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Traceability Primer

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Traceability Primer

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Supply chain actors implement traceability standards, processes and best
practices to meet a wide array of business, techn...

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Traceability & Industry Standards
Supply chains can be global and complex. There is not one simple schema
describing who i...

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Traceability Primer

  1. 1. Traceability Primer
  2. 2. Supply chain actors implement traceability standards, processes and best practices to meet a wide array of business, technical and regulatory requirements. Traceability is also a very effective management and governance tool that can be integrated into the existing business processes and extended supply chains activities of any company. Enabling standards-based traceability brings about seamless interoperability between supply chain actors. It also delivers enhanced visibility into an actor’s supply chain activities: from receiving of products or components to production, warehousing, and dispatching of products to other supply chain actors or directly to end consumers. When reviewing specific needs, actors will implement various levels of product traceability to enable those needs such as: Drivers for Implementing Traceability Best Practices
  3. 3. Traceability & Industry Standards Supply chains can be global and complex. There is not one simple schema describing who is involved in the supply chain, from upstream to downstream in all 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 have gone 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 an unsafe product has caused harm to a consumer or user of the product. Traceability Definition Traceability is the ability to trace the history, application or location of that which is under consideration. (ISO9001:2000)
  4. 4. 4 UPSTREAM SUPPLIERS INTERNAL Manufacturing / Assembly & Storage DOWNSTREAM CLIENTS ENABLE DOWNSTREAM TRACEABILITYENABLE UPSTREAM TRACEABILITY Traceability: Generic Principles & Aims ENABLE INTERNAL TRACEABILITY INTERNAL TRACEABILITY
  5. 5. 5 B2 Organisations Organisations with defective products Product Flow A3 B2 C1 D1 E3 A2 A4 A5 A1 B1 B3 D2 D3 E2 E1 E4 E5 A6 C2 B4 E6 Manufacture 1st processor 2nd processor Distributor Point of Sales TRACING (to trace backwards) Traceability – General Principles & Aims
  6. 6. 6 A3 B2 C1 D1 E3 A2 A4 A5 A1 B1 B3 D2 D3 E2 E4 E5 A6 C2 B4 E6 TRACKING (to track forward) Traceability – General Principles & Aims Manufacture 1st processor 2nd processor Distributor Point of Sales B2 Organisations Product Flow Defective Product Flow Organisations with defective products
  7. 7. Terminology Challenge Product supply chains involve many actors – from brand owners, own-brand retailers, designers, manufacturers, contract manufacturers, producers, value- added services providers, distributors, retailers, Internet retailers, importers, brokers, carriers, third-party logistics, product safety testing and certification bodies, and many others. Although these terms for actors are commonly used, they may: - be used in different ways depending on the context, reference document and associated definitions; - cover various functions as actors may perform a range of functions (e.g. a retailer can play the role of an importer and a brand owner of own-branded goods identical to, and owned by, other parties, but will have different identification codes); - have legal implications for reporting of unsafe products and remedying the issue; and - have legal and financial liability associated with them that requires risk assessment and product liability insurance coverage for both the physical product and possible litigation.
  8. 8. Traceability Data – can be both public and private  Master Data: permanent/lasting nature, relatively constant across time, not subject to frequent change, accessed/used by multiple business processes and system applications, neutral/relationship dependent  Transactional Data: created during the physical flow of goods, can only be collected when events occur.
  9. 9. Cumulative tracking Single source data base Distributed Information Sources Or « traceability network » One up – One down Types of Traceability networks For limited communities The optimum model for the future ?
  10. 10. Next Generation Strategy: “Value Traceability” supply chain optimizationcompliance branding & marketing risk reduction Reduce Risk Asset Optimiz. Increase rev. Lower costs Delivering…. Consumer Focus 100% Perfect Recall 100% Traceability Differentiation Compliance Traceability While compliance and risk reduction aspects can be critical, they do not encourage investments beyond the required minimum FOCUS: stay in business FOCUS: increase value Value Traceability

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