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Trace R&D 2009 – Winnipeg, Manitoba
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Advances in Traceability Systems: The Integration of Supply Chain Logistics
and Quality Control Systems (QCS)
Gregory S. Bennet [email protected] R. Hurburgh [email protected]
Iowa State UniversityAgricultural & Biosystems Engineering Dept.
Iowa Grain Quality Initiative www.iowagrain.org
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Iowa Grain Quality Initiativewww.iowagrain.org
Howard Shepherd Program Coordinator
Charles Hurburgh Professor in Charge
Its Mission: To create knowledge and provide information that will improve the efficiency of traditional commodity grain markets and will assist emerging markets for user- specific grains.
Research GroupHafize Gunsu Gemesi
Brittini BrownMaitri Thakur
Gretchen MosherChad Laux
Greg Bennet
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Food Safety Dilemma
Most of the recent food scare problems have originated at the production end of the food chain.
Upon discovery, items are often tracked back to the processing stage only.
All have started as input bulk materials, yet end up as discrete ingredients for end products.
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How can we have safer foods and still be economically efficient?
How does supply chain logistics address foodtraceability?
How does quality control/management systemsaddress food traceability?
How can integrating supply chain logistics withquality control/management systems, or “FullBody Traceability,” address food traceability?
Questions we look at
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Bulk Commodity Traceability Links & Research Projects
Processor/Miller
BargeTerminal
EthanolPlant
Farm
Logistics DataGIS / GPS
Logistics – Query Processing & Data Mapping
Quality Mgmt. Research
Logistics & QM System Research
1
2
3
4
Elevator/Cooperative
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1. Geographical Traceability in Production Agriculture
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Study Area
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Real-Time Data Acquisition Model for Single Lot
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2. Farm/Elevator Traceability Data Management
Project ObjectivesProvide information about specific production
practices (IP, organic, etc.).Visualization of traceability data and make use of
GIS to study the relationships betweenenvironment and production parcels.
Creation of information system that is compliantwith legal requirements (e.g., FDABioterrorism Act, ISO 22000 Series).
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Traditional Grain Elevator Practices
12
• Internal grain movement often goes unrecorded
• Grain lots are divisible• Lot identity is not maintained
Internal Grain Movement
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User Interface
NC 213 2009 13
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Feed-to-Milk Process Mapping
New Project Just Started
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•Date Received•Supplier•Bill of Lading •Operator•Silo Destination•Silo Level
•Silo Source•Product•Product Total•Product Destination•Cream Destination•Cream Total
•Cooler Location•Product Description•PT Tank Source•Product Destination•Date Received•Order Number
Data Mapping At Dairy Processor
•Filler ID•Quantity•Pallet ID•Route ID•UPC Number•Sell By Date
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3. Farmers Cooperative Elevator Farnhamville, Iowa
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Farmers Cooperative Trade Area & Management Regions
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FC Bin Tracker
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Annual Cost-Benefit Summary for QMS
Operation Cost SavingsGrading $1,085Inventory Control 10,675Operations Efficiency 2,180Regulatory Compliance 5,300Employee Development 3,400
Total $22,640Cost of QMS $11,250
Ratio: 2:1Source: Farmers Cooperative Elevator Co., Farnhamville, Iowa
Disclaimer: 2002 Data, Iowa State University and Farmers Cooperative Elevator Company
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Project ObjectivesDesigned Auditable Program for Grain Sales into
Foreign Markets – Mandatory 3rd PartyCertification.
Measure Requirement Compliance.Determine Economic Feasibility for Introduction
of “New” GM Events for Sales intoRestricted Markets.
4. Traceability System For Grain Exports
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Vendors(Input Supplies)
Livestock Farms/Industry
Where vertical integration may occur
Farm(Small-Large
Producer)Manufacturing (Processing)Logistics (Agricultural)
Food Processor
Truck
Barge
Train
Consumers
Customer/Consumer(Foreign)
Transport (Logistics)
Parent Seed, Agro-Chemical, Machinery Cos.,
& others
Overseas Port
(Generic)Freighter
Feed Mills
Grain MerchantsFarms
Biofuel Plants
Mills
Mills
Port
Truck
Barge
Train
Freighter
Truck
Barge
Train
Freighter
Cooperatives/Elevators
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IPT Measurement Score
0
100
200
300
400
500
600
Type of IPT
Dat
a Po
ints
DepthBreadth
100%
90.1% of Breadth Required
89.5% of Depth
Required
89.8%
Overall Score 89.8%
Rigor Scale
Least Rigor Greatest Rigor
Actual
Dro
ught
Res
istan
t
Shel
f-Li
fe
Hig
h O
il
Fair
-Wag
e
Low
-Lin
Required
Phar
ma
Purity Level Measured
nil 80% 95% 75% 98% 97.8% 99.99%
Required
Required
Required
Required
Required
Compliance Scorecard
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Purity Level to IP Cost/Bu. Illustration
$5.91$8.08 $8.37 $8.80
$10.55
$2.62
$2.27
$6.63
$9.20
$9.45
$0
$5
$10
$15
$20
$25
Purity Level Required
$/B
u. S
old
Profit/Bu.Costs/Bu.
Std IPT1 IPT2 IPT3 IPT4 n/a 5.0% 2.0% 1.0% 0.1%
$8.53
$10.35
$15.00
$18.00
$20.00
Cost-Benefit Analysis
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Future Direction
• Where are logistics and quality systems leading us?
– Upcoming Project—To determine traceability accuracy; from parent seed company to end customer—miller, barge terminal, and ethanol plant (including DDGS by-products).
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Logistics vs. Quality Systems
Current SituationStrained Safety/Quality and Logistic Systems.Current Food Safety is a Patchwork of Systems.Integrating Logistics and Quality Systems can
Create Synergies.Both Systems are Already Well Established.
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Supply Chain Logistics
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Quality Control Systems (QCS)
Approved
Approved
Approved
Approved
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Optimal Traceability Stems From:Well Connected/Interactive/Sharing of Data.Rigorous Auditing/Testing Tied to GS1 System Software.Effective & Efficient Synergies by Integrating Logistics &
Quality Systems.
Full-Body Traceability
Benefits of Integration:Logistics & QM Systems are Already Established—
No New Systems Are Needed.Improves Recall by Identifying Items that Are, from those
that Are Not, of Focus.The Strengthens of One Helps the Weaknesses of the Other.
Food & Agricultural Traceability ConferenceDes Moines, Iowa, USA
June 9 - 10, 2009 (Conference)June 11, 2009 (Workshop)
For more information on the Conference, Workshop, or to register, visit: http://www.extension.iastate.edu/grain
Interactive sessions focused on;• Adding value to agricultural commodity products using traceability.• Why adopt traceability?• What are risks and rewards of traceability for agricultural & food businesses?• How can traceability help meet the needs of modern food & agricultural businesses?
Solutions-Based
Available October 2009
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Thanks for Attending—Questions? Gregory S. Bennet [email protected] Charles R. Hurburgh [email protected]
Iowa State University Agricultural & Biosystems Engineering Department Iowa Grain Quality Initiative www.iowagrain.org
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Thanks Winnipeg—Go Boston