Optimal Slaughter, Cutting and Deboning Processes. Calculation Made Easy. Optimal Added Value Through Intelligent Use of Raw Materials

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1 IT-N EW S EN Contents Optimized Processes with ERP - Page 2-3 Optimal Slaughtering and Cutting Processes Efficient Cutting and Product Calculation Nutritional Value Management Recipe Optimization CSB-Image-Meater for Image Processing Traceability and Food Safety CSB Group of Companies at the IFFA 2013 Focus on process optimization, automation and mobile solutions Global IT Excellence in MEAT CSB Users International - Page 4-7 Barossa Fine Foods: Sales Up 60 Percent A balioglu: Planning, Calculation and Traceability Carns Romeu: CSB-System Secures Power to Compete Unicoop Firenze: Uses CSB-System to Control New Meat Processing Plant Wolf: Optimized Production Processes WELCOME! Frankfurt, Germany CSB-System AG stand B-81, hall 11.1 Frey s Food Brands: South Africa s Best Practice Company Hochreiter: Automatic Sileo and Batch Processing Plant Cardinal Meat Specialists: Market Leader Opts for CSB-System CSB-Automation AG stand C-71, hall 11.1 Robotik-Pack-Line stand D-70, hall 11.1 R antoul Foods: Turnkey Solution from Shop-floor to Top-floor Automated Solutions for Productio on n and Administrati Conestoga Meat Packers: Informed Decisions thanks to Business Intelligence ess Businompany e l i b o c M Integrated utside your o d n inside a Bigler, Bell and Minnig: Automated Weigh Labeling and Picking Veviba: Optimized Supply Chain Miratorg: Mobile Quality Management Automation Solutions for Production and Administration - Page 8-9 CSB certified interface Robotik-Pack-Line: Everything under Control with CSB linecontrol Document Management System: Efficient, Paperless and Audit Compliant CSB-Automation: Ground-Breaking Innovation at IFFA R FID: Transparent Information and Material Flows Bundling Best-Practice Procedures of the Meat Industry Mobile Business Inside and Outside Your Company - Page Mobility as Factor of Success C loud-services: Software and Service Straight from the Socket Route Optimization and Information System: Drive and Save O TTO-Gourmet: Magento Online Shop Connected to CSB-System CSB Group of Companies - Page 12 CSB-System AG: Family Member to Extend the Board EDEKA Rheinstetten: No Process without IT Exhibitions and Events 2013 For more information about the subjects covered in our IT-NEWS and our solution portfolio, please contact us directly: CSB-System AG An Fürthenrode Geilenkirchen Germany Tel.: Fax: R CSB-System I N T E R N A T I O N A L it-news@csb.de Homepage: All contributions are subject to the copyright of CSB-System. All rights reserved. RP th E i w s se Proces Optimized Welcome to the IFFA 2013! As the leading IT specialist for the meat industry, we would like to present you again plenty of new solutions for optimizing the entire process chain from production on to the counter. Among others, we will show you how to optimize your business processes with our ERP solutions automate your production and administration and profitably establish Mobile Business inside and outside your company. Optimized Processes with ERP In every company, it is crucial to permanently review the operations and to continuously improve the efficiency of the business processes. Here, the CSB-System is a key contributor. It allows you to control all processes of the value-added chain in an integrated way and to optimize them from breeding via slaughter and the different meat processing and refining stages up to sales. Automation Solutions for Production and Administration Automation also plays an important role in the CSB Group of Companies. The guiding principle is to increase performance and quality by using information technology while at the same time reducing costs. With the help of various application scenarios in production and administration, we will demonstrate how this can be achieved. The highlights comprise new weigh labeling solutions, OEE applications and control station systems as well as efficient picking methods. In the area of administration, we will showcase new developments for document management and business process management. At stand C-71 in hall 11.1, CSB-Automation AG informs you about integrated overall systems and solutions for automating intralogistics. Here, the new intralogistics system takes center stage: fully automated, CSB-Hang & Move handles different packaging types in the downstream processes of production. Mobile Business as Factor of Success Mobile design of business processes is a clear trend in the meat industry more and more, Mobile Business with its positive economic effects is becoming a factor of success. At the IFFA, we will present the numerous applications of mobile CSB solutions inside and outside your company. Main focus will be on our mobile ERP-Solution M-ERP, GPS-supported route optimization and information systems, cloud computing and webshop applications. Robotik-Pack-Line: Everything Under Control with CSB linecontrol Also in the scope of the Robotik-Pack-Line hall 11.1, stand D-70, you can convince yourself of the competent solutions of the CSB Group of Companies. The RobotikPack-Line stands for the synthesis of robotics and automation in complex production processes. The CSB linecontrol applications provide IT-supported coordination and control (OEE) of the machines in use.

