Key elements in effective food traceability system. Grzegorz Sokołowski
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1 Key elements in effective food traceability system Grzegorz Sokołowski The International Forum on Agri-Food Logistics, 2nd AGROLOGISTYKA 2014
2 Agenda A few words about ILiM GS1 Poland Traceability the current situation Traceability key elements of food traceability system
3 Agenda A few words about ILiM GS1 Poland Traceability the current situation Traceability key elements of food traceability system
4 Institute of Logistics and Warehousing The Institute of Logistics and Warehousing is a market-oriented research and development unit which functions as a competence centre in logistics and e-economy GS1 Poland Logistics Expertise Centre e-business Centre ICT Centre
5 GS1 in numbers A fully integrated global organisation. GS1 designs and implements a global system of supply chain standards more than 30 years of experience 111 member organisations representing all points in the supply chain Over a million companies doing business across 150 countries Over 20 represented sectors (FMCG, healthcare, transport, defence ) Over 7 billion transactions a day GS1 is the most widely used supply chain standards system in the world.
6 GS1 standards
7 Agenda A few words about ILiM GS1 Poland Traceability the current situation Traceability key elements of food traceability system
8 Traceability - what we want to achieve? Each Operator in a supply chain should: 1. Identify what comes in. 2. Identify what goes out. 3. Keep records. 4. Provide an exchange of information with customers and relevant authorities. 5. Get information from suppliers.
9 Regulatory landscape in Europe (Non exhaustive) EU legislation Area Status Regulation 178/2002 Food - General safety Apply from: 2005 Revision: every 5 years from 2005 Last amended version : 2009 Regulation 931/2011 Food - Traceability Apply from : Regulation 1169/2011 Food - Information Apply from: (part on nutrition information : ) Regulation 1224/2009 Fish Fisheries Control system Entry into force: Private standards for food (certification schemes) IFS (International Featured Standards) BRC Global Standards Safe Quality Foods (SQF) FSSC from the foundation for Food Safety Certification Global Gap And other GFSI benchmarked schemes Public standards for food : Codex (traceability/tracing definition but no significant work relevant to GS1 at the moment) HACCP (Hazard Analysis and Critical Control Points) ISO TC 34/group 17: ISO package (incl )
10 GS1 s role in Food Traceability What? Regulations, HACCP, ISO IFS, BRC, SQF, GLOBALG.A.P How?
11 Applications of Traceability and Impacts Traceability for consumers 73% of European consumers would like that traceability arrive until their purchase 9 in 10 consumers are high concerned with a food safety, remembering worldwide problems such as: Mad-Cow Disease and chicken flu 8 in 10 interviewee once have decided don t buy some product due to it unreliable origin or safety 40% of Spanish consumers will pay 10% or more for a product with secured guarantee, while 1 in 4 don t accept pay more. Consumers expect the products they purchase to be safe, perform well and deliver consistent quality. (Source:
12 Did you know? 60% of companies adopting GS1 standards are performing well in terms of traceability compared to companies that don t Aberdeen Report, 2011 Adoption of GS1 standards showed: 51 % reduction in raw material inventory cover rate 32% reduction in out-of-stock rate 6% reduction in distribution costs 6% reduction in order-to delivery cycle time 3% increase in on-time delivery IBM in collaboration with TCGF, 2011
13 Traceability in Polish companies current situation Labeling consumer package: EAN-13 code + requirement data (readable text) trade item: EAN-13 code or ITF code (rarely GS1-128) logistic unit: GS1-128 code (almost 10% of participants of GS1) Data exchange bilaterally agreed messages (transmitted via phone, fax, mail) DESADV or INVOIC rarely used Legal aspects implemented Food Safety System (based on ISO 22000:2005, HACCP or the others: IFS, BRC) in SME s not automated technology, in big comapanies WMS or ERP
14 Agenda A few words about ILiM GS1 Poland Traceability the current situation Traceability key elements of food traceability system
15 Traceability key elements Identification: GTIN + lot code (GS1 bar code at least on the grouping trade item) Data exchange: lot number in delivery documents (e.g. Invoice, Despatch Advice) FV/WZ GTIN, lot FV/WZ GTIN, lot FV/WZ GTIN, lot FV/WZ GTIN, lot FV/WZ GTIN, lot FV/WZ GTIN, lot
16 Traceability Management in Production Key Business Rules in a Production Environment affect: Reception Production Packaging, Storage and Expedition GS1 standards for identifying in a Production Environment are: Locations GLN Logistics Units SSCC Manufacturing Lots AI10 Consumer Units GTIN
17 Traceability Management in Distribution Key Business Rules in a Distribution Environment affect: Reception Order-picking and distribution To facilitate traceability data linkage at the different points of the supply chain it is recommended to identify a: Consumer unit with GTIN, Lot Code and if applicable Best Before Date or Used by Date. Standard trade item grouping with GTIN, Lot Code and if applicable Best Before Date or Used by Date. Pallet with GS1 logistic label, where the information is bar coded in a GS1-128 label with Application Identifiers.
18 From farm to fork supply chain perspective Farmer Slaughterhouse Producer Retailer Consumer A B C D PHYSICAL FLOW OF PRODUCTS DATA FLOW A Database B B C Baza Database danych Database EDI EDI EDI D Database GDSN
19 From farm to fork consumer perspective Informacje o produkcie Pochodzenie Opakowanie i zawartość
20 Summary The ability to retrieve traceability data in a fast and accurate manner along a supply chain is critical. Automated Enabling Technologies such as automated identification, automated data capture, electronic data processing and electronic data interchange allow organisations to exchange, capture, collect, share and store, product information easier, faster and safer.
21 Thank You for Your attention! Grzegorz Sokołowski T: , F: M:
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