Traceability to Profitability

with Judith Kirkness

About Judith

• Over 20 years experience working with food manufacturers in her family business, Minotaur Software

• Small Business Owner, Traceability Matters

• Uses software and technology to solve problems, gain efficiencies

• Author of The Traceability Factor

Today’s Goals

1. Understand barcodes and their use in traceability and recalls

2. Learn the benefits of using traceability information for a competitive advantage

3. Discussion of current traceability technology and practical ideas for how to capture and use lot and serial information in your business

Step 1: Understanding Barcodes

GS1: The Global Language of Business

• Barcodes are the most commonly used method of communicating information up and down the food and retail supply chain, worldwide.

• Visit this non-profit industry led organization:– www.gs1.ca (Canada)

– www.gs1us.org (USA)

– www.gs1.org (World Site)

Is your company registered with GS1?

• ECCnet is GS1 Canada’s national product registry

• It is a one to many product information sharing tool – you set the details up once and decide who sees your info

RETAIL BARCODES

There are three main types of:

1. Retail Barcodes on Produce

• GS1 Databar: A stacked barcode

a barcode often includes information in human readable format that is not encoded into the barcode – This is important to remember when we get to traceability!

2. Retail Barcodes on most other items

• A GTIN-12 also known as UPC-12

Check Digit

Item numberGS1 Global Supplier Prefix

How much does a GS1 Company Prefix Cost (per year in Canada)?

GS1 Company Prefix

• All UPC and EAN codes have an implied unit of 1

Used primarily outside North America

3. Deli Barcodes (price or weight embedded)

• Different brands/models of machines can be set up in different ways

BARCODES ON TRADE ITEMS

The SCC-14, now called GTIN-14

• Any combination of trade items packaged together for storage and/or transport purposes, for example a case, pallet or parcel needs its own GTIN-14

• The GTIN-14 number means a specific product and package quantity

Note: This only identifies an

item and quantity!

GDSN – Global Data Synchronization Network

• The GDSN is the GS1 service that retailers can subscribe to, to sync and receive up to date product data on products they buy

• You set up once in ECCNET, make changes once and retailers you share with can receive those changes automatically

Serial Shipping Container Code (SSCC-18)

• The GS1 SSCC (Serial Shipping Container Unit) can also be used to identify a logistic unit, as opposed to a trade unit

• However, unlike the SCC (GTIN-14) which is the same for each logistic unit, the SSCC-18 is different for each carton and shipping container, regardless of its contents. It can represent a mixed pallet of product, for example

An SSCC is only useful if…

• The details of what are on that skid or in that container are relayed to the customer in some manner. Such as:

– EDI (Electronic Data Interchange)

– ASN (Advanced Shipping Notice)

EDI Skid Label – MH10

• Loblaw in Canada requests MH10 labels on most skids and ASN’s from most suppliers shipping to their distribution centres(currently just warehouses –not DSD)

The SSCC code will be scanned to match up with the skid detail from the ASN

MEAT INDUSTRY BARCODES

GS1-128

• The GS1-128 barcode (also called EAN-128) is the industry standard barcode used to communicate multiple pieces of information in one scan.

• It is multi-segment:

GS1-128’s Require Software to Interpret

• Unless you have software to break apart the segments and know what to do with a given segment, the number a scanner will show is the entire long number, which won’t be useful unless parsed.

• GS1-128 barcodes CAN be used for traceability because they link a given GTIN with its lot number (10), serial number (21) or date (production packed on or expiry)

Your supplier will recall by date, lot or serial number

• In the XL Recall of 2012 CFIA issued recalls to consumers based on best before date

• And recalled to trade based on packed on date

Which Segments Should You Use?

• You may be asked to put different segments in your Gs1-128 barcode by your customers based on what information their computer scanning system can separate and use

– Item Code (GTIN)

– Country of Origin (for exporting)

– Weight (if catch weight)

– Lot or Serial Number

– Production, expiry or packed on date

ALTERNATIVE BARCODES

• 2D Barcodes • RFID Tags

Limitations of Barcodes

• Readability (300 dpi printer recommended), white labels best

• Damaged (cut, wrinkled)

• Label Size (4” wide label is typically required)

If moving toward scanning, consider the following:

• Choose your software first

• Hardware often depends on the software you will be using (what operating system – like a phone?)

