benefits of integrating traceability-exact-nick-mears-ohio

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MODERNIZING THE SUPPLY CHAIN:

Benefits of Integrating Traceability in Manufacturing

2Modernizing the Supply Chain: Benefits of Integrating Traceability in Manufacturing

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As connectivity become ubiquitous, so manufacturers are presented with a tremendous opportunity to improve efficiencies across their businesses. From integrating various order, tracking and quote systems, to ensuring that employees in the field have all the information they need on their mobile devices, the time to implement modern solutions is now. “What is connectivity? Well, to the user world, it could mean mobile devices, but in the back office world it could mean APIs [Application Program Interface] and how we connect and integrate with third-party products,” said Dan Griffin, Director of Product Management and Product Marketing, Exact Macola.

Connectivity has not only become ubiquitous in today’s day and age, but it has become the global standard of how manufacturers operate.

Getting, analyzing and using information is key to the current and emerging technologies that CEOs see as most important. How strategically important are the following categories of digital technologies for your organization?

81% Mobile technologies for customer engagement

80% Data mining and analysis

78% Cyber security

65% Internet of Things

61% Socially enabled business

processes

60% Cloud computing

47% Battery and power technologies

37% Robotics

33% Wearable computing

27% 3D printing

*Data based on research conducted by PwC’s 18th Annual Global CEO Survey (2015)

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“For users, connectivity is just sort of becoming an expectation outside of the realm of ERP and manufacturing. So, even if we are talking about something specific like traceability, inventory con-trol, and things that happen on the shop floor, there’s an expectation today that that information is available on a mobile type of platform,” said Dave Dozer, Senior Product Manager, Exact Macola.

This user expectation holds limitless potential for manufacturers to improve efficiencies across their business. What is Traceability?“In our world, traceability is defined as the ability to see the life cycle of a product all the way from the supply chain side through manufacturing and on to distribution,” said Dozer.

This would encompass the ability to track any raw materials that are in use all the way to the finished goods (and then back in the other direction). Traceability helps you to see the whole life cycle of the material: where it has been used and where it has gone.

“You know where everything is at any given time. Then, if there’s an event after something’s been shipped out, through that linkage you can see the source, or the root cause, of any sort of issues,” added Dozer.

The systems for traceability can be complex, but knowing where to start can make all the difference.

“A typical traceability system will start with the creation of invento-ry items and bills of material that reflect the objectives and possi-ble scenarios for potential uses of a traceability capability,” said Russ Lesko, Principal Consultant, Presales, Exact Macola. “From that, the appropriate amount of procedures, training, and technol-ogy will ensure that all traceabil-ity objectives and requirements are being met. Technologies may also include barcode scanning to record key traceability data.”

“In our world, traceability is defined as the ability to see the life cycle of a product all the way from the supply chain side through manufacturing and on to distribution.”

Modernizing the Supply Chain: Benefits of Integrating Traceability in Manufacturing


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According to Bob Combs, Principal Consultant, Presales, Exact Macola, a successful traceabil-ity system is capable of tracing via lot or serial number from receipt to shipment. A successful traceability system records required quality data as related to lots and serial numbers and also provides reports on demand with all data required to complete effective recalls.

“Automation would also be desirable to reduce the need of manual intervention to collect data through both machines and other interfaces,” he adds. “In other words, a completely closed-loop system.”

The Impact of Mobile Devices on TraceabilityLike other industries, the manufacturing industry has also been significantly impacted by mobile technologies, specifically mobile devices.

“I think we’re so used to having everything from Facebook, to making dinner reservations, to buying t-shirts online—all of which we can do from a mobile device. It almost seems antiquat-ed or backwards to tell somebody they have to be at a terminal inside the brick and mortar walls of their business to be able to look up information about where a workshop order is or what their inventory levels are—or, for traceability, if they need to pull up a serial number or a batch,” said Dozer.

Essentially, mobile devices provide visibility on traceability data at anytime and anyplace, which enables faster and more accurate decision-making for businesses.

“Wireless barcode scanning has had a great impact on recording product attributes that are critical to traceabili-ty,” said Lesko. “RFID and QR code technology are areas that experts in the barcode scanning industry are cur-rently studying. Smartphone and tablet scanning possibil-ities are emerging as well to further augment recording of product attributes required for traceability.”

“Wireless barcode scanning has had a great impact on recording product

attributes that are critical to traceability.”


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Some of the key benefits to having mobile access to traceability include:

• Visibility of serial/lot data from anywhere and at any time

• Quality data as close to the actual movement of material as possible

• Visibility of key performance indicators (KPIs) that have direct effects on traceability

• Scanning capabilities provided by mobile devices

• Removal of manual entry of critical product attributes required for traceability

• Ensuring the timeliness and accuracy of data

In order to have anywhere mobile access in a company’s traceability system, however, there are a few key steps, such as the deployment of compatible mobile-based applications or browser-based applications; ensuring complete network security; and accessing data on mobile devices at all levels of the traceability system.

Digital investments to create customer value are paying off – with a positive impact for cost structures too. To what extent are digital technologies creating value for your organization in the following areas?

Operational efficiency

Data and data

analytics

Customer

experience

Digital trust

including cyber security

Innovation

capacity

44%

40%

37%

37%

40%

44%

45%

40%

35%

31%

88%

84%

77%

72%

71%

Quite high value Very high value



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Traceability solutions, according to Combs, that companies ought to utilize (and must be fully integrated) are:

1. Inventory management

2. Warehouse management system

3. Multi-binned warehouse control

4. Lot/serial control integrated through entire supply chain

5. Manufacturing collection and cost accounting

6. Warranty tracking

7. Recall management

8. BI reporting

And, to top it off, all of these solutions need to be accessible through a mobile device.

