dr. morgan swink professor tcu - scofoodservice.com · professor tcu sco enabling trust through...
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Food Service Traceability:
Morgan Swink, PhdEunice and James West Chair,
Professor of Supply Chain Management
Executive Director, Center for Supply Chain Innovation
Neeley School of Business, TCU
Compliance or Capability?
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How would you describe your approach to visibility?
1.Are you
complying.. to avoid liability?
2.Are you
strategically investing.. to
build capability?
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Topics1. Why traceability?
2. Current capability levels (operators’ view)
3. Challenges and needed next steps
What are the goals of your current strategy or approach to traceability?
“Investing in traceability is like
buying insurance –it’s something you
have to do to stay in this industry.”
Traceability
https://www.supplychainscene.org/resources/research/traceability-foodservice-opportunity-and-challenge
Brand and revenue benefits- Improved product information- Improved safety, brand protection- Improved sales support- Improved market testing, demand sensingCost savings and avoidance- More precise withdrawals- Reduced expediting, will calls, etc.- Reduced uncertainty, safety stock- Increased product weight, size invoicing accuracy- Reduced wastage, improved shelf life management- Identify quality issues, improve yield management- Greater picking, order accuracyOption value (future capabilities)- Dynamic inventory- Vendor managed inventory- Advanced planning systems / analytics- Automation: vision, robotics, etc.- Regulatory compliance and control
Costs (annual recurring)- Maintenance, updates, upgrades, replacement- Training- Labels and other consumablesRequired investments (non-recurring)- Software- System integration- Scanning hardware- Training- Creation of GTINs, GLNs, other standards
Costs
Bene
fits
Traceability capability
Small Chains (<100 locations), Medium Chains (200 – 5000 locations), and Large Chains (>5000 locations)
https://www.supplychainscene.org/resources/research/traceability-capability-foodservice-nra-survey-results
6%
36%42%
17%10%
43%37%
10%0% 8%
75%
17%
8%
36%43%
13%
FOR NO ITEMS FOR SOME ITEMS FOR MOST ITEMS FOR ALL ITEMS
Perc
ent o
f res
pond
ents
We can verify sources and locations of product at the batch/lot serial number level
Small Chain Medium Chain Large Chain Overall
14%
15%
25%16%
22%
10%
On average, how long does it take to acquire traceability information when
you need it?
Less than 1 hour 1 to 2 hours2 to 4 hours 4 to 8 hours24 hours 48 hours or more
https://www.supplychainscene.org/resources/research/traceability-capability-foodservice-nra-survey-results
Most chains can get track/trace data within one day, but:
1. Highly manual processes
2. Few operators manage the data
3. External traceability is more mature than internal traceability
4. Limited knowledge of affected stores
2%
5%
5%
26%
43%
43%
81%
0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Other Standard
Other tools/platforms
Standard registries
GS1 standards
Barcodes that have lot/batchand date information
Barcodes at case level
Existing manufacturer/distribution for systems
Q6 – What tools/platforms are you using to support traceability efforts
Very limited adoption of GS1
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Limited usage of GTINs by GS1 adopters
57%41%
51% 49%38% 40%
0%
10%
20%
30%
40%
50%
60%
What % of tradingpartners use
GTINS intransactions with
you?
What % of tradingpartners use GLNs
in transactionswith you?
What % of yourproducts are
labeled with aGTIN onlybarcode?
What % of yourproducts are
labeled with aGS1-128
barcode?
What % of yourdistribution systemis scanning GS1-128 barcodes for
traceabilitiespurposes?
What % of yourdistribution systemis scanning GS1-128 barcodes forother purposes(e.g., to gainefficiencies)?
Q9 – If you are using GS1:
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Challenges and Implementation Barriers
DEMONSTRATED NEED – WHO IS
DRIVING?
ROI UNCERTAINTY
COST AND BENEFIT SHARING
TECHNOLOGY READINESS
INCONSISTENT REQUIREMENTS,
STANDARDS, FORMATS
SYSTEMS RATIONALIZATION
TECHNOLOGY LIMITATIONS
“FUNCTIONAL” VIEW
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