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Traceability to Profitability
with Judith Kirkness
About Judith
• Over 20 years experience working with
food manufacturers in her family
business, Minotaur Software
• Small Business Owner, Traceability
Matters
• Uses software and technology to solve
problems, gain efficiencies
• Author of The Traceability Factor
Today’s Goals
1. Understand barcodes and their use in
traceability and recalls
2. Learn the benefits of using traceability
information for a competitive
advantage
3. Discussion of current traceability
technology and practical ideas for how
to capture and use lot and serial
information in your business
Step 1: Understanding Barcodes
GS1: The Global Language of Business
• Barcodes are the most commonly used
method of communicating information
up and down the food and retail supply
chain, worldwide.
• Visit this non-profit industry led
organization:
– www.gs1.ca (Canada)
– www.gs1us.org (USA)
– www.gs1.org (World Site)
Is your company registered with GS1?
• ECCnet is GS1 Canada’s national
product registry
• It is a one to many product information
sharing tool – you set the details up
once and decide who sees your info
RETAIL BARCODES
There are three main types of:
1. Retail Barcodes on Produce
• GS1 Databar: A stacked barcode
a barcode often
includes
information in
human readable
format that is not
encoded into the
barcode – This is
important to
remember when
we get to
traceability!
2. Retail Barcodes on most
other items
• A GTIN-12 also known as UPC-12
Check
Digit
Item number
GS1 Global
Supplier Prefix
How much does a GS1 Company Prefix Cost (per
year in Canada)?
GS1 Company Prefix
• All UPC and EAN codes have an implied
unit of 1
Used primarily
outside North
America
3. Deli Barcodes (price or weight
embedded)
• Different brands/models of machines
can be set up in different ways
BARCODES ON TRADE
ITEMS
The SCC-14, now called GTIN-14
• Any combination of trade items
packaged together for storage and/or
transport purposes, for example a case,
pallet or parcel needs its own GTIN-14
• The GTIN-14 number means a specific
product and package quantity
Note: This only
identifies an
item and
quantity!
GDSN – Global Data
Synchronization Network
• The GDSN is the GS1 service that
retailers can subscribe to, to sync and
receive up to date product data on
products they buy
• You set up once in ECCNET, make
changes once and retailers you share
with can receive those changes
automatically
Serial Shipping Container
Code (SSCC-18)
• The GS1 SSCC (Serial Shipping Container Unit) can also
be used to identify a logistic unit, as opposed to a trade
unit
• However, unlike the SCC (GTIN-14) which is the same
for each logistic unit, the SSCC-18 is different for each
carton and shipping container, regardless of its
contents. It can represent a mixed pallet of product,
for example
An SSCC is only useful if…
• The details of what are on that skid or in
that container are relayed to the
customer in some manner. Such as:
– EDI (Electronic Data Interchange)
– ASN (Advanced Shipping Notice)
EDI Skid Label – MH10
• Loblaw in Canada requests
MH10 labels on most skids
and ASN’s from most
suppliers shipping to their
distribution centres
(currently just warehouses –
not DSD)
The SSCC code will be scanned
to match up with the skid detail
from the ASN
MEAT INDUSTRY
BARCODES
GS1-128
• The GS1-128 barcode (also called EAN-
128) is the industry standard barcode
used to communicate multiple pieces of
information in one scan.
• It is multi-segment:
GS1-128’s Require Software
to Interpret
• Unless you have software to break apart
the segments and know what to do with a
given segment, the number a scanner will
show is the entire long number, which
won’t be useful unless parsed.
• GS1-128 barcodes CAN be used for
traceability because they link a given
GTIN with its lot number (10), serial
number (21) or date (production packed
on or expiry)
Your supplier will recall by date, lot or serial
number
• In the XL Recall of 2012 CFIA issued recalls to consumers
based on best before date
• And recalled to trade based on packed on date
Which Segments Should You Use?
• You may be asked to put different
segments in your Gs1-128 barcode by
your customers based on what
information their computer scanning
system can separate and use
– Item Code (GTIN)
– Country of Origin (for exporting)
– Weight (if catch weight)
– Lot or Serial Number
– Production, expiry or packed on date
ALTERNATIVE BARCODES
• 2D Barcodes • RFID Tags
Limitations of Barcodes
• Readability (300 dpi printer
recommended), white labels best
• Damaged (cut, wrinkled)
• Label Size (4” wide label is typically
required)
If moving toward scanning,
consider the following:
• Choose your software first
• Hardware often depends on the
software you will be using (what
operating system – like a phone?)
