How TechnologyCan Ensure Safe Feed

Presented by

Bob Luedtke, Sr. Solution SpecialistFeed Management Systems

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Booth # 5774

What We Will Cover Today

• Introduction to Feed Management Systems

• Bioterrorism and Regulations

• Business Challenges – Solutions – Benefits

• Value Proposition and Overview

• Feed Mill Manager Solution Overview

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• Feed Mill Manager Solution Overview

• Key Things to Consider

From Farm to Fork

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Ensuring Feed to Food

Safety

Feed Management Systems

• The world’s leading provider of software and services for formulation and

formula based manufacturing clients, targeting the global feed and food industry.

• The only integrated, scalable system for pricing, formulating, collecting,

managing and tracking “real time” data for the entire feed production cycle

based on Microsoft technologies.

• Helping customers leverage technology to ensure consumer confidence and

brand equity with their partners.

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brand equity with their partners.

• These solutions are sold in over 17 languages and supported locally through a

network of direct technical sales and resellers.

• Approaching 4,000 users worldwide, almost 60% of the worlds top feed

companies and ingredient suppliers are FMS customers.

Feed Market Proven Expertise

• Memberships– American Feed Industry Association (Technology Committee Member)

– National Grain & Feed Association

– Animal Nutrition Association of Canada

• Awards– 2 time winner of AFIA’s Innovation in Food Safety Award

• Participate Globally– FDA and International Feed/Food Safety Forums

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– FDA and International Feed/Food Safety Forums

– VIV Shows and Forums

– ASA and World Grain Council

– International Poultry Expo

• Influencer: Meetings– USDA, FDA, Homeland Security

• Market Proven– FDA has recognized the value of our

solutions delivering accurate, real-time data.

– Media reported FMS success in ruling-outthe feed supply as the BSE source

Providing Feed Solutions & Services

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Offering the only integrated industry

solution based on Microsoft technologies

Global Regulation Fundamentals: Tracking and Tracing

• Capability to track a product using one-up and one-down

rule combines collecting, organizing and retrieving

information

• Generally apply to all companies regardless of size

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• Manual recording approach to compliance is nearly

impossible

• Smaller companies have same requirements but with

fewer resources

FDA Bio-Terrorism Act of 2002

• Tracking and Tracing Requirements

– One-up and one-down

– Respond within 24 hours

– Phased Deadline – 06/06 (500>empl>10) and 12/06 (empl.<10)

• Record Keeping: Required Data

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– Vendor and supplier contact information

– Type of food; brand name and specific variety

– Date released; quantity and type of packaging

– Contact information for the immediate previous source and subsequent recipients

European Union Farm to Fork Principle

• EU Commissioner – Health & Consumer Protection

– 2000 White Paper on Food Safety: apply an integrated approach from farm to fork, covering all sectors of food chain including feed production, primary production, processing and distribution

• European Food Safety Authority Regulation 178/2002

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• European Food Safety Authority Regulation 178/2002

– Required to guarantee traceability at all stages

– Identify from what suppliers products were received

– Identify to what customers products are supplied

Manufacturing

Global market demands

Increasing Pressure

A challenging business environment

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Increasing Pressure for Cost Reductions

Quality Driven Compliance

A Challenging Environment

Mounting demand for new

product innovation

Competitive pressure to

meet customer demands

Across all business functions

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meet customer demands

Participating in a networked

supply chain

Operational productivity

challenges

ComplianceA Challenge or an Opportunity?

• A Challenge– Cost of compliance = is a cost of doing business

– Best strategy = meet regulations at lowest cost

• An Opportunity– A chance for improvement

– An investment in meeting other business needs and objectives

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– An investment in meeting other business needs and objectives

– The Strategy becomes: the ability to leverage the investment in compliance systems and procedures for business progress

Generalize

Requirements

Match with

Business Needs

Opportunity

How Does TechnologyMake A Difference?

In the 80’s & 90’s, universities did not teach us to relate to technology as a strategic weapon in our business

All that has changed…

– Critical for business owners to gain knowledge in this arena

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– Learn enough about IT at a high level to manage the IT function as strategic, not a black hole

– Will give you control over all facets of business, integrity of policies, mine the data, analyze and make decisions faster

How Does Technology Impact Safe Feed?