• Do you need long range or short range scanners?

• Do you need 2D barcode or RFID capabilities?

• Trust experts to help you establish a wireless network in cooler and freezer environments

Questions?Let’s decode some barcodes

• Please refer to the question sheet with some example barcodes.

• Take a few minutes to try and work through the questions and then we’ll take them up together

Barcode Decoding Activity

1.

2.

3.

4.

5.

Answers

1.

(01) GTIN 14 Digit Number

(3102) Net Weight (kg) 25.89 kg

Answers

2.

(01) GTIN 14 Digit Number

(15) Best Before Date YYMMDD = 2015/JAN/31

(10) Batch or Lot Number 01A

Answers

3.

(02) CONTENT 14 Digit Number

(13) Packaging Date YYMMDD 2014/MAY/21

(422) Country of Origin 124 (Canada)

Answers

4.

(02) CONTENT 14 Digit Number

(17) Expiration Date YYMMDD 2015/JUN/26

(425) Country of Disassembly 840 (USA)

(21) Serial Number W85040nD6

Answers

5.

(01) DTIN 14 Digit Number

(13) Packaging Date YYMMDD 2013/DEC/12

(3103) Net Weight (kg) 22.7 kg

(10) Batch or Lot Number 01B

Congratulations,You’ve just become Barcode Certified!

Let’s take a 10 minute break!

Step 2: Using Traceability Information for a Competitive

Advantage

Traceability Perception

• Done to satisfy government inspectors

• Something QA/QC takes care of

• Requirement of GFSI certification

• It’s just a Cost

Traceability Opportunity

• Given that you are tracking the information anyway, how can you get that information working for you to give you a competitive advantage?

• How you tackle traceability will determine the possible business benefits!

The Operational Traceability Flow

When Traceability is tested…

Recall reporting is the most important feature for protecting your brand – time is of the essence

• CFIA recalls for year ending March 2013

• 109 allergen related

• 13 due to chemical residue

• 47 due to extraneous matter

• 99 due to microbiological or other food safety concern

• 268 Recalls total

• Being able to pull product quickly might be the least used feature of automated traceability

• Can traceability technology offer more than just fast recall?

Benefits of Traceability Technology

• Recall Prevention

• Food Safety

• Costing

• Yield Calculations

• Inventory Knowledge

• Profitability

What kind of Technology?

• ERP software – integrating front office with plant floor scales and warehouse

• Handheld warehouse management

• Verified traceability (not just an open field)

• EDI for communicating between suppliers and customers

Allergen recall prevention through scanning

• Item attribute and item substitution tracking/alerting, supplier approvals

Food Safety

• QA/QC Information storage

• Use information for release of product for sale

• Linking batches to their test results for production history to determine cause

Costing

• Knowing your true costs

• How are you calculating your costs right now?

Costing using lot information

• What goes into your raw material costs?

• Do you assemble or disassemble products, or both?

• Costing by batch is a RESULT of entering quantities of inputs and outputs

• Timely, accurate costs and automated depletion of raw materials or WIP as finished goods are created

Yield Calculations

• Regular, timely comparison of inputs vs. outputs

• How did yield knowledge help Halenda’s?

Inventory Knowledge

• Inventory control that includes traceability and expiry information combined with reporting can alert you to approaching dated product

• Damaged product can be adjusted out or scanned to a damage location

• FIFO suggestion can help determine missing units from a lot

Profitability

• If the system knows your costs and knows what you sold each item for to each customer, it can compute PROFIT across your items and your customers

• Computers can track and deduct marketing program costs to give you true profit figures?

Step 3: Practical Take Home Ideas for improving Traceability

Halenda’s Bingo Dabber System

http://minotaursoftware.com/halendas-bingo-dabber-system/

Media – Labels, Tags

Direct Thermal vs.

Thermal Transfer Ribbon

Technology to bring information together

• ERP or integrated business management systems

• Customer portals and dashboards

• Barcode scanning and handheld warehouse management

• Plant floor equipment (scales, PLCs) feeding your ERP system

• Touch screen plant floor weight label stations

• Mobile worker tablets, scanners and printers

How to Pay for it?

35%

50%

Questions -What are your current traceability

challenges?

How can I help you?

judith@minotaursoftware.com

www.minotaursoftware.comwww.traceabilitymatters.com