2 2 Optimized Processes with ERP Optimal Slaughter, Cutting and Deboning Processes Realise the hidden quality and quantity potential Error-free operation All information available at any time Efficient processes Cost savings and fast implementation times Complete online data capture Quality management and traceability The CSB-System maps the entire slaughter process, from procurement to delivery. The high degree of specialisation of the ERP industry solution is reflected in the transparency of all information and the integrity of mapped sub-processes. Procurement planning takes your slaughter line capacities into consideration. Your sales and production data help you make important decisions regarding the econo mical purchase of livestock. Personnel plan ning is based on employee qualifications. Based on your cutting method and cut specifications, cutting planning always determines the correct quantity and quality for optimal yield. Each employee gets precise specifications for cutting. All information that has been captured from delivery, stunning, veterinary checks to grading and inventory posting is completely integrated in the CSB-System. Calculation Made Easy Efficient and reliable cutting and product calculation As your processes are fully integrated, documentation is minimized. All requirements regarding labeling and identification in line with all national and international standards and guidelines are met. Integrated capture of operating data and quality data guarantees full traceability directly in the process and across all stages of the value creation chain. The intuitive user interface allows you to capture all data easily and reliably to capture not only statutory information, but also in-house data. Reports such as vendor valuation, livestock assessments and productivity calculations can be generated from the data. As the CSB-System livestock management modules are directly integrated in all other ERP areas, slaughtering and cutting and deboning are subjected to direct efficiency checks. The data from production integrated with the planning modules and the data from sales and route planning provide a seamless information flow through the organization s processes on one integrated solid data platform. Planning is possible from sales orders back to living animal procurement and enables you to determine exactly your purchasing quantities. Planning is based on an integrated database without the need for interfaces, making your processes more transparent and efficient. Nutritional Value Management All data obtained directly from the system Direct link of cutting and product calculation with a total calculation Pre-calculation for the entire product taking into account all variants in raw material, personnel and machine allocation. Interactive calculation functionalities Today, successful calculation is more important than ever. In order to determine optimal prices, the trends of the procurement market, the potential of the sales market as well as the process costs and capacities of the coming weeks need to be anticipated and taken into consideration. The CSB-System links cutting and product calculation directly to a total calculation throughout the entire process chain. The integrated calculation is based on the bill of materials of a product. This list includes all data regarding material, personnel and machine requirements. The recipes and production variants used in the company are indicated here as well. Processing materials that are produced by in-house cutting are detailed in the cutting list, covering all variants and cost structures. These close links allow for a pre-calculation across the entire product. So the decisions which production variant is turned into a standard variant, and which products should be cut in-house or bought from external suppliers, are based on reliable facts. Optimal Added Value Through Intelligent Use of Raw Materials Visualize up to six units simultaneously per product and language Easily integrate all national and international databases for ingredients and nutritional substances Include process losses and additions Automatically initialize item labels and product specifications The EU provision of food information to consumers effective since December 2011 controls the identification of food and nutritional values in Europe. Identifying nutritional values on products will become mandatory by December 2016 at the latest. But why would you want to wait? With the Nutritional Value Management in the CSB- System, you can calculate, identify and manage all ingredients, nutritional values, allergens and genetically modified ingredients already today. For this purpose, the CSB-System links the product ingredients with the raw materials. When the recipes are created in the next stage, all required ingredients are directly allocated to the items. Based on the item s underlying bill of materials and related production variants, and in accordance with the allocated ingredients, each item is assigned nutritional values, allergens and GMO identification codes. Moreover, the ingredient calculation automatically initializes item labels and specifications for your products. Optimal gross margins without impacts on quality Considerably reduced material costs Standardized product quality Flexible recipes Fast response in the case of component shortages Optimal utilization of purchasing alternatives and market situation Effective bottleneck control and inventory policies Minimizing the use of expensive resources is a prerequisite for producing competitive goods. This principle especially applies in the food industry where costs of the materials used are higher than in most other industries. Continuously increasing raw material prices and consumer demands for cheap food force manufacturers to produce at low costs while safeguarding a constantly high quality. The integrated recipe optimization in the CSB-System is a practice-proven module that develops recipes with minimal costs but with the same or better quality. The optimization model in the CSB-System is mainly based on the parameters Cost-efficient use of raw materials, Provisioning for production losses, Consideration of additives used in the mixture, Food law requirements, and Organoleptic requirements of the recipe. Optimal Gross Margins The results of recipe optimization are imported into the component bills of materials. Based on these optimized bills of materials, material procurement is planned, and material provisioning is initiated. By optimizing the materials use, material costs are considerably reduced and the gross margins are increased for every product. Recipe optimization has cost-reducing effects on your entire recipe production with variable components. Product-specific characteristics are stabilized and the potential for reducing material costs is fully tapped, making recipe optimization an instrument for quality assurance of your batch production.

3 IT-news Optimized Processes with ERP CSB-Image-Meater for Image Processing 3 Pig carcass grading and cold grading in receiving Transparency through clearly illustrated measurements Efficiency through automated grading Exact measurements through innovative software The CSB-Image-Meater provides highly innovative technology for image processing. Its fields of application are in the classification of pig carcasses in the slaughter line complying with statutory requirements, and cold grading of pig halves at the receiving dock in the production plant. out grading and weighing of pig carcasses and invoices the slaughter companies for the delivered pigs. With more than 20 million weighed and graded pigs per year, the group is in charge of over 80 percent of the production of pigs for slaughter in France, some 7 percent in the EU. Pig Carcass Grading at Uniporc Ouest In order to increase quality, transparency and efficiency, the French Uniporc Ouest group uses the CSB-Image-Meater for pig carcass grading. In the weeks to come, the system will replace the needle choirometer in use at the 18 associated slaughter companies. For its members, the agricultural producer organization Uniporc Ouest carries For additional information about the application of the CSB-Image-Meater at Uniporc Ouest, please refer to the website or directly use the QR code. Traceability and Food Safety The clear image evaluation of the CSB- Image-Meater ensures transparent grading processes at Uniporc Ouest: For each pig, the entry and evaluation processes can be exactly reproduced. The presentation of the results on mobile terminal devices is currently being considered. The automated grading procedure saves one operator per slaughterhouse. In the future, the automatic grading solution CSB-Image-Meater will be supplemented by semi-automatic and manual versions so a practical solution can be provided for enterprises of all sizes. Cold Grading in Receiving at EDEKA Rheinstetten In EDEKA s new meat processing plant in Rheinstetten, the CSB-Image-Meater is used in receiving for entering and valuating the delivered pig halves. Here, the automatic measurement for identifying the left and right halves ensures correct loading of the track storage and the cutting robots. Safe batches secure good margins Transparency of the flow of goods throughout the operations and of the internal logistics Adherence to duty of care Legal security and limitation of risks Competent handling of critical situations Implementation of the most important laws, guidelines and standards Transparent presentation of all upstream and downstream processes Traceability keeps dominating the activities of the food industry. Your