Food Safety: Integrating Traceability, Blockchain Technology, and FSMA

Food Safety: Integrating Traceability, Blockchain Technology, and FSMA



my name's Jeff Smithers and together with my co organizer and Co moderator of this session Herbert Stone we'd like to welcome you to this session on food safety in particular the integration of traceability blockchain technology and the Food Safety Modernization Act before we introduce our first speaker I thought I'd spend just a few minutes in setting the scene and some opening comments I've often used this quote from Carol Brookins it's now some 20 years old but perhaps more relevant today than it was back in in 99 and it sets in I guess stark relief what we're all trying to do in the food industry and that is meet consumer demands and consumers we're all consumers can be pretty demanding and if you read this quote it's it's both accurate and a little humorous towards the end and as I say it it sets in stark relief the fact that we are attempting in everything we do to meet what consumers are demanding they're becoming more educated more aware of what's going on in the industry and they're demanding a lot from the food aid but as we go about trying to meet these consumer demands it's important to recognize that food safety can never be compromised it's an absolutely non-negotiable characteristic of the food we manufacture and the food we eat and in fact we have an obligation as members of the food industry in all our various respects to deliver on food safety but delivering on food safety in this modern world this globalized world can be very challenging and I guess this quote from the World Health Organization from last year really captures how challenging that can be the journey from where our food comes from to how it ends up on our plate is longer and more complex than ever before food safety risks exist at every step our food safety and control systems must adapt and work together across sectors along the entire food chain and I guess this this quote from the WH o really captures the purpose and the aim of the of today's symposium and that is how do we take modern science and technology together with a modern regulatory environment and integrate it all together for an outcome that delivers on food safety so it's about choice application adaptation of relevant science and technology tools out away how do we integrate those effectively across the entire food chain and how do we integrate that Science and Technology with a modern regulatory environment and today we have we have three speakers very good speakers who will address a number of aspects of this adaptation and in integration across the food chain so I now like to hand over to my co-moderator Herbert Stone who'll introduce the first speaker good morning and welcome to our program I that that's the extent of my remarks I'd like to start off focusing on the speakers because that's where the attention should be our first speaker is as the will improve the other two are very impressive with a wonderful background and understanding about food safety and the implications of it Maria della Savio is has an extent very impressive background she has more than 20 years of experience and the food related experience and other industries she before being joining I of T as the chief science and technology officer she she served as VP of Nutrition R&D for grains dairy Quahog platform she's made cohort platforms at PepsiCo she's gonna talk with us this morning about traceability and the business program is to set a stage for what we hope will be subsequent years where we have speakers come in and talk about how they're making use of traceability and food safety and connecting them all to the consumer good morning it is my pleasure today to just just stand in front of you and talk about it's my pleasure to stand in front of you and talk about traceability I would like to start by sharing the eye of this vision and mission because safety is at the heart of everything we do our vision is to have a world where science and innovation are universally accepted accept accepted as essential to safe nutritious and sustainable food supply for all and this is exactly where traceability fits it and our mission is to advantage to advance the science of food and its application at the global food system I would like to start this presentation in framing up the mega trends that are shaping our industry today from seed all the way to consumer and arguably the way that the product is disposed we are seeing a lot of changes that they are generation in nature and this changes our challenges but also opportunities we have an imperative for food security and sustainability that is driving the demand for higher production we are seeing more and more organization and we're seeing the natural resources coming under tremendous pressure not only because we have to produce more food but because we are seeing massive climatic changes and also we're seeing government policies that they are going in different directions but one thing that is undisputable is that you cannot separate food policy from environmental policy the two things are intertwined when you go into consumers and industry we are seeing the consumers demanding everything and I love the way Jeff started they saw this session by saying that the consumer today wants everything they want quality they want cost they want accessibility nutrition they want values and actually there is a lot of skepticism about science I sincerely hope that this skepticism will fade away and science will come back to the fore but at the moment there is a lot of skepticism and when we talk about the consumer it is not the affluent consumer in developed markets we need to think of the urban poor and the agrarian poor in so many geographies that they do not have access to good food another thing that we are seeing is that innovation is a process that has been disrupted itself right now you know we cannot innovate fast enough and the speed of innovation in the technology arena is setting a new standard that the traditional industries like the food industry are really struggling to match up so what is happening with science technology and policy well a lot of disruption happening there too we're seeing the merging of biology medicine and food into new interdiscipline dat the same time we're seeing less money been invested in research in the science of food we're seeing rapid technology advancements in digitization and data management that they're actually going to transform the way the food chains are set up today and har-ee the food industry is not at the forefront of this change but things are changing that's why we're here today talking about traceability and then we're seeing another phenomenon which is the laws and regulations of the different territories in the different countries they are not really converging but they're diverging you know what's happening with GMO between the US and Europe so this is a big background that we need to bear in mind when we think about where food safety and traceability is heading in the