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