• Do you need long range or short
range scanners?
• Do you need 2D barcode or RFID
capabilities?
• Trust experts to help you establish a
wireless network in cooler and
freezer environments
Questions?
Let’s decode some barcodes
• Please refer to the question
sheet with some example
barcodes.
• Take a few minutes to try and
work through the questions and
then we’ll take them up
together
Barcode Decoding Activity
1.
2.
3.
4.
5.
Answers
1.
(01)  GTIN  14 Digit Number
(3102)  Net Weight (kg)  25.89 kg
Answers
2.
(01)  GTIN  14 Digit Number
(15)  Best Before Date  YYMMDD
= 2015/JAN/31
(10)  Batch or Lot Number  01A
Answers
3.
(02)  CONTENT  14 Digit Number
(13)  Packaging Date  YYMMDD
2014/MAY/21
(422)  Country of Origin  124 (Canada)
Answers
4.
(02)  CONTENT  14 Digit Number
(17)  Expiration Date  YYMMDD
2015/JUN/26
(425)  Country of Disassembly  840 (USA)
(21)  Serial Number  W85040nD6
Answers
5.
(01)  DTIN  14 Digit Number
(13)  Packaging Date  YYMMDD
2013/DEC/12
(3103)  Net Weight (kg)  22.7 kg
(10)  Batch or Lot Number  01B
Congratulations,
You’ve just become Barcode Certified!
Let’s take a 10 minute break!
Step 2: Using Traceability
Information for a Competitive
Advantage
Traceability Perception
• Done to satisfy government inspectors
• Something QA/QC takes care of
• Requirement of GFSI certification
• It’s just a Cost
Traceability Opportunity
• Given that you are tracking the
information anyway, how can you get
that information working for you to give
you a competitive advantage?
• How you tackle traceability will
determine the possible business
benefits!
The Operational Traceability Flow
When Traceability is tested…
Recall reporting is the most important feature for protecting
your brand – time is of the essence
• CFIA recalls for year ending March 2013
• 109 allergen related
• 13 due to chemical residue
• 47 due to extraneous matter
• 99 due to microbiological or other food safety concern
• 268 Recalls total
• Being able to pull product quickly might
be the least used feature of automated
traceability
• Can traceability technology offer more
than just fast recall?
Benefits of Traceability Technology
• Recall Prevention
• Food Safety
• Costing
• Yield Calculations
• Inventory Knowledge
• Profitability
What kind of Technology?
• ERP software – integrating front office
with plant floor scales and warehouse
• Handheld warehouse management
• Verified traceability (not just an open
field)
• EDI for communicating between
suppliers and customers
Allergen recall prevention through
scanning
• Item attribute and item substitution
tracking/alerting, supplier approvals
Food Safety
• QA/QC Information storage
• Use information for release of product
for sale
• Linking batches to their test results for
production history to determine cause
Costing
• Knowing your true costs
• How are you calculating your costs right
now?
Costing using lot information
• What goes into your raw material costs?
• Do you assemble or disassemble
products, or both?
• Costing by batch is a RESULT of entering
quantities of inputs and outputs
• Timely, accurate costs and automated
depletion of raw materials or WIP as
finished goods are created
Yield Calculations
• Regular, timely comparison of inputs vs.
outputs
• How did yield knowledge help
Halenda’s?
Inventory Knowledge
• Inventory control that includes
traceability and expiry information
combined with reporting can alert you
to approaching dated product
• Damaged product can be adjusted out
or scanned to a damage location
• FIFO suggestion can help determine
missing units from a lot
Profitability
• If the system knows your costs and
knows what you sold each item for to
each customer, it can compute PROFIT
across your items and your customers
• Computers can track and deduct
marketing program costs to give you
true profit figures?
Step 3: Practical Take Home Ideas
for improving Traceability
Halenda’s
Bingo Dabber System
http://minotaursoftware.com/halendas-bingo-dabber-system/
Media – Labels, Tags
Direct Thermal
vs.
Thermal Transfer Ribbon
Technology to bring information
together
• ERP or integrated business
management systems
• Customer portals and dashboards
• Barcode scanning and handheld
warehouse management
• Plant floor equipment (scales, PLCs)
feeding your ERP system
• Touch screen plant floor weight label
stations
• Mobile worker tablets, scanners and
printers
How to Pay for it?
