With 30 years of experience across the food science and packaging spectrum, Dr Claire Sand through her company, Packaging Technology & Research, offers clients solutions using Strategy, Technology, Consulting and Coaching. ​ Want to know more about how this article affect your business? Reach out to Dr Sand on Linked In - https://www.linkedin.com/in/clairekoelschsand Want to keep learning from Dr. Sand? View more of her presentations and articles at http://www.packagingtechnologyandresearch.com/thought-leadership.html Dr. Claire Sand | Owner, Packaging Technology & Research, LLC; Adjunct Professor, Michigan State University; Columnist for Food Technology Magazine http://www.packagingtechnologyandresearch.com/

1. Bringing in your Innovations
using the Packaging Value Chain
Claire Koelsch Sand, Ph.D.
Founder and Owner, Packaging Technology and Research
Adjunct Professor, Michigan State University
Packaging Technology and Research

2. Agenda
• Value Chain has evolved
• For Innovation, connect tangibly using Value Chain
• Building tactic knowledge
• Using Shared Value
• Value Chain enables innovation through focus
on societal issues
• Food safety
• Food fraud
raw materials for
packaging
converted
packaging
manufactured
packaging
components
Combined
product
and
package
distributed
product and
package
sold
product and
package
discarded
product and
package
Packaging
Value
Chain
Interfaces
(30)
2
Packaging Technology and Research

3. Supply Chain focused on meeting logistical needs
Supply Chain finesse has allowed the packaging industry to evolve.
1950-1980s
• Post-war era saw efficiencies grow
• Reduced energy costs associated with distribution led to JIT and ECR
Value Chain has evolved 3
Packaging Technology and Research

4. Supply Chain & Value Chain are needed now
Supply Chain finesse has allowed the packaging industry to evolve:
1950-1980s
• Post-war era saw efficiencies grow
• Reduced energy costs associated with distribution led to JIT and ECR
1980s and 1990s
• Supply Chain management
• Global sourcing
• Commoditization
• Strategic alliances
4Value Chain has evolved
Packaging Technology and Research

5. Value Chain evolved to meet diverse competitive goals
1990s
• Drucker’s “knowledge worker”
• Porter’s Value Chain
• Grenier’s organization growth
2000s
• Need more than logistics to be competitive
• TBL – people-profit-planet
• Sweet spots
• Sustainability wave for US which has existed globally
5Value Chain has evolved
Packaging Technology and Research

6. Agenda
• Value Chain has evolved
• For Innovation, connect tangibly using Value Chain
• Building tactic knowledge
• Using Shared value
• Value Chain enables innovation through focus
on societal issues
• Food safety
• Food fraud
raw materials for
packaging
converted
packaging
manufactured
packaging
components
Combined
product
and
package
distributed
product and
package
sold
product and
package
discarded
product and
package
Packaging
Value
Chain
Interfaces
(30)
6
Packaging Technology and Research

7. For Innovation, connect tangibly using Value Chain
Use Value Chain to connect by:
1. Inspiring
2. Building tactic knowledge
3. Sharing work and value
4. Rewarding significance
7Connect tangibly using Value Chain
Packaging Technology and Research

8. Building tactic knowledge provides context
• Before the 1980s, sustainable
packaging had little consumer
resonance or value
• In 2015, REACH initiatives and EN
standards have altered global markets
• Sustainability has value within
developing and developed countries
• The context has changed
The value of packaging varies with its context:
8Connect tangibly using Value Chain – tactic knowledge
Packaging Technology and Research

9. Building tactic knowledge builds trust
• Value of the Value Chain is often trust
• Relationships between companies gain more traction if the companies experience
value the same way
• When economic downturns cause disruption
9Connect tangibly using Value Chain – tactic knowledge
Packaging Technology and Research

10. Shared Value connects to Value Chain
10Connect tangibly using Value Chain – shared value
Packaging Technology and Research

11. Shared Value focuses innovation on societal issues
Shared value focuses and provides context for innovation:
• Identifies key social issues that offer the greatest business opportunities
• Develops innovative solutions to address those issues.
• Aligns context of value
• Builds trust
• Provides combined focus for innovation
11Connect tangibly using Value Chain – shared value
Packaging Technology and Research

