Traceability Primer
Jun 14, 2015
Traceability Primer
Supply chain actors implement traceability standards, processes and best practices to meet a wide array of business, technical and regulatory requirements. Traceability is also a very effective management and governance tool that can be integrated into the existing business processes and extended supply chains activities of any company. Enabling standards-based traceability brings about seamless interoperability between supply chain actors. It also delivers enhanced visibility into an actor’s supply chain activities: from receiving of products or components to production, warehousing, and dispatching of products to other supply chain actors or directly to end consumers. When reviewing specific needs, actors will implement various levels of product traceability to enable those needs.
Drivers for Implementing Traceability Best Practices
Traceability & Industry Standards
Supply chains can be global and complex. There is not one simple schema describing who is involved in the supply chain, from upstream to downstream in all industry sectors. Yet, there are typical roles and functions in all supply chains. By the time a consumer product is purchased, consumed or used, it may have gone through a number of supply chain events and physical transformations. Each event or transformation may have involved a number of different actors. Tracing the products history becomes a critical and urgent requirement when an unsafe product has caused harm to a consumer or user of the product.
Traceability DefinitionTraceability is the ability to trace the history, application or location of that which is under consideration. (ISO9001:2000)
4
UPSTREAMSUPPLIERS
INTERNALManufacturing / Assembly &
Storage
DOWNSTREAMCLIENTS
ENABLE DOWNSTREAM TRACEABILITYENABLE UPSTREAM TRACEABILITY
Traceability: Generic Principles & Aims
ENABLE INTERNAL TRACEABILITY
INTERNAL TRACEABILITY
5B2
Organisations
Organisations with defective products
Product Flow
A3 B2 C1 D1 E3
A2
A4
A5
A1
B1
B3 D2
D3
E2
E1
E4
E5
A6
C2
B4
E6
Manufacture 1st processor 2nd processor Distributor Point of Sales
TRACING (to trace backwards)
Traceability – General Principles & Aims
6
A3 B2 C1 D1 E3
A2
A4
A5
A1
B1
B3 D2
D3
E2
E4
E5
A6
C2
B4
E6
TRACKING (to track forward)
Traceability – General Principles & Aims
Manufacture 1st processor
2nd processor Distributor Point of Sales
B2
Organisations Product Flow
Defective Product Flow
Organisations with defective products
Terminology Challenge
Product supply chains involve many actors – from brand owners, own-brand retailers, designers, manufacturers, contract manufacturers, producers, value-added services providers, distributors, retailers, Internet retailers, importers, brokers, carriers, third-party logistics, product safety testing and certification bodies, and many others. Although these terms for actors are commonly used, they may:- be used in different ways depending on the context, reference document and
associated definitions;- cover various functions as actors may perform a range of functions (e.g. a
retailer can play the role of an importer and a brand owner of own-branded goods identical to, and owned by, other parties, but will have different identification codes);
- have legal implications for reporting of unsafe products and remedying the issue; and
- have legal and financial liability associated with them that requires risk assessment and product liability insurance coverage for both the physical product and possible litigation.
Traceability Data – can be both public and private
Master Data: permanent/lasting nature, relatively constant across time, not subject to frequent change, accessed/used by multiple business processes and system applications, neutral/relationship dependent
Transactional Data: created during the physical flow of goods, can only be collected when events occur.
Building Safe & Secure Supply Chain is multi-faceted
Cumulative tracking
Single source data base
Distributed Information SourcesOr « traceability network »
One up – One down
Types of Traceability networks
For limited communities
Driven by regulations
The optimum model for the
future ?
Next Generation Strategy: “Value Traceability”
supply chainoptimizationcompliance
branding&
marketingrisk reduction
Reduce Risk
Asset Optimiz.
Increase rev.
Lower costs
Delivering….
Consumer Focus
100% Perfect Recall
100% Traceability
Differentiation
Compliance Traceability
While compliance and risk reduction aspects can be critical, they do not encourage investments beyond the required minimum
FOCUS:stay in business
FOCUS:increase value
Value Traceability