Dr. Morgan SwinkProfessor TCU

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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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Questions?Comments?

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