12. Agenda
• Value Chain has evolved
• For Innovation, connect tangibly using Value Chain
• Building tactic knowledge
• Using Shared value
• Value Chain enables innovation through
focus on societal issues
• Food safety
• Food fraud
raw materials for
packaging
converted
packaging
manufactured
packaging
components
Combined
product
and
package
distributed
product and
package
sold
product and
package
discarded
product and
package
Packaging
Value
Chain
Interfaces
(30)
12
Packaging Technology and Research

13. Value Chain allows innovation to focus on food safety
Food safety is a key social issue best addressed by the Value Chain
Food safety
• I wish we had more trust in our supplier to use HACCP…
• Need for more educated work force
• Commoditization of packaging and food
13Value Chain enables innovation through focus on societal issues – food safety
Packaging Technology and Research

14. Food safety decreased in 2014 among G20
(derived from 17)
14Value Chain enables innovation through focus on societal issues – food safety
Packaging Technology and Research

15. Food safety up and down globally
(17)
15Value Chain enables innovation through focus on societal issues – food safety
Packaging Technology and Research

16. Food Safety Value Chain opportunities exist
• Package Chemical Properties
• Handling and Packaging
• Distribution and Retail
• Consumer Use
16Value Chain enables innovation through focus on societal issues – food safety
Packaging Technology and Research

17. Causes/ Categories
Category
Z
Category
Y
Category
X
Catgeory
W
Category
V
Category
U
Category
T
Category
S
Oxidation
Moisture Change
Microbial
Browning
Water resistance
MVTR
Antimicrobial
Reduce impact of contamin. ingredients
Reduce contamin. during product fill
Assess initial microbial load
Reduce initial microbial load
Reduce cross contamin.
Enable processing of some ingredients
Enable HACCP
Address chilled worker conditions
Time &Temp monitoring system
Oxygen level monitoring system
Control tempertaure
Measure microbial load at POS
Enable safe package reuse
Reduce consumer contamin. from repeat use
Expand time for safe product use
Enable oven/ MWmonitoring
Address eating hygiene through packaging
Enable freezer storage
Packagingand
Handling
Pkg
Prop.
Product
Degradation
Causes
Distributio
n&Retail
ConsumerUse
Value Chain solutions to food safety are focused
17Value Chain enables innovation through focus on societal issues – food safety
Packaging Technology and Research

18. Value Chain solutions focus innovation
Needs/ Categories Package Properties Technology Solutions for Category X
Grease resistance
Water resistance
OTR/ MVTR
Antimicrobial
Needs/ Categories Handling and Packaging Technology Solutions for Category X
Reduce impact of contamin.
Reduce contamin. during product fill
Assess initial microbial load
Reduce initial microbial load
Reduce cross contamin.
Enable processing of ingredients
Enable HACCP
Address chilled worker conditions
Needs/ Categories Distribution and Retail Technology Solutions for Category X
Enable stock rotation
Define exact OTRs and MVTRs
Time &Temp monitoring system
Oxygen level monitoring system
Control tempertaure
Measure microbial load at POS
Needs/ Categories Consumer Technology Solutions for Category X
Enable safe package reuse
Expand time for safe product use
Enable oven/ MWmonitoring
Package
Chemical
Handling&Packing
Distribution&
Retail
Consumer
18Value Chain enables innovation through focus on societal issues – food safety
Packaging Technology and Research

19. Agenda
• Value Chain has evolved
• For Innovation, connect tangibly using Value Chain
• Building tactic knowledge
• Using Shared value
• Value Chain enables innovation through
focus on societal issues
• Food safety
• Food fraud
raw materials for
packaging
converted
packaging
manufactured
packaging
components
Combined
product
and
package
distributed
product and
package
sold
product and
package
discarded
product and
package
Packaging
Value
Chain
Interfaces
(30)
19
Packaging Technology and Research

