IBM InfoSphere Traceability Server

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1 Peter Whitney Software Group IBM Silicon Valley Lab IBM InfoSphere Traceability Server 1

2 Traceability The ability to obtain and verify the location, status and history of an item. Are the parts in my cars counterfeit? Pharmaceuticals: Can I be sure my prescription drugs are not counterfeit? Am I taking an authentic drug? Parts: Which parts were assembled in my car and are they Is authentic? my food really safe? Do I have enough containers to meet peak demand? Food: Where does my food come from? Returnable Containers: Do my suppliers have enough containers to meet my production needs? InfoSphere Traceability Server is enabling customers in multiple industries to answer these questions today. 2

3 Serialization Traceability requires serialization RFID 1D Barcode A unique number placed on an item Serialization enables product traceability Serialization can be applied via RFID, 1D or 2D Barcode 2D Barcode 3 3

4 Types of Information WHAT Manufacturing Data Lot/Batch Expiration Environment Data Temperature Transactional Data PO Invoice InfoSphere Traceability Server EPCIS Certified WHERE Location City/State Country/Region Store # Dock # Port # WHY Business Process Receipt Ship WHEN Timestamp 4

5 Business Drivers Why companies today are looking at traceability Manage Corporate and Product Risk Comply with Regulations Gain Competitive Advantage 55

6 Food Product Categories The World s Food Supply Benefits from Traceability Meat Cheese & Dairy Fresh Fruit & Produce Beverages Processed Foods 6

7 Full Chain Traceability Requirements Collect, Store, Securely Share Visibility Across the Total Supply Chain Producer Processing/ Packaging Manufacturer Distribution Center Retailer 7

8 How Traceability Works Events are captured at various points in the supply chain, stored in a central location and can be securely shared with trading partners InfoSphere Traceability Server t Manufacturing Plant t Distribution Center t t Distribution Center t t Retail Location t t t 8

9 GS1 Standard EPCIS = EPC Information Services RATIFIED STANDARD A ratified EPCglobal standard defining the capture INDUSTRY AND APPLICATION NEUTRAL Crosses all industries, is user-extensible and alows each trading partner to keep their own data SECURE INFORMATION EXCHANGE Leverages established security mechanisms and everyone controls their own data and decides who they want to share their data with 9

10 Reduce Complexity and Integration Costs Standard Network Architecture Non Standard 10 Internal Applications EPCIS Query Interface EPCIS Repository EPCIS Capture Interface EPCIS Capture App ALE Interface Filtering & Collection Reader Protocol External Applications Readers/Scanners Non Standard Middleware Non Standard Line Management/Device Management RFID Reader 2D Scanners Traceability Application Shims WMS Custom Codes Integration Layer ERP

11 Industry Leaders Adopting EPCIS Retail Automotive/Heavy Industry Pharmaceutical Consumer Electronics Consumer Products 11

12 Matiq From Farm to Fork Traceability Increases consumer confidence in the quality of pork they purchase Matiq A subsidiary of Norways largest food supplier uses IBM s solution to deliver the country s first of a kind farm to fork traceability 12

13 Consumer Products Company Perishable Goods Tracking Goal: Reduce product waste by 10% per year Perishable Goods Wholesaler Food wholesaler uses IBM s solution to reduce product waste caused by temperature-related problems along the supply chain during transport and distribution. 13

14 Product Recall Headlines - USA Ongoing outbreak of illnesses caused by Salmonella Typhimurium, identified peanut butter and peanut paste made at a peanut-processing plant in Blakely, Georgia, as sources of the outbreak To date, more than 2,100 products in 17 categories have been voluntarily recalled by more than 200 companies, and the list continues to grow. - FDA.gov, 19 Feb 2009 Meat producer closes doors after major pre-packed beef recall - WSJ, Apr08 Canada Expands Recall of Cold Cuts and Raises Death Toll. - NYTimes, 25Aug08 Third Major Toy Recall Issued. - The wall Street Journal, 05Sept.2007 FDA Warns Consumers Not to Eat Certain Jars of Peter Pan Peanut Butter and Great Value Peanut Butter - Product May be Contaminated With Salmonella -FDA.org 14

15 Food Safety Headlines - ASEAN Up to half of all cases of illness or death from contaminated foods in some parts of Asia are due to intentional contamination, says Doctor Peter Ben Embarek, Senior Scientist, Department of Food Safety, Zoonoses and Foodborne Diseases, World Health Organization (WHO). This involves the use of prohibited substances in foods to mask poor quality or to extend the shelf-life of foods that may be past their expiry date. Vietnam s Seafood Exports Increase Viet Nam exported more than US$4.5 billion worth of seafood in 2008, an increase of nearly 20 per cent against the previous year, according to the Viet Nam Association of Seafood Exporters and Producers. Statistics released by the General Department of Customs reveal that the country exported more than 1.2 billion tonnes of seafood, a year-on-year rise of 33.7 per cent. The European Union (EU) continues to be the largest importer of Vietnamese seafood, having imported 349,000 tons, worth US$1.14 billion, up 26 percent from Viet Nam shipped seafood to 26 out of 27 EU countries. 15

