Documente Academic
Documente Profesional
Documente Cultură
Product traceability
(tracking & tracing)
Ingredient in a safe and efficient food supply
Richard Merx
PT Merkadi Management Consulting merkadibali@netscape.net
PT MERKADI
MANAGEMENT CONSULTING
April 2007
functioning of the European market in food and feed can be jeopardized where it is impossible to trace food and feed;
The
European Community therefore deemed it necessary to establish a comprehensive system of traceability of all food and feed within food and feed businesses so that
targeted
information thereby
avoiding the potential for unnecessary wider disruption in the event of food safety problems.
PT MERKADI
MANAGEMENT CONSULTING
April 2007
Article 18: The ability to trace and follow food, feed and ingredients through all stages of production, processing and distribution; drive towards complete supply chain traceability in Europe; Article 18 has come into effect in January 2005 (legal obligation); businesses will have to be at least able to identify the immediate supplier and the immediate subsequent recipient (one step back and one step forward); importers will be similarly affected.
Tracking & Tracing April 2007
PT MERKADI
MANAGEMENT CONSULTING
Trace a single material through the manufacturing process; Identify what final products contain it; When the final products were shipped; Where shipped (to whom);
Backward
PT MERKADI
MANAGEMENT CONSULTING
Trace a single final product; Identify what raw materials are contained in the product; When the raw material was received; Where received (by whom).
Tracking & Tracing April 2007
suppliers unable to meet its challenge may be denied access to European markets and customers, irrespective of the quality or price competitiveness of their products this has generated an intense debate in the Codex Alimentarius Commission
The United States government believes that traceability may be legally required for food safety purposes only
the European Union has focused on traceability and labeling as solutions to low consumer confidence in the safety of its food supply, which was over the last few years undermined by successive food safety crises.
Tracking & Tracing April 2007
PT MERKADI
MANAGEMENT CONSULTING
is mandatory; applies to all food, animal feed, food-producing animals and all types of food chain operators from the farming sector to processing, transport, storage, distribution and retail to the consumer; lays down detailed implementing rules for operators
information
on the name, address of producer, nature of products and date of transaction must be systematically registered within each operators traceability system; this information must be kept for a period of five years and on request, it must immediately be made available to the competent authorities.
PT MERKADI
MANAGEMENT CONSULTING
April 2007
specifically defines the criteria that would trigger the withdrawal or recall of a dangerous product from the market; situations where operators are required to inform competent authorities of this withdrawal are also specified; underlines the fact that food manufacturers are responsible for the safety of the food that they produce and put on the market.
PT MERKADI
MANAGEMENT CONSULTING
April 2007
Traceability (1)
traceability systems are recordkeeping systems for tracking the flow of product or product attributes through the production process (internal traceability) or supply chain (chain traceability) this is usually done for the purposes of managing agriculture and food production, inventory, logistics, distribution, quality, safety, product recalls and withdrawals, and compliance with legislation
PT MERKADI
MANAGEMENT CONSULTING
April 2007
Traceability (2)
the public confidence in food safety has been damaged by recent food scares associated with:
fish because of dioxin in fish meal and heavy metals in wet fish poultry because of chicken pocks and Salmonellosis in broilers
this is driving the industry and government agencies to improve controls at all stages in the food chain
Tracking & Tracing April 2007
PT MERKADI
MANAGEMENT CONSULTING
Traceability (3)
traceability is then needed to meet food safety requirements, especially in case of product recall, for commercial reasons to ensure supply chain standards and because it is required by legislation relating to labeling, animal health and welfare, fish marketing, fisheries control and product liability and safety policymakers in many countries, especially EU and USA have weighed the usefulness of mandatory traceability for managing such diverse issues as bio-terrorism, country-of-origin labeling, genetically engineered foods and livestock diseases
Tracking & Tracing April 2007
PT MERKADI
MANAGEMENT CONSULTING
10
April 2007
11
Upstream = Tracing
Retail Shop 2
Retail Shop 2
Downstream = Tracking
PT MERKADI
MANAGEMENT CONSULTING
April 2007
12
PT MERKADI
MANAGEMENT CONSULTING
April 2007
13
Name of material Date and time of receipt or production Quantity Original batch/lot number Quality tests Where was it transferred Quantity transferred Date and time
Usage
Transfer
PT MERKADI
MANAGEMENT CONSULTING
April 2007
14
PT MERKADI
MANAGEMENT CONSULTING
15
Who monitored/executed process Who added material Who operated equipment Who set or changed operating conditions People on the production crew Who reported variances
PT MERKADI
MANAGEMENT CONSULTING
April 2007
16
What product was produced What work order was being followed Who was the customer (company or stock) Quantity planned to be produced Actual quantity produced Actual usage of material Explanation of variances
PT MERKADI
MANAGEMENT CONSULTING
April 2007
17
unique identification (lot and batch number) data capture and recording
links management
data communication
Tracking & Tracing April 2007
PT MERKADI
MANAGEMENT CONSULTING
18
any traced or tracked entity must be uniquely identified with a code (unique for each company)
the unique identifier is the key that enables access to all available data about history, application or location of traced/tracked entity
in a majority of food supply chains, products are tracked and traced by
their production batch, which has undergone the same transformation (production process), and their transport/storage path (distribution process).
