India. Food Traceability through GS1 Standards. Sudeshna Das. sm/cii/foodsaftysummit/delhi/121012

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1 India Food Traceability through GS1 Standards By Sudeshna Das sm/cii/foodsaftysummit/delhi/121012

2 GS1- The Global Language of Business 114 Member Organisations 1,500,000+ Subscriber Companies 150+ Countries Served GS1 is a neutral, not-for-profit Standards organisation that facilitates collaboration amongst trading partners to create efficient, safe & secure global Supply Chains through use of international standards GS1 India

3 GS1 India A standards body set by the Ministry of Commerce and Industry, with founder members comprising: indicates India as country of origin Ministry of Commerce CII FICCI ASSOCHAM FIEO Spices Board BIS IMC IIP APEDA Joint Government Industry initiativee Affiliated to GS1, Brussels, Belgium along with 114 GS1 organisations worldwide GS1 India

4 Need for Food Traceability We are living in a world of global markets - no Complexity borders between sectors, countries and continents With increased globalisation, comes an increased complexity of business processes Harder to control the supply chain - more complex and sometimes it is spread all over the world with Regulations And initiatives Global Market Issues varieties of suppliers, products and clients Large scale production - new technologies have been added to products and process increasing their complexity Various Business Needs Various technologies New challenges - bio-terrorism or counterfeiting that requires new and integrated responses Product reliability becomes a differential competetitive Consumer safety and risk reduction Traceability - a food safety risk management tool GS1 India

5 Global food supply chain An example! Many actors in many countries! The more there are partners in the supply chain the more business processes and information systems are complex 5 Source: Gemini 03/ GS1 India

6 How Traceability can help? Ensure Cponsumer safety Fight counterfeit Help to comply with Regulatory/ Commercial requirements Ensure Recall readiness Protect brand reputation Enhance Logistics efficiency Support marketing strategies GS1 India

7 What is Traceability? Traceability is the ability of a system to track the movement of food products and to record information about related attributes from Farm to Fork or trace back the same from Fork to Farm GS1 India

8 Internal Traceability 8 Movement Transformation Storage Destruction 2013 GS1 India

9 External Traceability 9 Movement Transformation Storage Destruction External traceability takes place when a traceable item is physically handed over from one traceability partner to another GS1 India

10 Traceability consideration : Interdependency Big data analytics Automation Reliable data Fast access to data GS1 India

11 Traceability requirement : Interoperability Unambiguous identification of traceable items across supply chain Automatic Data capture and share at any point of Supply Chain GS1 India

12 Operational Context for Traceability Regulation, Standards and Commercial Requirements 1. Regulation: Are the rules, procedure, administrative codes etc. set by authorities or governmental agencies. The regulations are obligatory. Surveillance 2. Standards: Are programs, methodologies or mechanisms that allow to order and standardize the company s processes or activities, are voluntary and allow to fulfill customers requirements. 3. Commercial Requirements: Are exigencies of customers who guard by their own interests, beyond the fulfillment of the regulations or the implementation of standards. Are voluntary but they become obligatory at the time of negotiation. Prevention & Control 12

13 How GS1 can help 13

14 GS1 Standards enabling traceability 14

15 Identify - unique and universal identifiers Companies Global Location Number (GLN) Location Global Location Number (GLN) Product Global Trade Item Number (GTIN) Serialized Global Trade Item Number (SGTIN) Logistics Unit Serial Shipping Container Code (SSCC) Global Shipment Identification Number (GSIN) Global Identification Number for Consignment (GINC) Services Global Service Relation Number (GSRN) Documents Global Document Type Identifier (GDTI) Pharmacy Assets Global Individual Asset Identifier (GIAI) Global Returnable Asset Identifier (GRAI) 15

16 Identifying items using GS1 standards Shipment At a unique (serialized) level of identification, Global Shipment Identification Number (GSIN) shall be used. Logistic unit The Serial Shipment Container Code (SSCC) shall be used. Trade item Not crossing the point of sale (POS) At a generic level of identification, GTIN for Grouping of Trade Items shall be used. At the specific (batch) level of identification, GTIN + Batch/Lot shall be used. At the unique (serialized) level of identification, GTIN + Serial number (SGTIN) shall be used Trade item crossing the POS At a generic level of identification, GTIN for Consumer Unit shall be used. At a specific (batch) level of identification, GTIN + Batch/Lot shall be used. At a unique (serialized) level of identification, GTIN + Serial number (SGTIN) shall be used. 16

17 Capture Barcoding/RFID Through scanning of barcodes and RFID tags encoding GS1 identifiers with product information 17

18 Share master/transactional/event data Physical movement of goods throughout the supply chain Business data shared between trading partners Master data: technical information about a product, such as weight and size of the product, case, pallet synchronised with GS1 GDSN Transaction data: such as order, dispatch advice, invoice - exchanged automatically with GS1 ecom Physical event data: information about the movement of a trade item or logistical unit through GS1 EPCIS 18

19 Product data share through GDSN Real-time sharing of accurate product data amongst trading partners An automated, standards-based product data synchronisation network facilitating data exchange between trading partners Allows all partners to have consistent item master data in their systems, used in several critical business processes connected with ordering, invoicing, payment, dispatch, receipts and storage operations 19

