Why can lack of traceability solutions damage a company’s reputation?

Traceability solutions are critical in sectors where people’s lives or health may depend on locating specific batches of potentially harmful products.

We tell you why traceability is key to the reputation of companies.

Learn how blockchain technology and your software can help you understand traceability.

When some serious cases of blood clots linked to the AstraZeneca vaccine were detected, some countries suspended vaccination altogether. Meanwhile, others immobilized certain batches , thanks to the fact that the traceability of each vaccine was perfectly known .

If a problem is discovered during the COVID-19 vaccination, traceability is total , since each autonomous community knows the vaccines that arrive and which batch they belong to. In addition, the Spanish Agency for Medicines and Health Products (AEMPS) knows where each of the vaccines is sent. As if that were not enough, each person’s vaccination is registered with the trademark and the batch.

But traceability, in addition to taking care of our health, can also pose a serious threat to the reputation of companies. From time to time, cases of companies involved in scandals related to certain products make headlines.

One of those cases, which had a great echo, happened in 2013. It was a huge scandal throughout Europe and caused negative headlines for the companies involved. Thanks to traceability, it was discovered that certain foods that supposedly contained beef actually contained undeclared or unlicensed horse meat.

What is traceability in manufacturing?

Traceability  in manufacturing  is the ability to track and follow raw materials through the supply chain until they are converted into finished products.

Thanks to traceability, visibility is provided to consumers and companies of what is manufactured and where the products they purchase come from.

Supply chain traceability is critically important for all manufacturers. Although there are  two highly regulated manufacturing sectors where traceability  can make the difference between “life and death”: pharmaceuticals and food and beverage.

Traceability of EU pharmaceutical products

Traceability is of enormous importance in the manufacturing of pharmaceutical products such as vaccines, provided to millions of people around the world.

As in the food and beverage sector, pharmaceutical manufacturers understand that  supply chains  can be vulnerable. For example, a counterfeit medicine with incorrect or insufficient ingredients could, in the worst case, be fatal.

But the demanding traceability requirements demanded by the European Union, in addition to being a challenge, can also be an opportunity.

According to Nino Giguashvili,  senior analyst at IDC , “beyond immediate regulatory compliance, the end-to-end implementation of serialization, track and trace solutions, as well as the intelligent use of the precise data they generate, will provide unmatched opportunities to improve control over supply chains, increasing their transparency, security and reliability, and creating unique perspectives to boost consumer trust and brand image.”

Traceability in the food and beverage industry

Traceability is one of the pillars of the EU’s food safety policies . It provides what is called a risk management tool. Thanks to product traceability software, food business operators or food safety authorities can recall products identified as unsafe .

It additionally permits them to recognize gambles, follow them to the source, disconnect the issue and keep debased food from arriving at shoppers.

The EU General Food Law, which came into force in 2002, made traceability mandatory for all feed and food operators . One of the consequences is that they have to implement special traceability systems . These identify the origin of the products and quickly provide this information to the relevant authorities.

The guidelines require that the names and addresses of suppliers, the nature and details of the product, the date of delivery, information on the volume and quantity of a product, and batch numbers be documented.

According to Shan Zhan,  global commercial director of ABB’s food and beverage business , “all food manufacturers in the world, regardless of local regulations, should at least comply with the ISO 22005:2007 standard on traceability in the human food chain. and animal.”

This allows organizations to accurately record  data  related to their products. Including all kinds of information, from the feed used to the ingredients and packaging. And it ensures that the necessary documentation remains intact.

“Compliance with regulations also means constantly providing updated information to the various suppliers and authorities involved.”

The importance of people and automation to ensure traceability

There are  two factors necessary to improve traceability  and guarantee minimum compliance with this standard: the human factor and automation.

Human factor

According to Shan, “although it is essential to have standard operating procedures (SOPs) for traceability in a food processing facility, such as scanning an ingredient upon arrival, employees are often responsible for this task.

If this requirement is not met, no matter how good the control system is, it will never be effective. Therefore, the manufacturer must ensure that all personnel follow the SOPs, using the methods they deem necessary.”

Automation

To improve traceability procedures, it is essential to have a  complete automation control system . This system should collect data from all levels of automation to feed the central manufacturing execution system (MES) or manufacturing operations management (MOM) .

The MOM system supports the implementation of effective SOPs as well as complete traceability .

From the first level of automation, such as the sensors at the power level, the MES must process all this information. The timestamp, the supplier from which the product came and the operator who handled it. This information must then be converted into production data for review by the plant manager.

The MOM system guides operators and ensures that they perform their tasks correctly, avoiding deviations and non-compliance.

Additionally, all relevant data such as material batches, quantities, test results and process parameters are collected throughout the process to ensure complete forward and backward traceability.

According to Shan, “This information not only provides useful backup in the event of a food scandal, it also allows the plant manager to see where production disruptions are occurring and review quality control. For example, to see how quickly perishable products move through the plant and reach the customer.”

“Having such a comprehensive data record can ensure that the food processing facility is prepared in the event of a product recall or contamination scandal. “This information will permit us to recognize where items should be obliterated, and the office will actually want to introduce the information to clients and specialists”.

Blockchain helps improve traceability

Blockchain  can improve the way traceability is used in the supply chain . Multinationals such as IBM and Walmart are at the forefront of using blockchain technology to improve the traceability of their products.

Currently, supplier and customer records are often collected manually, ensuring that the manufacturer can track the entire process. However, this  does not protect sensitive  supplier data .

How to avoid food fraud with blockchain technology

Blockchain technology allows certain data to be kept anonymous. And, at the same time, record them in a way that ensures that the supply chain is compliant.

Additionally, blockchain traceability software can prevent food fraud , as the quantity of each ingredient entered into the  supply chain  cannot be less than the volume leaving it.

This is how a product could be identified as fraudulent:

The blockchain could not only monitor food ingredients, but also the conditions in the production facility. These are often difficult to verify and even if records are taken, they may be falsified.

A photo or digital file can be taken to record the situation, such as catching a fish, to demonstrate compliance with sustainable fishing regulations.

A secure fingerprint of this image is then recorded on the blockchain, called a “hash.” The time and location of the photo will be encrypted as part of this hash so that it cannot be manipulated.

The next blockchain provider will have a key to this hash and will be able to see that their product has been compliant.

Therefore, people and technology are key to ensuring product traceability within supply chains . Being at the forefront of investments in these technologies will help plant managers not only localize their products, but also combat threats such as food fraud.

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