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Bringing in your Innovations
using the Packaging Value Chain
Claire Koelsch Sand, Ph.D.
Founder and Owner, Packaging Techn...
Agenda
• Value Chain has evolved
• For Innovation, connect tangibly using Value Chain
• Building tactic knowledge
• Using ...
Supply Chain focused on meeting logistical needs
Supply Chain finesse has allowed the packaging industry to evolve.
1950-1...
Supply Chain & Value Chain are needed now
Supply Chain finesse has allowed the packaging industry to evolve:
1950-1980s
• ...
Value Chain evolved to meet diverse competitive goals
1990s
• Drucker’s “knowledge worker”
• Porter’s Value Chain
• Grenie...
Agenda
• Value Chain has evolved
• For Innovation, connect tangibly using Value Chain
• Building tactic knowledge
• Using ...
For Innovation, connect tangibly using Value Chain
Use Value Chain to connect by:
1. Inspiring
2. Building tactic knowledg...
Building tactic knowledge provides context
• Before the 1980s, sustainable
packaging had little consumer
resonance or valu...
Building tactic knowledge builds trust
• Value of the Value Chain is often trust
• Relationships between companies gain mo...
Shared Value connects to Value Chain
10Connect tangibly using Value Chain – shared value
Packaging Technology and Research
Shared Value focuses innovation on societal issues
Shared value focuses and provides context for innovation:
• Identifies ...
Agenda
• Value Chain has evolved
• For Innovation, connect tangibly using Value Chain
• Building tactic knowledge
• Using ...
Value Chain allows innovation to focus on food safety
Food safety is a key social issue best addressed by the Value Chain
...
Food safety decreased in 2014 among G20
(derived from 17)
14Value Chain enables innovation through focus on societal issue...
Food safety up and down globally
(17)
15Value Chain enables innovation through focus on societal issues – food safety
Pack...
Food Safety Value Chain opportunities exist
• Package Chemical Properties
• Handling and Packaging
• Distribution and Reta...
Causes/ Categories
Category
Z
Category
Y
Category
X
Catgeory
W
Category
V
Category
U
Category
T
Category
S
Oxidation
Moist...
Value Chain solutions focus innovation
Needs/ Categories Package Properties Technology Solutions for Category X
Grease res...
Agenda
• Value Chain has evolved
• For Innovation, connect tangibly using Value Chain
• Building tactic knowledge
• Using ...
Prevalence of food fraud is increasing
10 of 117 countries are responsible for 60% of all food fraud
Current food of conce...
Food fraud increase is due to 3 main factors
1. Consolidated buying that enables:
• Focus on lowest ingredient costs that ...
Impacts of food fraud
• Declining public trust in packaged food
• Loss of business from country of origin
• Increased fund...
Technology & regulations offer partial solutions
• Technology offers temporary solutions
• Regulations offer inflexible so...
Value Chain is needed to predict and prevent fraud
24Value Chain enables innovation through focus on societal issues – foo...
Food fraud is best addressed using Value Chain
• Implement packaging component of FSMA now
• Documentation and recall link...
Tactic knowledge reduces fraud
• Tactic knowledge means that value is understood
• Building tactic knowledge with food and...
Tactic knowledge reduces fraud
(31)
27Value Chain enables innovation through focus on societal issues – food fraud
Packagi...
Use packaging early in Value Chain to prevent & predict
Assess innovations on prevention & prediction
28Value Chain enable...
Value Chain impedes fraud-an example
• Expanded knowledge:
• Product contaminated from package
• Shared work:
• Link migra...
Packaging industry is ripe for Value Chain derived innovation
• Value Chain has evolved
• For Innovation, connect tangibly...
Value Chain holds in a vuca world
• Volatile
• Dynamics of change
• Catalysts
• Uncertain
• Missing predictability
• Compl...
Bringing in your Innovations using the Packaging Value
Chain-checklist
 Identify key social issues that are important to ...
Relevant Sources and References
• Food Fraud Initiative at Michigan State University
• National Center for Food Protection...
15.http://www.fda.gov/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation/IngredientsAdditivesGR
ASPackaging/uc...
