Paddock to Plate_Food Manufacturing WP

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From paddock to plate,
putting transparency back
into the food industry
WORK DIFFERENT

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3 Summary
4 Why transparency is critical to the food sector
4 Why it’s all about the visibility
5 How does food traceability relate to both
manufacturers and consumers?
5 How the use of software affects food safety
6 What are the characteristics of an effective food
traceability system?
6 What Australian law says
7 Other traceability requirements under the
Food Standard Code
7 How Sage helps provide visibility and traceability
in the food sector
8 Sage X3 software designed for traceability
and transparency
Contents

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Work Health & Safety compliance is required at most and multiple steps throughout the lifecycle of a
hazardous material, chemical or food ingredient, including during research and development, testing,
manufacturing, transportation, usage and disposal.
In other words, if a regulatory compliance program addresses only a portion of the product’s lifecycle, it could
be insufficient and put companies, their directors at risk for the dangers, fines, and fees associated with non-
compliance.
Summary
Across the world, companies are being held increasingly
responsible for the safety of products they manufacture, use
in the workplace or sell to the public.

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Enhanced traceability systems and procedures
enables more efficient recalls since rapid access
to reliable information means a reduction of the
duration and cost of the recall.
This in turn means a minimisation of product waste,
a lower litigation risk and no brand damage.
For food and beverage manufacturers, inventory
tracking is important because of the large and
diverse amounts of raw materials and products used.
Therefore, inventory management should be
the primary focus of the food-processing-and-
distribution industry, especially for perishable foods.1
Food traceability directly impacts consumer
confidence as it allows food makers to prove that
their goods are safe and not related to any ongoing
food safety incidents.
Also known as supply chain traceability, this helps
eliminate illegal activities within the supply chain by
giving suppliers and customers the confidence that
the goods are legal, safe and fairly traded.
Additionally, traceability helps mitigate fraud and
counterfeiting of food, since increased visibility
of the supply chain allows more confidence of
legitimate products entering the marketplace.
Why transparency
is critical to the food sector
1 http://www.sciencedirect.com/science/article/pii/S1877050913001816
2 http://www.foodsafetymagazine.com/enewsletter/benefits-of-food-traceability/
Why
it’s all about the visibility
From a point of definition, according to Food
Standards Australia and New Zealand (FSANZ), food
traceability is the ability to track any food through
all stages of production, processing and distribution
(including importation and at retail).
In other words, as FSANZ says, traceability really
means that movements can be traced one step
backwards and one step forward at any point in the
supply chain.2
For any food processing business and regardless
of multi-node manufacturing nodes and/or diverse
geographic locations, this supply chain traceability
should extend to being able to identify the source of
all food inputs such as:
• raw materials
• additives
• other ingredients
• chemicals
• packaging.

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53 http://cdn2.hubspot.net/hub/178643/file-235184968-pdf/docs/whitepapers/rfgen_whitepaper_food_traceability_survival_guide.pdf
Food traceability enables corrective actions such as recalls to be implemented quickly and effectively when
something goes potentially wrong.
So when a potential food safety problem is identified, an effective traceability system is designed to prevent
contaminated products from reaching consumers.
Traceability also enables minimising disruption to trade and any potential public health risks.
How does food
traceability relate to both manufacturers and consumers?
Even if a proper software system is in place, whereby information about raw ingredients and finished products
is collected into a single database, many food manufacturers can and do still use manual and paper-based
systems.
Compounding this issue, manual data entry is slow and tedious and can produce error rates that are too high
for reliable traceability.
Automated data collection tools are designed to capture the data needed through each step of the process
and information about lot numbers can also be transferred automatically to an ERP system.
Additionally, an automated data collection system that is integrated with an ERP system also improves
information accuracy and quality with built-in data validation.3
How the use
of software affects food safety

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Food manufacturers produce in high volume and have rapid inventory turnover, making it virtually impossible
to reliably track information with paper.
Traditionally, businesses kept paper invoices and shipping documents that could take days or weeks to sort
through during a recall.
However, in today’s just-in-time supply chain, manufacturers are expected to take action immediately when
food safety is the issue.4
Therefore, an effective and well-designed food traceability system needs to be able to track a product
backwards and forwards at any point in the supply chain.
What are the
characteristics of an effective food traceability system?
A food business must provide, to the reasonable satisfaction of an authorised officer upon request, the
following information relating to food on the food premises:
1. the name and business address in Australia of the vendor, manufacturer or packer or, in the case of food
imported into Australia, the name and business address in Australia of the importer; and
2. the prescribed name or, if there is no prescribed name, an appropriate designation of the food.
This means that a food business must not receive a food unless it is able to identify the name of the food and
the name of the supplier.
According to FSANZ, any food business that is engaged in the wholesale supply, manufacture or importation
of food must have a system to ensure it can recall unsafe food.
The system should include records covering:
• production records
• what products are manufactured or supplied
• volume or quantity of products manufactured or supplied
• batch or lot identification (or other markings)
• where products are distributed
• any other relevant production records.5
What
Australian law says
4 http://cdn2.hubspot.net/hub/178643/file-235184968-pdf/docs/whitepapers/rfgen_whitepaper_food_traceability_survival_guide.pdf
5 http://www.foodstandards.gov.au/industry/safetystandards/traceability/Pages/default.aspx

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A number of primary production and processing standards in the Food Standards Code also include
traceability measures.
In particular, food identification requires:
• name of food
• lot identification
• name and address of supplier.
Food manufacturers must ensure for a number of key metrics to be met, including to fill customer orders,
control inventory, plan production and maintain quality, while at the same time managing costs, accurately
forecasting yields, and improving customer service levels.
With organisations interested in achieving higher levels of productivity, accurate and real-time visibility of the
manufacturing system is essential to the profitability and growth as a business.
Sage’s manufacturing software suites help manage manufacturing operation faster and more effectively –
from procurement and scheduling to shop floor efficiency and all the way to total supply chain visibility.
These suites provide better insight on quality and costs to promote strategic collaboration and improved
operational efficiency.
With Sage solutions, there are a number of powerful functionalities for the food manufacturing and
distribution sectors, including:
• Manufacturing process management (batch/continuous)
• Capacity planning (CRP) and master production schedule (MPS)
• Mixed-mode manufacturing process planning
• Formula/recipe and potency management
• Extensive quality control and traceability of lots, sub-lots, ingredients and allergens
• Forward/backward production scheduling based on your priority
• Stock status, shelf-life management and expiry tracking across your supply chain
• Replenishment and inter-site transfers
Other traceability
requirements under the Food Standard Code
How Sage helps
provide visibility and traceability in the food sector

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Sage X3 has been designed to keep up with demand
and ensure optimal efficiency through real-time
monitoring of inventory status.
Inventory control is configurable by site with the
application of the multi-site, multi-warehouse and
multi-location management.
Sage X3 allows users to incorporate powerful quality
control functions including total traceability of
inventory quantities and lot and serial numbers in
real time, both upstream and downstream, through
material flow management.
Key capabilities include
• Product data and multiple units of measure
• Location management
• Inventory balances
• Quality control and sampling
• Replenishment, inter-site transfers
• Order release and Stock movements
• Import tracking
• Mobile apps
For more information, visit
http://www.sagex3.com/en-au/product_
capabilities
Sage X3
software designed for traceability and transparency

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