Drew Merrill, VP Business Development & Strategic Planning. Keith Schall, Director of Business Systems and Technology
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1 IMPLEMENTING AN ASSET TRACKING SYSTEM - EASIER THAN YOU THINK! Drew Merrill, VP Business Development & Strategic Planning Keith Schall, Director of Business Systems and Technology
2 Perceived Challenges Low Cost, High Quality CUT COST Capital Avoidant Intensive VS. 100% Backhaul, Fleet Visibility Loss, and Damage PER LB PACKAGING SAVE SAVE CAPEX FOR CORE FREIGHT OPTIMIZATION Greener ELIMINATE WASTE Leaner Complexity Simpler NATURAL RESOURCES LANDFILL AVOIDANCE LABOR EFFICIENCY SPACE SAVINGS MITIGATE RISK Cleaner Safer HYGIENE BIOTERRORISM MATERIAL HANDLING SAFETY PROPERTY OF CAPS
3 Tracking Misconceptions COSTLY IMPACT ON PRODUCTION/HIGHLY MANUAL $ $ $ $ $ $ COMPLACENCY VS. COMPLIANCE PILE-ON-TECHNOLOGY
4 Session 1 Review - Technologies Barcoding (Linear, 2D, 3D) Passive RFID Active RFID / Semi-Passive GPS, Cellular, WiFi
5 Session 2 Review Systems & Use Feature/Description Tribal Knowledge Aggregate Tracking Models Return to Labels Manual In/Out Netting Electronic In/Out Netting Barcode scanning Individual Tracking Models Passive RFID Active RFID Other High Tech (GPS, Cellular, WiFi) Ideal for: Low container volumes High container volumes Number of container types Small Small Small Medium Large Large Large Large Number of locations (plants/suppliers/customers) Small Small Small Medium Any Any Any Any Low - Low - Low - Low - Container value ($) Low Any Medium Medium Medium Medium High High Data Accuracy Low Low Moderate Moderate High Moderate High High Bill back accountability Low Low Low Moderate High Moderate High High Reporting capabilities Low Low Low Moderate High High High High Cost Software Low None Low Moderate Moderate High High High Hardware None None None Low Moderate High High Moderate Tags None Low None None Low Moderate High High Implementation Low Low Moderate Moderate Low High High High Overhead Low Low Low Low High Moderate Low Low
6 Session 3 Review Setup & Compliance 1. Understand the issues Are controls in place to identify your true asset loss rate? What are your general industry guidelines for loss? 2. Understand the available asset management systems Simple paper and pencil methodology to complex high-tech tracking systems 3. Develop the processes & KPIs necessary to create actionable/enforceable data 4. Obtain stakeholder alignment, educate the supply chain and implement a discipline to ensure compliance
7 1. Asset Identification Implementation Tag material and affixing Serialization and encoding Placement and orientation Size and/or read range Birthing process new & existing assets
8 Implementation 2. Transactions Types rec, ship, inspect, clean, content, damage, repair, etc. Point of capture & frequencies Processing & reporting 3. Capture methods Mobile vs. stationary Display Input & interaction Key vs. touch
9 Implementation 4. Exception Management Floor interaction & real time visibility Missed scans / reads Excess data & duplicates 5. Systems, Reporting & Bill-back Accountability Must be web-based to effectively involved the supply chain Reports clear & precise efficiencies vs. lost opportunities Reconnect stakeholder alignment with actionable data Financial aspect Penalties / incentives Agreements via procurement, sales or intercompany
10 New Regulations Driving Change What is FSMA? Food Safety Modernization Act (FSMA) Effective January 4, 2011 Biggest food safety initiative in 70 years in the US Minimize risk by being proactive rather than reactive Provides FDA mandatory recall authority Requires additional record keeping for high-risk foods FDA directed to establish enhanced product tracing abilities Ensure imported products meet U.S. standards and are safe for U.S. consumers
11 New Regulations Driving Change What is HACCP? Hazard Analysis and Critical Control Points Established mid-1990 s HACCP is a systematic approach to the identification, evaluation, and control of food safety hazards based on the following seven principles:** Principle 1: Conduct a hazard analysis. Principle 2: Determine the critical control points (CCPs). Principle 3: Establish critical limits. Principle 4: Establish monitoring procedures. Principle 5: Establish corrective actions. Principle 6: Establish verification procedures. Principle 7: Establish record-keeping and documentation procedures. ** sapplicationguidelines/default.htm
12 About DARIFAIR America s first national dairy supplier In industry for over 25 years Always looking for the most innovative best ways to serve their customers Works with products such as: Cream Potato blends Margarine Half & half Whole milk Started working with CAPS in 2004
13 Problem CHALLENGE Increasingly stringent food safety regulations requiring the detailed data capture and recording of information collected at critical points throughout the supply chain drove Darifair to investigate solutions that would allow them to stay ahead of the curve. B L BOTTOM LINE Darifair wanted to leverage technology to automate the capture, recording and transmission of critical supply chain data, while receiving instant notifications of any errors. SOLUTION See next page
14 New Regulations Driving Change How can a tracking system help? Automate the capture, recording and transfer of data Standardization and accuracy are key Eliminate manual processes and room for human error 24/7 Access to data and reports Capture critical data including: Temperature and weight PO #s Safety seal #s Scanner operating user data Loading/unloading data
15 Wrap-Up HOW DO YOU TAKE THIS BACK AND MAKE IT WORK FOR YOU?
16 Questions? Drew Merrill CAPS Keith Schall CAPS Rob Welling Darifair
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