Dr. Morgan Swink Professor TCU SCO enabling trust thro ugh - - PowerPoint PPT Presentation

• Dr. Morgan Swink

Professor TCU

SCO enabling trust thro ugh visibility 2.0

F

• o d Se rvic e T

rac e ab ility:

Mo rg a n Swink, Phd E unic e a nd Ja me s We st Cha ir, Pro fe sso r o f Supply Cha in Ma na g e me nt E xe c utive Dire c to r, Ce nte r fo r Supply Cha in I nno va tio n

Ne e le y Sc ho o l o f Busine ss, T CU

Co mplia nc e o r Ca pa b ility?

SCO e na b ling trust thro ug h visib ility 2.0

Ho w wo uld yo u desc ribe yo ur appro ac h to visibility?

1. Are yo u c o mplying .. to avo id liability? 2. Are yo u strate gic ally inve sting.. to build c apability?

SCO enabling trust thro ugh visibility 2.0

T

• pic s
• 1. Why trac e ability?
• 2. Curre nt c apability

le ve ls (o pe rato rs’ vie w)

• 3. Challe nge s and

ne e de d ne xt ste ps

What are the go als o f yo ur c urrent strategy

• r appro ac h to trac eability?

“I nvesting in trac eability is like buying insuranc e – it’s so mething yo u have to do to stay in this industry.”

T rac e ability

https://www.supplychainscene.org/resources/research/traceability-foodservice-opportunity-and-challenge

Br and and r evenue benefits

• I

mpro ve d pro duc t info rmatio n

• I

mpro ve d safe ty, brand pro te c tio n

• I

mpro ve d sale s suppo rt

• I

mpro ve d marke t te sting, de mand se nsing

Cost savings and avoidance

• Mo re pre c ise withdrawals
• Re duc e d e xpe diting, will c alls, e tc .
• Re duc e d unc e rtainty, safe ty sto c k
• I

nc re ase d pro duc t we ight, size invo ic ing ac c urac y

• Re duc e d wastage , impro ve d she lf life

manage me nt

• I

de ntify quality issue s, impro ve yie ld manage me nt

• Gre ate r pic king, o rde r ac c urac y

Option value (futur e capabilities)

• Dynamic inve nto ry
• Ve ndo r manage d inve nto ry
• Advanc e d planning syste ms / analytic s
• Auto matio n: visio n, ro bo tic s, e tc .
• Re gulato ry c o mplianc e and c o ntro l

Costs (annual r ecur r ing)

• Mainte nanc e , update s, upgrade s,

re plac e me nt

• T

raining

• L

abe ls and o the r c o nsumable s

R equir ed investments (non- r ecur r ing)

• So ftware
• Syste m inte gratio n
• Sc anning hardware
• T

raining

• Cre atio n o f GT

I Ns, GL Ns, o the r standards

Co sts Be ne fits

T rac eability c apability

Small Chains (<100 lo c atio ns), Me dium Chains (200 – 5000 lo c atio ns), and L arge Chains (>5000 lo c atio ns) 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

Percent of respondents

We can ver ify sour ces and locations of pr

• duct at the batch/ lot ser

ial 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 hours 2 to 4 hours 4 to 8 hours 24 hours 48 hours or more

https://www.supplychainscene.org/resources/research/traceability-capability-foodservice-nra-survey-results

Mo st c hains c an ge t trac k/ trac e data within

• ne day, but:

1. Highly manual pro c e sse s 2. F e w o pe rato rs manage the data 3. E xte rnal trac e ability is mo re mature than inte rnal trac e ability 4. L imite d kno wle dge o f affe c te d sto re s

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/batch and date information Barcodes at case level Existing manufacturer/ distribution for systems

Q6 – What tools/ platfor ms ar e you using to suppor t tr aceability effor ts

Very limited ado ptio n o f GS1

SCO enabling trust thro ugh visibility 2.0

L imited usage o f GT I Ns by GS1 ado pters

57% 41% 51% 49% 38% 40%

0% 10% 20% 30% 40% 50% 60%

What % of trading partners use GT I NS in transac tio ns with you? What % of trading partners use GL Ns in transac tio ns with you? What % of yo ur produc ts are labeled with a GT I N only barc ode ? What % of yo ur produc ts are labeled with a GS1-128 barc ode ? What % of yo ur distributio n syste m is sc anning GS1- 128 barc o de s for trac eabilities pur po ses? What % of yo ur distributio n syste m is sc anning GS1- 128 barc o de s for

• ther purpose s

(e.g ., to g ain effic ie nc ies)?

Q9 – If you ar e using GS1:

SCO enabling trust thro ugh visibility 2.0

Cha lle ng e s a nd I mple me nta tio n Ba rrie rs

DE MONST RAT E D NE E D – WHO I S DRI VI NG? ROI UNCE RT AI NT Y COST AND BE NE F I T SHARI NG T E CHNOL OGY RE ADI NE SS I NCONSI ST E NT RE QUI RE ME NT S, ST ANDARDS, F ORMAT S SYST E MS RAT I ONAL I ZAT I ON T E CHNOL OGY L I MI T AT I ONS “F UNCT I ONAL ” VI E W

SCO e na b ling trust thro ug h visib ility 2.0

Que stio ns? Co mme nts?

SCO enabling trust thro ugh visibility 2.0