future I would like to share with you some noteworthy statistics it's nothing short of a miracle that the food supply chains that we have today there is safe and reliable as they are but we should not take this for granted because they're always always that far away from something catastrophic happening and the bigger you are the bigger the impact is the more pressure you put on the system the higher the probability is for an event to happen with massive consequences and I want to share those three things global trade in the past 19 years actually 16 years of this statistic we have seen global trade rising three fall to 1.7 billion tons the expectation is that between now and 2050 we are going to see the demand for global trade rise again by a factor of three so way today 70% of the world food supply is it's 17% of the world food supply is based on global trade we expect this to go up to 50% also food waste and packaging we are producing a lot of food and we're wasting a lot of food we have losses post-harvest very big very big losses in countries with low infrastructure up to 70% whereas in the developed world were seeing 17% past harvest but in the developed world were losing we're wasting 40% of the food that has been produced and also we're using a lot of packaging materials and only 14% of those packaging materials are recyclable I don't need to dwell on this I think this is something that is top of mind for the industry for consumers and for very many academic institutions and nonprofits and the last but not least food safety is stretched the supply chains are stretched the USDA statistics show us that between in the space of 5 years we have seen the recalls doubling from less than 100 to 150 and this is really alarming so this is a typical supply chain value chain you may argue for the food system you can argue that it can represent really a food chain in similar kind of of sectors but what we are seeing here and what you see in green in green is the Hardcore there the the the key business of producing food and what you see in yellow is areas that are emerging so we are seeing a significant rise and and an adoption of new types of equipment artificial intelligence the Internet of Things blockchain standards extremely important and there are big areas that are emerging like personalized nutrition and the need for disposal the supply chains do not stop at the consumer they should stop at the disposal and and at the very front we're seeing research and discovery and translational research and interdisciplinary areas emerging we need to expand our horizons and our boundaries beyond the green space if we're going to be successful we need to really embrace the entire value chain this is what supply chain looks like the complexity of it are in real life but actually this is the complexity that we need to manage and handle when something goes wrong when we have let's say a food borne a disaster this is what authorities and industry have to come to terms with and act very quickly how do you handle a system like this it is not a linear system and it is not an one up and one down system so at roundabouts 2010 and before FISMA the FDA approached and the Institute of Food Technologists are asking them to lend their expertise in actually developing some pilots in preparation for four FISMA and I want to show you here the work that was done all those years ago and some of the very significant outcomes coming from those trays parka traits for words and recommendations that they were actually encoded in FISMA in section 204 but that was almost 10 years ago and I want to highlight the significance of starting early in this journey because these things are new and these things they take a lot of resources they take a lot of experts and expertise and organization to come to fruition so that was the genesis of I have this involvement in traceability and in 2013 I have to establish the global food traceability center which is who it is responsible for actually organizing traceability center of this event that we are standing here today it's extremely important to talk about standards and there are different types of standards we have management standards we have equipment standards we have technical and process standards but ultimately we need to have standards to establish a common language upon which were going to build business processes and we're going to build technical expertise and digital systems so traceability is the systematic ability to track and trace the path of food ingredients all the way from the beginning to the end an IFC has point to a very important mechanisms one is the critical tracking events and the other one is the key data elements a critical tracking event for instances the location at the time when something was harvested or caught the the key tracking event is something that has happened in the supply chain but at the heart of this is interoperability supply chains are very complex they're not linear and in the food industry well no we actually rely on we rely on a lot of communicators to to ensure supply continuity one of our key focus areas for the global food traceability Sun Center is our partnership with WWF to establish and run the global dialogue and seafood traceability it is an international business to business platform and were focusing on seafood we are funded by the Moore Foundation who are investing millions of dollars in seafood seafood is arguably one of the most challenging and least developed in terms of traceability we have issues with authentication we have issues with labor we have all sorts of issues and we're making huge strides with an amazing ecosystem of companies and nonprofit organizations and others in moving this agenda forward and there is going to be a presentation on this tomorrow let me talk a little about our four strategic pillars we are running pilots and traceability system evaluations across a number of agricultural commodities and other finished products we run we develop and run educational materials we're also developing open source tools and software it's extremely important to agnostic solutions we want the small and medium-sized suppliers to participate in the economy and we wanted to thrive and we want them to do well not everybody can afford to buy specific products so we as a non-profit we are committed to provide providing these kinds of solutions and of course as I said earlier on we are focused very much on standards and working together on the seafood dialogue this is an example of how we are running interoperability pilots again we are starting with different sources of ingredients were starting with different companies that they work together pre competitively or they may elect to participate only in part of that pre competitive partnership then we are looking at the primary and secondary processing we collect the data we translate the data into into then foundations to enable software development and then we connect this data all the way to the end and the ante is retailers but also foodservice extremely important to talk about this part of the food business