35%
50%
Questions -
What are your current traceability
challenges?
How can I help you?
judith@minotaursoftware.com
www.minotaursoftware.com
www.traceabilitymatters.com

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OIMP Minotaur Software Barcode and Traceability Workshop

  • 2. About Judith • Over 20 years experience working with food manufacturers in her family business, Minotaur Software • Small Business Owner, Traceability Matters • Uses software and technology to solve problems, gain efficiencies • Author of The Traceability Factor
  • 3. Today’s Goals 1. Understand barcodes and their use in traceability and recalls 2. Learn the benefits of using traceability information for a competitive advantage 3. Discussion of current traceability technology and practical ideas for how to capture and use lot and serial information in your business
  • 5. GS1: The Global Language of Business • Barcodes are the most commonly used method of communicating information up and down the food and retail supply chain, worldwide. • Visit this non-profit industry led organization: – www.gs1.ca (Canada) – www.gs1us.org (USA) – www.gs1.org (World Site)
  • 6. Is your company registered with GS1? • ECCnet is GS1 Canada’s national product registry • It is a one to many product information sharing tool – you set the details up once and decide who sees your info
  • 7. RETAIL BARCODES There are three main types of:
  • 8. 1. Retail Barcodes on Produce • GS1 Databar: A stacked barcode a barcode often includes information in human readable format that is not encoded into the barcode – This is important to remember when we get to traceability!
  • 9. 2. Retail Barcodes on most other items • A GTIN-12 also known as UPC-12 Check Digit Item number GS1 Global Supplier Prefix
  • 10. How much does a GS1 Company Prefix Cost (per year in Canada)?
  • 12. • All UPC and EAN codes have an implied unit of 1 Used primarily outside North America
  • 13. 3. Deli Barcodes (price or weight embedded) • Different brands/models of machines can be set up in different ways
  • 15. The SCC-14, now called GTIN-14 • Any combination of trade items packaged together for storage and/or transport purposes, for example a case, pallet or parcel needs its own GTIN-14 • The GTIN-14 number means a specific product and package quantity Note: This only identifies an item and quantity!
  • 16. GDSN – Global Data Synchronization Network • The GDSN is the GS1 service that retailers can subscribe to, to sync and receive up to date product data on products they buy • You set up once in ECCNET, make changes once and retailers you share with can receive those changes automatically
  • 17. Serial Shipping Container Code (SSCC-18) • The GS1 SSCC (Serial Shipping Container Unit) can also be used to identify a logistic unit, as opposed to a trade unit • However, unlike the SCC (GTIN-14) which is the same for each logistic unit, the SSCC-18 is different for each carton and shipping container, regardless of its contents. It can represent a mixed pallet of product, for example
  • 18. An SSCC is only useful if… • The details of what are on that skid or in that container are relayed to the customer in some manner. Such as: – EDI (Electronic Data Interchange) – ASN (Advanced Shipping Notice)
  • 19. EDI Skid Label – MH10 • Loblaw in Canada requests MH10 labels on most skids and ASN’s from most suppliers shipping to their distribution centres (currently just warehouses – not DSD) The SSCC code will be scanned to match up with the skid detail from the ASN
  • 21. GS1-128 • The GS1-128 barcode (also called EAN- 128) is the industry standard barcode used to communicate multiple pieces of information in one scan. • It is multi-segment:
  • 22. GS1-128’s Require Software to Interpret • Unless you have software to break apart the segments and know what to do with a given segment, the number a scanner will show is the entire long number, which won’t be useful unless parsed. • GS1-128 barcodes CAN be used for traceability because they link a given GTIN with its lot number (10), serial number (21) or date (production packed on or expiry)
  • 23. Your supplier will recall by date, lot or serial number • In the XL Recall of 2012 CFIA issued recalls to consumers based on best before date • And recalled to trade based on packed on date
  • 24. Which Segments Should You Use? • You may be asked to put different segments in your Gs1-128 barcode by your customers based on what information their computer scanning system can separate and use – Item Code (GTIN) – Country of Origin (for exporting) – Weight (if catch weight) – Lot or Serial Number – Production, expiry or packed on date
  • 26. • 2D Barcodes • RFID Tags
  • 27. Limitations of Barcodes • Readability (300 dpi printer recommended), white labels best • Damaged (cut, wrinkled) • Label Size (4” wide label is typically required)
