Supply chain actors implement traceability standards, processes and bestpractices to meet a wide array of business, technical and regulatoryrequirements. Traceability is also a very effective management andgovernance tool that can be integrated into the existing business processesand extended supply chains activities of any company.Enabling standards-based traceability brings about seamless interoperabilitybetween supply chain actors. It also delivers enhanced visibility into an actor’ssupply chain activities: from receiving of products or components toproduction, warehousing, and dispatching of products to other supply chainactors or directly to end consumers. When reviewing specific needs, actorswill implement various levels of product traceability to enable those needssuch as:Drivers for Implementing Traceability Best Practices
Traceability & Industry StandardsSupply chains can be global and complex. There is not one simple schemadescribing who is involved in the supply chain, from upstream to downstream inall industry sectors. Yet, there are typical roles and functions in all supply chains.By the time a consumer product is purchased, consumed or used, it may havegone through a number of supply chain events and physical transformations.Each event or transformation may have involved a number of different actors.Tracing the products history becomes a critical and urgent requirement when anunsafe product has caused harm to a consumer or user of the product.Traceability DefinitionTraceability is the ability to trace the history, application or location of thatwhich is under consideration. (ISO9001:2000)
5B2OrganisationsOrganisations withdefective productsProduct FlowA3 B2 C1 D1 E3A2A4A5A1B1B3D2D3E2E1E4E5A6C2B4E6Manufacture 1st processor 2nd processor Distributor Point of SalesTRACING (to trace backwards)Traceability – General Principles & Aims
6A3 B2 C1 D1 E3A2A4A5A1B1B3D2D3E2E4E5A6C2B4E6TRACKING (to track forward)Traceability – General Principles & AimsManufacture1stprocessor2ndprocessor Distributor Point of SalesB2OrganisationsProduct FlowDefective Product FlowOrganisations withdefective products
Terminology ChallengeProduct supply chains involve many actors – from brand owners, own-brandretailers, designers, manufacturers, contract manufacturers, producers, value-added services providers, distributors, retailers, Internet retailers, importers,brokers, carriers, third-party logistics, product safety testing and certificationbodies, and many others.Although these terms for actors are commonly used, they may:- be used in different ways depending on the context, reference document andassociated definitions;- cover various functions as actors may perform a range of functions (e.g. aretailer can play the role of an importer and a brand owner of own-brandedgoods identical to, and owned by, other parties, but will have differentidentification codes);- have legal implications for reporting of unsafe products and remedying theissue; and- have legal and financial liability associated with them that requires riskassessment and product liability insurance coverage for both the physicalproduct and possible litigation.
Traceability Data – can be both public and private Master Data: permanent/lasting nature, relatively constant across time, not subject to frequentchange, accessed/used by multiple business processes and system applications, neutral/relationshipdependent Transactional Data: created during the physical flow of goods, can only be collected when eventsoccur.
Cumulative trackingSingle source data baseDistributed Information SourcesOr « traceability network »One up – One downTypes of Traceability networksFor limitedcommunitiesThe optimummodel for thefuture ?
Next Generation Strategy: “Value Traceability”supply chainoptimizationcompliancebranding&marketingrisk reductionReduce RiskAsset Optimiz.Increase rev.Lower costsDelivering….Consumer Focus100% Perfect Recall100% TraceabilityDifferentiationCompliance TraceabilityWhile complianceand risk reductionaspects can becritical, they donot encourageinvestmentsbeyond therequired minimumFOCUS:stay in businessFOCUS:increase valueValue Traceability