© 2017 FrieslandCampina

RFID enabled track & trace of Dairy Products Vincent Koeckhoven, FrieslandCampina

Sander Merkx, Mieloo & Alexander

Safety

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Put your bags against the wall and out of the

way. Do not block emergency exits

When the fire alarm goes off:

evacuate the building and go to an

assembly point

In case of emergency, call this number: [please fill in

the emergency number]

Assembly point: [please fill in the assembly point]

Locate the emergency exits

Please silence your cell phone

Our Message

Inform you about Royal Friesland Campina, the OT Program and the Summit program

Give background on RFID project

Point on the key questions that arises

Deal with the challenges and current status

Q&A

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FrieslandCampina at a glance

Figures 2016 4

11.0 billion Euros revenue

100 Export to over

countries

33 Facilities in

countries employees

21,927 member dairy

farmers

18,906

millions of consumers

Every day

Founding of Arnhemse Melk-inrichting

Founding of CCF in Leeuwarden

Friesche Vlag, Dutch Baby and Bonnet Rouge are registered for international markets

Founding of Coberco in Zutphen

Merger of Coberco, Friesland Dairy Foods, De Zuid- Oost-Hoek and Twee Provinciën

Acquisition of Nutricia Dairy & Drinks Group

Friesland Foods receives Royal designation on its 125th anniversary

Founding of the first dairy co-operatives

Founding of the De Meijerij Veghel / De Melkindustrie Veghel

Campina brand introduced

Founding of Campina Melkunie

Acquisition of Südmilch (Heilbronn)

International launch of formation of international Campina brand and co-operative

Acquisition of Alaska Milk

Corporation in the Philippines

Acquisition of Zijerveld and

Veldhuyzen and

G. den Hollander Holding

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Acquisition of Olam Ivory Coast and DEK in Italy

Nine farmers take over a cheese factory in the Dutch Wieringerwaard

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Founding of joint venture

Friesland Huishan Dairy

in China

Acquisition of mozzarella

producer Fabrelac in

Belgium

Acquisition of the activities

of Anika Group in Russia

Acquisition of IDB Belgium

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71

Acquisition of

majority stake (51%) Engro Foods

in Pakistan

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Merger of Friesland Foods and Campina

We have a long history…

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Strategy route2020: sustainable growth and value creation

Better nutrition, a good living for our farmers, now and for generations to come

Leverage the Dutch dairy heritage and unique milk chain in a sustainable way to win the hearts and minds of our customers and consumers

Expand the leading positions in growth areas

Protect the volumes in home markets

Build future markets

Improving capabilities that are key for market success

Reducing costs to enable investments in growth

Think and act in accordance with the AAA concept

Applying the principles of good business conduct

20 Be financially healthy and in harmony with nature and society in the short term and in 20+ years’ time

15 Grow to 15 billion euros revenue in 2020

Valorise >10 billion kilos of milk from the member dairy farmers

10 5 Achieve 5% annual volume growth in the selected priority product- market combinations

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FrieslandCampina brands

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1. Friso

2. Frisian Flag

3. Dutch Lady

4. Peak

5. Alaska

6. Campina

7. Rainbow

8. Foremost

9. Debic

10. Frico

1. DMV Excellion

(caseinate)

2. Kievit Vana Blanca

(creamers)

3. Domo Vivinal GOS

(galacto-oligosacharide)

4. DFE Pharmatose

(pharmaceutical lactose)

5. Kievit Vana Grasa

(fat powders)

Top 10 consumer brands in revenue in euros

Top 5 industrial products in revenue in euros

Consumer Foodservice Ingredients

Organised in four new business groups

Consumer Dairy Specialised Nutrition Dairy Essentials Ingredients

Executive board

Corporate & Support

Business partner-driven

Development and sales of non-

branded basic products such as

cheese, butter and milk powder,

for the food industry

Responsible for optimising the

processing of milk

Business partner-driven

Close cooperation with customers

Infant nutrition, and the food and

pharmaceutical industries

Consumer-driven

Strong dairy portfolio of regionally

relevant branded products

Condensed milk, yoghurt, quark,

dairy-based beverages and

cheese

Consumer-driven

Infant nutrition and special dairy-

based food products and

supplements

Elderly people, athletes and

people with special nutritional

needs

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Operation Technology (Industrial Automation)

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Processing Packaging

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Maintenance Production Quality Inventory

E P

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Schichtplaner

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EXCEL PDF

OMP

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PRISM

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Receptur db

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FAP Excel

Quickscheduler

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Maintenance Production Quality Inventory

DCS, SCADA, PLC

ERP

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OT program priorities

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A) OT Cyber security C) OT Governance B) OT Business Continuity

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OT

Master data

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OT

IT

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Why SUMMIT?

is the global, multiyear programme of FrieslandCampina to implement a new operating

model to standardise and to harmonise processes, data and systems.

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The SUMMIT Program

Key objectives:

Will replace our seventeen local systems and working methods with one standard system and working method…

It will enable us to speak the same ‘language’!

