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Building Traceability (and Trust) across an
international supply chain
Dr Peter Stevens, CEO GS1 New Zealand
19 August 2015
© GS1 2015
The Pizza Game
• Simple Rules:
- 120 seconds to make the best pizza on your table
- You can trade ingredients – does not have to be 1 for 1
2
© GS1 2015
Agenda
• Why is traceability so much on (everybody’s) agenda?
• GS1
• WPC 80 and New Zealand’s response
• Key Concepts
• How do we enhance trust for NZ’s global customers?
3
© GS1 2015
Food scares
• “The Great BSE scare of 1986”
• “The Great Dioxin Scare of 1999”
• “The Great Sudan Red Scare of 2006”
• “The Great Seafood Scare of 2016”
© GS1 2015
Another drivers …
5
© GS1 2015
6
And yet another driver …
© GS1 2015
But wait there is more …
• EU 1169 –
Distance
Selling
legislation
7
© GS1 2015
The Guilt Club, Portland, Oregon
© GS1 2015
Agenda
• Why is traceability so much on (everybody’s) agenda?
• GS1
• WPC 80 and New Zealand’s response
• Key Concepts
• How do we enhance trust for NZ’s global customers?
9
© GS1 2015
GS1 - global reach, local presence
10
Global, not-for-profit and user-driven • Over 2 million companies use GS1 standards.
• Present in over 111 countries
• Serving more than 20 sectors
• Neutral platform for collaboration
• Standards & implementation support
© GS1 2015
Some of the world’s best-known companies sit on our Board
11
© GS1 2015
And locally … Our 2015 Board
© GS1 2015 13
The GS1 System of Standards
IDENTIFY CAPTURE SHARE
© GS1 2015
Agenda
• Why is traceability so much on (everybody’s) agenda?
• GS1
• WPC 80 and New Zealand’s response
• Key Concepts
• How do we enhance trust for NZ’s global customers?
14
© GS1 2015
1 February 2012 … 3 August 2013
15
© GS1 2015
Trust was damaged …
• Between regulator and regulator
• Between trading partner & trading partner
• Between supplier and consumer
• Key challenges were:
- WPC was a key ingredient used globally
- WPC is relatively low risk – what it is
used in can be high risk, with high risk
consumers
16
Financial Times, 31 Oct 2014
© GS1 2015
Ministerial Inquiry into WPC Incident
• “The findings point to serious deficiencies in
… traceability systems which took a confusing
16 days …”
• “…NZ’s traceability systems for dairy foods
(and ultimately other food sectors) can and
should be improved. Any upgrades will
require a collaborative approach … No single
participant can implement effective change in
such a complex environment”
17
© GS1 2015
Dairy Traceability Working Group
• “... consider the most appropriate
regulatory provisions for
traceability of diary products …
(“what” must be achieved)”
• “… consider a code of practice …
to guide industry in implementing
the requirements … “how” to
achieve it”
18
© GS1 2015
Agenda
• Why is traceability so much on (everybody’s) agenda?
• GS1
• WPC 80 and New Zealand’s response
• Key Concepts
• How do we enhance trust for NZ’s global customers?
19
© GS1 2015
Traceability as a Process
20
From : Producer-to-consumer Farm-to-fork Pasture-to-plate Tree-to-teeth Tackle-to-Laughing Gear Grass-to-arse
© GS1 2015
Party
Parties & Roles
• Manufacturer
• Transporter
• Retail /Food
Service Provider
• Authority
21
Role
• Brand Owner
• Traceable Item
Creator
• Traceability
participant (data
provider)
• Trace request
initiator
Quality Manager
Citizen
Employee
Mother
Wife
Party Role
© GS1 2015
Critical Tracking Events (CTEs)
• Product Creation/Repacking (Transformation)
- Origination (Create a unique identifier – Product enters supply chain)
- Aggregation (put discrete items together)
- Disaggregation
- Convert (repack or re-label)
- Commingle
• Product Shipping
• Product Receipt
• Product Depletion (Consumption and/or sale)
22
© GS1 2015
Key Data Elements (KDEs)
• Unique Product Identifier (WHAT)
- Product ID
- LOT/Batch/Serial Number
- Quantity
• Location Identification (WHERE)
• Date and Time (WHEN)
• Description (WHY - what was happening?)
23
© GS1 2015
External Traceability
• Shipment e.g. a
truckload
• Logistics Unit e.g. a
pallet
• Trade Item, e.g. a
Consumer Pack
24
© GS1 2015
Seafood specific requirements in some markets
• Including…
- Catch area
- Date of catch
- Species
- ID of fishing vessel
- Supplier
- Batch etc
- Production method / category of
fishing gear used
- Date of first freezing (un-coded)
25
© GS1 2015
Risk
1. Frequency of outbreaks and occurrence of illnesses
2. Severity of illness, taking into account illness duration, hospitalization and mortality
3. Likelihood of contamination
4. Growth potential/shelf life
5. Manufacturing process contamination probability/intervention
6. Consumption
7. Economic impact
26
© GS1 2015
Agenda
• Why is traceability so much on (everybody’s) agenda?
• GS1
• WPC 80 and New Zealand’s response
• Key Concepts
• How do we enhance trust for NZ’s global customers?
27
© GS1 2015
Interoperability – Market Access to Market Success
28
‘Classifying Things’ – product admission, risk assessment,
Enhances/replaces harmonized tariff codes
‘Identifying Things’ product admission, risk assessment
‘Knowing more about things’ – what is it?
‘Which item is it? - serialisation
‘Where has it been?’
‘Is it genuine? Is there a problem with it?’
© GS1 2015
The need – consumers, industry, authorities
29
Consumer Experience
Trust
Transparency Consumer Safety
Loyalty
Image
Product &
Transactional Data
© GS1 2015 30