides compliance to regulatory requirements. Combats counterfeiting by product authentication.

www.traceability-institute.com

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A glimpse at traceability benefits

A Glimpse at Traceability Benefits

  • Done properly, traceability is a:

    • Risk management tool

    • Recall management tool

    • Product attribute differentiation tool

      • Food safety is a non-differentiation arena, but traceability tools provide competitive advantages

    • Marketing tool

    • Transparency highway

    • Tool that supports sustainable business practices

www.traceability-institute.com

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Chipping at the traceability sculpture to create value

New Traceability Legislation Underway in the USA

  • HR 2749 Food Safety Enhancement Act (FSEA) of 2009

  • The U.S. House of Representatives approved the bill and it went to the U.S. Senate to be voted on in 2010.

  • The bill calls for identification of technologies and methodologies for tracing the distribution history in view of:

    • a regulation to establish a tracing system for food to maintain the full pedigree of the origin and previous history of the food;

    • to link that history with the subsequent distribution history of the food;

    • to establish and maintain a system for tracing the food that is interoperable with the systems established and maintained by other such persons;

    • and to use a unique identifier for each facility owned and operated by such person for such purpose.

www.traceability-institute.com

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Chipping at the traceability sculpture to create value

Defining Traceability

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Chipping at the traceability sculpture to create value

Google is the Worlds Largest Traceability System

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Care Chemicals Division Nutrition Ingredients


Traceability considerations

Traceability Considerations

  • not labeling, Bar Codes or RFID tags

  • never limited to an individual company in the supply chain

  • an integral part of doing business

  • built on interoperability

  • based on agreed upon standards

  • a must in today’s market dynamics and trends

www.traceability-institute.com

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Chipping at the traceability sculpture to create value

Instead of A Definition

  • Unique identification of traceable items

  • Accurate record keeping

  • Timely correlation of records into

  • Comprehensive reports, and

  • Interoperability along the whole chain

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www.traceability-institute.com


Chipping at the traceability sculpture to create value

Sculpturing Traceability

KEY: INTEROPERABILITY

INTEROPERABILITY

EXTERNAL TRACEABILITY

TRACEABILITY NETWORKS

INTERNAL TRACEABILITY

ERP, THIRD PARTY

DATA COLLECTION AND STORAGE

SAP, FAMOUS, NAVISION

STANDARDS

NAIS, PTI

UNIQUE IDENTIFIERS

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Care Chemicals Division Nutrition Ingredients


Chipping at the traceability sculpture to create value

Traceability Data Flow

= Common Language

= Traceability Solutions

ERP Systems

Local Databases

DNA Fingerprint

Ear Tags

RFID

Barcode

Manual

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Care Chemicals Division Nutrition Ingredients


Chipping at the traceability sculpture to create value

Trace Back (Tracing)

1st processor

Point of Sales

Manufacturer

2nd processor

Distributor

E1

A1

B1

E2

A2

A3

B2

C1

D1

E3

A4

D2

E4

B3

C2

D3

A5

E5

B4

A6

E6

Source: GS1 Global Traceability Standard

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Care Chemicals Division Nutrition Ingredients


Chipping at the traceability sculpture to create value

Trace Forward (Tracking)

1st

processor

2nd

processor

Manufacturer

Distributor

Point of Sales

A1

B1

E2

A2

A3

B2

C1

D1

E3

A4

D2

E4

B3

C2

A5

D3

E5

B4

A6

E6

Source: GS1 Global Traceability Standard

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Care Chemicals Division Nutrition Ingredients


Chipping at the traceability sculpture to create value

Performing Traceability

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Business objectives

Business Objectives

  • Risk Management

    • Compliance

    • Safety and Quality Assurance

    • Recall Management

  • Product Life Cycle Analysis

    • Sustainability/Supply Chain Optimization

  • Product Marketing and Differentiation

    • Branding, Value, Loyalty

www.traceability-institute.com

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Chipping at the traceability sculpture to create value

Implementation

Considerations

  • The business objectives will define the characteristics of a traceability system:

    • Depth

    • Precision

    • Breadth

    • Risk

    • Technology

    • Parameters

Courtesy of Traceability Institute LLC

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Care Chemicals Division Nutrition Ingredients


Traceability data organization

Traceability Data Organization

  • Depending on the traceable item type, traceability data is organized as:

    • Master data

    • Transactional data

    • Public data

    • Private data

www.traceability-institute.com

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Chipping at the traceability sculpture to create value

GS1 Standards

  • International non-profit organization (EAN + UCC)

  • Globally recognized

  • Known for setting barcode and RFID global standards

  • Standards widely accepted by manufacturers and retailers

  • Developed the GS1 Global Traceability Standard (GTS)

    • Traceability Institute participated in the core development team

  • Many industry associations worldwide follow and advocate GS1 standards.

  • In the US for example: GMA , FMI, PMA Produce Traceability Initiative (PTI) , Meat and Poultry Data Standards and Foodservice GS1 US Standards Initiative.

www.traceability-institute.com

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Gs1 global traceability standard

GS1 Global Traceability Standard

Source: GS1 Global Traceability Standard

www.traceability-institute.com

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Whole chain traceability systems approaches

Whole-Chain Traceability Systems Approaches

1

Cascade up / cascade down

2

Central repository

3

Network

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Chipping at the traceability sculpture to create value

Traceability Network

via the Internet

Access

Node

Access

Node

Access

Node

Access

Node

Access

Node

Web portal

manufacturer

retailer

consumer

producer of raw materials

supplier

www.traceability-institute.com

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Chipping at the traceability sculpture to create value

Value Chain Traceability

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Care Chemicals Division Nutrition Ingredients


Chipping at the traceability sculpture to create value

Internal Traceability View

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Care Chemicals Division Nutrition Ingredients


Chipping at the traceability sculpture to create value

Additional

Benefits

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Chipping at the traceability sculpture to create value

Traceability Balances the Value Chain

Regulatory

Compliance

QUALITY & SAFETY

Consumer Safety

Risk

Legal Action

Risk

Quality

Safety

Costs

Brand Marketing

Brand Protection

Negative Publicity

Recalls

Withdrawals

Production

Inventory

Visibility

Sustainability

Counterfeiting

BRAND VALUE & PUBLIC IMAGE

Efficient Logistics

Process Control

Adapted from graph by Alexandre Fachinello – CheckPlant

www.traceability-institute.com

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Chipping at the traceability sculpture to create value

A New Product Category is Emerging

HIGH

Organic

Products

More Sustainable /Traceable Products*

PRICE

Conventional Products

HIGH

LOW

ADDED CONSUMER VALUE

* For a small additional price a lot of added value for the consumers

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Care Chemicals Division Nutrition Ingredients


Chipping at the traceability sculpture to create value

Summary of Traceability Benefits

  • Avoid financial loss due to recall

  • Enhance brand / product category

  • Enhance customer trust in the product/brand

  • Create new brand

  • Avoid legal consequences

  • Reduce risk of being involved in a recall

  • Differentiation

  • Marketing benefits

  • New business/new markets opportunities

  • Additional applications: unbroken temperature log, proof of sustainable practices, etc.

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Thank you

Thank you!

  • [email protected]

  • +1 719 201 9075

  • www.traceability-institute.com

www.traceability-institute.com

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