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Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 1 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 2 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 3 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 4 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 5 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 6 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 7 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 8 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 9 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 10 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 11 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 12 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 13 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 14 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 15 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 16 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 17 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 18 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 19 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 20 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 21 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 22 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 23 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 24 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 25 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 26 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 27 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 28 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 29 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 30 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 31 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 32 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 33 Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015 Slide 34
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With 30 years of experience across the food science and packaging spectrum, Dr Claire Sand through her company, Packaging Technology & Research, offers clients solutions using Strategy, Technology, Consulting and Coaching. ​



Want to know more about how this article affect your business? Reach out to Dr Sand on Linked In - https://www.linkedin.com/in/clairekoelschsand



Want to keep learning from Dr. Sand? View more of her presentations and articles at http://www.packagingtechnologyandresearch.com/thought-leadership.html

Dr. Claire Sand | Owner, Packaging Technology & Research, LLC; Adjunct Professor, Michigan State University; Columnist for Food Technology Magazine

http://www.packagingtechnologyandresearch.com/

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Sand, c.k. 2015. enabling your innovations using the packaging value chain. ami multilayer films conference. chicago, june 3, 2015

  1. 1. Bringing in your Innovations using the Packaging Value Chain Claire Koelsch Sand, Ph.D. Founder and Owner, Packaging Technology and Research Adjunct Professor, Michigan State University Packaging Technology and Research
  2. 2. Agenda • Value Chain has evolved • For Innovation, connect tangibly using Value Chain • Building tactic knowledge • Using Shared Value • Value Chain enables innovation through focus on societal issues • Food safety • Food fraud raw materials for packaging converted packaging manufactured packaging components Combined product and package distributed product and package sold product and package discarded product and package Packaging Value Chain Interfaces (30) 2 Packaging Technology and Research
  3. 3. Supply Chain focused on meeting logistical needs Supply Chain finesse has allowed the packaging industry to evolve. 1950-1980s • Post-war era saw efficiencies grow • Reduced energy costs associated with distribution led to JIT and ECR Value Chain has evolved 3 Packaging Technology and Research
  4. 4. Supply Chain & Value Chain are needed now Supply Chain finesse has allowed the packaging industry to evolve: 1950-1980s • Post-war era saw efficiencies grow • Reduced energy costs associated with distribution led to JIT and ECR 1980s and 1990s • Supply Chain management • Global sourcing • Commoditization • Strategic alliances 4Value Chain has evolved Packaging Technology and Research
  5. 5. Value Chain evolved to meet diverse competitive goals 1990s • Drucker’s “knowledge worker” • Porter’s Value Chain • Grenier’s organization growth 2000s • Need more than logistics to be competitive • TBL – people-profit-planet • Sweet spots • Sustainability wave for US which has existed globally 5Value Chain has evolved Packaging Technology and Research
  6. 6. Agenda • Value Chain has evolved • For Innovation, connect tangibly using Value Chain • Building tactic knowledge • Using Shared value • Value Chain enables innovation through focus on societal issues • Food safety • Food fraud raw materials for packaging converted packaging manufactured packaging components Combined product and package distributed product and package sold product and package discarded product and package Packaging Value Chain Interfaces (30) 6 Packaging Technology and Research