company must be able, at any time, to determine and consistently prove when, where and by whom your goods were taken over, processed, stored, transported, used, or disposed of. The traceability function of the CSB-System meets these requirements from raw material procurement via all processing stages and quality management up to labeling of all products. Traceability can also cover recipe components, ingredients and sustainability information (energy, water, CO 2 ). In addition, the CSB-System makes sure that the most important laws, guidelines and standards are implemented, taking into account special national features as well as internationally compliant labeling and identification of your products. The following graphic summarizes the most important facts for you. Traceability is not merely a legal obligation. It is a chance to permanently increase your competitiveness. Use IT also to trace the success of your products: improve your margins through increased transparency! FOOD HYGIENE/ FOOD INFORMATION TRACEABILITY Subcontractor Producer Retail Sector Subcontractor Producer Retail Sector Retention Periods Food hygiene EC No 853/2004 Registration of all establishments Traceability Main responsibility for food business operators Documents, especially HACCP, must be kept up to date Specific hygiene rules for food of animal origin EC No 853/2004 Approval of the business Control of hygiene rules as well as own checks based on HACCP principles food chain information Food traceability EC No 178/2002 Traceability for customers and suppliers Food safety along the entire chain Identification of suppliers and customers Safety of batches released onto the market Information and recall requirement Traceability of food of animal origin EC No 178/2002 as amended by EC No 931/2011 Description of the food Name/address of the owner Volume/quantity of the food Date of dispatch Name/address of the dispatcher Reference identifying the lot, batch or consignment In general: 5 years from date of production or dispatch Products with a shelf life of more than 5 years: Date of expiry plus 6 months Products with a shelf life of less than 3 months or without date of expiry: 6 months from date of production or dispatch Food Information Regulation EC No 1169/2011 Indication of all compulsory information, such as ingredients, allergens, origin labeling, company address and nutritional value declaration Equivalent to the origin labeling of beef, origin labeling of - pork - meat from poultry - meat from sheep and goats - meat as an ingredient will apply from 01 December 2014 Traceability of packaging materials EC No 1935/2004 Traceability of goods under monitored temperatures EC No 37/2005 Traceability and labeling of genetically modified organisms EC No /2003 Traceability of fishery and aquaculture products EC No 2065/2001 Commercial designation Production method Catch area Scientific name of the species indicated on the label or packaging of the product at all stages without any time limits at least 1 year and more more than 5 years see EC No 178/2002 Traceability and Food Safety in the EU

4 4 Barossa Fine Foods: Orders Up 40 Percent, Sales Up 60 Percent CSB Users international AUS Abalioglu: Planning, Calculcation and Traceability with One Single System TR With the help of the CSB-System, Barossa Fine Foods in Adelaide, Australia, has achieved a major efficiency increase. Using the industry-specific software, Barossa now handles and picks 40 percent more orders than before while the workforce remained unchanged. Within one year, the company, which is among Australia s most excellent award-winning meat, sausage and ham producers, could boost its sales by 60 percent. Carns Romeu: CSB-System Secures Power to Compete The Spanish deboning company Carns Romeo S.L. located in Gelida counts on the industry-specific software from CSB- System to secure its competitiveness. The company which specializes in deboning beef, pork and sheep meat employs 85 people to process 2700 tons of meat per year. Among the customers of the high-quality products you can find restaurants, schools, hospitals, and retirement homes. Supported by the CSB-System, the company optimizes all processes - from procurement via production to shipping. The implementation of the CSB-System has been especially fruitful in the areas of procurement, production, inventory and sales. Many processes have been optimized; compared to before, much more processes are now automated and more transparent. For example, data are no longer captured manually, but directly at special industrial workstation, the so-called CSB-Racks. The benefit of capturing data online: timeconsuming double entry and processing of data is eliminated, because the information is immediately available for processing in the CSB-System. For Barossa, using the integrated planning functionalities proved to be lucrative as well: among others, customer satisfaction could be increased even more thanks to optimized planning results in production and sales. Managing director Stephan Knoll is satisfied: We have chosen CSB-System because it optimally suits our requirements. Implementation and support were very good, and the possibilities for adjusting the software to new requirements are much better than in other systems. In cutting, for example, the software verifies the cutting entries and exits. Clear target-actual presentations allow for determining and assessing performance and yield of the cutting department. In addition, the system controls all inventory movements while the integrated online stock control provides up-to-date and reliable information at any time. Also in production, Carns Romeu benefits from using the CSB-System. The integrated production planning functionality ensures fast and on-demand production processes. Production key indicators can be retrieved quickly and in detail at the clearly arranged control station. This way, the company always has an overview of the quantities to be produced, the throughput times of the orders, and the utilized capacities of plants and machines. In sausage production, Carns Romeu uses the integrated recipe management. And also product traceability, both upstream and downstream, is secured by means of the CSB-System. In an environment with increasing competitive pressure, it is crucial to identify, and to realize, optimization potentials as early as possible. Here, the CSB-System has been supporting us for many years now, says managing director Pere Romeu. ES In 2012, Turkish poultry processor Abalioglu went live at its new construction, doubling its production capacity: Every hour, 24,000 chickens are slaughtered and tons of sausage and convenience products are produced at the site in Kemalpasa- Izmir. Every day, up to 700 tons of products are picked here. CSB-System provided the information technology for the new site. The overall project is implemented in the following subprojects: Integration slaughtering and cutting Capacity: 24,000 chickens/hour (580 tons/day) Sausage and convenience production at new construction Capacity: 77 tons/day Doner and marinated products Capacity: 38.5 tons/day Production of frozen food and inventory management Storage capacity: 5900 pallets Picking & dispatch Capacity: 700 tons/day Transparency, efficiency and automation By implementing the turnkey solution, Abalioglu is able to benefit from transparent, efficient and automated processes, e.g. in procurement, production and inventory. Moreover, the company can assure complete upstream and downstream traceability by integrating CSB Inventory Management and Quality Management. Furthermore, Abalioglu profits from ITsupported product calculation and spices The installation of the CSB-System at Unicoop s new meat processing plant is completed. Already during the planning phase, the Italian food producer had chosen the industry-specific software - primarily, because the system is consistently tailored to the needs of the meat industry, but also because of the many renowned international references. All processes of the meat processing plant are mapped by the CSB-System: from receiving via the case ready production and picking up to individual carcass tracking. At the ultra-modern production site in Florence, the software also controls the six automatic cutting lines for pork and beef. and raw material batch processing with integrated evaluation tools. In the dispatch warehouses and picking, M-ERP (mobile ERP), one-man-uplift control, SSCC management, picking management with pallet building and integrated route management are implemented. A modular and scalable Manufacturing Execution System completes the overall solution. Growth is the basis for our success. That is why we chose to implement the CSB- System at our company. CSB proved to be a competent partner in all areas, be it planning, calculation, production, logistics, quality management or traceability, states owner Baha Abalioglu. Unicoop Firenze: IT Unicoop Uses CSB-System to Control New Meat Processing Plant With the integrated cutting planning functionality, the cuttings are planned in such a way that yield and costs are optimized and, based on the captured actual data, variance analyses for defined batches are generated. The automatic cutting exit and the coherent data capture throughout the entire value-added chain ensure full traceability for Unicoop with various levels of detail. For cattle, for example, the individual carcasses can be tracked from acceptance up to the finished product. The CSB-System also controls two fully automated RFID crate warehouses, twelve state-of-the-art weigh labeling lines and a robot palletizer.

