Fonterra, a leading global dairy nutrition company out of
New Zealand, transformed its track-and-trace processes.
The company needed a solution to reliably capture and link
batch history information without slowing production or adding
complexity for workers. Leveraging CPGSuite® MES software from
Rockwell Automation, the company developed an electronic
traceability system that helps contextualize manufacturing data
and ease compliance requirements. The solution reduced the
time required to identify and locate any traced product across
the supply chain from days to just hours.
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Traceability
Building proof in our promise
Fonterra is committed to delivering what matters most to our Customers and Consumers;
providing food that is made to uncompromising standards of food safety and world class quality.
As part of ‘Trust in Source’ we are building the capability to electronically trace the goodness in
every drop of milk we process.
We do this to enable our purpose to be the world’s most trusted source of dairy nutrition.
TRACE THE GOODNESS
IN EVERY DROP
BACK TO
THE SOURCE
AT EVERY
STAGE
OF EVERY
INGREDIENT
OF EVERY
PRODUCT
IN EVERY
COUNTRY
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Project end-to-end scope
>10,000 Farms
>750,000 milk collections
Per year
Ingredients and
packaging materials flowing
through 10s of processing
steps
Across 140+ countries
26 Manufacturing sites
100 plants
>100 Warehouses and
Distribution Centres
globally
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Automatically detecting
critical tracking events
11. Page 11Confidential to Fonterra Co-operative Group
Automatically detecting
critical tracking events
Aggregating and
contextualising MES
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Automatically detecting
critical tracking events
Aggregating and
contextualising MES
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Automatically detecting
critical tracking events
Aggregating and
contextualising MES
Contextualising inventory
management at a batch level
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Automatically detecting
critical tracking events
Aggregating and
contextualising MES
Contextualising inventory
management at a batch level Linking and visualising
GBT
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People are Key to Success
• Connection is the single most important success factor in change
– To a broader journey with a much higher purpose
– By people who are familiar with and respected by those impacted
And above all ….. MAKE IT FUN
16. Page 16Confidential to Fonterra Co-operative Group
Traceability
Our commitment to making total traceability real
Product authentication solution that uses a
unique QR code to allows consumers to:
• Check the product is authentic – either pre
or post purchase
• Get real time status information and
information on place of manufacture
Batch history solution that allows us to track all
our batches of product, and the ingredients that
went into them:
• Electronic batch information linked from raw
milk to customer
INTERNAL TRACEABILITY EXTERNAL TRACEABILITY
17. Benefits
• Near real time automated capture and sharing of electronic product traceability data at
every step of the process
• Linking and visualisation of entire product flow from collection of raw milk at farm to delivery
of product to customers
• Ability to complete trace upstream and downstream electronically from any point the supply
chain identifying and locating potentially affected product in 3 hours or less.
Speaker notes:
We’re a co-operative owned by 10,500 New Zealand farming families, supported by more than 20,000 Fonterra employees around the world.
We’re united by a fundamental belief in the power of dairy to make a difference.
We see our work in dairy and dairy farming ensuring a prosperous and sustainable future for generations of dairy farming families in New Zealand and around the world.
We’re the world’s second-largest dairy processor (IFCN).
Today, we collect 85% of milk produced in New Zealand (FY2015).
Last season (1 June 2014 - 31 May 2015) we collected 22 billion litres of milk, of which 18 billion litres is processed in New Zealand.
We provide around 5% of dairy to our small domestic market here in New Zealand.
And we export 95% of what we make, in ingredients, foodservice and consumer brands.
4
Speaker notes:
Our purpose is to be the world’s most trusted source of dairy nutrition.
From grass to glass, our fully integrated supply chain stretches from the farm to the consumer.
We have control over the quality and safety of our milk and dairy products at all points through the production and transport processes.
It ensures we can have absolute confidence in the safety of the product that reaches our customers and consumers. And they in turn have confidence in our products.
On farm, this is managed through our Supply Fonterra programme which sets high standards, in many cases above those set at a regulatory level, for the range of on-farm inputs that go into milk production on-farm and the milk quality at the point of collection from our tanker fleet.
Through our transport network, production and manufacturing processes, packing, storage and shipping we adhere to global best practice standards, and test our products at all stages during the process.
In one year we test our milk and products to more than six million quality and safety tests.
We leave nothing to chance.
As a leading global dairy nutrition company, Fonterra has always been able to trace its products but a review of track and trace processes showed that this activity took an unacceptable length of time due to data being spread across multiple electronic and paper based records. An event in 2013 was a catalyst for initiating a step change programme to transform the way in which Fonterra conducts global traceability with special focus on delivering timely and accurate information that enriches the customer and consumer experience.
Fonterra's supply chain is long and complex starting with collection of milk from farms through to dispatch of product to customers in 140 different countries. From the start our biggest challenge was to track raw milk, a liquid, through complex manufacturing processes designed to extract value out of every single drop. The solution needed to reliably capture and link product batch history information at every stage without negatively impacting operational efficiencies.
In manufacturing our challenge starts with capture of batch information every time a tanker off-loads milk at a milk reception bay; that is on average 750,000 tanker receipts per year. Post reception at any one of our 26 manufacturing sites in New Zealand the traceability system needed to capture batch information at every critical tracking event (CTE) in the manufacturing process, there could be as many as 30 CTEs in a single site. It was clear to the programme from the beginning that any solution would have to bring a significant amount of automation and integration from shop-floor systems through to enterprise resource planning systems (ERP) in order to successfully create a reliable electronic traceability system.
The solution leveraged Fonterra's previous years strategic investments in process control, manufacturing operations management, and enterprise resource planning systems.
By automatically detecting the occurrence of critical tracking events at the process control layer key traceability data about the event is automatically captured
By automatically detecting the occurrence of critical tracking events at the process control layer key traceability data about the event is automatically captured
By automatically detecting the occurrence of critical tracking events at the process control layer key traceability data about the event is automatically captured
When we talk to people about MOM/CPG (outside Fonterra;-) we talk about these four main functions
Production Management (Order management & order execution. Fonterra use this heavily for integration & synchronisation with SAP)
Inventory Management (movements, transformations, status changes, consumptions, productions, batched, lots. This provides SAP all the inventory movements form MOM)
Performance Management (Fonterra has started to deploy Performance for OEE. A good example of building on a solid platform, based on business priorities)
Quality Management (Fonterra have started a POC for Darfiled. This is In Process Quality Control or IPC. A good example of building on a solid platform, based on business priorities)
By automatically detecting the occurrence of critical tracking events at the process control layer key traceability data about the event is automatically captured
By automatically detecting the occurrence of critical tracking events at the process control layer key traceability data about the event is automatically captured
Feeding into one ERP from multiple sites that have multiple plants and generate millions of records.
[1mins]
[The Wrap-up slide]
We are challenging ourselves to take it beyond typical industry and regulated commitments to a new personal level and I am challenging you to do the same in your business
[1mins]
[The Wrap-up slide]
We are challenging ourselves to take it beyond typical industry and regulated commitments to a new personal level and I am challenging you to do the same in your business