  7. 7. For Innovation, connect tangibly using Value Chain Use Value Chain to connect by: 1. Inspiring 2. Building tactic knowledge 3. Sharing work and value 4. Rewarding significance 7Connect tangibly using Value Chain Packaging Technology and Research
  8. 8. Building tactic knowledge provides context • Before the 1980s, sustainable packaging had little consumer resonance or value • In 2015, REACH initiatives and EN standards have altered global markets • Sustainability has value within developing and developed countries • The context has changed The value of packaging varies with its context: 8Connect tangibly using Value Chain – tactic knowledge Packaging Technology and Research
  9. 9. Building tactic knowledge builds trust • Value of the Value Chain is often trust • Relationships between companies gain more traction if the companies experience value the same way • When economic downturns cause disruption 9Connect tangibly using Value Chain – tactic knowledge Packaging Technology and Research
  10. 10. Shared Value connects to Value Chain 10Connect tangibly using Value Chain – shared value Packaging Technology and Research
  11. 11. Shared Value focuses innovation on societal issues Shared value focuses and provides context for innovation: • Identifies key social issues that offer the greatest business opportunities • Develops innovative solutions to address those issues. • Aligns context of value • Builds trust • Provides combined focus for innovation 11Connect tangibly using Value Chain – shared value Packaging Technology and Research
  12. 12. Agenda • Value Chain has evolved • For Innovation, connect tangibly using Value Chain • Building tactic knowledge • Using Shared value • Value Chain enables innovation through focus on societal issues • Food safety • Food fraud raw materials for packaging converted packaging manufactured packaging components Combined product and package distributed product and package sold product and package discarded product and package Packaging Value Chain Interfaces (30) 12 Packaging Technology and Research
  13. 13. Value Chain allows innovation to focus on food safety Food safety is a key social issue best addressed by the Value Chain Food safety • I wish we had more trust in our supplier to use HACCP… • Need for more educated work force • Commoditization of packaging and food 13Value Chain enables innovation through focus on societal issues – food safety Packaging Technology and Research
  14. 14. Food safety decreased in 2014 among G20 (derived from 17) 14Value Chain enables innovation through focus on societal issues – food safety Packaging Technology and Research
  15. 15. Food safety up and down globally (17) 15Value Chain enables innovation through focus on societal issues – food safety Packaging Technology and Research
  16. 16. Food Safety Value Chain opportunities exist • Package Chemical Properties • Handling and Packaging • Distribution and Retail • Consumer Use 16Value Chain enables innovation through focus on societal issues – food safety Packaging Technology and Research
  17. 17. Causes/ Categories Category Z Category Y Category X Catgeory W Category V Category U Category T Category S Oxidation Moisture Change Microbial Browning Water resistance MVTR Antimicrobial Reduce impact of contamin. ingredients Reduce contamin. during product fill Assess initial microbial load Reduce initial microbial load Reduce cross contamin. Enable processing of some ingredients Enable HACCP Address chilled worker conditions Time &Temp monitoring system Oxygen level monitoring system Control tempertaure Measure microbial load at POS Enable safe package reuse Reduce consumer contamin. from repeat use Expand time for safe product use Enable oven/ MWmonitoring Address eating hygiene through packaging Enable freezer storage Packagingand Handling Pkg Prop. Product Degradation Causes Distributio n&Retail ConsumerUse Value Chain solutions to food safety are focused 17Value Chain enables innovation through focus on societal issues – food safety Packaging Technology and Research
  18. 18. Value Chain solutions focus innovation Needs/ Categories Package Properties Technology Solutions for Category X Grease resistance Water resistance OTR/ MVTR Antimicrobial Needs/ Categories Handling and Packaging Technology Solutions for Category X Reduce impact of contamin. Reduce contamin. during product fill Assess initial microbial load Reduce initial microbial load Reduce cross contamin. Enable processing of ingredients Enable HACCP Address chilled worker conditions Needs/ Categories Distribution and Retail Technology Solutions for Category X Enable stock rotation Define exact OTRs and MVTRs Time &Temp monitoring system Oxygen level monitoring system Control tempertaure Measure microbial load at POS Needs/ Categories Consumer Technology Solutions for Category X Enable safe package reuse Expand time for safe product use Enable oven/ MWmonitoring Package Chemical Handling&Packing Distribution& Retail Consumer 18Value Chain enables innovation through focus on societal issues – food safety Packaging Technology and Research