5 IT-news Wolf: Optimized Production Processes and Maximum Delivery Reliability CSB Users international GER Frey s Food Brands: South Africa s Best Practice Company ZA 5 Frey s Food Brands in Cato Ridge near Durban is one of the most renowned meat processors in South Africa. Their success strategy to use only best-practice technologies also applies when it comes to IT: The sausage and ham specialist is the first company in South Africa to entirely use the CSB-System. So owner Walter Frey sets a consistent course for a competitive future. The comprehensive IT turnkey solution ensures an optimally organized value-added chain, starting from software-supported and cost-effective purchasing via reliable calculation and efficient production up to automatic packaging and picking. Frey s also uses the CSB-System to control slaughter, grading of carcasses, and cutting. This is complemented by the integrated quality management and traceability functions which ensure the excellent quality of Frey s products. The seamless process integration has boosted Frey s performance and degree of automation to a level that is second to none not only in South Africa. Using the CSB- System increases transparency and flexibility, and considerably reduces costs in all operative and administrative business processes. Cardinal Meat Specialists: Market Leader Opts for CSB-System CDN With 1800 employees at four sites and a yearly turnover of 300 million euros, the Wolf group of companies is one of the big players in the German meat industry. At their headquarters in Schwandorf alone, roughly 180 tons of raw materials are processed into more than 700 different meat and sausage specialties during peak season. CSB Coverage Planning here plays a central role. It concatenates all key processes of product management and ensures that production quantities can be optimally planned in the scope of the forecast, taking into account historical sell-off data, current inventory stocks as well as possible campaign notifications. The calculated production quantities are transferred to the CSB production order management. Next, the production orders are generated via the cost centers. As a result, a production plan is provided for every cost center manager. By breaking down the bills of materials stored in the CSB-System, the production Hochreiter: Automatic Silo and Batch Processing Plant in Operation plan is refined into material, personnel and machine requirements. These requirements are the basis for material procurement and provisioning as well as for personnel deployment and machine allocation. Jan Seidel, head of the logistics and IT organization, says: The integrated function for calculating the delivery rate allows us anytime to recall up-to-date information for verifying the delivery capacity. Thus delivery bottlenecks can be detected, and eliminated, at an early stage. The CSB- System provides integrated procedures to ensure correct information about the inventory stocks as well as to increase planning quality: differences are detected immediately, and the relevant employees are informed automatically. Already during order entry, every employee can verify the stocks and availability and determine deviations. So for us, coverage planning is an essential control tool for the economical structure of all material flows, Seidel continues. A Five years ago, the Canadian meat processor Cardinal Meat Specialists started searching for new ERP software. After a comprehensive investigation phase, the company decided to go for the CSB-System. The industry-specific software is currently being installed at their site in Brampton, Ontario. Brent Cator, managing director, is satisfied with the decision: The goal was to secure a one stop shop system that could meet our specific needs and allow us to lead the industry, in useful information, rather than simple data collection. CSB proved themselves on many fronts. They showed the patience to help us through the evaluation, demonstrating that they understood our needs down to detail level. Then they showed us the system in use across multiple protein users and demonstrated how much more their integrated system could do beyond what we had hoped to achieve. Teamwork is the word that best describes how CSB has embraced our installation. Cardinal Meat Specialists will now use the integrated turnkey solution from CSB-System to control the areas of procurement, inventory, production, sales, electronic data interchange, document management, maintenance management, quality management, M-ERP (Mobile Enterprise Resource Planning), picking, route management as well as financial and asset accounting. Aiming for optimized inventory management, material flow control and production, the Austrian meat processing company Hochreiter has installed a silo plant to manage their raw materials. This plant is fully controlled by the CSB- System: from reception or in-house cutting, the fresh and frozen meats are forwarded to one of the seven silos for storing. By scanning the GS1-128-Barcodes, which contain information about item and lot numbers as well as the weight, receipt postings are made for the individual silos. In the production area, the operator at the high-performance cutter processes the batches, which were specified by production planning for the individual departments, as usual at the CSB-Rack. Here, the actual quantities of the components are determined in comparison to the expected quantities, and traceability information is entered via the lot number. For raw material components managed by the silo plant, the CSB-System uses the integrated PLC (Programmable Logic Control) to retrieve the corresponding quantities from the correct silo. In the conveyor up to the cutter, scales are incorporated that report the actual weight to the batch statistics of the CSB-System. The lot number is determined from inventory management and then saved. The automatic selection, dosage and transport of the raw material components considerably increase the speed while at the same time manual intervention is reduced to a minimum.

