Responsible Sourcing and Supply Chain Transparency
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1 Responsible Sourcing and Supply Chain Transparency Panel Discussion February 27 th, 2019 Presented by: Rob Hannam Synthesis
2 Purpose Discuss leading edge data technology being used and/or considered by food companies for supply chain transparency, including: Benefits Challenges Insights Examples 2
3 THE CANADIAN CENTRE FOR FOOD INTEGRIY TRANSPARENCY REPORT CARD How is the food system doing? Poor (0-3) Well (8-10) 8% Farmers / Producers 34% 12% Scientific / Academic Researchers 28% 11% Advocacy Groups 24% 16% Government or Government Agencies 22% 15% Grocery Stores 20% 18% Food Processors / Manufacturers 19% 19% Restaurants 16% Source: The Canadian Centre for Food Integrity, 2018 Public Trust Research Insights to Actions What makes food information credible? July 13-19, 2018 by 1,509 respondents 3
4 FOOD MARKETING INSTITUTE (FMI) & LABEL INSIGHT How Shoppers Determine Transparency Source: Food Marketing Institute (FMI) & Label Insight, The Transparency Imperative Product Labelling from the Consumer Perspective May 15-22, 2018 by 2,022 respondents (U.S.) 4
5 Sourcing and Supply Chain Data Systems Benefits Improved ability to trace product and ingredients back to source Ability to show and prove sources for ingredients / food products Better understanding of supply chain which can lead to efficiencies Possibility to remove steps in the middle if they are not adding value Challenges Agreement of suppliers to share data and use a common system Data compatibility with data systems, sensors and labels (interoperability) GS1 Up-front cost of connecting data from all steps in chain Legacy systems (EPR systems, EDI) API bridge to share data Lack of reliable highspeed in some rural areas 5
6 Example Supply Chain Option 1: Create an API bridge linking each system individually? -Each part of the chain has a database or ERP -Some have EDI Crop / Livestock Domestic / Import Food & Ingredients Storage Primary Processing Secondary Processing Distribution Centre Local Distribution Access 6
7 Example Supply Chain Option 1: Create an API bridge linking each system individually? Option 2: Create an overarching system that links the entire network? Crop / Livestock Domestic / Import Food & Ingredients Storage Primary Processing Secondary Processing Distribution Centre Local Distribution Access 7
8 Some Neat Examples: 8
9 HarvestMark Division of Trimble Enable producers, distributors and retailers to establish a transparent supply chain Quality management Quality scoring, benchmarking tools alerts Food traceability Item level traceability Consumer connect (Trade a Code) Produce Traceability Initiative (PTI) compliance Sales & Data analytics Distribution center insights, Retail insights 9
10 FoodLogiQ FoodLogiQ has raised a total of $31.8M in funding over 4 rounds since 2015* Whole chain traceability system Supplier management Food safety compliance Track + Trace system Beyond one up, one back FoodLogiQ Connect APIs * Source: Crunchbase as of Mar
11 Honeysuckle White Cargill (US) Thanksgiving traceable turkey Code entry by text or website Trace to farm Farm location, story, photo, message from farmer 2018 program expansion 70+ farms 200,000+ turkeys 1/3 of Honeysuckle turkeys are traceable 3,500 retailers across US Blockchain based system 11
12 VeriField TM is a centralized platform for field crop production information for high value crops. Centralizes quality assurance information from farmers, field scouts or crop inspectors.
13 FarmerView Product Concept A food traceability system linking farmers and consumers. FarmerView lets you see your food s journey from the farm to your grocery cart. Transparency from field to fork! Concept still in development 13
14 Responsible Sourcing and Supply Chain Transparency Discuss leading edge data technology being used and/or considered by food companies for supply chain transparency, including: Benefits Challenges Insights Examples 14
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