  19. 19. Agenda • Value Chain has evolved • For Innovation, connect tangibly using Value Chain • Building tactic knowledge • Using Shared value • Value Chain enables innovation through focus on societal issues • Food safety • Food fraud raw materials for packaging converted packaging manufactured packaging components Combined product and package distributed product and package sold product and package discarded product and package Packaging Value Chain Interfaces (30) 19 Packaging Technology and Research
  20. 20. Prevalence of food fraud is increasing 10 of 117 countries are responsible for 60% of all food fraud Current food of concern • Seafood: • "Sturgeon caviar" was MSpaddlefish • Catfish fillets replaced expensive fish • 77% of USA snapper mislabeled • Cumin • Honey diluted with beets or corn syrup • Protein source products • Olive oil • Coffee • Tea • Wine: Pinot Noir from merlot & syrah grapes Current packaging of concern • Recycled paperboard • PP • RPET • Laminate layers 20Value Chain enables innovation through focus on societal issues – food fraud Packaging Technology and Research
  21. 21. Food fraud increase is due to 3 main factors 1. Consolidated buying that enables: • Focus on lowest ingredient costs that tempts fraud • Technology to covertly transact illegitimate deals • Impedes traceability 2. Unharmonious regulations • Lack of enforced processing regulations in much of world • GMO to produce bioplastics 3. Increase refrigerated distribution for long-term perishables • Increased need for and rising cost of product stability • Increased value of food 21Value Chain enables innovation through focus on societal issues – food fraud Packaging Technology and Research
  22. 22. Impacts of food fraud • Declining public trust in packaged food • Loss of business from country of origin • Increased funds for further fraud • Loss of brand value • Companies become enforcers 22Value Chain enables innovation through focus on societal issues – food fraud Packaging Technology and Research
  23. 23. Technology & regulations offer partial solutions • Technology offers temporary solutions • Regulations offer inflexible solution • Value Chain offers operational solution Technology To increase food safety and decrease fraud: 23Value Chain enables innovation through focus on societal issues – food fraud Packaging Technology and Research
  24. 24. Value Chain is needed to predict and prevent fraud 24Value Chain enables innovation through focus on societal issues – food fraud Packaging Technology and Research
  25. 25. Food fraud is best addressed using Value Chain • Implement packaging component of FSMA now • Documentation and recall linked to packaging • Minimize the damaging effects to human health and brand reputation • Traceability • Extraction • Consider changes that alter dynamics • Supplier financial pressure • Price fluctuations • Disasters • Global strife and success 25Value Chain enables innovation through focus on societal issues – food fraud Packaging Technology and Research
  26. 26. Tactic knowledge reduces fraud • Tactic knowledge means that value is understood • Building tactic knowledge with food and package suppliers • Expands existing initiatives with safety and fraud focus • Links on goal of decreasing fraud and increasing safety • Builds knowledge at all levels • Builds trust at all levels • Build operational processes to align and transfer knowledge that thwart fraud and increase safety 26Value Chain enables innovation through focus on societal issues – food fraud Packaging Technology and Research
  27. 27. Tactic knowledge reduces fraud (31) 27Value Chain enables innovation through focus on societal issues – food fraud Packaging Technology and Research
  28. 28. Use packaging early in Value Chain to prevent & predict Assess innovations on prevention & prediction 28Value Chain enables innovation through focus on societal issues – food fraud Packaging Technology and Research
  29. 29. Value Chain impedes fraud-an example • Expanded knowledge: • Product contaminated from package • Shared work: • Link migration data to supplier’s converters • Expanded Value Chain connected on final product use and sensitive flavor profile • Converter financials and motivation • Prevention vs detection 29Value Chain enables innovation through focus on societal issues – food fraud Packaging Technology and Research
  30. 30. Packaging industry is ripe for Value Chain derived innovation • Value Chain has evolved • For Innovation, connect tangibly using Value Chain • Building tactic knowledge • Using Shared value • Value Chain enables innovation through focus on societal issues • Food safety • Food fraud raw materials for packaging converted packaging manufactured packaging components Combined product and package distributed product and package sold product and package discarded product and package Packaging Value Chain Interfaces (30) 30 Packaging Technology and Research
  31. 31. Value Chain holds in a vuca world • Volatile • Dynamics of change • Catalysts • Uncertain • Missing predictability • Complex • Chaos slightly at bay • Ambiguous • Hazy reality • Misreads 31 Packaging Technology and Research
