+ Systems of supply chain management; on transparency and traceability in international fish chains

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1 By Rogier Verschoor + Systems of supply chain management; on transparency and traceability in international fish chains Scheveningen Thursday 01 June 2017 Systems of supply chain management Presentation to the EFDAN meeting

2 Introduction Systems of supply chain management; learning from international agri-chains Let s follow this chain of thinking: 4Value Consultancy On fish value chains On value chain cooperation and management On systems for value chain management Upcoming system for value chain management (upsetting?) Q & A Systems of supply chain management (01 June 2017) by Rogier Verschoor 1 of 25

3 4Value Consultancy Rogier Verschoor Driving force: Increasing value in international chains Believe in chain dialogue and collective management systems No: trade-off between economic, social and ecological value Yes: create value from personal and collective learning -> 4Value Agri-chain experience; 3 continents; 3angle (public, private, knowledge) Fish experience: India, Ethiopia, Central America and Indonesia Systems of supply chain management (01 June 2017) by Rogier Verschoor 2 of 25

4 On fish value chains Way of thinking; making sense and order Tracking the physical product: from farm to fork; from fish to dish; from catch to consumer Tracing the product information: flow in opposite direction Simple versus complex fish value chains 3 chain levels: 1. direct actors, 2. chain supporters, 3. chain context Systems of supply chain management (01 June 2017) by Rogier Verschoor 3 of 25

5 On fish value chains (2) Tracking the physical product versus tracing product information Systems of supply chain management (01 June 2017) by Rogier Verschoor 4 of 25

6 On fish value chains (3) Simple versus complex fish value chains Systems of supply chain management (01 June 2017) by Rogier Verschoor 5 of 25

7 On fish value chains (4) From value chain to value chain system Systems of supply chain management (01 June 2017) by Rogier Verschoor 1 of 5

8 On fish value chains (5) Determinants to chain functioning are: relative.. chain length power distribution anonymity versus visibility intensity of production factors labour, land, water, finance intensity of infrastructure, (social) network, human capital Systems of supply chain management (01 June 2017) by Rogier Verschoor 7 of 25

9 On value chains (6): power relations Systems of supply chain management (01 June 2017) by Rogier Verschoor 1 of 5

10 On value chains (7): production factor intensity Systems of supply chain management (01 June 2017) by Rogier Verschoor 9 of 25

11 On value chain cooperation 2 co-existing powers: competition and cooperation Horizontal cooperation / integration Vertical cooperation / integration Systems of supply chain management (01 June 2017) by Rogier Verschoor 10 of 25

12 On value chain cooperation (2) Systems of supply chain management (01 June 2017) by Rogier Verschoor 1 of 5

13 On value chain cooperation (3) Systems of supply chain management (01 June 2017) by Rogier Verschoor 1 of 5

14 On value chain management Why? Improving the functioning of supply chains; creating value How? Management processes throughout the value chain What? Multistakeholder dialogue, cooperation, establishment of chain management systems for transparency and traceability, Systems of supply chain management (01 June 2017) by Rogier Verschoor 13 of 25

15 On value chain management systems Government driven Market driven Private sector driven Systems of supply chain management (01 June 2017) by Rogier Verschoor 14 of 25

16 On fish value chain management Why? What are our objectives in fisheries? Systems of supply chain management (01 June 2017) by Rogier Verschoor 15 of 25

17 Current fish chain management issues Chain of custody: origin, fish variety Exploitation of the commons Use of inputs (in feeding, processing, packing..) Others? Systems of supply chain management (01 June 2017) by Rogier Verschoor 16 of 25

18 Current fish chain management systems Government driven (also supra-national): legal framework Market sector driven: certification Private sector driven: investments in aquaculture, global chain integration Systems of supply chain management (01 June 2017) by Rogier Verschoor 17 of 25

19 Current systems for transparency and traceability In fish: MSC, ASC, Fairtrade USA In agri-based chains: value of certification tends to go down Direct actors in agri-chains (consumers, producers, traders): more and more reluctant to invest in certification Systems of supply chain management (01 June 2017) by Rogier Verschoor 18 of 25

20 Current systems for transparency and traceability Fairtrade International, Fair Trade USA, Fair for Life (IMO), UTZ Certified, Rainforest Alliance, 4C (GCP), the Positive Cup (Nestlé- Nespresso), Café de Colombia, private label claims, FSC, FFFP (!) Trends in agri-based chains: ISO CEN (allignment in cocoa), direct trade, QR, multinationals strengthening own brand (CSR wise) What will happen in international fish chains? Systems of supply chain management (01 June 2017) by Rogier Verschoor 19 of 25

21 Upcoming system for transparency and traceability Application of blockchain technology Systems of supply chain management (01 June 2017) by Rogier Verschoor 20 of 25

22 Upcoming system for transparency and traceability mobile blockchain technology and smart tagging tracking physical products electronically from transaction to transaction irreversibly registered on ww blockchain by smartphone app verifying anonymously (no third trusted party; no auditors) on compliance of benchmarks / standards (vary from chain to chain) Provenance project verified a set protocol on: origin, slavery on board, use of inputs, full traceability and transparency Systems of supply chain management (01 June 2017) by Rogier Verschoor 21 of 25

23 Upcoming system for transparency and traceability Application of blockchain technology Systems of supply chain management (01 June 2017) by Rogier Verschoor 22 of 25

24 Upcoming system for transparency and traceability Application of blockchain technology Systems of supply chain management (01 June 2017) by Rogier Verschoor 23 of 25

25 Recap Systems of chain management in agri-chains are changing Modern technology provides new opportunities Modern technology can partially replace certification The question is not if? but when Now, the question is: are we prepared? Systems of supply chain management (01 June 2017) by Rogier Verschoor 24 of 25

26 Q & A Thank you very much! Systems of supply chain management (01 June 2017) by Rogier Verschoor 25 of 25