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David Habib, Product Manager - Solutions, Markem-ImajeDavid has been key member of the AutoID industry since 1985 and RFID industry since 1997 with experiences in software product development, wireless technologies, warehouse management and control, and product marking solutions. David has worked with a number of Global 1000 companies to develop industry standard solutions that improve efficiencies and reduce costs. David has worked with a wide-range of vertical industries including: Food and Beverage, CPG, Tobacco, Pharmaceutical, Process Manufacturing, Discrete Manufacturing and numerous distribution environments.
Jerry Horne, Manager – Strategic Accounts, Markem-ImajeJerry has been key member of the AutoID and RFID industry since 1987 with experiences in business development, selling and marketing supply chain execution solutions and consulting services to Fortune 500 manufacturing and distribution clients. Jerry has worked with a wide-range of vertical industry markets including: food and beverage, CPG, pharmaceutical, governmental and hub-and-spoke distribution environments.
Controlling The Recall Boomerang
David HabibJerry Horne
November 2008
Agenda
Headlines: Real Issues Scope of the Problem: A Global Issue Addressing the Problem: Traceability Solution Components: Hardware, Software & Services Best Practices: How Leading Companies Work Advice: What Should My Company Do Next? Q&A
It’s 3:00AM…
Your phone rings…Someone tells you there is a serious problem – people have been hurt by your productsHow would you react?Do you have a plan in-place to take appropriate action to recall your tainted products out of the supply chain quickly?
Recalls: Serious Business
New recalls are issued almost dailyThe scope of recalls can range from local to worldwideThe cost of recalls can range from low to highThe risk from recalls can range from moderate liability to extreme liability resulting in bankruptcy
Toxic Milk Recall: 54,000 Sick
Contamination: Melamine toxin in milk
Toxic Milk Recall: 54,000 Sick
Courtesy of BBC - As of September 29, 2008
Pet Food Recall: $45M
Contamination: Melamine toxin in pet foods
Topps Meat Company
Recall Forces Bankruptcy
Tomatoes and Peppers
Summer 2008 Salmonella Mystery Outbreak
Food Recall To Exceed $20M
Listeriosis in 220 Products in August 2008
Toy Recall: $50M
Safety Hazard: Lead paint on toys
Lead Paint Safety Law
Lead Paint Recall Prompts New Law 08/2008
Battery Recall: $430M
Safety Hazard: Batteries catching fire
440,000 Laptops Recalled
Worldwide Safety Hazard: Laptops Overheat
Penalties and Fines
Costly and Deadly Product Errors
Food Incidents Rise
UK 2007 Incidents Annual Report
Courtesy of: www.food.gov.uk
Global Supply Chain Issues
Raw materials or ingredients sourced globallyFinished goods products are manufactured or assembled for global distributionThe “real” supply chain is a global supply chain with global consumersProduct tracking is often manual or not integrated with packaging lines; automated tracking and full integration is available Legitimate, diverted and counterfeit products can all exist in the global supply chainGlobal Economy = Global Recall Strategies
Recall Realities
Plans: Incomplete, Not Fully Tested, Out of DateResources: Easily OverwhelmedCosts: Escalate Quickly, Impact the Bottom LineSales: Immediate Loss, Potentially PermanentShareholders: Price per Share Falls, DissolutionFacility: Closures, Retooling, Re-Certification Consumers: Global Languages Issue, Getting the MessageMedia: Public Relations NightmareLitigation: Almost alwaysStaff: Layoffs, Firings, Scapegoats
Recall Conundrum
Scope: Recall Extremes – Best Case
• Limited scale product recall• Simple loss of consumer confidence• Temporary loss of sales• Manageable recall costs • Low litigation or prosecution risk
– Worst Case • Wide scale product recall• Actual illnesses, damages or death• Permanent loss of sales• Unmanageable recall costs • High litigation or prosecution risk
What’s Your Strategy?
Do you have a formal strategy for recalls?Which extreme can your company handle?Which extreme is your company ready for?Does your company have enough market strength and brand credibility to recover from an extreme recall?Can you survive if your customers and suppliers jump ship to rivals?Can your company perform a specific recall event and meet governmental traceability regulatory time mandates? – EU < 4 Hours– US < 48 Hours
Have you truly practiced your recall plan?
Strategy Needing Help?
If your answers left you with doubts about your ability to manage a recall, then Markem-Imaje has a few key suggestions to help you manage the recall boomerang.
