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Reusable Packaging
Containers Role in the
Blockchain Era
Monday, Sept 23 | 1:30 – 2:50 PM PDT | Reusable Packaging Container Learning Center
www.aim-na.org
Meet the Speaker
Jeanne Duckett
Traceability/Transparency Solutions Architect
Jeanne Duckett is an experienced engineering professional in
multiple Automatic Identification technologies including wireless
networking and RFID. Jeanne holds several patents in these areas
and is currently driving new technology initiatives for Avery
Dennison's Transparent Supply Chain
Jeanne sits of the Board of Directors for AIM NA, Chairs AIM NA
Food Policy Group, ISO/ICE SC31 TG 2 USA chair for Data Content
and Data Standards. Past chair of RFID Experts Group, IoT,
Traceability. Participates in Global Standards development for
Digital Twin, GS1 Digital Link and Traceability
© GS1 2018
Trust Begins With Transparency
Transparency begins with interoperable standards for
• Identification / Data Capture
• Visibility – Critical Tracking Events / Key Data Elements
• Business Transaction – Purchase Orders, ASN, BOL
Traceability – What is it
TRACEABILITY DEFINITION
Traceability is the ability to trace the
history, application or location of that
which is under consideration.
(ISO9001:2000)
The Forest 500, Global Canopy Programme
▪ Supply Chains are global and
complex
▪ Forest500 Hypothetical
Example of Hamburger Supply
Chain - at least 75 supply
chain stages in numerous
countries (including
packaging)
FOOD RISKS ARE ESCALATING AS MARKET EVOLVES
*Source: FDA 2018 and FAO 2018 .
Transparency Matters to Consumers
● Impact on Business: The research findings make a direct connection between
transparency and commercial benefit for brands. More than three quarters of shoppers
say they are more likely to buy food products that make available information beyond
what appears on a physical label. Moreover, more than seven in 10 shoppers say they
are willing to switch from their usual brand to one that provides more in-depth
information beyond what appears on the label.
● Trust and Loyalty Impacted: Transparency from brands has a direct impact on building
consumer trust and boosting loyalty, according to shopper feedback. About half of
shoppers are even willing to pay more for a product that offers more in-depth product
information beyond what is on the physical label.
53% of consumers are willing to pay more for transparency
75% said they would switch brands for a more transparent brand
https://info.labelinsight.com/
Transparency for Food Service - Building Trust in the Food Suply Chain | Classification: Avery Dennison - External
Transparency Matters to Suppliers
• Boston Consulting
Group Dec 2018:
0.8% of annual
revenue is wasted
due to friction
• Average Food Item
12 different IT
systems other than
excel – only 3 are
interoperable
Food For Thought
On an industry-wide level, losses due to spoilage and shrinkage translate into
$32 billion for chilled meats, seafood, and cheese; $34 billion for produce; and
$5.4 billion for pharmaceutical and biomed products (71.4b).
(Losspreventionmedia.com April 2019)
Each year, perishables suppliers ship
over five billion pallets valued at $2.6
trillion of chilled meats, seafood, cheese,
produce, temperature sensitive
pharmaceutical and biomed products)
The GDP of France is $2.5T
• Technology now affordable and ubiquitous
• Less distinction between physical and digital world: “weird that it
doesn’t work”
• Change in consumption of technology in companies
• PAST: companies worked with specialized integrators for specific,
customized solutions
→ resulting in: islands of incompatible data everywhere in the
organization
• NOW: seek technology providers that can pull together business-
relevant solutions based on open standards and architectures
→ resulting in: consolidation of data islands
GOALS:
• Un-interrupted flow of data
• Increased productivity, efficiency, flexibility, and agility
→ Faster decision making process
The number of connected “things” in the world has
skyrocketed from about a million in the early 1990s to 13
billion today; . . . Expect to see 50 billion connected
devices by 2020.