6 6 CSB Users international Rantoul Foods: Turnkey Solution from Shop-floor to Top-floor USA Conestoga Meat Packers: Informed Decisions thanks to Business Intelligence CDN The American pig slaughter facility Rantoul Foods from Illinois slaughters around 4,500 pigs per day, relying on a turnkey solution provided by CSB-System. Their sister company Trim-Rite is using the CSB-System as well. Most of the pig supply is deboned to individual customer specifications. The pigs are scheduled based on a detailed overview of kill capacity on each given day for the next few weeks. All pig purchases are based on live weight, a still common payment method in North America. Once the animals arrive, the individual lots are captured and booked as pen inventory. Additional information from the delivery papers such as negotiated price, carrier details, quantities, live weight and dead on arrivals are attached to the lot. A terminal near the CO 2 stunning bay registers the sequence of the animals as they are being processed on the floor. Shortly after the evisceration, the gambrels are being replaced with trolleys which are visually identifiable using the Vandeberg trolley vision system, where the kill number is associated with the trolley. The animal never leaves the trolley up to the entrance to the cutting and deboning room. This reliable method of identification ensures that all data from veterinarian inspection grading, hot scale and cold scale are securely associated with the slaughter record, ensuring a solid base of the consecutive yield reports and livestock payments. Cut orders are being developed in the afternoon based on current inventory, pending orders for the next week and the available pork supply in the holding cooler. Rantoul Foods leverages for the entire warehouse management M-ERP for the mobile handheld computers and the thin client labeling stations, tracking production progress at any time. At the end of each shift, the CSB-System creates detailed yield reports for each production stage: one for slaughtering, one for cutting and deboning and a separate one just for the loin line. These reports are automatically ed to plant management and the owner of the organization, so that they can read them wherever they are on any device they have on them. The CSB-System also manages the company s administration, providing Rantoul Foods as well as all other 4 associated organizations in the Enterprise group a full management suite for the entire organization, which extends from the shop-floor to the top-floor. Since implementing the CSB System in late 2003, Conestoga Meat Packers Ltd. (CMP) has gone through two major plant expansions and continues to experience year over year growth. The long time partnership between the hog processing cooperative located in Southwestern Ontario, Canada and CSB-System has played an important role in managing this growth. From realtime M-ERP scanning, labor efficiency reporting, yield analysis and cut planning, CSB has been the backbone that Conestoga has relied on to ensure control of their operational and business processes. This also includes providing management with relevant information from production, sales and administration. As growth continued, so did the amount of data. We knew we needed to develop a new strategy and put new processes in place to successfully utilize the growing wealth of information that CSB and other data points were providing, says Andrew Sullivan, IT Manager. One of the major components of this new strategy was utilizing departmental key performance indications (KPIs) throughout the company. Based on that, CMP decided to implement the CSB-System Business Intelligence solution. Now CMP can manage the large volume of data In May 2012, the BI solution was implemented. CMP quickly realized the benefit of having direct access to the data in an easily understood framework. Coupling the BI solution with off-the-shelf tools such as MS PowerPivot, MS Analysis server and MS Reporting services, CMP is able to meet its reporting requirements and more. The program has propelled us forward in our ability to access and understand the large volume of data that resides within our IT infrastructure. We are now able to make more informed decisions and gain further insight into improving our business processes. Our IT team is no longer involved in translating the data. Instead the team has more time and resources to work directly with end users to help solve reporting needs, says Arnold Drung, President of CMP. Additionally, CMP has utilized the BI solution to meet a wide variety of requirements, from identifying trends in the grading quality of hogs, to providing realtime alerts for sales and production staff when certain conditions occur. CSB-System announces new Launchpad Meat & Poultry Business System CSB-System now offers an industry standard which is specifically developed for the North American meat and poultry sector. The Launchpad solution provides pre-configured best practice processes for procurement, production, inventory, sales and accounting and finances and can be implemented in next to no time. For a typical installation, we only need 3-5 customer appointments and no more than 3 months. For additional information directly use the QR code. Global IT Excellence in Meat - Excerpt from our international Top References

7 IT-news CSB Users international 7 Bigler, Bell and Minnig: Automated Weigh Labeling and Picking CH Veviba: CSB Rearing Management Optimizes Supply Chain B In the food industry, efficiency strongly depends on the inventory and picking systems. Therefore, IT-supported and automated solutions have been developed during the last few years that help to reduce the error rate and to increase productivity. For picking, the Swiss meat product companies Bigler, Bell and Minnig rely on state-of-the-art sorters that are controlled by the CSB-System. The perfect match of software and machines results in maximum automation levels while at the same time retaining sufficient flexibility to handle also minor orders. The CSB-System optimally combines the components required for processing an order such as order data, products and containers. This is a prerequisite for optimizing the efficient delivery to the sorters: Only then will conveyors and inventory systems be able to forward a maximum number of items to the sorters, but with a minimum of transactions. The CSB-System generates order data from the orders received. Supported by the software, the required products are retrieved from the warehouse, supplied to the individual picking lines and weigh-labeled in the sorters. Next, they are automatically dropped onto the respective customer channels and distributed to the various customer containers. The containers completed in picking are labeled with addresses and automatically forwarded to the warehouse by means of a conveyor. Here, they are ready for stock removal and shipping. Miratorg: Mobile Quality Management Implemented For many years now, the Belgian meat processor Veviba has been focusing on the optimization of the supply chain. At present, the company which is part of the Verbist group is implementing CSB Rearing Management. Veviba will use the CSB-System to document, visualize and evaluate all processes and costs incurred during rearing and fattening of the slaughter animals. These include for example stabling, maintenance of traceability data (birth, fattening, death), re-stabling, veterinary measures, feeding, weight control, cost settlement, sale, and yield calculation. In addition, rearing management automatically provides verifiable documentation of all inspections that were carried out. RUS With the new rearing management, Veviba will soon control all stages of the valueadded chain via the CSB-System from their own cattle breeding business with some 12,000 animals on 16 farms via slaughtering, production, packaging, inventory, dispatch and traceability up to management and administration. The seamless process integration secures a consistent data basis without interfaces, a high level of automation and constant quality in raw material procurement. At two sites, Veviba produces more than 45,000 self-service packs of beef every day. The company employs 300 people and generates a yearly turnover of 150 million Euros. In the course of the overall optimization of their business processes, the Russian pork processing company Miratorg is currently implementing mobile quality management: in the future, all QA tasks within the company will be mobilized - from the delivery of the slaughter animals via slaughtering, cutting and production up to packaging. Mobile entry of QM data is much faster, and Miratorg can reduce the use of paper to a minimum. Instead, user-friendly mobile data capture devices (MDC) are in use which communicate directly with the CSB- System. With the MDC devices, the operators scan the barcodes that are fixed to every test position, and then the respective test instructions or the tasks to be completed are displayed. Once the test is completed, it is confirmed on the MDC device. The test results are immediately available in the ERP system, eliminating manual or double data input. Possible deviations are shown on screens, even in the production area. This allows for faster action in the case of test deviations, and better control of the employeerelated test activities. Another advantage: Because the mobile applications are fully integrated in the CSB-System, changes of inspection scope or test features merely need to be made in the master data of the CSB-System. Time-consuming reconfiguration of the MDC devices is thus not required.

