Steve Twinney

Director, Deloitte Consulting

GMA/FPA Food Supplier Best Practices Conference

October 2,3 2007

ERP Lot Track & Trace Capability for Foods Companies

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Agenda

Food Supply Chain and linkages to ERP

Sample Track & Trace Scenario and Demo (using SAP)

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The Supply Chain and linkages to ERP

Track/Trace Window

Input Providers Processor

Plant AFood

Service

Retail

Consumer

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ProcessorPlant B

Manufacturing

3rd

Party WHSE

InsideWHSE

Supply Chain

Scope of a manufacturers track & trace responsibilities

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Material Movement Transactions

Packing Work Area

Packing Work Area

WIP Coolers

WIP Coolers

Processing Work Area

Processing Work Area

DryGoods

Stock Room

DryGoods

Stock Room

FinishedGoods

Freezers

FinishedGoods

Freezers

FinishedGoods

Coolers

FinishedGoods

Coolers

RawMaterialCoolers

RawMaterialCoolers

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Material Movements – ERP Transactions

Packing Work Area

Packing Work Area

WIP Coolers

WIP Coolers

Processing Work Area

Processing Work Area

DryGoods

Stock Room

DryGoods

Stock Room

FinishedGoods

Freezers

FinishedGoods

Freezers

FinishedGoods

Coolers

FinishedGoods

Coolers

RawMaterialCoolers

RawMaterialCoolers

P.O. Receipts

Stock Transfers

ProductionReceipts

(WIP)

ComponentIssues

SupplierReturns

Physical CountAdjustments

Transfers

ComponentIssues

ProductionReceipts

(FG)

Transfers

SalesOrder

Shipments

Transfers

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Expanding Search Cone

PURCH Lot #2

PURCH Lot #3

PURCH Lot #4

MFG Lot #1

MFG Lot #2

Sub-assembly A

Raw Material X

MFG Lot #3

Sub-assembly B

Vendor

Return to Vendor

MFG Lot #5

MFG Lot #6

Finished Good C

MFG Lot #7

Finished Good B

MFG Lot #8

MFG Lot #9

Finished Good D

Customer #1

Customer #2

Customers

3rd PtyWHS

Public Whs’

Customer #3

Customer #4

PURCH Lot #1

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Expanding Search Cone

PURCH Lot #2

PURCH Lot #3

PURCH Lot #4

MFG Lot #1

MFG Lot #2

Sub-assembly A

Raw Material X

MFG Lot #3

Sub-assembly B

Vendor

Return to Vendor

MFG Lot #5

MFG Lot #6

Finished Good C

MFG Lot #7

Finished Good B

MFG Lot #8

MFG Lot #9

Finished Good D

Customer #1

Customer #2

Customers

3rd PtyWHS

Public Whs’

Customer #3

Customer #4

PURCH Lot #1

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Expanding Search Cone

PURCH Lot #1

PURCH Lot #2

PURCH Lot #3

PURCH Lot #4

Raw Material X

PURCH Lot #5

PURCH Lot #6

Customer #1

Customer #2

Customers

Customer #3

Customer #4

MFG Lot #1

MFG Lot #2

Finished Good C

MFG Lot #3

Finished Good B

MFG Lot #4

MFG Lot #5

Sub-assembly A

MFG Lot #6

Sub-assembly B

Vendor

Return to Vendor

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Expanding Search Cone

PURCH Lot #1

PURCH Lot #2

PURCH Lot #3

PURCH Lot #4

Raw Material X

PURCH Lot #5

PURCH Lot #6

Customer #1

Customer #2

Customers

Customer #3

Customer #4

MFG Lot #1

MFG Lot #2

Finished Good C

MFG Lot #3

Finished Good B

MFG Lot #4

MFG Lot #5

Sub-assembly A

MFG Lot #6

Sub-assembly B

Vendor

Return to Vendor

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Analyzing Lot Track/Trace Information

CCentralentral tool, which tool, which enables users to enables users to gain extensive gain extensive access to access to information information relevant to relevant to batchesbatches..

DDesignedesigned as oneas one--screenscreen--transactiontransaction..

FFlexiblelexible selectionselection of lots on the basis of materialof lots on the basis of material--, lot, lot--, stock, stock--, , ShelfShelf--LifeLife--Data Data -- as well as classificationas well as classification--data (e.g. characteristics data (e.g. characteristics like viscosity or density, status of classification)like viscosity or density, status of classification)..

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Sample Track Trace Scenario and Demo

SAP’s Batch Management Cockpit

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Sample Bill of Materials (BOM)

Chocolate Chip Cookie Dough

Chocolate Chip Cookie Dough

FlourFlour

SugarSugar

Chocolate ChipsChocolate Chips

ButterButter

LinerLiner

BoxBox

LabelLabel

Frozen Chocolate Chip Cookie Dough

16 oz

Semi-Finished Packaging Materials

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Situation-Solution Analysis

CUSTOMER RECALL

Vendor notifies about Contaminated batch of flour

Identify process orders that used contaminated batch of flour

( semi-finished and finished goods)

Identify sales orders with products that used contaminated batch

Identify contaminated flour batch purchase order

Recall contaminated batch of final product

Match customers using the sales orders

Check existing inventories of contaminated flour (raw material, semi-finished and finished goods)

CONTAMINATED BATCH OF FLOUR

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Multilevel BOM – Transaction CS11

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Batch Information Cockpit – Transaction BMBCExample: Defective Batch # B125

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BMBC- Top-Down Analysis for Batch # B125Purchase order

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BMBC- Bottom-Up Analysis for Batch # B125Process Orders and Batches of Semi-Finished and Finished goods

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BMBC- Bottom-Up Analysis for Batch # B125Sales Orders and Batches of Finished goods

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BMBC- Top-Down Analysis for Batch # B125Stock Transport Order

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BMBC- Bottom-Up Analysis for Batch # B125Delivery Detail

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BMBC- Legend

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