Information based decisions, leading to action, aided by machine learning and
analysis of data autom. collected locally or remotely by connected “things”
• Right decisions only possible if data is
accessible
• Product data and information has to be
collected, tracked and traced when it
traverses the supply chain
• Class Level product identification levels not
granular enough for supply chain visibility
• Batch level data does not provide the level of
information needed to track products through
the supply chain and minimize risks
Unique identification KEY to track and access data; protect
brands & customers
WHY NOW?
GS1 GLOBAL UNIQUE IDENTITIES
Source: Cisco
GS1 Digital Link - the Golden Age of Digitization
GS1 Transparency Framework
www.aim-na.org
What’s the buzz about blockchain – Technology or Data Sharing
Most of the excitement about blockchain is really just
excitement about the possibility of sharing data across
company lines
– For some entire industries, this is an unfamiliar
concept.
– For industries where data sharing is familiar and
interesting, blockchain presents a sexy way to talk about
it … and to raise awareness of the need for data sharing
across organizational silos
• Centralized
•One database, one owner
•Not resilient to organizational failure
•Not resilient to technical failure
• Distributed
•Many database copies, one owner
•Resilient to technical failure
•Not resilient to organizational failure
• Decentralized
•Many database copies, many owners, no one “master”
•Resilient to technical failure
•Resilient to organizational failure
Centralized vs. Distributed vs. Decentralized
Router Master Slave Slave
One Owner
Owner 1
Node
Owner 2
Node
Owner 3
Node
Owner 4
Node
Router Master Slave Slave
Relevant parts of a public blockchain
Blockchains are shared databases of records that can never be changed
afterwards (immutable)
– They commonly use distributed ledger technology
• They are decentralized and replicated (not merely distributed)
– No one organization controls governance of the data or the process of validation
• Validation of the data is commonly resolved through consensus or “proof of
work”
• They may have stored procedures to enforce validation rules for data and for
transactions
– These are also known as “smart contracts” and are independently verifiable by any
participant
• They can support a cryptocurrency
– This is the most widely used implementation of a blockchain today
– This might be useful if database transactions involve payment, but isn’t as relevant
for supply chain applications
• They may offer reward systems
– Often referred to as “mining”
• A blockchain is just a unique ledger of transactions…that prevents users
from changing data or deleting data
• An enterprise blockchain is generally an index that references off-chain
data that will be maintained in traditional data stores
– Helps keep the size of the ledger reasonable
– Enables fast sharing of a common truth about events and contracts •
Data that is familiar to supply chain business applications could be shared
in an enterprise blockchain ledger
– Event data, transactional data, and even master data
– Pointers to data (or hashes of that data) may also be shared in an
enterprise blockchain ledger
• The ledger is also able to prove through pointers and hashes that
the off-chain data wasn’t tampered with
Enterprise Value of Blockchain
Owner 1 Owner 2 Owner 3 Owner 4
Node Node Node Node
EPCIS
Event
Data
Store
EPCIS
Event
Rep.
Data
Store
Enterprise Blockchain ledger
Rep.
Off-chain resources
-
-
-
-
-
Access and permission control layers
Pointers to off-chain data and hashes
of off- chain data
Some relevant pieces of data needed
for validation and business processes
and smart contracts
Identifiers based on GS1 keys (party,
location, things, etc) – likely obfuscated
Data stored in accordance with GS1
standard data structures
-
-
-
-
Access and permission control layers
Event, transaction and master data
stored in accordance with GS1
standard data structures (such as
EPCIS Event Data Repositories)
Identifiers based on GS1 keys
(party, location, things, etc)
Other data resources that may be
needed (documents, images, files,
etc) 7
Blockchains with Traditional data Stores
Global Returnable Asset Identifier + SSCC
Data Carriers carry detailed information
beyond class identification for a
individual unit or case including
lot, serial number and exp date
SSCC +GRAI
FDA Smarter Safer Food Supply Chain
smarter food
inclusive
safe
traceable
70% of food globally is
produced by smallholders,
most of which are excluded
from the global food chain.
Information technology is
used to integrate small-
holders in international
supply chains.
