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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. 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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  1. 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

  2. About the Traceability Institute www.traceability-institute.com 2

  3. 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 3

  4. 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 4

  5. Key Concepts www.traceability-institute.com

  6. 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 6

  7. Global Supply Chains Demand Traceability The more partners in the supply chain, the more complex business processes and information systems www.traceability-institute.com 7

  8. 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 8

  9. 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 9

  10. 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 10

  11. Defining Traceability www.traceability-institute.com 11

  12. Google is the Worlds Largest Traceability System 12 Care Chemicals Division Nutrition Ingredients

  13. 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 13

  14. 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 14 www.traceability-institute.com

  15. 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 15 Care Chemicals Division Nutrition Ingredients

  16. Traceability Data Flow = Common Language = Traceability Solutions ERP Systems Local Databases DNA Fingerprint Ear Tags RFID Barcode Manual 16 Care Chemicals Division Nutrition Ingredients

  17. 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 17 Care Chemicals Division Nutrition Ingredients

  18. 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 18 Care Chemicals Division Nutrition Ingredients

  19. Performing Traceability www.traceability-institute.com 19

  20. 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 20

  21. Implementation Considerations • The business objectives will define the characteristics of a traceability system: • Depth • Precision • Breadth • Risk • Technology • Parameters Courtesy of Traceability Institute LLC 21 Care Chemicals Division Nutrition Ingredients

  22. 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 22

  23. 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 23

  24. GS1 Global Traceability Standard Source: GS1 Global Traceability Standard www.traceability-institute.com 24

  25. Whole-Chain Traceability Systems Approaches 1 Cascade up / cascade down 2 Central repository 3 Network www.traceability-institute.com 25

  26. 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 29

  27. Value Chain Traceability 30 Care Chemicals Division Nutrition Ingredients

  28. Internal Traceability View 31 Care Chemicals Division Nutrition Ingredients

  29. Additional Benefits www.traceability-institute.com 32

  30. 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 33

  31. 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 34 Care Chemicals Division Nutrition Ingredients

  32. 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. 35

  33. Thank you! • cristian.barcan@traceability-institute.com • +1 719 201 9075 • www.traceability-institute.com www.traceability-institute.com 36

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