Dr. Morgan Swink Professor TCU SCO enabling trust thro ugh - PowerPoint PPT Presentation

Dr. Morgan Swink Professor TCU SCO enabling trust thro ugh visibility 2.0

F o o d Se rvic e T rac e ab ility: Co mplia nc e o r Ca pa b ility? Mo rg a n Swink, Phd E unic e a nd Ja me s We st Cha ir, Pro fe sso r o f Supply Cha in Ma na g e me nt E xe c utive Dire c to r, Ce nte r fo r Supply Cha in I nno va tio n Ne e le y Sc ho o l o f Busine ss, T CU SCO e na b ling trust thro ug h visib ility 2.0

Ho w wo uld yo u desc ribe yo ur appro ac h to visibility? 1. 2. Are yo u Are yo u c o mplying strate gic ally .. to avo id inve sting.. to liability? build c apability? SCO enabling trust thro ugh visibility 2.0

T o pic s 1. Why trac e ability? 2. Curre nt c apability le ve ls (o pe rato rs’ vie w) 3. Challe nge s and ne e de d ne xt ste ps

What are the go als o f yo ur c urrent strategy o r appro ac h to trac eability? “I nvesting in trac eability is like buying insuranc e – it’s so mething yo u have to do to stay in this industry.”

Br and and r evenue benefits T rac e ability - I mpro ve d pro duc t info rmatio n Be ne fits - I mpro ve d safe ty, brand pro te c tio n - I mpro ve d sale s suppo rt - I mpro ve d marke t te sting, de mand se nsing Co sts Cost savings and avoidance - Mo re pre c ise withdrawals - Re duc e d e xpe diting, will c alls, e tc . Costs (annual r ecur r ing) - Re duc e d unc e rtainty, safe ty sto c k - Mainte nanc e , update s, upgrade s, - I nc re ase d pro duc t we ight, size invo ic ing re plac e me nt ac c urac y - T raining - Re duc e d wastage , impro ve d she lf life - L abe ls and o the r c o nsumable s manage me nt R equir ed investments (non- - I de ntify quality issue s, impro ve yie ld r ecur r ing) manage me nt - So ftware - Gre ate r pic king, o rde r ac c urac y - Syste m inte gratio n Option value (futur e capabilities) - Sc anning hardware - Dynamic inve nto ry - T raining - Ve ndo r manage d inve nto ry - Cre atio n o f GT I Ns, GL Ns, o the r - Advanc e d planning syste ms / analytic s standards - Auto matio n: visio n, ro bo tic s, e tc . - Re gulato ry c o mplianc e and c o ntro l https://www.supplychainscene.org/resources/research/traceability-foodservice-opportunity-and-challenge

T rac eability c apability We can ver ify sour ces and locations of pr oduct at the batch/ lot ser ial number level 75% Percent of respondents 43% 43% 42% 37% 36% 36% 17% 17% 13% 10% 10% 8% 6% 0% 8% FOR NO ITEMS FOR SOME ITEMS FOR MOST ITEMS FOR ALL ITEMS Small Chain Medium Chain Large Chain Overall Small Chains (<100 lo c atio ns), Me dium Chains (200 – 5000 lo c atio ns), and L arge Chains (>5000 lo c atio ns) https://www.supplychainscene.org/resources/research/traceability-capability-foodservice-nra-survey-results

On average, how long does it take to Mo st c hains c an ge t acquire traceability information when trac k/ trac e data within you need it? o ne day, but: 10% 1. Highly manual pro c e sse s 14% 2. F e w o pe rato rs manage 22% 15% the data 3. E xte rnal trac e ability is 16% 25% mo re mature than inte rnal trac e ability Less than 1 hour 1 to 2 hours 2 to 4 hours 4 to 8 hours 4. L imite d kno wle dge o f 24 hours 48 hours or more affe c te d sto re s https://www.supplychainscene.org/resources/research/traceability-capability-foodservice-nra-survey-results

Very limited ado ptio n o f GS1 Q6 – What tools/ platfor ms ar e you using to suppor t tr aceability effor ts Existing manufacturer/ 81% distribution for systems Barcodes at case level 43% Barcodes that have lot/batch 43% and date information GS1 standards 26% Standard registries 5% Other tools/platforms 5% Other Standard 2% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% SCO enabling trust thro ugh visibility 2.0

L imited usage o f GT I Ns by GS1 ado pters Q9 – If you ar e using GS1: 60% 50% 57% 51% 40% 49% 41% 40% 30% 38% 20% 10% 0% What % of trading What % of trading What % of yo ur What % of yo ur What % of yo ur What % of yo ur partners use partners use GL Ns produc ts are produc ts are distributio n syste m distributio n syste m GT I NS in in transac tio ns labeled with a labeled with a is sc anning GS1- is sc anning GS1- transac tio ns with with you? GT I N only GS1-128 128 barc o de s for 128 barc o de s for you? barc ode ? barc ode ? trac eabilities other purpose s pur po ses? (e.g ., to g ain effic ie nc ies)? SCO enabling trust thro ugh visibility 2.0

Cha lle ng e s a nd I mple me nta tio n Ba rrie rs DE MONST RAT E D ROI COST AND T E CHNOL OGY NE E D – WHO I S UNCE RT AI NT Y BE NE F I T SHARI NG RE ADI NE SS DRI VI NG? “F UNCT I ONAL ” SYST E MS T E CHNOL OGY I NCONSI ST E NT VI E W RAT I ONAL I ZAT I ON L I MI T AT I ONS RE QUI RE ME NT S, ST ANDARDS, F ORMAT S SCO e na b ling trust thro ug h visib ility 2.0

Que stio ns? Co mme nts? SCO enabling trust thro ugh visibility 2.0