Consumers want to make
informed choice of the food they
buy for religious, environmental
or health reasons or simply for
preference. Traceable food is
food of which information is
recorded along its elaboration
process. Consumers can access
such information and eat in
accordance to their needs.
Food has to be safe to produce
and safe to consume. Safe food
uses information technology to
improve controls over environ-
mental and social impact of its
production as well as its safety to
be consumed.
April 30, 2019 Statement from Acting FDA Commissioner Ned Sharpless,
M.D., and Deputy Commissioner Frank Yiannas on steps to usher the
U.S. into a new era of smarter food safety
2019 Transparency Initiatives
www.aim-na.org
Major US Dairy Co-Op Pilots
Blockchain Technology for Food Supply
March 19, 19 - Requested
trace & trace funding for 2020
• Lay thefoundationfor a successful traceabilityproject:
unique, persistentidentificationacrossthe physicaland
digital AND exchange of accurate, completedata
• Identifythekey motivation(the“WHY”) for your
traceability activities. These couldbe Consumer/Product
safety, Reduce food lossand waste, Anti-counterfeit,
Sustainability& CorporateSocial Responsibility(CSR), etc.
• Clarifythe businesschallenge(the“WHAT”) you are trying
to solve.
• Implementing a traceabilitysolutionwill impact: People,
Business Processes and Technology(the“WHO” and the
“HOW”)
Best practices for implementation
Get support from peoplewho havedone this – Reach out to AIM Global, GS1 US
Trust Physical/Digital
Identification &
Interoperability
Transparency
& Visibility
© GS1 2018
Benefit of Standards Based Approach
FDA Announces Public Meeting to Discuss the New Era
of Smarter Food Safety
Oct 21, 2019 Washington DC Register online at
https://www.regonline.com/builder/site/Default.aspx?EventID=2571051
www.aim-na.org
Questions or Comments?
Jeanne Duckett
Transparency Solution Architect
Avery Dennison
170 Monarch Lane
Miamisburg, OH 45342
USA
Jeanne.duckett@averydennison.com
Phone # 937 865 6706
20399 Route 19
Suite 203
Cranberry Township, PA 16066
USA
info@aim-na.org
www.aim-na.org
+1.724.742.4473
Contact Us

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Reusable Packaging's Role in the Blockchain era

  • 1. Reusable Packaging Containers Role in the Blockchain Era Monday, Sept 23 | 1:30 – 2:50 PM PDT | Reusable Packaging Container Learning Center
  • 2. www.aim-na.org Meet the Speaker Jeanne Duckett Traceability/Transparency Solutions Architect Jeanne Duckett is an experienced engineering professional in multiple Automatic Identification technologies including wireless networking and RFID. Jeanne holds several patents in these areas and is currently driving new technology initiatives for Avery Dennison's Transparent Supply Chain Jeanne sits of the Board of Directors for AIM NA, Chairs AIM NA Food Policy Group, ISO/ICE SC31 TG 2 USA chair for Data Content and Data Standards. Past chair of RFID Experts Group, IoT, Traceability. Participates in Global Standards development for Digital Twin, GS1 Digital Link and Traceability
  • 3. © GS1 2018 Trust Begins With Transparency Transparency begins with interoperable standards for • Identification / Data Capture • Visibility – Critical Tracking Events / Key Data Elements • Business Transaction – Purchase Orders, ASN, BOL
  • 4. Traceability – What is it TRACEABILITY DEFINITION Traceability is the ability to trace the history, application or location of that which is under consideration. (ISO9001:2000) The Forest 500, Global Canopy Programme ▪ Supply Chains are global and complex ▪ Forest500 Hypothetical Example of Hamburger Supply Chain - at least 75 supply chain stages in numerous countries (including packaging)
  • 5. FOOD RISKS ARE ESCALATING AS MARKET EVOLVES *Source: FDA 2018 and FAO 2018 .