  32. 32. Bringing in your Innovations using the Packaging Value Chain-checklist  Identify key social issues that are important to your company’s bottom line.  Determine which Value Chain members also have these important issues.  Define value (context, experiential, subjective, meeting needs).  Build trust and agility into organizational frameworks so that new Value Chain initiatives are achievable.  Identify key partners with whom your company needs to align to address these social issues in a manner that makes business sense.  Develop a goal that addresses the core issues and makes business sense.  Expand issues to work up, down, and across the Value Chain to ensure partnerships are aligned.  Align to deliver innovation and to balance costs and benefits in Value Chain.  Continue to expand issues to guide relationships within the Value Chain. 32Checklist - Bringing in your Innovations using the Packaging Value Chain Packaging Technology and Research
  33. 33. Relevant Sources and References • Food Fraud Initiative at Michigan State University • National Center for Food Protection and Defense (NCFPD) at University of Minnesota 1. Lupien, J., 1997. Food packaging, international standards related to food safety and quality, and trade. Food Additives and Contaminants, Vol. 14, No. 6-7, 519-527 2. Sand, C.K. 2015. Bringing in Innovation with the Packaging Value Chain. IFT Webcast February 26, 2015. 3. José Cuesta, J., Htenas, A., and Tiwari, S., 2014. Monitoring global and national food price crises. Food Policy 49: 84–94 4. NSF, 2014. The ‘new’ phenomenon of criminal fraud in the food supply chain White Paper. 5. 2014-07-21 08:11 Shanghai Daily Web Editor 6. Brody, A, Sand, C. Sabbagha, F., 2014. RFID in Packaging using Value Chain. Food Technology. October 7. Spink, J. and Moyer, D., 2011. Developing a Food Fraud Prevention Program. MSU Food Fraud Initiative 8. Reig, C., Lopez,A.D., Ramos, M.H., Ballester, V., 2014. Nanomaterials: a Map for Their Selection in Food Packaging Applications. Packag. Technol. Sci. 27: 839–866 9. Percy, B., 2011. GFSI Compliance and Automated Food Safety Management Systems. Cereal Foods World. 56, 4; pg. 144 10. Busta, F., 2011. Defending the safety of the global food system from intentional contamination. National Center for Food Protection and Defense. University of Mn. 11. National Center for Food Protection and Defense 12. Spink, J. and Moyer, D., 2011. Defining the Public Health Threat of Food Fraud. Journal of Food Science Vol. 76, Nr. 9, 13. adapted from Guardian 14 http://ec.europa.eu/food/food/chemicalsafety/foodcontact/eu_legisl_en.htm 33Resources - Bringing in your Innovations using the Packaging Value Chain Packaging Technology and Research
  34. 34. 15.http://www.fda.gov/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation/IngredientsAdditivesGR ASPackaging/ucm081818.htm 16. 2013 survey by public relations agency Edelman 17. http://foodsecurityindex.eiu.com/ 18. The European Union summary report on trends and sources of zoonoses, zoonotic agents and food-borne outbreaks in 2013. 2015. European Food Safety Authority & European Centre for Disease Prevention and Control. EFSA Journal 2015;13(1):3991 19. Consumer Product Fraud: Deterrence and Detection. AT Kerney, 2010. 20. Chen, E., Flint, S., Perry, P., Perry, M., and Lau, R., 2015. Implementation of non-regulatory food safety management schemes in New Zealand: A survey of the food and beverage industry. Food Control 47: 569e576 21. Mensah, L.D., Julien, D. 2011. Implementation of food safety management systems in the UK. Food Control 22 1216e1225 22. Exploring new values and new directions in the Forest, Paper & Packaging industry., 2011. PWC. 24. http://www.brcglobalstandards.com/ 25. http://www.ifs-certification.com/index.php/en/ 23. SQFI.com 26. http://www.informationclearinghouse.info/article36743.htm 27. Spink, J., 2006, The Counterfeit Food and Beverage Threat, Association of Food and Drug Officials (AFDO), Annual Meeting. 28. ACFE, 2012. Report to the Nations. 29. US Patent 8,674,834,132. 30. Sand, C., 2007. Packaging Value Chain. DesTech Publishing. 31. ACFE, 2012. Relevant Sources and References 34Resources - Bringing in your Innovations using the Packaging Value Chain Packaging Technology and Research

With 30 years of experience across the food science and packaging spectrum, Dr Claire Sand through her company, Packaging Technology & Research, offers clients solutions using Strategy, Technology, Consulting and Coaching. ​ Want to know more about how this article affect your business? Reach out to Dr Sand on Linked In - https://www.linkedin.com/in/clairekoelschsand Want to keep learning from Dr. Sand? View more of her presentations and articles at http://www.packagingtechnologyandresearch.com/thought-leadership.html Dr. Claire Sand | Owner, Packaging Technology & Research, LLC; Adjunct Professor, Michigan State University; Columnist for Food Technology Magazine http://www.packagingtechnologyandresearch.com/

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