20. Prevalence of food fraud is increasing
10 of 117 countries are responsible for 60% of all food fraud
Current food of concern
• Seafood:
• "Sturgeon caviar" was MSpaddlefish
• Catfish fillets replaced expensive fish
• 77% of USA snapper mislabeled
• Cumin
• Honey diluted with beets or corn syrup
• Protein source products
• Olive oil
• Coffee
• Tea
• Wine: Pinot Noir from merlot & syrah grapes
Current packaging of concern
• Recycled paperboard
• PP
• RPET
• Laminate layers
20Value Chain enables innovation through focus on societal issues – food fraud
Packaging Technology and Research

21. Food fraud increase is due to 3 main factors
1. Consolidated buying that enables:
• Focus on lowest ingredient costs that tempts fraud
• Technology to covertly transact illegitimate deals
• Impedes traceability
2. Unharmonious regulations
• Lack of enforced processing regulations in much of world
• GMO to produce bioplastics
3. Increase refrigerated distribution for long-term perishables
• Increased need for and rising cost of product stability
• Increased value of food
21Value Chain enables innovation through focus on societal issues – food fraud
Packaging Technology and Research

22. Impacts of food fraud
• Declining public trust in packaged food
• Loss of business from country of origin
• Increased funds for further fraud
• Loss of brand value
• Companies become enforcers
22Value Chain enables innovation through focus on societal issues – food fraud
Packaging Technology and Research

23. Technology & regulations offer partial solutions
• Technology offers temporary solutions
• Regulations offer inflexible solution
• Value Chain offers operational solution
Technology
To increase food safety and decrease fraud:
23Value Chain enables innovation through focus on societal issues – food fraud
Packaging Technology and Research

24. Value Chain is needed to predict and prevent fraud
24Value Chain enables innovation through focus on societal issues – food fraud
Packaging Technology and Research

25. Food fraud is best addressed using Value Chain
• Implement packaging component of FSMA now
• Documentation and recall linked to packaging
• Minimize the damaging effects to human health and brand reputation
• Traceability
• Extraction
• Consider changes that alter dynamics
• Supplier financial pressure
• Price fluctuations
• Disasters
• Global strife and success
25Value Chain enables innovation through focus on societal issues – food fraud
Packaging Technology and Research

26. Tactic knowledge reduces fraud
• Tactic knowledge means that value is understood
• Building tactic knowledge with food and package suppliers
• Expands existing initiatives with safety and fraud focus
• Links on goal of decreasing fraud and increasing safety
• Builds knowledge at all levels
• Builds trust at all levels
• Build operational processes to align and transfer knowledge that thwart fraud
and increase safety
26Value Chain enables innovation through focus on societal issues – food fraud
Packaging Technology and Research

27. Tactic knowledge reduces fraud
(31)
27Value Chain enables innovation through focus on societal issues – food fraud
Packaging Technology and Research

28. Use packaging early in Value Chain to prevent & predict
Assess innovations on prevention & prediction
28Value Chain enables innovation through focus on societal issues – food fraud
Packaging Technology and Research

29. Value Chain impedes fraud-an example
• Expanded knowledge:
• Product contaminated from package
• Shared work:
• Link migration data to supplier’s converters
• Expanded Value Chain connected on final product use and sensitive flavor
profile
• Converter financials and motivation
• Prevention vs detection
29Value Chain enables innovation through focus on societal issues – food fraud
Packaging Technology and Research

30. Packaging industry is ripe for Value Chain derived innovation
• Value Chain has evolved
• For Innovation, connect tangibly using Value Chain
• Building tactic knowledge
• Using Shared value
• Value Chain enables innovation through focus
on societal issues
• Food safety
• Food fraud
raw materials for
packaging
converted
packaging
manufactured
packaging
components
Combined
product
and
package
distributed
product and
package
sold
product and
package
discarded
product and
package
Packaging
Value
Chain
Interfaces
(30)
30
Packaging Technology and Research

31. Value Chain holds in a vuca world
• Volatile
• Dynamics of change
• Catalysts
• Uncertain
• Missing predictability
• Complex
• Chaos slightly at bay
• Ambiguous
• Hazy reality
• Misreads
31
Packaging Technology and Research