  • 6. Transparency Matters to Consumers ● Impact on Business: The research findings make a direct connection between transparency and commercial benefit for brands. More than three quarters of shoppers say they are more likely to buy food products that make available information beyond what appears on a physical label. Moreover, more than seven in 10 shoppers say they are willing to switch from their usual brand to one that provides more in-depth information beyond what appears on the label. ● Trust and Loyalty Impacted: Transparency from brands has a direct impact on building consumer trust and boosting loyalty, according to shopper feedback. About half of shoppers are even willing to pay more for a product that offers more in-depth product information beyond what is on the physical label. 53% of consumers are willing to pay more for transparency 75% said they would switch brands for a more transparent brand https://info.labelinsight.com/
  • 7. Transparency for Food Service - Building Trust in the Food Suply Chain | Classification: Avery Dennison - External Transparency Matters to Suppliers • Boston Consulting Group Dec 2018: 0.8% of annual revenue is wasted due to friction • Average Food Item 12 different IT systems other than excel – only 3 are interoperable
  • 8. Food For Thought On an industry-wide level, losses due to spoilage and shrinkage translate into $32 billion for chilled meats, seafood, and cheese; $34 billion for produce; and $5.4 billion for pharmaceutical and biomed products (71.4b). (Losspreventionmedia.com April 2019) Each year, perishables suppliers ship over five billion pallets valued at $2.6 trillion of chilled meats, seafood, cheese, produce, temperature sensitive pharmaceutical and biomed products) The GDP of France is $2.5T
  • 9. • Technology now affordable and ubiquitous • Less distinction between physical and digital world: “weird that it doesn’t work” • Change in consumption of technology in companies • PAST: companies worked with specialized integrators for specific, customized solutions → resulting in: islands of incompatible data everywhere in the organization • NOW: seek technology providers that can pull together business- relevant solutions based on open standards and architectures → resulting in: consolidation of data islands GOALS: • Un-interrupted flow of data • Increased productivity, efficiency, flexibility, and agility → Faster decision making process The number of connected “things” in the world has skyrocketed from about a million in the early 1990s to 13 billion today; . . . Expect to see 50 billion connected devices by 2020. Information based decisions, leading to action, aided by machine learning and analysis of data autom. collected locally or remotely by connected “things” • Right decisions only possible if data is accessible • Product data and information has to be collected, tracked and traced when it traverses the supply chain • Class Level product identification levels not granular enough for supply chain visibility • Batch level data does not provide the level of information needed to track products through the supply chain and minimize risks Unique identification KEY to track and access data; protect brands & customers WHY NOW? GS1 GLOBAL UNIQUE IDENTITIES Source: Cisco GS1 Digital Link - the Golden Age of Digitization
  • 11. What’s the buzz about blockchain – Technology or Data Sharing Most of the excitement about blockchain is really just excitement about the possibility of sharing data across company lines – For some entire industries, this is an unfamiliar concept. – For industries where data sharing is familiar and interesting, blockchain presents a sexy way to talk about it … and to raise awareness of the need for data sharing across organizational silos
  • 12. • Centralized •One database, one owner •Not resilient to organizational failure •Not resilient to technical failure • Distributed •Many database copies, one owner •Resilient to technical failure •Not resilient to organizational failure • Decentralized •Many database copies, many owners, no one “master” •Resilient to technical failure •Resilient to organizational failure Centralized vs. Distributed vs. Decentralized Router Master Slave Slave One Owner Owner 1 Node Owner 2 Node Owner 3 Node Owner 4 Node Router Master Slave Slave
