How Traceability Creates Profitability
Post on 27-Jun-2015
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How Traceability Creates Profitability
with Judith Kirkness
Judith Kirkness Small Business Owner Over 20 years experience
working with food manufacturers Use software and technology to
solve problems, gain efficiencies Lifelong learner Author
Traceability Perception
It’s just a Cost
Something QA/QC takes care of
Requirement of GFSI certification
Done to satisfy the government inspector
Traceability Opportunity
Given that you are tracking the information anyway, how can you get it working for you for a competitive advantage?
The Government Goals (as I see them)
• Increase Jobs (stimulate our economy)
• Increase skill set of Ontario workers• Ensure safe foods (for us and to preserve
Canadian reputation)
• Encourage Entrepreneurship (small business are the current job creators)
• Improve labour productivity• Help you sell more
Growing Forward 2 – funding for traceability technology• ERP• Traceability software, inventory/warehouse management• Customization of existing software to get programs connected• Network server installation• Hardware: label printers, barcode/RFID scanners for
traceability use• Mobile devices for traceability collection• Cables and wiring to get hardware connected• Enclosures to protect traceability equipment• Integration Consulting and services for the above• Training your staff and management
Will implementing technology produce the desired outcomes?
• ERP• Traceability software,
inventory/warehouse management• Customization of existing software to
software pieces talking• Network server installation• Hardware: label printers, barcode/RFID
scanners for traceability use• Mobile devices for traceability collection• Cables and wiring to get hardware
connected• Enclosures to protect traceability
equipment• Integration Consulting and services for the
above• Training your staff and management
• Increase Jobs (stimulate economy)
• Increase skill set of Ontario workers
• Ensure safe foods (for us and to preserve Canadian reputation)
• Encourage Entrepreneurship• Improve labour productivity• Help you sell more
The Operational Traceability Flow
When Traceability is tested…
Canadian recalls for year ending March 2012
142 allergen related
24 due to chemical residue
31 due to extraneous matter
104 due to microbiological or other food safety concern
301 Recalls total
Recall reporting is the most important feature for protecting your brand – time is of the essence
Being able to pull product quickly is the usually the least used feature of automated traceability
We hope you do more mock recalls than real ones!
So traceability collection needs to offer more to be of value…
It can!
Bringing information together for analysis can improve your business in meaningful ways!
The actual lot number information won’t help, it is the information the collection process can offer that can be so valuable
Let me share 5 ways…
Food fraud, allergen and product claim recall prevention
Item attribute and item substitution tracking/alerting, supplier approvals
Food Safety• QA/QC Information storage• Use information for release of product for
sale• Produce the specific Certificates of
Analysis (CofA’s) for each shipment• Linking batches to their test results should
there be a problem with a finished good
Knowing your true costsHow are you calculating your costs now?
In your head?Using spreadsheets?With pen and paper?
ERP Costing• What goes into your raw material costs?
(landing factors)
• Do you assemble or disassemble products, or both?
• Costing by batch is a RESULT of entering quantities of inputs and outputs
• Timely, accurate and also depletes raw materials or WIP as it creates finished goods
Yield Calculations
• Regular, timely comparison of inputs vs. outputs
• How did yield knowledge help Halenda’s?
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?
Theft plus dated and damaged product
• 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
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, PLC’s) feeding your
ERP system• Touch screen plant floor weigh/label stations• Mobile worker tablets, scanners, and printers
Remove the Silos of Information
Scanning – How ready are you?
• Supplier labels?• Your labels• Your facility – slot or location labels• Label printers for GS1-128
Scanning Technology
1. Choose your software first
2. Don’t skimp on infrastructure (wireless network)
3. Get the right handheld or scanning devices for your environment
Mobile Workers
• Tablets• Cellular handhelds• Mobile printing
Your Game PlanWe all compete against worldwide players. To win,
you need a goal, a plan, people given the right training, time to develop and leadership to WIN.
Use Traceability Information as your Edge
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