The «Food Trust» Programme Vision e value proposition

Transcription

1 The «Food Trust» Programme Vision e value proposition V I S I B I L I T Y I S T H E N A M E O F T H E G A M E 1

2 In Italy, the market recognizes and rewards demonstrable quality Italians are willing to pay more... for products which are subject to strict controls on safety and quality 77,3%... for products using ingredients from Italian manufacturers or suppliers 79,2%... for food produced in Italian plants for certified products 85,5% 79,5% Source: Nestlè report on data from Censis 2

3 Millennials lead and influence food preferences, affecting the market for decades to come 77% try to avoid unhealthy food 87% eat fresh food products Fresh, organic and healthy food Simple food with limited processing Enjoy cooking and eating with friends 77% love to cook 78% want to know more about the ingredients Require more information about food products Sustainable food, drinks & packaging Source: PwC elaboration Support companies sensitive to social and environmental issues 41% increase loyalty to sustainable brands 70% are willing to pay up to 20% more 3

4 «Trust» is invaluable 4

5 «Trust» & «Identity» yesterday a pillar of confidence, today a conundrum at the convergence of physical and cyber worlds In the digital world, it's hard to say who's who In the physical world, does a certificate suffice to say what's what? 5

6 We call «visibility» the ability to see, predict, anticipate, validate and go back over the history of the product and its relevant predecessors throughout their entire life span with no limitations bar the opportunity and then narrate it as required. Information of uneven quality, limited or incomplete, affects Visibility. The new name of the game. knowledge beyond the restricted horizon of hard-core supply chain, representing a serious issue for any company wishing or needing documented factual evidence about their product s history outside their own information light cone. In addition, higher levels of complexity and risk make traditional approaches to «traceability» no longer sufficient to deliver the confidence levels required by consumers and business partners. The adoption of appropriate technologies, which may enable visibility into and across the entire business ecosystem, can help companies quickly and profitably adapt to market changes, besides strengthening the confidence in their brand. 6

7 Transitioning from "traceability" to "visibility" represents a quantum leap for the agri-food industry From To Supply Chain Connected Ecosystem Traceability End-to-end Visibility Product specifications Product (digital) Identity 7

8 Food s digital history Product Life Cycle Product data inheritance provides a full account of the history and represents a comprehensive digitally mirrored image of the physical product, a faithful representation and strict definition of its identity The digital identity of the product, together with the recursive nature of the concept of inheritance of data collected throughout the entire production process, regardless of its complexity, provides each actor in the ecosystem with an unprecedented opportunity to investigate, analyse and prove facts and events related to the product. Soil (origin, characteristics) Seed (type, seeding date) Grains (treatment, harvesting date, delivery date) Flour (mill income date, transformation, mill delivery date) Dough (mixing, rising, shaping, baking, cooling) Bread (packaging & delivery date) Digital Value Chain 8

9 The new paradigm triggers a virtuous circle of cultural, organisational and operational improvement From field to fork: Select, collect data to document the history of the product throughout its lifecycle, seamlessly inheriting all relevant information accrued throughout the various processing steps of individual components Redesign, in accordance with the IoT paradigm, the way data is collected and exchanged between the various actors and members of the ecosystem Assign each product its own Identity: collecting the details of its history to yield a digital twin, a thorough documentation of its distinctive identity Achieve end-to-end visibility: monitor, control, deliver the drivers of comprehensive product governance in full transparency by sharing valuable information and knowledge across the entire ecosystem 9

10 A comprehensive approach and a great opportunity for business Procurement Consumer Satisfaction Raw Materials Communications Packaging Innovation Sustainability Supply Chain The Food Trust Programme Total Quality Operations Transparency Safety & Security Interchange 10

11 Benefits for ecosystem stakeholders Revenue Cost Mitigate risks Anticipate and manage operational issues Prevent from fraud losses Safeguard reputation Reduce manual data collection and inherent errors Improve performance Achieve end to-end visibility over the Supply Chain and guarantee its integrity Deliver to the brand promise Improve data collection capabilities, quality and dependability Build trust of consumers Sell more Overcome the Italian sounding threats Document in full the product s history and heritage 11

12 The Food Trust portfolio Organization & processes Technology Analysis and mapping of organisation and operational processes pertaining to the value chain, aimed at identifying weak points and remediation actions to achieve end-to-end visibility Support to Change Management, aiming to attain the desired levels of cooperation within the entire ecosystem The ValueGo platform implements an IoT paradigm to underpin a rich set of agri-food ontologies, thus allowing to: Define a true digital ID" of every product, every product s ingredient, every product s ingredient s ingredients, and so on, transparently and conveniently integrating information about all relevant events and items of a production-transformation-distribution ecosystem Quality & Risk Management Define methods & systems to monitor and check expected quality levels of products and processes The Food Trust Programme by Seamlessly collect, store (Big Data) and process (analytics) all relevant information, end-to-end along the entire product s life cycle Spread information and knowledge across the whole ecosystem to improve the efficiency of production processes in total cooperation and transparency Define control models to prevent fakes or adulteration of products Tax & Legal Support Identify efficient solutions to monitor and check compliance with domestic and international regulations and legislations Review of contractual frameworks in the view of a cooperative and transparent ecosystem Funding and government incentives 12

13 What does ValueGo do and how? Data collection to garner knowledge Spread knowledge across the entire ecosystem Tracking & Tracing secondo la logica by design Collect relevant data about processes, events and the product Elaborate meaningful data, morphing the "story" of the product from a motley collection of data sources within the ecosystem, matching and validating information against sets of rules defined by means of domainspecific taxonomies and ontologies Ontologies translate process models, manufacturing standards and control rules, jointly with product specifications, into knowledge-based, contextdependent plain language, allowing a variety of views from one source of documented truth Carefully selected data and information stay with the systems of origin and their owners, and yet are made visible to pertinent actors in the ecosystem through a sort of distributed ledger mechanism Events and product-specific data are identified and validated against a set of rules (ontologies) as the product s life cycle unfolds, end-toend Thus, the product s digital twin gains shape and content, symmetrically with the actual, physical product building in the ecosystem 13

14 EXAMPLE ValueGo supporting Barilla for Expo 2015 Scan QRCode to access story 14

15 La storia del prodotto può essere integralmente ripercorsa secondo punti di vista diversi e in funzione di specifiche necessità Supply Chain New Product Development Authorities Consumer Compliance 15

16 Roberto Tavano Lead, The Food Trust Programme PwC Francesca Pozzi Manager Vincenzo Grassi Partner Visit our website 16

17 Thanks! This publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers Advisory SpA, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it PricewaterhouseCoopers Advisory SpA. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers Advisory SpA which is a member firm of PricewaterhouseCoopers International Limited, each member firm of which is a separate legal entity. Rev