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Lecture 8 - Tracing UGSCCS – Autumn 2013
Lecture 8
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Tracing
UGSCCS – Autumn 2013
Section 1 Tracing
Section 2 Traceability & Labelling
Section 3 Product Recalls
Section 4 Dell Internal Tracing
TRACING
LECTURE STRUCTURE
TrackingThe ability to identify the last known or current location and status of a product or part (or asset) in the supply chain
TracingThe ability to identify the history, origin, manufacture and supply chain of a product, its parts and raw materials
TRACING
TRACKING V TRACING
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Tracing
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TracingThe ability to identify the history, origin, manufacture and supply chain of a product, its parts and raw materialsBackward looking
Where was it madeHow was it madeWho made it
Forward lookingWhere is it going to be usedWhat is it going to be used forWho is going to use it
TRACING
TRACING - FORWARD
Backward Tracing
Forward Tracing
Tracing
What could we backward trace for a bottle of wine?Grape origin
CountryVineyard
Wine producerWhere it was matured (and in what)How long it was matured forAdditives
What has been addedWhat supplier did they come from
Filler / PackerWhere was it bottled (barrel / bulk)Source of glass (recycled?)What bottle seals are used - corks, screw tops, plastic corks
TRACING
WHAT WE TRACE - BACKWARD
Backward Tracing
Why would we want to backward trace for a bottle of wine?Proof of marketing statements
Is it really champagne from France?Is it really Bordeaux 1995?
Investigate where damage occurred in supply chainOne bottle is “corked“ – how many other bottles could be “corked”?When water damaged occurred in transit
Collection of correct import taxOrigin Chile (trade agreements)Bulk vs bottled shipments
TRACING
WHY WE TRACE BACKWARDS
What could we forward trace for a bottle of wine?Which country is it to be consumed in
LabellingRegulationSpecificationDocumentation
Who has purchased it
TRACING
FORWARDS TRACING – WHAT
Forward Tracing
Why would we forward trace for a bottle of wine?Product management
MarketingAsset managementRecycling controlsGuarantees and returnsPossible recalls
Possible contamination
TRACING
FORWARDS TRACING – WHY
Forward Tracing
TrackingThe ability to identify the last known or current location and status of a product or part (or asset) in the supply chain
TracingThe ability to identify the history, origin, manufacture and supply chain of a product, its parts and raw materials
Backward looking - origin of / history of products within supply chainForward looking - where is the product now
Both critical to allow identification and location of products within the supply chain
TRACING
TRACKING V TRACING
Backward Tracing
Forward Tracing
TRACKING
TRACKING
TRACKING
TRACKING
TRACKING
TRACKING
TRACKING
Section 1 Tracing
Section 2 Traceability & Labelling
Section 3 Product Recalls
Section 4 Dell Internal Tracing
TRACING
LECTURE STRUCTURE
TRACEABILITY & LABELLING
FRESH EGGS
TRACEABILITY & LABELLING
FRESH EGGS
Labelled at source
No further processing (sale of fresh eggs)
May be repackaged but the egg stamp remains the same
Identifies farm where egg was laid
It does not identify the chicken which laid the egg
TRACEABILITY & LABELLING
FRESH EGGS
Farm RetailStore
Warehouse
Egg labelled
Packing
Origin
1999 - Belgian poultry industry - US$1.3 billionMotor oil containing 1 g of dioxin came into a recycling plant for vegetable oil
Oil used in chicken feed productionLimited health impact
HoweverOver 1,600 chicken farms were contaminatedAuthorities enforced withdrawal of all feed batches, chicken or eggs of Belgian origin
Industry had poor history of linking raw materials and ingredient to productionEffectively closed Belgian poultry industry down
TRACEABILITY & LABELLING
EGG RECALL - BELGIUM
OriginCountry of originFarm where beef originated
Method of slaughterHalalKosher
Cut of meatKosher
TRACEABILITY & LABELLING