8 8 Automation solutions for production und administration Everything under Control with CSB linecontrol Software application ensures optimal processes in the Robotik-Pack-Line Real-time availability of machine capacity and performance data Fast and target-oriented troubleshooting through exact allocation to individual machines Reduced number of unplanned machine shutdowns and downtimes Incorrect labeling and rejects eliminated Constantly high level of overall equipment effectiveness (OEE) A synthesis of robotics and automation in challenging production processes - this is the secret of success of the Robotik-Pack- Line. For the IFFA 2013, several teams partnered to develop a fully automatic packaging line for fresh sausages which will be presented every day at 11 a.m., 2 p.m. and 4 p.m. in hall 11.1, stand D70. Overall Equipment Effectiveness on Constantly High Level The optimal flow of processes in a heterogeneous machine infrastructure requires IT-supported coordination and monitoring of the machines in use. These important Easy integration of machines in production processes through interface capability High investment protection Maximum project safety In early 2013, CSB-System AG introduced the CSB certified interface which makes the integration of machines in production processes even easier for their customers and prospects. It sets out the technical capabilities, e.g. of machines, for interfacing with the CSB-System based on the interface framework. tasks are handled by the CSB linecontrol software application: By communicating online with the machines, it can provide all data on the current capacity utilization and performance of the individual machines in real time - directly at the line, but also on the screens of production management. Additionally, possible bottlenecks and potential failures of the packaging line are visualized by CSB linecontrol. It ensures CSB certified interface Interface competence as module of the digital factory CSB linecontrol in use at a poultry processing company Especially in the development of so-called digital factories, the interface capability of IT provider and machine manufacturer is an outstanding competence: Optimal integration of material and information flows with simulation, planning and control functionalities is vital for achieving efficient process design. Machine manufacturers that offer CSB certified interfaces have passed an IT test and can fulfill the preconditions for establishing interfaces to the CSB-System. The technical design of the interface is guided by the requirements of the Weihenstephan standards for automated data capture for machines in the food industry, WS Food. Upon request, it can be fully implemented. Thus when purchasing new machines, for example, the CSB certified interface provides future-oriented investment protection and maximum project safety. exact allocation to the individual machines, allowing for fast and target-oriented troubleshooting. This way, unplanned system shutdowns and downtimes are reduced to a minimum, keeping the overall equipment effectiveness (OEE) on a constantly high level. In addition, CSB linecontrol helps companies to minimize rejects and wrong labeling of products, which leads to an increase in service quality and competitiveness. The integrated maintenance management contributes here as well. Efficient and Paperless Document Management Audit compliant archiving with the Document Management System Considerable cost savings through time savings by means of automatic archiving and document search Full integration in your business processes Direct access from within all CSB-System programs No more time-consuming document search and filing: With the Document Management System by CSB-System you can manage all your documents in paperless form. The DMS frees up office space, optimizes corporate communication and reduces costs considerably The DMS meets all technological and legal requirements for electronic archiving of information. The system automatically and reliably archives CSB ecocontrol - Integrated capture of environmental information The CSB ecocontrol application is an optional component of CSB linecontrol. It allows for the entry and systematic use of environmental information such as energy consumption directly at the production line. your documents, such as invoices, accounting records, balance sheets, business letters and contracts without the need for costly interfaces. The archiving process runs in the background of the respective user process: the required information is prepared centrally by the system and transferred to the archive while logs of the archiving processes are generated at the same time. Access to the archived documents on audit-compliant media is available at any time. Documents from third-party programs can also be archived quickly and comfortably using the DMS by CSB-System. Any third-party program with save and print functions can be integrated easily and fully automatically without the need for adjustments.

9 IT-news Automation solutions for production und administration 9 CSB-Automation Presents Ground-Breaking Innovation at IFFA Efficient handling of self-service meat products with CSB-Hang & Move Considerably reduce required manpower Limit risks of contamination Utilize space, packaging and labeling systems in a more flexible and efficient way CSB-Automation AG will be represented for the first time at this year s IFFA. Being part of the international CSB Group of Companies, CSB-Automation designs and implements automation solutions ensuring a lasting increase in competitiveness for the user companies. In cooperation with strong partners in machine and plant engineering, innovative solutions for automating production and intralogistics have been successfully designed and implemented in the last few years. Out of this cooperation, the idea for an intralogistical system solution was born: one system for self-service meat products, ensuring fully automated intermediate storage, packaging, labeling, picking, and provisioning for dispatch. The innovative partner network will present for the first time the complete machine at the IFFA, in hall 11.1 at stand C71. Components: 1. Transport and storage system (overhead conveyor system) // 2. Loading carrier with fully automatic stations for loading and unloading // 3. Packaging (traysealer) // 4. Labeling line // 5. Packaging inspection // 6. Sorting (Pick & Place robot) // 7. Container labeling // 8. Dispatch storage (gantry robot) 4 Transparent Information and Material Flows Optimizing the value-added chain with RFID The originator for this solution is the new CSB-Hang & Move intralogistics system: it consists of a overhead conveyor system for space-saving sorting, intermediate storage and in-house transport of unsealed self-service trays as well as special load carriers developed for this application (Georg Utz). The system is supplemented by automatic loading stations that move and eject the self-service trays onto the load carrier without requiring manual intervention. The integrated overall process allows for in-line delivery of the trays to the packaging machine (Sealpac) and the labeling line (Bizerba). Next in line is the new picking and sorting system that uses pick-and-place robots (Wächter Packautomatik packaging systems) and integrated container buffers to combine customer-specific mixed containers in a fully automated way. The connected gantry robot (Güdel) bundles the incoming containers, for example by placing corresponding customer containers on a pallet and getting them ready for dispatch. New Standards for Handling Self-Service Products One benefit of this system solution is that the required manpower - which is usually quite high for handling self-service products - can be considerably reduced. Fewer people being involved also means limiting the risk of unwanted contamination. Another advantage is that the hanging conveyor and storage system utilizes the existing space as well as the packaging and labeling systems much more efficiently and flexibly. Contactless identification Cost reduction through reduced manual data capture Can also be used under rough conditions Complete traceability The number of areas where modern identification technologies can be implemented is increasing rapidly. Barcodes as well as contactless radio-frequency identification (RFID) have a high potential for optimizing the value-added chain. The highly integrated and practice-proven RFID solutions by CSB-System can be implemented in your entire company: from goods receiving to cutting, production, picking, inventory and goods exit. In all areas, the wireless technology speeds up and simplifies your business processes, increasing efficiency. The implemented RFID chips, which are becoming increasingly better and at the Pre-Configured Processes Bundling best-practice procedures of the meat industry same time cheaper, are ideally suited for contactless identification, e.g. of conveyor hooks, smoking trolleys, crates and pallets. Multi-tag reading, i.e. the identification of several chips at the same time, is also possible. The information is directly communicated to the CSB-System, allowing for direct information processing without manual work. This allows for considerable cost savings as well as transparent information and material flows. Even under rough conditions, e.g. in a ham curing chamber with high humidity of 98 percent or in a smoking chamber where temperatures of 100 degree Celsius prevail, the RFID solutions work reliably. Another important aspect is traceability: RFID allows for complete product traceability along the entire process chain. With its pre-configured meat industry version, CSB-System offers a software that provides the standards throughout the entire value-added chain based on business processes. These practice-proven industry versions allow for a particularly fast and successful introduction of the software. Users can organize their processes along the lines of international best-practice procedures, making their company even more competitive. Long-term customers can also review their existing processes and modify and optimize them if needed.

