Logistics & Traceability
planning & material management @ FOOD SAFETY
SION 21h MARCH 2012
logistics & tracability – nicolas perrenoud – march 2012 - 1/35
www.azeo.ch
agenda

presentation

traceability definition

supply chain elements

do you speak systems ?

performance management

anecdotes

keep an eye on
logistics & tracability – nicolas perrenoud – march 2012 - 2/35
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nicolas perrenoud
project leader
1998 - 2000
R&D operations & texturisation
Nestlé PTC Orbe
project manager
2000 - 2003
industrialisaton & process engineer
Nestlé Suisse SA - arômes industriels - fabrik Kempttal
production manager
2003 - 2004
technological support group
Givaudan Schweiz AG - Flavours Production Kemptthal
project supply chain process manager
2004 - 2006
global supply chain strategy
Firmenich SA - Corporate Center Meyrin
operation director
2006 - 2008
head of operations
LeShop.ch - Corporate Center Chavannes-de-Bogis
founder azeo.ch
2007
operation & business process
Lausanne
head of logitics
2008
head of operations
Huntsman - Monthey
logistics & tracability – nicolas perrenoud – march 2012 - 3/35
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traceability definition
ISO definition
traceability is the ability to trace the history, application, or
location of that which is under consideration
that which is under consideration - a truck or a grain of wheat ?
a standard location - field, farm or country ?
standard identification technology - pen and paper or computer ?
does not specify that hamburger be traceable to the cow or that the wheat in a loaf of
bread be traceable to the field
logistics & tracability – nicolas perrenoud – march 2012 - 4/35
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traceability definition
the definition of traceability is necessarily broad because food is
a complex product and traceability is a tool for achieving a
number of different objectives and no traceability system is
complete
breadth: describes the amount of information
collected
depth: is how far and forward the system
tracks the relevant information
precision: reflects the degree of assurance
with witch the tracing system can pinpoint a
particular food product's movement or
characteristics
logistics & tracability – nicolas perrenoud – march 2012 - 5/35
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traceability – what does it do ?
firms have 3 primary objectives in using traceability systems:
– facilitate traceback for food safety and quality
– differentiate and market food with subtle quality attribute
– improve supply chain management
benefits associated includes
– reduced recall expenses
– expanded sales of products with attributes that are difficult
to discern
– lower supply chain costs
in conclusion traceability offers larger net revenues for the firms
logistics & tracability – nicolas perrenoud – march 2012 - 6/35
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what is logistics ?
THE VERY WELL KNOW LOGISTICIAN GENOTYP:
name : ROBERT
passions : trucks and pirelli calendar
prior employment : cook
physical description : 1.87m - 138 kg - dark hair
particularity: smells a mixture of transpiration, alcohol & diesel
by chance logistics moved from this old vision to
supply chain management
logistics & tracability – nicolas perrenoud – march 2012 - 7/35
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what is supply chain management ?
supply chain management (SCM) is the oversight of :
– MATERIALS
– INFORMATION
– FINANCES
as they move in a process from supplier to manufacturer to
wholesaler to retailer to consumer
the state of the art is to produce the right product with the
correct quantity at the defined time with the better cost
logistics & tracability – nicolas perrenoud – march 2012 - 8/35
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supply chain elements
the supply chain SCOR model
logistics & tracability – nicolas perrenoud – march 2012 - 9/35
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supply chain elements
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supply chain elements
logistics & tracability – nicolas perrenoud – march 2012 - 11/35
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supply chain elements
material management
CHF
revenue (sales)
prct_sales
1'000'000
100%
900'000
90%
direct material
500'000
20%
direct labor
200'000
20%
factory overhead
200'000
20%
100'000
10%
cost of goods sold
gross profit
increasing business performance
CHF
revenue (sales)
prct_sales
revenue (sales)
1'200'000
100%
cost of goods sold
1'040'000
87%
direct material
600'000
50%
19%
direct labor
240'000
20%
200'000
20%
factory overhead
200'000
17%
160'000
16%
160'000
16%
100%
840'000
84%
direct material
450'000
45%
direct labor
190'000
factory overhead
gross profit
CHF
prct_sales
1'000'000
cost of goods sold
to obtain same results without
optimisation, sales must increase to
logistics & tracability – nicolas perrenoud – march 2012 - 12/35
gross profit
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supply chain elements
product strategy
logistics & tracability – nicolas perrenoud – march 2012 - 13/35
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introduction & objectives
production strategy
logistics & tracability – nicolas perrenoud – march 2012 - 14/35
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supply chain elements
forecasting
logistics & tracability – nicolas perrenoud – march 2012 - 15/35
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supply chain elements
delivery uncertainty
logistics & tracability – nicolas perrenoud – march 2012 - 16/35
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traceability and supply chain
logistics & tracability – nicolas perrenoud – march 2012 - 17/35
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how to support traceability ?
logistics & tracability – nicolas perrenoud – march 2012 - 18/35
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system elements - architecture
logistics & tracability – nicolas perrenoud – march 2012 - 19/35
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systems elements - barcoding
definition
barcode is an optical machine-readable
representation of data, which shows
certain data on certain products
major standards
UPC : Universal Product Code
EAN : European Article Numbering
ISBN: International Standard Book Number
GS1-128 (EAN/UCC 128)
logistics & tracability – nicolas perrenoud – march 2012 - 20/35
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systems elements - barcode generator
http://www.gs1.org/barcodes
logistics & tracability – nicolas perrenoud – march 2012 - 21/35
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systems elements - items attributes
logistics & tracability – nicolas perrenoud – march 2012 - 22/35
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where does start performance ?
logistics & tracability – nicolas perrenoud – march 2012 - 23/35
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performance definition
performance management includes activities to ensure that goals
are consistently being met in an effective and efficient manner
performance management can focus on performance of the
organization, a department, processes to build a product or
service, employees
logistics & tracability – nicolas perrenoud – march 2012 - 24/35
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performance
quick time notion
standard time time it would take a qualified operator working at a normal pace to
do the job
available time is the number of hours a work center can be used
rated capacity is the result of calculated capacity, utilisation and efficiency
demonstred capacity is the result of previous production records to determine
work center capacity
logistics & tracability – nicolas perrenoud – march 2012 - 25/35
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performance
goods reciept process
process description
process elements
process indicators
logistics & tracability – nicolas perrenoud – march 2012 - 26/35
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example
for all departement KPI's have been revisited, mainly for inbound,
planning & intarnal services
data capture have been automatised
for warehouse our major measure is minutes/movement
[total worked minutes per day] / [pallets movement recorded during the day]
at the beginning first results were approx 17 min/movement
actually results are structurally in average < 5 min/movement
including following changes:
-
EHS
5S program
7 FTE less
cargo securing
check list protocol
raw material self sampling insourcing
logistics & tracability – nicolas perrenoud – march 2012 - 27/35
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anecdotes