32. Bringing in your Innovations using the Packaging Value
Chain-checklist
 Identify key social issues that are important to your company’s bottom line.
 Determine which Value Chain members also have these important issues.
 Define value (context, experiential, subjective, meeting needs).
 Build trust and agility into organizational frameworks so that new Value Chain
initiatives are achievable.
 Identify key partners with whom your company needs to align to address these
social issues in a manner that makes business sense.
 Develop a goal that addresses the core issues and makes business sense.
 Expand issues to work up, down, and across the Value Chain to ensure partnerships
are aligned.
 Align to deliver innovation and to balance costs and benefits in Value Chain.
 Continue to expand issues to guide relationships within the Value Chain.
32Checklist - Bringing in your Innovations using the Packaging Value Chain
Packaging Technology and Research

33. Relevant Sources and References
• Food Fraud Initiative at Michigan State University
• National Center for Food Protection and Defense (NCFPD) at University of Minnesota
1. Lupien, J., 1997. Food packaging, international standards related to food safety and quality, and trade. Food Additives and Contaminants, Vol.
14, No. 6-7, 519-527
2. Sand, C.K. 2015. Bringing in Innovation with the Packaging Value Chain. IFT Webcast February 26, 2015.
3. José Cuesta, J., Htenas, A., and Tiwari, S., 2014. Monitoring global and national food price crises. Food Policy 49: 84–94
4. NSF, 2014. The ‘new’ phenomenon of criminal fraud in the food supply chain White Paper.
5. 2014-07-21 08:11 Shanghai Daily Web Editor
6. Brody, A, Sand, C. Sabbagha, F., 2014. RFID in Packaging using Value Chain. Food Technology. October
7. Spink, J. and Moyer, D., 2011. Developing a Food Fraud Prevention Program. MSU Food Fraud Initiative
8. Reig, C., Lopez,A.D., Ramos, M.H., Ballester, V., 2014. Nanomaterials: a Map for Their Selection in Food Packaging Applications. Packag.
Technol. Sci. 27: 839–866
9. Percy, B., 2011. GFSI Compliance and Automated Food Safety Management Systems.
Cereal Foods World. 56, 4; pg. 144
10. Busta, F., 2011. Defending the safety of the global food system from intentional contamination. National Center for Food Protection and
Defense. University of Mn.
11. National Center for Food Protection and Defense
12. Spink, J. and Moyer, D., 2011. Defining the Public Health Threat of Food Fraud. Journal of Food Science Vol. 76, Nr. 9,
13. adapted from Guardian
14 http://ec.europa.eu/food/food/chemicalsafety/foodcontact/eu_legisl_en.htm
33Resources - Bringing in your Innovations using the Packaging Value Chain
Packaging Technology and Research

34. 15.http://www.fda.gov/Food/GuidanceRegulation/GuidanceDocumentsRegulatoryInformation/IngredientsAdditivesGR
ASPackaging/ucm081818.htm
16. 2013 survey by public relations agency Edelman
17. http://foodsecurityindex.eiu.com/
18. The European Union summary report on trends and sources of zoonoses, zoonotic agents and food-borne outbreaks in 2013. 2015.
European Food Safety Authority & European Centre for Disease Prevention and Control. EFSA Journal 2015;13(1):3991
19. Consumer Product Fraud: Deterrence and Detection. AT Kerney, 2010.
20. Chen, E., Flint, S., Perry, P., Perry, M., and Lau, R., 2015. Implementation of non-regulatory food safety management schemes in New
Zealand: A survey of the food and beverage industry. Food Control 47: 569e576
21. Mensah, L.D., Julien, D. 2011. Implementation of food safety management systems in the UK. Food Control 22 1216e1225
22. Exploring new values and new directions in the Forest, Paper & Packaging industry., 2011. PWC.
24. http://www.brcglobalstandards.com/
25. http://www.ifs-certification.com/index.php/en/
23. SQFI.com
26. http://www.informationclearinghouse.info/article36743.htm
27. Spink, J., 2006, The Counterfeit Food and Beverage Threat, Association of Food and Drug Officials (AFDO), Annual Meeting.
28. ACFE, 2012. Report to the Nations.
29. US Patent 8,674,834,132.
30. Sand, C., 2007. Packaging Value Chain. DesTech Publishing.
31. ACFE, 2012.
Relevant Sources and References
34Resources - Bringing in your Innovations using the Packaging Value Chain
Packaging Technology and Research