  • 13. Relevant parts of a public blockchain Blockchains are shared databases of records that can never be changed afterwards (immutable) – They commonly use distributed ledger technology • They are decentralized and replicated (not merely distributed) – No one organization controls governance of the data or the process of validation • Validation of the data is commonly resolved through consensus or “proof of work” • They may have stored procedures to enforce validation rules for data and for transactions – These are also known as “smart contracts” and are independently verifiable by any participant • They can support a cryptocurrency – This is the most widely used implementation of a blockchain today – This might be useful if database transactions involve payment, but isn’t as relevant for supply chain applications • They may offer reward systems – Often referred to as “mining”
  • 14. • A blockchain is just a unique ledger of transactions…that prevents users from changing data or deleting data • An enterprise blockchain is generally an index that references off-chain data that will be maintained in traditional data stores – Helps keep the size of the ledger reasonable – Enables fast sharing of a common truth about events and contracts • Data that is familiar to supply chain business applications could be shared in an enterprise blockchain ledger – Event data, transactional data, and even master data – Pointers to data (or hashes of that data) may also be shared in an enterprise blockchain ledger • The ledger is also able to prove through pointers and hashes that the off-chain data wasn’t tampered with Enterprise Value of Blockchain
  • 15. Owner 1 Owner 2 Owner 3 Owner 4 Node Node Node Node EPCIS Event Data Store EPCIS Event Rep. Data Store Enterprise Blockchain ledger Rep. Off-chain resources - - - - - Access and permission control layers Pointers to off-chain data and hashes of off- chain data Some relevant pieces of data needed for validation and business processes and smart contracts Identifiers based on GS1 keys (party, location, things, etc) – likely obfuscated Data stored in accordance with GS1 standard data structures - - - - Access and permission control layers Event, transaction and master data stored in accordance with GS1 standard data structures (such as EPCIS Event Data Repositories) Identifiers based on GS1 keys (party, location, things, etc) Other data resources that may be needed (documents, images, files, etc) 7 Blockchains with Traditional data Stores
  • 16. Global Returnable Asset Identifier + SSCC Data Carriers carry detailed information beyond class identification for a individual unit or case including lot, serial number and exp date SSCC +GRAI
  • 17. FDA Smarter Safer Food Supply Chain smarter food inclusive safe traceable 70% of food globally is produced by smallholders, most of which are excluded from the global food chain. Information technology is used to integrate small- holders in international supply chains. Consumers want to make informed choice of the food they buy for religious, environmental or health reasons or simply for preference. Traceable food is food of which information is recorded along its elaboration process. Consumers can access such information and eat in accordance to their needs. Food has to be safe to produce and safe to consume. Safe food uses information technology to improve controls over environ- mental and social impact of its production as well as its safety to be consumed. April 30, 2019 Statement from Acting FDA Commissioner Ned Sharpless, M.D., and Deputy Commissioner Frank Yiannas on steps to usher the U.S. into a new era of smarter food safety
  • 18. 2019 Transparency Initiatives www.aim-na.org Major US Dairy Co-Op Pilots Blockchain Technology for Food Supply March 19, 19 - Requested trace & trace funding for 2020
  • 19. • Lay thefoundationfor a successful traceabilityproject: unique, persistentidentificationacrossthe physicaland digital AND exchange of accurate, completedata • Identifythekey motivation(the“WHY”) for your traceability activities. These couldbe Consumer/Product safety, Reduce food lossand waste, Anti-counterfeit, Sustainability& CorporateSocial Responsibility(CSR), etc. • Clarifythe businesschallenge(the“WHAT”) you are trying to solve. • Implementing a traceabilitysolutionwill impact: People, Business Processes and Technology(the“WHO” and the “HOW”) Best practices for implementation Get support from peoplewho havedone this – Reach out to AIM Global, GS1 US
  • 20. Trust Physical/Digital Identification & Interoperability Transparency & Visibility © GS1 2018 Benefit of Standards Based Approach
  • 21. FDA Announces Public Meeting to Discuss the New Era of Smarter Food Safety Oct 21, 2019 Washington DC Register online at https://www.regonline.com/builder/site/Default.aspx?EventID=2571051
  • 23. Jeanne Duckett Transparency Solution Architect Avery Dennison 170 Monarch Lane Miamisburg, OH 45342 USA Jeanne.duckett@averydennison.com Phone # 937 865 6706 20399 Route 19 Suite 203 Cranberry Township, PA 16066 USA info@aim-na.org www.aim-na.org +1.724.742.4473 Contact Us