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On The Trail to Traceability
The document discusses the challenges and costs associated with product traceability in supply chains, highlighting financial liabilities, brand reputation issues, and the need for compliance with new regulations. It notes that a significant portion of traceability processes remain paper-based, while many companies plan to upgrade their systems within the next five years. Additionally, consumer attitudes toward recall management and the importance of technology in enabling intelligent supply chains are emphasized.
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On The Trail to Traceability
- 1. On the Trailto Traceability New Legislation and New Complexity Lead to New Challenges #CommerceInMotion
- 2. Sleepless Nights Traceability ConcernsKeep Us Up at Night… • Financial Cost 28% • Brand Reputation 24% • Consumer Liability 18% • Government Oversight 12% • Loss of Market Share 11% 2
- 3. “I Can Executea Recall...” Within Hours Within Days/Weeks 52% 48% Cause for Concern 3
- 4. 86% Financial liability if something goes wrong 77% items don’t reach consumer Cost of assuring affected 69% Coordinating recalls with suppliers & distributors 61% Isolating affected items in their supply chain Concerns Abound 4
- 5. Staying Compliant? 46% not fully compliant with current traceability regulations #13198860 5
- 6. Recall Costs Rising the average recall now costs $10M (plus brand damage and lost sales) Source: GMA, FMI, Deloitte and GS1 6
- 7. 93% of consumers believe recall handling indicates whether a company cares more about profits or customer safety * Princeton University/The Relational Capital Group With Challenge Comes Opportunity 7
- 8. 87%of consumers aremore likely to purchase from companies that manage recalls “honestly and responsibly” * Princeton University/The Relational Capital Group With Challenge Comes Opportunity 8
- 9. Not Nearly EnoughAutomation 81% of traceability processes are either completely paper-based or only partially automated 9
- 10. 55% plan to implement or upgrade systems within the next 5 years Upgrades are Looming 10
- 11. Tech: Enabling IntelligentSupply Chains Dynamic Adjustments • Rules • Constraints Sense Real-Time Monitoring • Temperature/Quality • Demand/Price • Policies • Inventory/Orders Act React Report Trends/Identify Opps Dynamic Decision-Making • Product Quality • Product/Waste • Facility/Vendor Performance • Fulfillment Alternatives • Employee Performance Learn • Staffing 11
- 12. Tech’s Five Driversof Smart Supply Chains 1. Intra-/Extra-Enterprise Visibility Across All Data Types -Inventory and Orders Across the Network -Complete transaction history for all product movements 2. Reliable and Timely Holds Execution 3. Effective and Thorough Recall Execution 4. Comprehensive Reconciliation Processes 5. Comprehensive Reporting 12
- 13. An Intelligent SupplyChain at Work Wholesaler, Distributor, Manufacturer Retail 3pl & Carrier Temperature drops below All affected product is Sub -standard product never threshold. Alerts sent to located, isolated and enters supply chain preserving appropriate decision makers. rerouted, returned or destroyed. safety and security. Sense React Act Learn 13
- 14. RedPrairie Traceability Solution Reconciliation RPWMS Visibility 3rd Party WMS Hold/Recall 14
- 15. Commerce In Motion Sponsoredby…RedPrairie 15
- 16. CommerceInMotion.com Full Study Now AvailableOnline #CommerceInMotion 16
- 17.