BEEF SUPPLY CHAIN - TRACING
Farm SlaughterHouse
Butcher RetailStore
Warehouse
CowCarcass
Joint of meat
Origin
Slaughter
Cut of meat
BSE (Bovine spongiform encephalopathy) “Crazy Cow”Increased regulation on tracing origin of meatPassports for every cow
The motherBreed (type of cow)Place and date of birthTag number
TRACEABILITY & LABELLING
BEEF – ANIMAL HISTORY
Passports for every cowThe motherBreed (type of cow)Place and date of birthTag number
TRACEABILITY & LABELLING
BEEF SUPPLY CHAIN (UK) - TRACING
Farm SlaughterHouse
Butcher RetailStore
Warehouse
CarcassJoint of meat
History / origin
Method of growing crops / rearing animalsNo artificial inputs (food, medicines, chemicals, etc)Premium price in supermarkets
AnimalsHow cows are looked after and what they eat
Natural feed (grass)No GMO (Genetically Modified Organism) food
TRACEABILITY & LABELLING
BEEF - ORGANIC
TRACEABILITY & LABELLING
GMO PRODUCTION (2006)
TRACEABILITY & LABELLING
SOYA FEED
Major animal feed
Many consumers are anti-GMO
Organic beef has to be from cows that were fed on “GMO free” feed
TRACEABILITY & LABELLING
NON GMO SOYA FEED SUPPLY CHAIN
Seeds Field FeedProcessor
FarmSilo
MerchantSilo (Destination)
Transport
Seeds
Soya Beans
Origin
TRACEABILITY & LABELLING
ORGANIC BEEF SUPPLY CHAIN
Feed origin
Country of origin
Slaughter method
Cut of meat
Feed origin
Origin
Consumer
Farmer
Many cows and many from many farms
Several slaughter houses and butchers ……
Meat is mixed from multiple sources
Pork is very regulated – foot and mouth
TRACEABILITY & LABELLING
PORK & BEEF – ORGANIC SAUSAGES
TRACEABILITY & LABELLING
LABELS REPLACED ALONG SUPPLY CHAIN
TRACEABILITY & LABELLING
IT IS WHAT IT IS SUPPOSE TO BE
It is not illegal to buy or sell horse meat in the UK or in many other countries
It is illegal not to declare every ingredient on food labels
Biggest consumers of horse meat in EuropeFranceItaly
TRACEABILITY & LABELLING
HORSEMEAT SCANDLE – EUROPE 2013
European Horsemeat Exporters
Scandal began in Ireland (November 2012)Food Safety Authority of Ireland tested a range of cheap frozen beef burgers and ready meals from supermarkets last November for DNA from other species which were undeclaredIt found in beef burger samples
Horse DNA in over 30%One sample was 29% horse
Pig DNA in 85%In the beef ready meals – most contained pig DNA but not horse
Supermarkets and enforcement bodies had not tested for horseNo one expected it to be there!
In subsequent testing a "beef" in frozen lasagne and spaghetti bologneseFound to be 100% horse
TRACEABILITY & LABELLING
HORSEMEAT SCANDLE – EUROPE 2013
Impacted a large number of companies in EuropeWell known international names
TescoNestle
TRACEABILITY & LABELLING
HORSEMEAT SCANDLE – EUROPE 2013
Highlighted the complex supply chains of retail companies
TRACEABILITY & LABELLING
TWO DIFFERENT SCANDLES
TRACEABILITY & LABELLING
PRODUCT & INFORMATION FLOWS
Some of the findingsEvidence of deliberate fraud to pass horsemeat off as beefSome contamination could be accounted for during processingSome involved had already been convicted of passing horse off as beef in 2008Fraudulent labelling was involvedConflicting statements from different parties
ImpactMove away from buying processed meat products
Beef burgersSausages
Switch to vegetarian alternatives
TRACEABILITY & LABELLING
HORSEMEAT SCANDLE – EUROPE 2013
Section 1 Tracing
Section 2 Traceability & Labelling
Section 3 Product Recalls
Section 4 Dell Internal Tracing
TRACING
LECTURE STRUCTURE
The process of preventing the distribution, sale and use of a product which has been found to not meet a specified standard
RegulationQualitySafety
The process may result in theDestruction of productAdaptation or repair of product
PRODUCT RECALLS
DEFINITION
Manufacturer identifies a problem
Supplier identifies a problem
Malfunctioning products
Accidents, injuries or illness
Customer complaint
Legal action
New (changed) regulationsSale may become illegal
New research findingsIngredientsSide affects of useSafety
PRODUCT RECALLS
