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18 - Innovating Food, Innovating the Law - Timpano e Lanini

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Piacenza, October 14, 2011 "Innovating Food, Innovating the Law" Conference FRANCESCO TIMPANO and LUCA LANINI (Università Cattolica del Sacro Cuore, Italy) Traceability at the interface between economics and the law Slides: http://vimeo.com/31449386
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  • 1. Innovating Food, Innovating the Law An interdisciplinary approach to the agro-food sector Universit Cattolica SC Piacenza, 13-14-15 October, 2011 Traceability at the interfacebetween economics and the law 1
  • 2. Key word, Key concept Traceability between law and market Traceability, essential lever for the competitive advantage in the supply chain ICT, conditio sine qua non for implementation and utilization traceability The problem : upstream and downstream along the Supply Chain State of the art: difficulties for a perfect management of rapid alerts and delays in ICT Economic outlook: the critical economic scene makes it hard to find further investments for the best ICT management: the withdrawal for rapid alert is still very expensive [email protected] [email protected] 2
  • 3. Reflexions plan The two dimensions of traceability: the health dimension (quality control and food safety) the economic dimension, as a competitive market lever ( the differentiation by value according to M.PORTER e M.CHRISTOPHER) The health dimension is fundamental in international regulations (Reg 178/2002) The economic dimension is linked to the RETAIL FOOD STANDARD dictated by the downstream operators of the supply chain (BRC, IFS, GLOBALGAP) Implementation of traceability systems is linked to ICT spread. Without ICT, tracing is not possible. This concept has never been written in REGULATIONS, but its the actual LEVER of the competitive advantage. [email protected] [email protected] 3
  • 4. Traceability between LAW and MARKET Traceability is an obligation for the European legislator (its an essential food safety instrument) Traceability is a fundamental requirement in retail food standards (BRC, IFS, GLOBALGAP) Traceability is a fundamental requirement in the voluntary regulations of ISO systems (ISO 22000)CIES - Food Business Forum its an independent network formed by 175 retailers and 175 suppliers in 150 countries worldwideGFSI - Global Food Safety Initiative , project within CIES (created in Geneva, 2002) [email protected] [email protected] 4
  • 5. Traceability for IFS, BRC and ISOIFS point 4.18 requirement K.O. n 3ITA lorganizzazione deve definire un sistema di rintracciabilit che permetta lidentificazione dei lotti di prodotto e la loro relazione con le partite delle materie prime, dei materiali di confezionamento primario e dellunit di vendita destinata al consumatore finale, con le registrazioni relative alla fabbricazione e alla distribuzioneBRC-FOOD point 2.13 fundamentalITA lazienda deve avere un sistema che abbia la capacit di rintracciare e seguire tutte le materie prime (incluso il materiale di imballaggio primario) dallingresso in tutte le fasi del processo e della distribuzione del prodotto finito al consumatoreISO 22000 FSMs Food Safety Management Systems - 7.9 Traceability SystemITA Lorganizzazione deve stabilire a applicare un sistema di rintracciabilit che consenta lidentificazione dei lotti di prodotto e le loro relazioni con i lotti delle materie prime, con le registrazioni di processo e di consegna. Il sistema di rintracciabilit deve essere in grado di identificare i materiali in ingresso dal fornitore diretto e il percorso iniziale della distribuzione del prodotto finito. [email protected] [email protected] 5
  • 6. The state of the art: Is everything ok? In 2005 the regulation 178/2002 became mandatory and the food traceability has become a conditio sine qua non of the international relations (BRC, IFS, GlobalGap), regardless of the reg. 178 ! The implementation of traceability systems seems (apparently) concluded but its not so simple to speak about the concrete reliability of these systems !! In general, in view of an Alert problem, many daily lots of products are withdrawn as a safety measure but in reality an efficient traceability system would noticeably reduce withdrawals (with a concrete saving of costs as a result) [email protected] [email protected] 6
  • 7. Physical and information flows:the double challenge of traceability Developing a traceability system along the supply chain consists in systematically connecting an information flow with a physical one Since the implications of food risk management are increasing, a new positioning of the whole supply chain is required in relation to the information management [email protected] [email protected] 7
  • 8. Widely shared opinions Traceability is an extraordinary competitive advantage instrument a competitive advantage that is totally based on the information control and management with an important interaction with logistics and that requires an strong cooperation among all the operators (general exchange of data) [email protected] [email protected] 8
  • 9. The additional (and expected)advantages of traceability Improvement of client/supplier relationships Openness Supply Chain rationalization and consequent cut in costs [email protected] [email protected] 9
  • 10. Why should we track & trace? To reduce the costs of product recall andwithdrawal in the management of rapid alerts 1990: Benzene contamination Withdrawal of the whole production all over the world Operation cost: 150 thousand Euro The firm is taken over by Nestl 1999: sulphur poisoning and presence of a fungicide Withdrawal of 50 million tins Operation cost: 1 million Euro Loss in the share price: around 50-70 million US$ 2000: LYSTERIA MONOCITOGENES in pig by-products The companies Coudray and Systme U were sued 10 [email protected] [email protected]
  • 11. Rapid alert: the difference betweenwithdrawal and recallWITHDRAWAL Every measure able to prevent the product retailing, display and offer to the consumerRECALL Every measure able to succeed in the removing of a dangerous product with which the supplier or the distributor has already supplied or provided the costumer [email protected] [email protected] 11
  • 12. How to deal with a RAPID ALERT ? Consumer complaint (lot) Client complaint (bar code, pallet,) Identification of the suspect LOTS along the supply chain (stores, logistic platforms, etc.) WITHDRAWAL and RECALL Investigation among the suppliers [email protected] [email protected] 12
  • 13. [email protected] [email protected] 13
  • 14. Internal traceabilityBottom-up traceability Top-Down traceability Internal traceability Upstream traceability Downstream traceability [email protected] [email protected] 14
  • 15. Tracking & Tracing Upstream Downstream Raw Food industry Logistic Storematerials and Logistic platform Packaging platform Store ISO 8402 Consumer Theability to trace the history, application or location of an item or activity by means of documented source: recorded identification [email protected] [email protected] 15
  • 16. PRODUCT TRACEABILITY Qualitative way Ability to trace the origin and the features ofproducts in every point of the supply chain TO FIND THE CAUSES OF A QUALITY PROBLEM Ability to trace the location of products in every point of the supply chain TO DEAL WITH THEIR WITHDRAWAL LOGISTIC TRACEABILITY Quantitative
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