Chipping at the Traceability Sculpture to Create Value

Chipping at the Traceability Sculpture to Create Value

The Natural Product ShowMarch 13 2010 - Anaheim, CA

Training - Design - Implementation

www.traceability-institute.com 1

www.traceability-institute.com

About theTraceability

Institute

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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

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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

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Traceability Institute


Key Concepts

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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 !

Global Supply Chains Demand Traceability


The more partners in the supply chain, the

more complex business processes

and information systems

Traceability ImpactEconomical ImpactReduce the negative economic impact on identification, location

and removal from commerce defective products in an efficient and effective way.

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.

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

Legal ImpactProvides compliance to regulatory requirements. Combats counterfeiting by

product authentication.


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

9www.traceability-institute.com

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.



Defining Traceability

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12Care Chemicals Division Nutrition Ingredients

Google is the Worlds Largest Traceability System

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

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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STANDARDS

DATA COLLECTION AND STORAGE

INTERNAL TRACEABILITY

INTEROPERABILITYEXTERNAL TRACEABILITY

UNIQUE IDENTIFIERS

NAIS, PTI

SAP, FAMOUS, NAVISION

ERP, THIRD PARTY

TRACEABILITY NETWORKS

KEY: INTEROPERABILITY

Sculpturing Traceability

http://www.gs1.org/


ERP Systems

Local Databases

Ear Tags RFID Barcode ManualDNA

Fingerprint

= Common Language

= Traceability Solutions

Traceability Data Flow

http://www.gs1.org/


A3 B2 C1 D1 E3

A2

A4

A5

A1

B1

B3D2

D3

E2

E1

E4

E5

A6

C2

B4

E6

Manufacturer 1st processor 2nd processor Distributor Point of Sales

Source: GS1 Global Traceability Standard

Trace Back (Tracing)


A3 B2 C1 D1 E3

A2

A4

A5

A1

B1

B3

D3

E2

E4

E5

A6

C2

B4

E6

Manufacturer 1st processor

2nd processor Distributor Point of Sales

D2


Trace Forward (Tracking)


Performing Traceability

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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



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

• Depth• Precision• Breadth• Risk• Technology• Parameters

Courtesy of Traceability Institute LLC

ImplementationConsiderations

Traceability Data Organization

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

1. Master data2. Transactional data3. Public data4. Private data


• 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.

GS1 Standards


http://www.gs1.org/

GS1 Global Traceability Standard



Whole-Chain Traceability Systems Approaches

Cascade up / cascade down1Central repository2Network3


Traceability Networkvia the Internet

AccessNode

producer of raw materialsproducer of

raw materials suppliersupplier manufacturermanufacturer retailerretailer consumerconsumer

AccessNode

AccessNode

AccessNode

AccessNode

Web portal



Value Chain Traceability


Internal Traceability View


AdditionalBenefits

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Quality Safety

Brand MarketingBrand Protection

VisibilitySustainability

Consumer Safety Risk

Legal Action Risk

Costs

Negative Publicity

Production Inventory

Counterfeiting

Recalls Withdrawals

Efficient Logistics Process Control

QUALITY & SAFETY

BRAND VALUE & PUBLIC IMAGE

Adapted from graph by Alexandre Fachinello – CheckPlant

Traceability Balances the Value Chain

RegulatoryCompliance



ADDED CONSUMER VALUE

PR

ICE

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

LOW

HIGH

HIGH

Conventional Products

Organic Products

More Sustainable /Traceable Products*

A New Product Category is Emerging

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• 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.

Summary of Traceability Benefits

Thank you!


• [email protected]• +1 719 201 9075• www.traceability-institute.com

mailto:[email protected]

Chipping at the Traceability Sculpture to Create Value

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