20 Transactional data share - through GS1 ecom Global standards for electronic business messaging ( EDI) Real-time, error-free electronic data exchange for order to cash processes Rapid, efficient and accurate electronic transmission of agreed business data between trading partners all along the supply chain Users are not required to align the format and structure of the messages as they can use the readily-available standard format. Based on globally recognised GS1 Identification Keys (GTIN, GLN, SSCC etc.), allowing a direct link between physical flow of goods and related information throughout the entire Supply Chain. GS1 ecom: Two complementary standards - GS1 EANCOM - GS1 XML 20

21 GS1 EPC Information Service (GS1 EPCIS) Global standard for sharing physical event data Real-time information on the movements of products in the supply chain Helps organisations share data about the location of products or assets within their company and across multiple stakeholders Provides end-to-end supply chain visibility by answering questions such as What product was Where, When it was there and Why it was there (physical events data) A service that works with barcodes and EPC/RFID, in supplement to existing enterprise systems 21

22 EPCIS in action Retailers in Hong Kong and Italy achieved visibility in fine wines from vineyards to the stores with GS1 EPCIS Hong Kong fine wine and spirits retailer collaborated with 3 key Italian vineyards GS1 EPCIS based traceability system (eztrack TM ) emnable track and trace of shipments from vineyards to the store Quality ensured - EPC/RFID tags with sensors monitoring temperature during transport Over 99% accurate inventory through real-time monitoring of stock 22

23 GS1 Global Traceability Standards 23

24 Global Traceability Standards (GTS) Defines a traceability process independently from the choice of enabling technologies Defines minimum traceability system requirements for companies of all sizes across industry sectors Details the corresponding GS1 standards used within information management tools Meets the core legislative and business need to cost-efficiently trace back (one step down) and track forward (one step up) at any point along the entire length of the supply chain Describes the creation of accurate records of transactions Provides for fast data communication about the traceable item between trading partners Created by user group comprising of 73 industry experts from 20 countries 24

25 GS1 implementation support 25

26 Traceability implementation in APEDA using GS1 standards GrapeNet project GrapeNet is an internet based traceability software system, for monitoring fresh grapes exported to the European Union from India up to the farm level GrapeNet has put in place an end-to-end system for monitoring pesticide residue, achieve product standardization and facilitate tracing back from retail shelves to the farm of the Indian grower, through the various stages of sampling, testing, certification and packing 26

27 Traceability implementation at APEDA 27

28 Traceability implementation at APEDA Benefits realized ( Data Source : A 2007 report) GrapeNet increased self confidence of farmers Introduced culture for food quality and safety Farmers earned 40% more value Benefits went to 40,000 farmers and 115 exporters FOB realization rose from 8 Euro to 11.5 Euro per carton of 3 kg in European Union recognized the efficiency and accuracy of Indian laboratories APEDA received National Award for GrapeNet implementation. Now under extension to other product categories (groundnut, pomegranate, organic foods) 28

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30 Connection between traceability and recall Traceability system provides: Complete visibility of location of food products/consignments in Supply Chain Unique identification of each player in Supply Chain (raw materials, supplier to finished products manufacturers, to intermediate distribution chain partners to retailer) Unique identification of products/consignments and quantity held in Supply Chain and by whom Accurate, timely and fast recalls can only be effected if traceability systems which provide accurate product identification, partner identification and location of products/ consignments at all times are in place Recall is a use case of traceability GS1 India

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32 GS1 s recall / withdrawal notification process B2B Receivers Initiator (sponsor) Initiator Approver Retailer Wholesaler Food Service Manufacturer Broker 32 Govt. G2G 2013 GS1 India

33 Recall/ Withdrawal Process 3. Communication upstream of SSCC,GTIN and lot number, in order to withdraw the problem goods from the stores, DC s,. 2. Source of the problem is known Grower Carrier/ Importer Auction/ Packer/ Importer Carrier Distribution Centre (Retailer) Carrier Hypermarket 1. Communication downstream of SSCC,GTIN, lot number, etc GS1 India

34 Global engagements Anti-Counterfeit stds (ISO/TC 246) Product Recall stds (ISO/TC 240) Product Safety stds (ISO/TC 243) WCO IPM tools GS1 visibility framework and identification standards Product safety portal for consumers, Industry and regulators Supply Chain visibility For traceability and recall G2G recall portal and counterfeit detection 34

35 GS1 OECD partnership 35

36 Compatibility with ISO standards 36

37 Global developments related to food safety ITDS (International Trade Data System), U.S. uses GS1 standards for Risk management and assessment capability for inbound shipments. The International Food Safety Authorities Network (INFOSAN), global network managed by FAO/WHO use GS1 Standards to share information. Helps both Regulators and Industry to execute effective recall of contaminated food internationally GS1 India

38 Existing traceability systems in India Limitations Restricted to downstream only Prevalence of largely manual, internal traceability systems inhibiting effective recalls Closed traceability information networks restricting seamless communication across stakeholders Incompatible track & trace solutions, lacking interoperability across Supply Chains Traceability systems lack audit functionality to inspire consumer trust Data captured in unstructured, non-uniform and proprietary manner preventing seamless information exchange Need for a uniform, robust traceability system for the food supply chains in India which can ensure consumer safety and facilitate compliance with varied global/domestic regulatory and buyer requirements. 38

39 Next Generation Strategy: Value Traceability Compliance Traceability Value Traceability Differentiation While compliance and risk reduction aspects can be critical, they do not encourage investments beyond the required minimum Risk reduction Branding & Marketing Traceability Optimization Carbon Ftp. Delivering. Lower costs Compliance Supply Chain optimization Increase rev. Asset Opt. Reduce Risk 39 FOCUS: stay in business FOCUS: increase value 2013 GS1 India

40 India Thank you