10 10 Mobile Business inside and outside your company Mobility as Factor of Success Mobile value-added services through M-ERP Increase the efficiency of business processes Increase labor productivity, transparency and flexibility Increase information quality by eliminating media disruptions Reduce overall costs and increase the ROI Fast and location-independent information processing, increased flexibility and more efficient design of operational processes: more and more, Mobile Business is becoming a factor of success on the markets. With Mobile Enterprise Resource Planning (M-ERP ) by CSB-System, companies exploit the full potential of mobile business processes. The application areas of mobile business processes have grown tremendously - and so has the importance of mobile applications with regard to successful business management and control: mobile data acquisition and processing provides major efficiency benefits and thus also cost advantages that should be utilized. Mobile Receiving with Immediate Quality Assurance Mobility already starts in receiving when working with M-ERP. For example, when raw materials are being delivered, their SSCCs are scanned with a mobile data entry device. On the terminal, the CSB- System shows any relevant information about the order, the supplier etc. After that, the goods are forwarded automatically to sample entry: the quality of a delivered item is checked, for example by taking its temperature. If the result is positive, the item is then acknowledged by the ERP software after confirmation on the MDC device. Given the direct communication of that device with the CSB-System, the captured data are, of course, immediately available for all further processes. Another advantage: mobile receiving creates flexibility. Since fixed PC stations or data entry point are not needed, inadequate space or limited possibilities for extending constructions can be easily compensated for. Mobile Picking Picking benefits from a mobile process design as well, because orders can be transmitted to mobile data capturing devices. Pickers can process their orders line item by line item and confirm the pick processes either by corresponding entries on their MDC devices or by scanning. The advantages of this method are that it enables systematic picking management and optimized processing sequences. Consequently, the picking frequency increases considerably, because pickers can focus on their tasks without being slowed down by manual side activities. As a result, the error rate is reduced to zero while at the same time, productivity and throughput are at a high level. Moreover, media disruptions are eliminated because the MDC devices are directly connected to the CSB-System. Time-consuming and costly re-processing of the data for outgoing goods can thus be prevented. Another mobile picking method is pickby-voice. With this method, picking is voice-controlled - and also here, CSB-System offers a field-proven solution. Mobile Sales Driver Solution The mobile sales driver solution is another way to boost efficiency. Here, the sales representative can use a mobile terminal to log on to the CSB-System. This way, field service can access online any information that is required for order processing on site. For example, the respective sales representative would get to know the possible delivery times and volumes. The advantage for the sales representative is that the committed availability and delivery date can be fully met. Finally, all tasks that are part of order processing can be completed directly at the place of performance because the required information can be accessed, processed, and returned independent of time and place. Furthermore, the field staff can view their appointments and schedules or reply to s. Software and Service Straight from the Socket More time to concentrate on your main business thanks to cloud services High level of efficiency and flexibility No need for an on-site IT department Low investment costs High availability of business data at any time Business processes in the cloud have become very popular with many companies. IT users of all company sizes and industries have increasingly started to take advantage of the benefits provided by cloud computing. CSB-System AG has also taken this technological development into account: With the state of the art Cloud-Service- Center, users can seize the full potential of a highly integrated industry solution over the internet. Various renowned companies have already implemented this solution. The Cloud-Service-Center is capable of hosting data of up to 20,000 ERP users and ensures high availability. It also takes into account all IT security aspects regarding database management systems and hardware (server, storage and network engineering).

