Building Trusted Supply Chains
with
Custody Chain
James T Flynn – Everysitewww.everysite.com
The Problem: Untrusted Supply Chains
Reputations and businesses damaged
Not Just Horsemeat
Whole industry now awaiting developments
The Food Fraud Iceberg
Food fraud is pandemic
• Fish• Cereals• Alcohol• Honey• Olive Oil• Packaging• ...and so on....
Horse dressed as beef
Food Fraud is just ONE of Many Issues
Interim recommendations published
Enquiries and Reports
A New Vocabulary
• Provenance• Food security• Food defence• Food fraud• TACCP
The food / drink sector needs to get up to speed
New Costs on Industry
• Provenance authentication• DNA testing• Isotope testing• Food fraud consultants• TACCP experts• Supplier audit services
Result: Reduced Profits, More Complexity
Stop: What Are the Underlying Problems?
• ‘One up, one down’– Traceability– Poor supplier management– Food safety, quality– Limited / No fraud management
• Poor Systems– Too much paperwork
• Non Integrated Management– Poor Management between quality / procurement
• No Supply Chain Visibility
A Whole Supply Chain Approach is Required
Global Supply Chains
Source: Horsemeat Scandal -The Guardian
What is the solution?
At Industry Level Practical Measures Can Be Taken Now
Elliott Report • Enforcement• Intelligence• Inter Agency Communications• Detection• Transparency• Training• Testing• HACCP Approach
FDF Five Point Plan
Supply Chain Mapping is TOP of the List
1. Map Your Supply Chain2. Identify Impacts, Risks, Opportunities3. Assess and Prioritise Findings4. Create Action Plan5. Implement, Track ,Review, Communicate
http://www.fdf.org.uk/
Custody Chain: Supply Chain Mapping
Confidentiality & Confirmation of Trading Relationships Critical
• Identify immediate suppliers• Get suppliers to do the same• Cascade back to farm source• Share key information on:
• Quality• Food safety• Food Fraud• Mass balance
• Build Trusted Supply Chains
RETAILER
FARM
PROCESSORS
Assured Product
Assured Product
Visibility of Assurance
Assurance standards need better sharing infrastructures
• Suppliers at all levels required• ‘Cascading assurance’ concept• ‘Custody Chain’ approach• Real time monitoring and alerts• Requires:
• Inter-assurance scheme sharing• Retailer demand• Regulatory demand
‘Whole Chain’ Traceability
Focus on ‘whole chain’ rather than ‘inside factory’
• Whole supply chain scope• Mass balance reporting• Build supplier confidence• Real time alerts
Summary
Custody chain can ‘remove pain from the chain’
• Custody Chain will deliver:• Evidence based trusted supply
chains• Useful real time information and
alerts• Reduced risk/cost of recall• Reduced admin cost• Agile supply chains leading to
competitive advantage
EXEC
UTI
VESU
MM
ARY