16 16 Building a smarter planet About IBM InfoSphere Traceability Server IBM InfoSphere Traceability Server enables enterprises to share real-time RFID, barcode and sensor information that represents product and asset movements with internally and externally managed enterprise applications. -STORE Granular information about objects -SEARCH For granular information about the past and present of objects, run reports and Metrics (COGNOS) -SHARE Data with applications within and external enterprise 16

17 Why is Real-Time Food Safety Management Crucial? Public Safety - Each year, millions of people are sickened, 325,000 are hospitalized and 5,000 die from food poisoning Traceability - After the 2006 E.coli outbreaks in the fresh food industry, companies were unable to accurately track contamination back to its source in a timely manner Ensuring Freshness and Quality A lack of real time product condition and location information creates inefficiencies in process, thus impacting quality and reducing yield 17

18 18 Building a smarter planet IBM InfoSphere Traceability Server Connecting Partners Through Standards-Based (EPCIS) Communication About EPCIS (Electronic Product Code Information Services) Standard for information format and sharing of events and data Data capture, data query and data exchange interfaces A supplement to existing enterprise information systems Track & Trace from Farm to Fork with Tangible Business Benefits: Better reduction and management of risk Improved operational efficiencies Plug-and-Play communications capability for adding and communicating with partners 18

19 Binh An Seafood Company Vietnam Ensuring food traceability from Farm to Fork Challenge Food borne illnesses cause millions of people to become sick and thousands of people die every year Tracking processed food products from the farm to the retail store has been a challenge for the global food industry It typically takes months to pinpoint to source of contamination and several additional months to recall all affected products from the store shelves Solution IBM InfoSphere Traceability Server FXA OpsSmart application suite Binh An Seafood Benefits Product tracking from farm location to the finished packaged products Improved ability to comply with legislations around the world on food safety using GS1 standards New supply chain visibility of its products from point of manufacturer through the point of purchase to enable process optimization We are impressed with the OpsSmart suite and their professional services on putting together the traceability solution and integrating with RFID in 3 months Mr. Pratuang Glaiglangdon Vice General Director Binh An Seafood 19

20 20 Building a smarter planet Case Study- Food Safety- Dole Fresh Foods Challenges Tracing contaminated product that has been packed, split etc. back to its origin Identifying areas where operation inefficiencies lead to increased scrap levels and overall risk Reduce redundant purchases and theft Comprehensive, Scalable Solution RFID/Barcode tagging of bins Association of harvest information to bins, packages, etc Geo fencing (location of harvest) Logistics tracking Manage tracing through mix/split/join processing Manage risk and recall Operational performance indicators 20 Results of InSync OEM Solution: Fine grain traceability of product back to harvest point Mitigation of risk through faster identification and response times Identification and elimination of process bottlenecks Reduction of scrap levels Improved velocity to market, resulting in increased freshness

21 21 Building a smarter planet Example of Events stored in Traceability Food Tracking Application Example 21

22 22 Building a smarter planet Leafy Greens Supply Chain and Processes Raw Agricultural Commodity Field Production General Supply Chain for Leafy Green Fresh Foods Fresh Cut Product Harvest Field Cored Cooling Cooling Value Added Processing and Cooling Transportation Cold Storage Transportation Retail or Foodservice Dist. Center Retail/Foodservice Processing/Preparation Retail/Foodservice Outlet Consumers 22

23 Examples of Food Harvest & Production Tracking* Growing and Harvest Fields Device Data and Events RFID/Barcode -tagged bins initiated at the harvest point Association of harvest information to bin indentifier - GPS location, time, grower, produce, crew, etc Cooling Tubes and Yard Storage Device Data and Events IBM InfoSphere Traceability Server Weigh scales mark arrival of product, initiate 2nd stage Identification of product by lot # Automated cooling prioritization based on product type, temperature, highest risk Inventory reporting in temporary storage cooler Device Data and Events *Example of Lot Level Functionality with IBM Traceability Server OEM Solution via InSync Device Data and Events Device Data and Events Finished Goods & Processing Tracking of hand-off process Add to pedigree of produce Manage tracing through consolidation and mix/split/join processing Retail DC Future Applications Product Movement Temperature Tracking Information Sharing (InfoSphere Traceability Server) Tracking of hand-off process Add to pedigree of produce Track condition, manage risk and recall Provide historical traceability for recall Retail Store Food traceability to harvest point, including split, mixed processes Freshness guarantee to retailers Manage risk and Recall 23