Recalls: Why Traceability is a MustThe first application of traceability that most people tend to think of is for recalls, and with good reason.

“Not having that data [where a product is in the supply chain] leaves you open to lawsuits and liabilities that can literally sink your business,” said Griffin. “In 2016, it’s not acceptable to be a food distributor and not know where every can or every delivery of your stuff is going. Because, if there is a recall, that is such a huge risk exposure and financial exposure to your business.”

“I don’t think it’s ‘should you be using traceability,’” he adds. “If you’re not using traceability, you’re risking your entire business in exposing yourself to liability concerns.”

“It’s not just a nice thing to do,” said Lesko. “It’s a requirement for certifications.”

One of the most critical issues that exists in manufacturing industries—particularly pharmaceutical and food—is maintaining compliance requirements.

“If you fail to do that, you could put yourself out of business. In addition to all the monetary impact of having to do those recalls, there’s the basic fact of having to be able to exist within a regulated industry that requires these things,” said Lesko.

Although some companies have adopted fully-integrated traceability systems, the majority of companies (especially small- and mid-sized companies) still attempt to use other means, such as paper and non-integrated methods, for traceability—producing reports manually from data collected. In some cases, they may leave the results on paper with no compiled results.


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“This leaves companies exposed to risks related to not having efficient systems designed to assist in recalls to reduce or prevent the effects on consumers and on the company’s reputation,” said Combs.

If product recalls are required, Lesko added, all reliable and actionable traceability data must be immediately and easily available.

“Just one recall could damage your reputation or your brand—and that would be irreparable,” said Dozer. “The legal costs that are behind a recall or the consequences of not having traceability can be astronomical. They can destroy your company also.”

,CEOs are realizing value from digital technologies across their organization. To what extent are digital technologies creating value for your organization in the following areas?

Operational efficiency

Data and data analytics

Internal/external collaboration

Customer experience

Digital trust including cyber security

Innovation capacity

Brand and reputation

Sourcing and supply chain

management Distribution capabilities

Strategic decision-making

Finding, developing, and

retaining talent Risk-taking decisions

44%

40%

49%

37%

37%

40%

40%

42%

39%

39%

40%

37%

44%

45%

28%

40%

35%

31%

23%

27%

24%

18%

19%

31%

Quite high value Very high value



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Beyond Recalls: The Upside to TraceabilityBut traceability isn’t all doom and gloom—or trying to avoid what may feel like the apocalypse. There is also an upside to having traceability.

“Traceability evolved in different ways in different industries. Some industries employed it to track warrantees,” said Lesko. “Some people might do it from a marketing standpoint—to be able to know what consumers have their products.”

Other companies may utilize traceability for the following reasons:

• Knowing your customers and marketing better to them

• Increasing the efficiency of marketing and sales

• Using automation to alert your customers that their warrantee is about to expire (which, in turn, drives warrantee renewal)

“Certainly traceability is tied to ‘what if we have to do a recall,’” said Griffin. “But there’s also the bright side of traceability. Traceability can help you not lose money and not be liable, but it can also help you make money.”

For things such as Fair Trade goods, you are guaranteeing a specific supply chain—that certain products are coming from certain providers. This would also go for products that are vegan, organic, made in a facility that doesn’t manufacture peanuts, and so on.

Furthermore, it is important to note that a company’s ability to manage a recall in a quick and effective manner—thereby reducing or eliminating the impact of that recall on consumers—can be a positive thing.

Traceability helps companies handle the unpleasant parts of the business—such as recalls—in such a way that it doesn’t have to be destructive to the company. Instead, it not only helps to address potentially negative outcomes, but it gives a company a hand up in personalizing their products to their customers and providing a positive experience that has consumers coming back for more.


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About i-Report Advantage Business i-Reports present fresh research and analysis on compelling and timely industry topics.“Modernizing the Supply Chain: Benefits of Integrating Traceability in Manufacturing” was prepared by Advantage Business Media Manufacturing Group Editor Meg LaTorre-Snyder.

About the Author Meg LaTorre-Snyder is the Editor of Pharmaceutical Processing and oversees the development of the editorial content for the print, web, and e-newsletter offerings. She also helps facilitate the editorial content for INTERPHEX—specifically the Show Dailies—in addition to INTERPHEX Live (a live technical talk show with industry experts). A huge proponent for the Oxford comma and em dash, Meg is a journalist and medical writer with a background in news features and has written on disease states for a variety of medical specialties, such as rheumatology, neurology, obstetrics,

psychiatry, primary care, as well as others. About MacolaMacola (www.macola.com) is an ERP and business software that manufacturers and distributors use to automate, manage, and grow their businesses. The software empowers companies to take control of cost and complexity at every critical stage from design through delivery and see all facets of their business from a single application. Macola is an Exact product. Exact builds business software for SMEs and their accountants.

About Advantage Business MediaAdvantage Business Media (www.advantagemedia.com) is a data-driven marketing solutions company leveraging content, technology, and business intelligence to match its audience’s job performance needs with its clients’ solutions. With a diversified portfolio of highly focused websites, e-newsletters, print publications, specialized directories, vertical search databases, conferences, ancillary media vehicles, and associated web-based services, ABM serves more than one million industry professionals in the manufacturing, science, and design engineering markets.

For more information, visit www.advantagemedia.com.

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