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ERP Lot Track & Trace Capability for Foods Companies

Steve Twinney Director, Deloitte Consulting GMA/FPA Food Supplier Best Practices Conference October 2,3 2007

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

Supply Chain
Inside WHSE 3rd Party WHSE

Manufacturing Input Providers Processor Plant A Processor Plant B

Retail Consumer Food Service

Track/Trace Window

Scope of a manufacturers track & trace responsibilities
©2004 Deloitte Consulting L.P.

©2007 Deloitte. All rights reserved

Material Movement Transactions
Dry Dry Goods Goods Stock Room Stock Room Raw Raw Material Material Coolers Coolers

Processing Work Processing Work Area Area

WIP WIP Coolers Coolers

Packing Work Packing Work Area Area

Finished Finished Goods Goods Freezers Freezers

Finished Finished Goods Goods Coolers Coolers

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Material Movements – ERP Transactions
Dry Dry Goods Goods Stock Room Stock Room Raw Raw Material Material Coolers Coolers

P.O. Receipts Supplier Returns

Stock Transfers
WIP WIP Coolers Coolers Packing Work Packing Work Area Area Finished Finished Goods Goods Freezers Freezers

Processing Work Processing Work Area Area

Component Issues

Transfers

Component Issues Production Receipts (FG)

Transfers
Finished Finished Goods Goods Coolers Coolers

Production Receipts (WIP) Transfers

Sales Order Shipments

Physical Count Adjustments

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Expanding Search Cone

Finished Good C
MFG Lot #5

Customers
Customer #1 Customer #2 Customer #3 Customer #4

Sub-assembly A
MFG Lot #1 MFG Lot #2

MFG Lot #6

Raw Material X
PURCH Lot #1 PURCH Lot #2 PURCH Lot #3 PURCH Lot #4

Finished Good B
MFG Lot #7

Sub-assembly B
MFG Lot #3

Finished Good D
MFG Lot #8

Public Whs’
3rd Pty WHS

Vendor
Return to Vendor

MFG Lot #9

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Expanding Search Cone

Finished Good C
MFG Lot #5

Customers
Customer #1 Customer #2 Customer #3 Customer #4

Sub-assembly A
MFG Lot #1 MFG Lot #2

MFG Lot #6

Raw Material X
PURCH Lot #1 PURCH Lot #2 PURCH Lot #3 PURCH Lot #4

Finished Good B
MFG Lot #7

Sub-assembly B
MFG Lot #3

Finished Good D
MFG Lot #8

Public Whs’
3rd Pty WHS

Vendor
Return to Vendor

MFG Lot #9

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Expanding Search Cone

Raw Material X
PURCH Lot #1

Sub-assembly A
MFG Lot #4 MFG Lot #5

Customers Finished Good C
MFG Lot #1 MFG Lot #2 Customer #1 Customer #2 Customer #3 Customer #4

PURCH Lot #2 PURCH Lot #3 PURCH Lot #4 PURCH Lot #5 PURCH Lot #6 Return to Vendor

Sub-assembly B
MFG Lot #6

Finished Good B
MFG Lot #3

Vendor

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Expanding Search Cone

Raw Material X
PURCH Lot #1

Sub-assembly A
MFG Lot #4 MFG Lot #5

Customers Finished Good C
MFG Lot #1 MFG Lot #2 Customer #1 Customer #2 Customer #3 Customer #4

PURCH Lot #2 PURCH Lot #3 PURCH Lot #4 PURCH Lot #5 PURCH Lot #6 Return to Vendor

Sub-assembly B
MFG Lot #6

Finished Good B
MFG Lot #3

Vendor

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Analyzing Lot Track/Trace Information

Central tool, which enables users to gain extensive access to information relevant to batches. Designed as onescreen-transaction.
Flexible selection of lots on the basis of material-, lot-, stock-, Shelf-Life-Data - as well as classification-data (e.g. characteristics 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)

Frozen Chocolate Chip Cookie Dough 16 oz

Semi-Finished

Packaging Materials

Chocolate Chip Cookie Dough
Flour Sugar Chocolate Chips Butter

Liner

Label

Box

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Situation-Solution Analysis
CONTAMINATED BATCH OF FLOUR

CUSTOMER RECALL

Vendor notifies about Contaminated batch of flour Identify contaminated flour batch purchase order Identify process orders that used contaminated batch of flour ( semi-finished and finished goods) Identify sales orders with products that used contaminated batch Match customers using the sales orders Recall contaminated batch of final product Check existing inventories of contaminated flour (raw material, semi-finished and finished goods)

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Multilevel BOM – Transaction CS11

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Batch Information Cockpit – Transaction BMBC
Example: Defective Batch # B125

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BMBC- Top-Down Analysis for Batch # B125
Purchase order

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BMBC- Bottom-Up Analysis for Batch # B125

Process Orders and Batches of Semi-Finished and Finished goods

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BMBC- Bottom-Up Analysis for Batch # B125
Sales Orders and Batches of Finished goods

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BMBC- Top-Down Analysis for Batch # B125
Stock Transport Order

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BMBC- Bottom-Up Analysis for Batch # B125
Delivery Detail

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BMBC- Legend

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©2007 Deloitte. All rights reserved