11 IT-news Drive and Save Mobile Business inside and outside your company 11 Increase efficiency in logistics with route optimization and information system Reduce mileage and vehicle costs Reduce the vehicle fleet and reduce the fleet costs Increase personnel flexibility and reduce personnel costs Consistently document the cold chain and monitor the door locks Ensure high transparency through integrated route controlling Esser Saves 87,000 Euros per Year CSB s long-term customer uses the system to deliver even more economically to their 38 subsidiaries, to wholesalers, as well as to 19 schools and 24 kindergartens. Based on the order data, the software optimizes the loading of the vehicles, determines the optimal route and navigates the drivers to their destinations. One of the principles in food industry is: The quicker and the earlier the produced goods arrive at the customers, the better. So high-performance delivery logistics play an important role here. Investments in software modules such as the GPS-supported route optimization and information system offered by CSB-System are profitable. Such systems allow you to optimize coverage planning, the route, the utilized capacity, the weight and volume of the load as well as the vehicle and staff deployment while at the same time reducing transport costs. Click to Meat OTTO-Gourmet: Magento online shop connected to CSB-System This way, Esser minimizes the daily mileages and reduces fuel costs as well as expenses for wear and tear of the vehicles. Additionally, Esser reduces the total number of vehicle deployments, the driving times as well as the costs for labor and coverage planning. Factory manager Werner Tholen says: Overall, we are saving some 87,000 Euros per year, so we see a fast return on our investment. The route optimization software is also very useful for controlling: it provides Werner Tholen with a tool to reconstruct, and control, the routes of his drivers. The integrated route controlling ensures maximum transparency, enabling him to detect deviations immediately by means of a plan-actual comparison. If requested, at the end of each route a comprehensive software-supported analysis provides information on the deviations from the target specifications and the underlying reasons. These data are used to determine the efficiency of the route. Anyway, the drivers fully accept the system, simply because it makes their work a lot easier. Because normal navigation devices are being used, the new technology is easily adopted and well received, says Tholen. Wolf and Mago Reduce Truck Fleet The Wolf group of companies benefits from the route optimization software as well. During planning, it ensures that customer orders, delivery times and the respective load volumes are allocated in the best possible way. On the other hand, it enables optimal loading of the trucks and optimal routes, reducing the costs for the delivery to the customers to a minimum. Also, the system handles the returns of reusables: mobile data capturing devices are used to enter all data directly on site. This way, manual and time-consuming postprocessing of reusables management is no longer required, because the information is entered and transferred to the CSB-System immediately. Using the system, Wolf meanwhile disposed of six out of their 70 trucks in the fleet. At their site in Berlin, the system helped the Mago meat processing company to reduce their truck fleet even by nearly 25 percent: out of the original thirteen trucks, only ten are being used today. Seamless integration of product management Direct online dialog and data replication between ERP software and online shop Guaranteed availability of orderable items, anytime Also in the food industry, online shops have great potential as sales channel - a fact which the owners of OTTO-Gourmet have realized in good time. The three brothers are among the first in Germany to sell and dispatch premium meat via the internet with their site de. Now the Magento online shop, which was connected via an interface to the installed ERP software from CSB-System, has been relaunched. The connection does not only cover price maintenance, but also all food-related aspects such as weight information, sell-by dates, lot sizes and, above all, traceability. CSB s data exchange programs allow for a direct online dialog of the online shop data and the ERP software. Seamless integration of product management was crucial for this project. For example, the direct communication of the CSB modules with the online shop ensures that automatically, availability of the items is guaranteed in the case of an order. Picking and dispatch can thus be initiated immediately after receipt of the order. This way, OTTO-Gourmet can promise response times that match the premium items of the multichannel retailer: first class and top service. The customers of OTTO-Gourmet are happy, too: After having submitted an order, their customer account automatically receives an order confirmation as well as an invoice in PDF format created by the CSB-System. As soon as the picking note is printed and the goods are dispatched, a dispatch confirmation is sent automatically by . Other available CSB internet solutions include: Waiter s order input systems B2B online shops Sales driver systems BI Reports

12 12 CSB Group of Companies CSB-System AG: Family Member to Extend the Board Vanessa Kröner responsible for marketing, sales and accounting No Process without IT 300 managers and directors in the international meat industry visited the new plant of EDEKA Südwest Fleisch GmbH. During the last few years, there was hardly any other project in the meat industry which was given as much attention as the construction of the new EDEKA plant in Rheinstetten. On 24 and 25 October 2012 around 300 industry experts from all over the world came to the practical seminar in Karlsruhe to have a look at the stateof-the-art meat plant and the technology implemented there. The seminar was hosted by EDEKA Südwest Fleisch GmbH and CSB-System AG. Today, up to 650 tons of meat and sausage products are produced here, so the entire process chain has to be optimally organized. It is not possible to manage that without using information technology. In order for a meat plant of this size to work efficiently, all processes have to be ITsupported. When we planned the plant, we consciously opted for the CSB-System as turnkey solution. We control the entire value-added process by using the industry software, said Jürgen Sinn, managing director at Südwestfleisch. Goods receiving, cutting, production planning and control, packaging and weigh price labeling of self-service meat and sausages, stock put away and removal processes, picking, trolley loading and dispatch are all software-controlled. In addition, two CSB control stations make fast intervention and control possible. CSB-System AG will remain an independent family business in the future. Vanessa Kröner, née Schimitzek, 32 years old and eldest daughter of company founder Dr. Peter Schimitzek, was won for the board. Since January 2013, Vanessa Kröner is responsible for the areas of marketing, global sales, and international accounting. She will be supporting her father, who as chairman of the board will head the development and project management divisions. The position as member of the board bears new challenges which I will tackle with energy and determination. We will focus, of course, on the long-term success of our users, says Vanessa Kröner. Dr. Schimitzek, too, is looking forward to working even closer together with his daughter: We will pull together as a team, both on the board and in the family, to further enhance our market position world-wide as leading IT industry specialist. Exhibitions and Events 2013 Country, Place Name (Fair) Period Italy, Milan TUTTOFOOD Russia, Moscow VIV Russia UK, Birmingham MEATUP Germany, Munich drinktec India, Mumbai Annapoorna Germany, Cologne anuga Russia, Moscow AGROPRODMASH Germany, Stuttgart südback The new EDEKA Südwest Fleisch GmbH meat plant in Rheinstetten Annual tonnage: 125,000 tons Customers ca. 1,300 Sales items: ca. 3,000 Employees: ca. 800 Operates 24 hours a day, 7 days a week Cutting capacity: ca. 800 pig halves and 35 fattening bulls per hour Cold store capacity: 4,000 pig halves, 600 beef quarters and 1,000 roast beef Production: self-service meat and sausage products on more than 20 lines Transport performance: 3,000 meters of conveyor belt, ca. 7,000 crates per hour Automatic pallet storage: ca. 5,000 storage locations Automatic crate storage: ca. 50,000 storage locations Picking: ca. 130,000 order lines with 100,000 crates and boxes per day Picking quantity: ca. 650 tons per day Supplies: more than 1,250 EDEKA supermarkets Romania, Bucharest CARNEXPO Switzerland, Basel mefa USA, Las Vegas Italy, Florence CSB-System User Conference International practical seminar for managers in the meat industry