Harmonization and standardization across the sites.

Real-time information and data tracking.

Coupling of factory IT/MES with SAP ECC on the GSS template

Track & trace at shipment level via GS1 SSCC (Serial Shipping Container Code)

Reduction of operational cost and headcount.

Global SAP roll-out:

Summit T10 involves 4 CPEMEA production locations (Bornem, Aalter, Maasdam, Rotterdam).

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Plant Rotterdam – At a glance

Volume Around 200 mioL for Consumer products and 100 mioL for B2B

# Filling lines 12: 0.5L / 1L /1.5 L

- Primary packaging Gabble Top

- Secundary packaging Carton and RIC

# SKU’s Over 100

# Recipes Around 25

# Batches Over 250 a week

# FTE Around 100

- Distribution Around 200 truck loads / week

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Plant Rotterdam – Location

TD

INNAME

MV

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DISTRIBUTIE

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The Issue

Palletized product: ~70%

Dairy products in cartons are palletized by robots

SSCC labels are automatically attached with applicator after palletisation

Product on RIC: ~30%

Around 30.000 Roll in Containers (RIC’s) are in use by Friesland Campina and Farm Dairy

Cold, wet, not sufficient space, and no “line of sight” for labels

Automatic label application not possible 17

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Initial solution options

Manual barcode label application:

SSCC label between the cartons or a

“luggage” label

Disadvantages:

Cost: at least 1 fte per shift!

Potential to apply label to the wrong RIC.

Not compliant with route 2020 (cost reduction)

Utilize RFID technology:

Program SSCC into an RFID tag on RIC when

the RIC is being loaded:

Benefits:

Cost: no extra fte cost, per shift.

No user errors.

Additional: opportunities for improved RTI management

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Key questions

1. Can RFID tags be programmed with an SSCC and re-programmed again (and again)?

2. Which RFID tag and where to place it on the RIC?

3. How to integrate RFID technology in the new processes and systems in Rotterdam?

4. Can other benefits be realized, e.g. Supply Chain efficiency or Returnable Transport

Item (RTI) management?

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Q1: Can tags be re-programmed?

Sure!

But RIC’s are Returnable Assets and according to GS1 standards, should be

programmed with a GRAI code (Global Returnable Asset Identifier)!

Solution:

Associate the GRAI code with the SSCC each time a new batch is loaded in the RIC.

Scan the GRAI RFID tag, and get the SSCC from SAP!

New Issue:

The Summit template doesn’t support RFID scanning yet.

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RFID Tag coding and Scanning solution

Encode the GRAI in the EPC and the

SSCC in the user memory! (Global Returnable Asset Identifier)!

Use the EPC and the user

memory of the RFID tag

Extend SAP terminals with RFID device with

embedded Linux server:

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RFID device runs app to read user memory,

translate hexadecimal code to SSCC and to

support pairing with SUMMIT handheld and FLT

terminals

Q2: Which RFID tag and where to apply? (1)

Requirements:

Robust mount on metal tag with user programmable memory that can be read up to 4

meters…

Easily damaged by (internal) transport

Moving parts limit options

Liquids absorb RF energy

Best option: top of RIC

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Q2: Which RFID tag and where to apply? (2)

Requirements:

New issue: no standard on metal RFID tag available that meets all requirements!

Withstand severe mechanical impact

Limited height: < 5mm

No overhang: < 10 mm wide

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Solution: custom developed RFID tag

Solution:

Develop a custom UHF RFID tag for all 30.000 RIC’s

Test and validate against all requirements

Apply pre-coded (GRAI) tags to all RIC’s of Friesland Campina

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Omni-ID Pre-production sample

Q3: How to integrate RFID technology?

1. RFID readers at empty receiving area check

returned quantity.

2. RFID reader at conveyor infeed alerts operator

if RIC does not have working RFID tag.

3. RFID readers in RIC loading stations encode

SSCC in RFID tag.

4. RFID “curtain” above transition point to

finished product inventory – post goods receipt

in SAP via Wonderware MES.

5. RFID scanners BT connected to SAP terminal

link SSCC to outbound delivery note in SAP.

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Solution: near and farfield quality check at infeed (1)

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Solution: RFID readers in RIC loaders program SSCC (2)

Final quality check: RIC’s are only loaded if RFID tag can be programmed!

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Solution: RFID “curtain” at transition point (3)

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Q4: Other Supply Chain Benefits?

Once Farm Dairy and DC Maasdam also implement scanpoints, a commonly shared RTI

system enables asset management, pooling, efficient transport, and quality management

on the RIC pool. 29

Current status

Entire pool of good RIC’s are tagged: approx. 30.000 RIC’s!

Producing RIC’s with automated SSCC to SAP: all route 2020 objectives were met!

RTI management for RIC’s in start-up: returns of empty RIC’s now possible.

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Questions and Answers / Discussion

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© 2017 FrieslandCampina 32