MI Keys To Managing Recalls
Tag / Fingerprint – Place meaningful or unique code on item, case, or palletVerify – Ensure correct code is on correct package: validity check - match code to productCapture Data – Bar code, RFID, Vision system: electronically read coded dataRecord Data – Write captured data to traceability database or integrate data with ERP or WMS softwareProduct Footsteps – Follow product within four walls and associate to all outbound shipmentsManage Data – Maintain high quality data records, generate meaningful look-ups, create reports on-demandUseful Data – Target focus of recalls only to impacted dates, batches, lots, shipments, ingredients
MI Recall Solution Steps
We believe the most efficient and economical place to begin any recall strategy is on the manufacturing packaging line where product marking and its’ related data capture and product tracking can first occurThe fingerprinting, uniquely marking, or simple “coding” an item identifies the product, the place, the lot, the date/time, and possibly who did the workCoding integrity software ensures the right code on the right product at the right time - and it is linked to other systemsA software data repository is critical to transform raw data into business informationMulti-level integrated and cooperative systems – from production line controlling PLCs to ERP and WMS systems is recommended
The MI Coding Portfolio
Pallet Coding
Print & Apply / RFID Tagging
Thermal Transfer Printers
Laser Coders
Small Character Inkjet
Item Coding
$2.49
BEST IF USED BY:
03-20091A 199 19:56
20 234165 4659
Print & Apply / RFID Tagging
Small Character Inkjet
Case Coding
Large Character Inkjet
ACME CANDY 00036 – 8 OZ CHOC GR PEASLOT: JUL081125
The MI Coding Portfolio
Stand-alone Printer Controls or Centralized Networked Printer Controls
Multi-Lines
Site-Wide
Local or SingleSite Network
Powered by
Enterprise-WideMulti-Site Network
Multi-Lines
Site-Wide
Multi-Lines
Site-Wide
Multi-Lines
Site-Wide
Multi-Lines
Site-Wide
Multi-Lines
Site-Wide
Multi-Lines
Site-Wide
Stand-alonePrinter/Applicator
The MI Coding Portfolio
CoLOS Software automatically empowers your coding processes and initiates your recall capabilities
CustomApps
PLC / OPCNetwork
Operator Displays
Format Controls
VerifySystems
MESSoftware
WMSSoftware
RemoteSites
ERPSoftware
Network OperationsDatabase
Sync
CoLOS Coding Output
$2.49
BEST IF USED BY:
03-20091A 199 19:5620 234165 4659
ACME CANDY 00036 – 8 OZ CHOC GR PEASLOT: JUL081125
ProductionReports
TrackingReports
CoLOS Reports
The MI Coding Portfolio
Markem-Imaje Professional Services– Pre-Sale Consulting– Implementation Services– Go-Live Support– Post-Sales Support– Customer Support Help Line
Case Study
Unilever’s Knorr BrandUnilever’s Knorr subsidiary automated its labeling operation to meet business strategies, and European Union (EU) traceability regulations.
An integrated Markem-Imaje solution: SAP (ERP), Markem-Imaje's CoLOS TM software, Primary Package Coders & Pallet Label Printer/Applicators, Fixed Bar Code Scanners and Wireless Portable Terminals
Daco van Dongen, Unilever project manager states: "The simple, reliable, highly integrated system has helped us to reduce manual inputs and errors. It also helps ensure that we provide more accurate and timely replenishment of products in our warehouses."
Knorr acknowledges that turnaround times at truck docks have improved, manpower requirements are reduced, "best-before date" marking errors are eliminated, and visibility has increased to when pallets are shipped to customers by specific carriers.
Case Study
Raw Materials to Finished Goods Traceability/Recall Case Study Video
Recall Solution Steps
Solution Review– Plan: Establish and design all project parameters
and worst case scenarios– Prioritize: Establish priorities – Tag: Network all printers and packaging line devices– Control: Centralize print and data capture– Verify: Automate validation of data capture points– Implement: Integrate with key applications– Test: Certify solution design– Practice: Practice worst case scenarios yearly
Action Check List
Think strategically now – What will it take to prepare your company for a worst case recall scenario? How long will it take to prepare?Look for open, configurable solutions using a modular architecture – Priorities, processes and procedures change. Can your recall solution easily adapt?Focus on data integrity early – Use automation to capture data - This ensures “the right product, in the right package.”Use the data to create usable “Information” – Standardized formats; Capture all data required to make focused and targeted decisions.Pick a starting point – That makes economical sense for your business.Call Markem-Imaje – We can help you through all stages of your recall planning project.
Questions and Answers
For more information please contact us:
Jerry Horne [email protected] 816-478-2473David Habib [email protected] 603-283-2579
Or, visit us in booth: S-2247
Presentation and business concepts created by Jerry Horne and David Habib. © 2008 All rights reserved. Markem-Imaje Business Group.
The information contained in this PowerPoint presentation and accompanying documents is private, confidential and proprietary, and is intended only for the use of Markem-Imaje clients or client’s authorized agent. Any distribution, re-transmission, or sharing of this information is strictly prohibited unless authorized in writing in advance by Markem-Imaje.
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