lot traceability in sugar silo

lot traceability in tank farm

picking by lot in salad barcode

flavor kosher production
logistics & tracability – nicolas perrenoud – march 2012 - 28/35
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keep an eye on

product design

factory design

system data

business processes
logistics & tracability – nicolas perrenoud – march 2012 - 29/35
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thanks,
for your attention
for more information have a look on
www.azeo.ch
or contact me
[email protected]
+ 41 79 378 78 86
logistics & tracability – nicolas perrenoud – march 2012 - 30/35
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let's play
ECONOMICAL SITUATION
in our organisation
total annual sales is 3 BUSD
customer put in average an order 26 days before the requested
delivery date
our monthly average inventory is around 250 MUSD
– 30 MUSD for raw materials
– 50 MUSD for intermediate
– 170 MUSD for finished goods
average production lead time is about 5 days and strategy is MTO
products shelf life is 2 years
logistics & tracability – nicolas perrenoud – march 2012 - 31/35
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let's play
MY ROLE
as supply chain project team you receive the job from board to
reduce total inventory value up to 40 MUSD in average per month,
and increase the service level to customer
THE CURRENT SITUATION
a kick off meeting is organised to share the project with major
stakeholders – an open discussion is starting
logistics & tracability – nicolas perrenoud – march 2012 - 32/35
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let's play
YOUR ROLE
you are member of the board and you have to argue what are the
advantage and risk of such a project
organise your classroom in 4 groups
- finance
- supply chain
- production
- sales
logistics & tracability – nicolas perrenoud – march 2012 - 33/35
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let's play
YOUR FOCUS AREA
FINANCE : EBITDA – inventory turns – cashflow – time to cash
PRODUCTION : campaign size – capacity – fullfilment rate
SALES: customer service – customer satisfaction – supply
performance
SUPPLY CHAIN: prodcut segmentation – inventory target – service
level
logistics & tracability – nicolas perrenoud – march 2012 - 34/35
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backup slides
logistics & tracability – nicolas perrenoud – march 2012 - 35/35
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other traceability definitions
the ability to trace (identify and measure) all the stages that led
to a particular point in a process that consists of a chain of
interrelated events
traceability refers to the completeness of the information about
every step in a process chain
the formal definition: traceability is the ability to chronologically
interrelate uniquely identifiable entities in a way that is
verifiable
traceability is the ability to verify the history, location, or
application of an item by means of documented recorded
identification
logistics & tracability – nicolas perrenoud – march 2012 - 36/35
www.azeo.ch
traceability definitions
food processing
the term traceability refers to the recording through means of
barcodes or RFID tags & other tracking media, all movement of
product and steps within the production proces.
one of the key reasons this is such a critical point is in
instances where an issue of contamination arises, and a recall
is required
during customer audit, traceability has an high impact in term
of business continuity and production visibility
logistics & tracability – nicolas perrenoud – march 2012 - 37/35
www.azeo.ch
other traceability definitions
the ability to trace (identify and measure) all the stages that led
to a particular point in a process that consists of a chain of
interrelated events
traceability refers to the completeness of the information about
every step in a process chain
the formal definition: traceability is the ability to chronologically
interrelate uniquely identifiable entities in a way that is
verifiable
traceability is the ability to verify the history, location, or
application of an item by means of documented recorded
identification
logistics & tracability – nicolas perrenoud – march 2012 - 38/35
www.azeo.ch