Ensure Regulatory Compliance

Track and trace, labeling, lot tracking, inventory control, reporting

Improve productivity and empower employees

Streamline and automate business processes

Enable insight into business with powerful analysis tools

Connect you with your customers and partners

Understand your customer base and provide world class service

Streamline production formulas, purchasing, order processing, inventory

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Streamline production formulas, purchasing, order processing, inventory

budgeting, etc…

Industry solution that provides a stable, reliable, secure environment

Built on a solid foundation with wide-spread support

Adaptable to your business needs

Integrate all areas of business

Inventory, Production, Finance, Budgeting, Sales & Marketing,

Payroll, Customer Service

Where to Start

Laying the proper IT foundation

• Change and adapting is then possible, in most cases not that expensive

• Flexible, common structures allow you to easily maintain and meet different compliance requirements

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maintain and meet different compliance requirements without expensive and complex custom solutions

• The Foundation is a database, example Microsoft SQL Server

• Collection, maintenance, manipulation of database provides strategic edge

� Lack of integration across the company’s

Instant visibility into customer and inventory data boosts

customer satisfaction and company profitability

� Microsoft Business Solutions–Great Plains

� Order time reduced by 80%

Solutions

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� Lack of integration across the company’s IT systems

� Data entry and reporting was done manually and error prone

� Poor customer service because of no visibility into historical information

� Microsoft Business Solutions–Great Plains

� Feed Management Systems – Feed Mill Manager

� Information is available at the fingertip

� Integration of systems

� Manual processes were automated

� Order time reduced by 80%

� Improved customer service

� Redeploy employees who used to enter orders manually

� Management reporting of margins allows for improved profitability

Stronger Security

Why Microsoft?

Protect my data

Increase economic value Best value

Customer RequirementCustomer Requirement Microsoft CommitmentMicrosoft Commitment

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Reduce downtime

Leverage existing assets Interoperability

Reliabilityand Availability

IntegratedInnovation

Connect with customers (Revenue)Integrate with partners (Profitability)Empower employees (Productivity)

Feed Mill Manager

Feed Mill Manager• Integrates production, formulation,

manufacturing and accounting

• Process feed orders from order entry

to invoicing

• Manage Inventories

• Versatile, automatic feed pricing

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• Versatile, automatic feed pricing

• Extensive Management Reports

• Manages Compliance and Regulation requirements

• Improves customer service - Grain Bank, Customer

Sales Contracts and Animal Group Tracking

• Available in English and now Spanish language versions

• Scalable, integrated Microsoft platform

• Utilizing the ERP leader - Microsoft Dynamics GP

Customer Benefits

• Accurate and timely information

• Increased customer confidence with a complete tracking

and traceability system

• Efficient feed order processing from order entry through

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• Efficient feed order processing from order entry through

production and invoicing. Ensures the right product at

the right price at the right time

• High quality products due to management and control of

production formula

Here’s a snapshot of how FMS integrates information…

Here’s a snapshot of how FMS

integrates and tracks

Real World Performance

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integrates information…

information in real-time…

Feed Mill Manager andMicrosoft Dynamics GP

Feed Manufacturing and Customer Service

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It All Begins Here

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Cradle to Grave Lot Tracking

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Business Rules and Lot Numbers

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Lot Tracking Reports

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The Audit Trail

• Feed Mill Manager tracks and stores information “One

step forward and one step backward” in the process.– Ingredient information, including vendor and lot numbers, are tracked

from purchase through manufacturing.

– Finished feed information, including customer and lot numbers, are

tracked from feed order through manufacturing to delivery to a

specific animal group.

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IngredientSupplier

FeedCompany

Producer AnimalsPackingProcess

RetailChannel Consumer

Determine other products and other affected consumers

Determine the source of problem

The Audit Trail

Report on what formulas were delivered

Notified of problem

Report on what ingredients

were delivered

Wrong formula or ingredient delivered?

Test ingredients

These are the steps that an

investigation has followed with several

of our customers.

Using our Feed Mill Manager software

our customers were able to easily and

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Report on source of ingredients

Test ingredients

What other producers are affected?

Report on what formulas used the ingredient

Report on what producers purchased feed

Notify producers

our customers were able to easily and

quickly provide the inspectors with the

required information.

Feed Mill Manager reports are used to

provide information to the inspectors.

Key Things to Consider in Your Solution

• Business Value of Compliance

• Improved Compliance and Business Processes

• Improved Product Quality

– Builds links between suppliers, products and customers on a lot-by-lot basis

• Effective Pricing Through Improved Cost Management

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• Effective Pricing Through Improved Cost Management

– Addressing margin pressures

– Compliance drives improved cost information

• Improved Customer Service

– Data available to customer

• Competitive gain by better business management

Ensuring Safe Feed with Technology

• Integrated Feed Manufacturing Solution

• Based on Microsoft technology for easy adoption

– Minimal investment, significant ROI

– Seamless and intuitive solution that doesn’t require training

for every user

• Immediate tangible value

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• Immediate tangible value

– See immediate benefit from technology and compliance

investment

• Extensible for ongoing compliance improvements

– Over time, solution may be flexibly integrated into

a broad range of systems

Thank YouIf you have any questions, please stop by our booth

Software Solutions For Feeding Our Growing World

Visit Us At

Booth # 5774

www.feedsys.com www.feedsys.com