PT MERKADI
MANAGEMENT CONSULTING
April 2007
19
Ingredients used Expiry date Lot or batch number Date of production (recommended) Time of filling (if possible)
PT MERKADI
MANAGEMENT CONSULTING
April 2007
20
traceability requires pre-defined data to be captured and recorded throughout the supply chain the accuracy and speed of data capture, recording and retrieval are one of the main performance indicators of any traceability system
because of increasing information demands from buyers and consumers, it is no longer practical to transmit all the data physically along with the product. A more sensible approach is to mark each package with a unique identifier, and then transmit or extract all the relevant information electronically but so far it is common to use other ways like telephone, e-mail and fax for communication between the links.
Tracking & Tracing April 2007
PT MERKADI
MANAGEMENT CONSULTING
21
traceability requires the management of successive links between what is received, produced, packed, stored and shipped across the entire supply chain
if one of the partners in the supply chain fails in managing these links this will result in
PT MERKADI
MANAGEMENT CONSULTING
April 2007
22
traceability requires associating the physical flow of products with the flow of information about them.
to ensure the continuity of the information flow, each supply chain actor must communicate predefined traceability data to the next one, enabling the latter to apply traceability principles.
PT MERKADI
MANAGEMENT CONSULTING
April 2007
23
the diverse nature of food processing operations means that each business keeps individual traceability records, and methods used range from sophisticated IT to handwritten labels; a system for tracking every input and process to satisfy every objective would be enormous, unnecessary and very costly;
the breadth, depth, and precision of each system varies depending on the attributes of interest and each firm's costs and benefits.
Tracking & Tracing April 2007
PT MERKADI
MANAGEMENT CONSULTING
24
a recordkeeping system cataloging all of a foods attributes would be enormous, unnecessary and expensive few producers or consumers would be interested in all this information the breadth of most traceability systems would exclude some of these attributes
Example, a cup of coffee
the beans could come from any number of countries be grown with numerous pesticides or just a few grown on corporate organic farms or small family-run conventional farms harvested by children or by machines stored in hygienic or pest-infested facilities decaffeinated using a chemical solvent or hot water.
Tracking & Tracing April 2007
PT MERKADI
MANAGEMENT CONSULTING
25
for some health hazards, such as bovine spongiform encephalopathy (BSE or mad cow disease), insuring food safety requires establishing safety measures at the farm for other health hazards, such as food borne pathogens, firms may need to establish a number of critical control points along the entire production and distribution chain.
Tracking & Tracing April 2007
PT MERKADI
MANAGEMENT CONSULTING
26
In some cases, the objectives of the system will dictate a precise system, while for other objectives a less precise system will suffice
in
bulk grain markets, e.g. a less precise system of traceability from the elevator back to a handful of farms is usually sufficient because the elevator serves as a key quality control point for the grain supply chain
PT MERKADI
MANAGEMENT CONSULTING
April 2007
27
several systems for tracking livestock, especially beef and poultry in EU and USA are well advanced (e.g. IVI in veal and NuTrace in fish and poultry in NL); major retailers in EU and USA have also put in systems to trace the food they sell;
the ability to trace food in the catering sector in EU and USA is not so well developed
PT MERKADI
MANAGEMENT CONSULTING
April 2007
28
supply-side management product differentiation; and food safety and quality control lower-cost distribution systems expanded sales of high-value products increased brand equity; and reduced recall and liability expenses.
Tracking & Tracing April 2007
Benefits
PT MERKADI
MANAGEMENT CONSULTING
29
retailers, as well as legislators, are leaning heavily on manufacturers to install technology that will guarantee complete traceability among the supermarket chains in EU and USA traceability is already the norm
in
addition to the legislation, retail giants are beginning rolling out mandates to their suppliers primary motivation is building customer loyalty and trust they are putting into place guarantees that if there is ever a recall, then any problem could be contained quickly without losing credibility the best way of ensuring this is to ensure that suppliers have full control
PT MERKADI
MANAGEMENT CONSULTING
April 2007
30
in EU consumers are willing to pay 5-10% higher prices in return for improved quality; in USA consumers are willing to pay 12% to 15% more for source-verified products carrying identifiable positive attributes.
PT MERKADI
MANAGEMENT CONSULTING
April 2007
31
EU project TRACE
Tracing the origin of food
Integrated Project (IP) in Food Quality and -Safety Duration:Januari 2005 December 2009 Participation: 56 research institutes and private companies in Europe (17 + 8 countries) Goal: developing methods and systems of traceability, which gives the consumer extra confidence in the authenticity of food in Europa. Activities are divided over 5 Groups en 13 WPs Pilots in: mineral water, honey, olive oil, meat and grain
Tracking & Tracing April 2007
www.trace.eu.org
PT MERKADI
MANAGEMENT CONSULTING
32
PT MERKADI
MANAGEMENT CONSULTING
April 2007
33