24 24 Building a smarter planet ROI for Everyone Involved in Food Supply Chain Growers / Farmers / Food Producers Minimize spoilage and improve yields of the harvest process Location of harvest to manage quarantine areas of possible contamination Extract premium for high quality and guaranteed safe product Targeted recall ability reduces costs associated with massive recalls Food Manufacturers/Processors Identification of ingredients in finished products Visibility of Auto-ID/Sensory information of tagged fresh produce Compliance management of negotiated terms with growers Association of batch/grower information for pedigree of retail products Indisputable process metrics provide for optimization opportunity Retailers Improve consumer health and confidence in product Extract premium for certified products Manage risk through timely, item-level quarantine capability 24

25 Consumer Products Company Perishable Goods Tracking Goal: Reduce product waste by 10% per year Perishable Goods Wholesaler Food wholesaler uses IBM s solution to reduce product waste caused by temperature-related problems along the supply chain during transport and distribution. 25

26 Consumer Safety Timely knowledge of product recalls and contaminations Goal: Reduce consumer illnesses and preserve brand integrity Food Conscientious Consumer Consumers use IBM s solution, BreadCrumbs, to get the latest information on product recalls to avoid purchasing contaminated goods and avoid eating already purchased items that become recalled. 26

27 USA Food Legislation Update: HR 2479 Summary: Access to records during routine inspections Certification and accreditation for imports Mandatory recall Expansion of reportable food registry Include farms producing food going intrastate Include restaurants and retail Greater criminal and civil penalties Makes seizure easier Expand country of origin labeling Traceability of food 27 27

28 USA Food Legislation Update: HR 2479 Summary: Benchmark attributes for all third parties States Foreign Governments Private third parties Allow FDA to use information to inform the risk-based inspection process Transparency Confidence for all stakeholders Industry, consumers, regulators, congress 28

29 Imported Aquacultured Shrimp Pilot: Timeline Federal Register Notice Announced July 10, 2008 Phase I: August 2008 to November 2008 Evaluation of applications against proposed attributes included in the draft Guidance Phase II - December 2008 to June 2009 Certification body self-assessment and audit protocol FDA assessment of certification body FDA observation of certification body audit of facility for compliance with FDA s regulatory requirements 29

30 Imported Aquacultured Shrimp Pilot: Lessons Learned No manufacturer is using FDA standards Wide variation in applicability of the standards being used Can it be cost effective Auditing third party certifiers FDA undertaking its own inspections Credit & Source: David Acheson MD

31 Traceability Example: Portion of Traceback Diagram (Source: Courtesy FDA/Leavitt Partners) 31

32 InfoSphere Traceability Server Multiple Use Cases Across Industries Automotive/Heavy Equip Food/ Retail/CPG Consumer Electronics Pharmaceutical Shipment Verification X X X Product Authentication X X Inventory Visibility X X X Electronic Pedigree X Product Traceability X X Container Management X X 32

33 InfoSphere Traceability Server Summary Highlights InfoSphere Traceability Server Farm-to-Fork Traceability Reduce Waste Enable Efficient Recalls Temperature Tracking Inventory Visibility Preserve Brand Integrity 33

34 A Smart Choice: Why InfoSphere Traceability Server is the right choice ACCELERATE TIME TO VALUE An integrated solution built on packaged product and standards REDUCE DEPLOYMENT COSTS Simply installation and configuration model. Rapidly expand to additional sites and suppliers MULTI-USE TRACEABILITY PLATFORM Easily expand into additional use cases such as freshness management, inventory visibility, targeted recalls REDUCE SUPPORT COSTS A single vendor solution based on packaged product 34

35 35

36 Retail Store Inventory and Source I know where I got the product I know when I got the product 36

37 37

38 Manufacturer Inventory and Source I know what is currently in stock at manufacturer 38

39 Manufacturer Inventory and Source Receipts at the batch level I know what ingredients are in the final product I can find out which ingredients went into which final product 39

40 Retail Store Product Sales If PF3 and PF4 are bad and I know who purchased which batch / lot with customer loyalty I know who to contact 40

41 Additional Reports: Traceability Server

42 Distributor Inventory and Source 42

43 Product Ingredient Inventory and Source 43

44 Farm Inventory 44

45 Farm Shipments 45

46 Product Ingredient Shipments 46

47 Questions 47

48 Thank You 48

49 49

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