  • 28. If moving toward scanning, consider the following: • Choose your software first • Hardware often depends on the software you will be using (what operating system – like a phone?) • Do you need long range or short range scanners? • Do you need 2D barcode or RFID capabilities? • Trust experts to help you establish a wireless network in cooler and freezer environments
  • 29. Questions? Let’s decode some barcodes • Please refer to the question sheet with some example barcodes. • Take a few minutes to try and work through the questions and then we’ll take them up together
  • 31. Answers 1. (01)  GTIN  14 Digit Number (3102)  Net Weight (kg)  25.89 kg
  • 32. Answers 2. (01)  GTIN  14 Digit Number (15)  Best Before Date  YYMMDD = 2015/JAN/31 (10)  Batch or Lot Number  01A
  • 33. Answers 3. (02)  CONTENT  14 Digit Number (13)  Packaging Date  YYMMDD 2014/MAY/21 (422)  Country of Origin  124 (Canada)
  • 34. Answers 4. (02)  CONTENT  14 Digit Number (17)  Expiration Date  YYMMDD 2015/JUN/26 (425)  Country of Disassembly  840 (USA) (21)  Serial Number  W85040nD6
  • 35. Answers 5. (01)  DTIN  14 Digit Number (13)  Packaging Date  YYMMDD 2013/DEC/12 (3103)  Net Weight (kg)  22.7 kg (10)  Batch or Lot Number  01B
  • 36. Congratulations, You’ve just become Barcode Certified! Let’s take a 10 minute break!
  • 37. Step 2: Using Traceability Information for a Competitive Advantage
  • 38. Traceability Perception • Done to satisfy government inspectors • Something QA/QC takes care of • Requirement of GFSI certification • It’s just a Cost
  • 39. Traceability Opportunity • Given that you are tracking the information anyway, how can you get that information working for you to give you a competitive advantage? • How you tackle traceability will determine the possible business benefits!
  • 41. When Traceability is tested… Recall reporting is the most important feature for protecting your brand – time is of the essence • CFIA recalls for year ending March 2013 • 109 allergen related • 13 due to chemical residue • 47 due to extraneous matter • 99 due to microbiological or other food safety concern • 268 Recalls total
  • 42. • Being able to pull product quickly might be the least used feature of automated traceability • Can traceability technology offer more than just fast recall?
  • 43. Benefits of Traceability Technology • Recall Prevention • Food Safety • Costing • Yield Calculations • Inventory Knowledge • Profitability
  • 44. What kind of Technology? • ERP software – integrating front office with plant floor scales and warehouse • Handheld warehouse management • Verified traceability (not just an open field) • EDI for communicating between suppliers and customers
  • 45. Allergen recall prevention through scanning • Item attribute and item substitution tracking/alerting, supplier approvals
  • 46. Food Safety • QA/QC Information storage • Use information for release of product for sale • Linking batches to their test results for production history to determine cause
  • 47. Costing • Knowing your true costs • How are you calculating your costs right now?
  • 48. Costing using lot information • What goes into your raw material costs? • Do you assemble or disassemble products, or both? • Costing by batch is a RESULT of entering quantities of inputs and outputs • Timely, accurate costs and automated depletion of raw materials or WIP as finished goods are created
  • 49. Yield Calculations • Regular, timely comparison of inputs vs. outputs • How did yield knowledge help Halenda’s?
  • 50. Inventory Knowledge • Inventory control that includes traceability and expiry information combined with reporting can alert you to approaching dated product • Damaged product can be adjusted out or scanned to a damage location • FIFO suggestion can help determine missing units from a lot
  • 51. Profitability • If the system knows your costs and knows what you sold each item for to each customer, it can compute PROFIT across your items and your customers • Computers can track and deduct marketing program costs to give you true profit figures?
  • 52. Step 3: Practical Take Home Ideas for improving Traceability
  • 54. Media – Labels, Tags Direct Thermal vs. Thermal Transfer Ribbon
  • 55. Technology to bring information together • ERP or integrated business management systems • Customer portals and dashboards • Barcode scanning and handheld warehouse management • Plant floor equipment (scales, PLCs) feeding your ERP system • Touch screen plant floor weight label stations • Mobile worker tablets, scanners and printers
  • 56. How to Pay for it? 35% 50%
  • 57. Questions - What are your current traceability challenges? How can I help you? judith@minotaursoftware.com www.minotaursoftware.com www.traceabilitymatters.com