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Advances in Traceability Systems: The Integration of Supply Chain Logistics

and Quality Control Systems (QCS)

Gregory S. Bennet gsbennet@iastate.eduCharles R. Hurburgh tatry@iastate.edu

Iowa State UniversityAgricultural & Biosystems Engineering Dept.

Iowa Grain Quality Initiative www.iowagrain.org

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Iowa Grain Quality Initiativewww.iowagrain.org

Howard Shepherd Program Coordinator

Charles Hurburgh Professor in Charge

Its Mission: To create knowledge and provide information that will improve the efficiency of traditional commodity grain markets and will assist emerging markets for user- specific grains.

Research GroupHafize Gunsu Gemesi

Brittini BrownMaitri Thakur

Gretchen MosherChad Laux

Greg Bennet

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Food Safety Dilemma

Most of the recent food scare problems have originated at the production end of the food chain.

Upon discovery, items are often tracked back to the processing stage only.

All have started as input bulk materials, yet end up as discrete ingredients for end products.

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How can we have safer foods and still be economically efficient?

How does supply chain logistics address foodtraceability?

How does quality control/management systemsaddress food traceability?

How can integrating supply chain logistics withquality control/management systems, or “FullBody Traceability,” address food traceability?

Questions we look at

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Bulk Commodity Traceability Links & Research Projects

Processor/Miller

BargeTerminal

EthanolPlant

Farm

Logistics DataGIS / GPS

Logistics – Query Processing & Data Mapping

Quality Mgmt. Research

Logistics & QM System Research

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2

3

4

Elevator/Cooperative

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1. Geographical Traceability in Production Agriculture

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Study Area

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Real-Time Data Acquisition Model for Single Lot

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2. Farm/Elevator Traceability Data Management

Project ObjectivesProvide information about specific production

practices (IP, organic, etc.).Visualization of traceability data and make use of

GIS to study the relationships betweenenvironment and production parcels.

Creation of information system that is compliantwith legal requirements (e.g., FDABioterrorism Act, ISO 22000 Series).

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Traditional Grain Elevator Practices

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• Internal grain movement often goes unrecorded

• Grain lots are divisible• Lot identity is not maintained

Internal Grain Movement

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User Interface

NC 213 2009 13

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Feed-to-Milk Process Mapping

New Project Just Started

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•Date Received•Supplier•Bill of Lading •Operator•Silo Destination•Silo Level

•Silo Source•Product•Product Total•Product Destination•Cream Destination•Cream Total

•Cooler Location•Product Description•PT Tank Source•Product Destination•Date Received•Order Number

Data Mapping At Dairy Processor

•Filler ID•Quantity•Pallet ID•Route ID•UPC Number•Sell By Date

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3. Farmers Cooperative Elevator Farnhamville, Iowa

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Farmers Cooperative Trade Area & Management Regions

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FC Bin Tracker

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Annual Cost-Benefit Summary for QMS

Operation Cost SavingsGrading $1,085Inventory Control 10,675Operations Efficiency 2,180Regulatory Compliance 5,300Employee Development 3,400

Total $22,640Cost of QMS $11,250

Ratio: 2:1Source: Farmers Cooperative Elevator Co., Farnhamville, Iowa

Disclaimer: 2002 Data, Iowa State University and Farmers Cooperative Elevator Company

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Project ObjectivesDesigned Auditable Program for Grain Sales into

Foreign Markets – Mandatory 3rd PartyCertification.

Measure Requirement Compliance.Determine Economic Feasibility for Introduction

of “New” GM Events for Sales intoRestricted Markets.

4. Traceability System For Grain Exports

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Vendors(Input Supplies)

Livestock Farms/Industry

Where vertical integration may occur

Farm(Small-Large

Producer)Manufacturing (Processing)Logistics (Agricultural)

Food Processor

Truck

Barge

Train

Consumers

Customer/Consumer(Foreign)

Transport (Logistics)

Parent Seed, Agro-Chemical, Machinery Cos.,

& others

Overseas Port

(Generic)Freighter

Feed Mills

Grain MerchantsFarms

Biofuel Plants

Mills

Mills

Port

Truck

Barge

Train

Freighter

Truck

Barge

Train

Freighter

Cooperatives/Elevators

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IPT Measurement Score

0

100

200

300

400

500

600

Type of IPT

Dat

a Po

ints

DepthBreadth

100%

90.1% of Breadth Required

89.5% of Depth

Required

89.8%

Overall Score 89.8%

Rigor Scale

Least Rigor Greatest Rigor

Actual

Dro

ught

Res

istan

t

Shel

f-Li

fe

Hig

h O

il

Fair

-Wag

e

Low

-Lin

Required

Phar

ma

Purity Level Measured

nil 80% 95% 75% 98% 97.8% 99.99%

Required

Required

Required

Required

Required

Compliance Scorecard

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Purity Level to IP Cost/Bu. Illustration

$5.91$8.08 $8.37 $8.80

$10.55

$2.62

$2.27

$6.63

$9.20

$9.45

$0

$5

$10

$15

$20

$25

Purity Level Required

$/B

u. S

old

Profit/Bu.Costs/Bu.

Std IPT1 IPT2 IPT3 IPT4 n/a 5.0% 2.0% 1.0% 0.1%

$8.53

$10.35

$15.00

$18.00

$20.00

Cost-Benefit Analysis

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Future Direction

• Where are logistics and quality systems leading us?

– Upcoming Project—To determine traceability accuracy; from parent seed company to end customer—miller, barge terminal, and ethanol plant (including DDGS by-products).

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Logistics vs. Quality Systems

Current SituationStrained Safety/Quality and Logistic Systems.Current Food Safety is a Patchwork of Systems.Integrating Logistics and Quality Systems can

Create Synergies.Both Systems are Already Well Established.

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Supply Chain Logistics

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Quality Control Systems (QCS)

Approved

Approved

Approved

Approved

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Optimal Traceability Stems From:Well Connected/Interactive/Sharing of Data.Rigorous Auditing/Testing Tied to GS1 System Software.Effective & Efficient Synergies by Integrating Logistics &

Quality Systems.

Full-Body Traceability

Benefits of Integration:Logistics & QM Systems are Already Established—

No New Systems Are Needed.Improves Recall by Identifying Items that Are, from those

that Are Not, of Focus.The Strengthens of One Helps the Weaknesses of the Other.

Food & Agricultural Traceability ConferenceDes Moines, Iowa, USA

June 9 - 10, 2009 (Conference)June 11, 2009 (Workshop)

For more information on the Conference, Workshop, or to register, visit: http://www.extension.iastate.edu/grain

Interactive sessions focused on;• Adding value to agricultural commodity products using traceability.• Why adopt traceability?• What are risks and rewards of traceability for agricultural & food businesses?• How can traceability help meet the needs of modern food & agricultural businesses?

Solutions-Based

Available October 2009

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Thanks for Attending—Questions? Gregory S. Bennet gsbennet@iastate.edu Charles R. Hurburgh tatry@iastate.edu

Iowa State University Agricultural & Biosystems Engineering Department Iowa Grain Quality Initiative www.iowagrain.org

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Thanks Winnipeg—Go Boston