WHAT TRIGGERS A RECALL
GovernmentLocalNationalHealth authorities
Supply chain membersThe company it selfSuppliers of parts or raw materialsRetailers
Independent investigationMediaAcademic
PRODUCT RECALLS
WHO IDENTIFIES THE NEED FOR RECALL
Global recall of pork contaminated withdioxins in Ireland in 2008
Manufacturing / productionDesign faultsSub standard parts materialsPoorly made Contamination
Transportation & storageDamagedPoor storage (temperature, humidity)
PRODUCT RECALLS
REASONS FOR RECALLS
PRODUCT RECALLS
IT IS WHAT IT IS SUPPOSE TO BE
What went wrongMelamine used to make plastics was added to milk productsMade milk appear more nutritional (protein)
ImpactKidney stones and renal failure, especially in children> 54,000 children affected> 13,000 children hospitalised> 4 children died
Recall impactJapan, Brunei, Singapore, Malaysia and Taiwan
Banned or recalled Chinese milk products
Long term reputationSanlu (company selling milk)Chinese GovernmentChinese (Global) dairy industry
PRODUCT RECALLS
INGREDIENT RELATED RECALL - SANLU
Beef contaminated with e.coli
Traceability system ineffective21.7m pounds of beef recalled
Company went bankrupt within 1 month
PRODUCT RECALLS
ILLNESS RELATED RECALL – TOPPS (USA)
2007 - Mattel toy recall>US$40 million cost>US$70 million hit to profits
Recalls of over 20 million toysManufacture 800 million toys a year 2/3 in china
Use of outsourcing to reduce costsImproper management of supplier processes
FoundLead paint used in toys (illegal)Magnets as choking hazard (poor design)
At least 3 children hospitalised following swallowing magnets2/3 of recalled toys stopped from reaching consumers by contacting distribution centres and retailers
PRODUCT RECALLS
DESTRUCTION RECALL - MATTEL
2010 - Toyota - US$2.0 billionWorld's largest car makerSticking accelerator pedal – uncontrolled acceleration
US2.3 million cars
Europe1.8 million cars across Europe220,000 in the UK,
Also Middle East, Latin America and Africa
Further five million vehicles recalled in the USAccelerator pedal could get trapped under the floor mat
PRODUCT RECALLS
PARTS RELATED RECALL - TOYOTA
EverythingAnything made with a specific raw ingredientEntire product range
Traceability is criticalA complete product recall can be avoided if a faulty production batch can be identified, traced and removed from the market
Consider shipment pyramidShipment unit?Logistics unit?Traded unit?Consumer unit?
PRODUCT RECALLS
WHAT TO RECALL
Actual costsPhysical removal of goodsTransport of recalled goodsStorage of recalled goodsDestruction of recalled goodsReplacement of recalled goodsReallocation of resourcesDamages & compensationLegal costsFines
Hidden costsBrand reputationEmployee moraleSupplier & customer relationships
PRODUCT RECALLS
THE COST OF RECALLS
Section 1 Tracing
Section 2 Traceability & Labelling
Section 3 Product Recalls
Section 4 Dell Internal Tracing
TRACING
LECTURE STRUCTURE
6 regional manufacturing hubs
Manufactures computers to order
Computers are built after being ordered by customers
Dell keeps a record for each customer built pcComponent ID
TRACEABILITY & LABELLING
DELL COMPUTERS SUPPLY CHAIN
6 regional manufacturing hubs
Manufactures computers to order
Computers are built after being ordered by customers
Dell keeps a record for each customer built pcComponent ID
TRACEABILITY & LABELLING
DELL COMPUTERS SUPPLY CHAIN
Receive order Components Build PC CustomerShipMerge withScreen etc
InstallSoftware
Tote box with barcode
PC case with bar code
Components with barcodesHarddisksScreensMotherboardsKeyboardsPrinters
Software installation registration
TRACEABILITY & LABELLING
DELL COMPUTERS SUPPLY CHAIN
Receive order Components Build PC CustomerShipMerge withScreen etc
InstallSoftware
Faulty parts traced to supplier and batch
Returned goods traced to worker
Software version and updates
Hardware upgrades and repairs
TRACEABILITY & LABELLING
DELL COMPUTERS SUPPLY CHAIN
Receive order Components Build PC CustomerShipMerge withScreen etc
InstallSoftware