in the US alone this year we have seen that for the first time ever that 51 percent of the dollars consumer span goes to foodservice bought food so the grocery bills are now in the minority the majority are looking to buy their food from from outside the home so this is a this is a foundation for how we run our pilots and I would like to close this by putting in front of you the vision how do all these pieces connect together when we started this journey almost 10 years ago we had traceability at the top now we flipped it and we said actually traceability is the backbone traceability is something that can carry so many needs and functionalities and utilities for the supply chain so we start visibility starts with chain-of-custody but actually can deliver food safety must deliver food safe the two things are intertwined when we deliver food safety you need to deliver quality it's so important to know what happened in the beginning in the middle and at the end the finished product should really licks the consumer the way that it was designed sustainability values to the consumer and actually making sure that we are taking care of that disposal part of the equation and of course provenance and authenticity tamper-evident tamper-resistant it all ladders up the transparency transparency and assurance are absolutely fundamental for trust but to do this you do need to have a very good focus and expertise and partnerships on global standards you need to be on top of technologies and of course we need to always very mind efficiencies because companies who will adopt these systems and processes they need to make sure that they have a return for their investment and they can scale it up so this is the vision for the future we're on a journey but this journey for sure is really catching fire in our industry and will continue to grow thank you [Applause] we have just a couple of minutes for some questions we will also anticipate having more time at the end of session for additional questions one or two questions hey thank you for the presentation you had mentioned small and medium sized processors I think that I can remember the term you exactly use how do you plan on getting this information out to those small or medium sized organizations one Avenue is through our pilots we're actually engaging small and medium sized companies another one is we are partnering with the FDA and we have made a very clear statement to the FDA that part of our solutions are for this part of the economy so these are two examples of how we're engaging with small to medium companies and the other one is really part of our future strategy to spread out the world through communication and building building partnerships no other questions we can thank Maria and we can continue with the program thank you so our next speaker is Emily Lyons she's a an attorney with firm Bush blackwell in Washington it's a good place to be when it comes to a topic like this season see her work a practice focuses on assisting food companies clients navigate really how do you deal with the legal issues when it comes to global trade and food certainly is a key part of global trade and the problems that you encounter in dealing with all kinds of products with all kinds of regulations and one interesting part of this is blockchain and I know all of you have heard about it I'm sure you all have great ideas and know all about it but I suspect we'll probably find out we don't know anything in any case please join me in welcoming Emily to the podium all right hi everyone you may be wondering why is an attorney up here talking about blockchain when there are many service providers who actually provide solutions for this technology and also its adoption in the food system but part of the reason is is there a number number of different different people that are looking at this and I happen to work with a number of attorneys that work mainly in the financial systems area so obviously they have worked very closely with banks and other regular regulation entities as well as in the cryptocurrency space that have looked at this technology and wow that's one of the first times I've ever been told I wasn't loud enough or not using a microphone correctly but um basically because blockchain takes both and you know traditional regulatory concepts of tracking and tracing your food and then also brings together these lots of business questions and that's why attorneys are really involved in this blockchain space just like in the blockchain technology space just like a lot of others uh so what is blockchain I'm sure you all have heard this general definition that blockchain is a distributed ledger technology and it has many features first of all it's a digital ledger and it uses a decentralized network generally of machines that operate as nodes that are interconnected to each other through peer-to-peer connections there's generally transparency between members that are in that are that are part of this system whether it's a consortium or whether it's a public blockchain and I hear the word immutable records all the time technically which means you know the records can't be changed but really the way that black chain technology works is there's tamper evident and tamper resistant data records you can technically change information that is on a blockchain it's just very very very very difficult and there's generally a record of how those changes have been made and the other pieces is that there's interoperability between the systems so the computers all talk to each other is the bus way to put it so how did we how did blockchain technology evolve really watching technology is a mix of computer science and cryptographic technologies that were developed in the 80s and 90s but really brought together in a paper in 2008 talking about blockchain and its use for Bitcoin and as you know bitcoin is a crypto currency or if you if you haven't heard of Bitcoin and it's a crypto currency that allows anonymous individuals that participate in a public blockchain in order to trance transfer money basically between each other or this cryptocurrency between each other without a central authority which means there's no government that is behind this or a company or an individual that's actually running this program and that was initially kicked off in 2009 in 2012 another cryptocurrency erythro 'm was developed and then there have been a couple of other systems called hyper Ledyard app and then initial point offerings eventually became we're developed and now that we're in 2018 and 2019 we're seeing that this technology has next-generation capabilities outside of the cryptocurrency space the reason that there are so many applications for blockchain is because it has those characteristics of of tamper-evident records that allow you to follow it along the chain and understand what transactions or changes have been made to records there are applications obviously in transportation and logistics following money food and agriculture identification for individuals confirming identity for voting following titles and deeds and transactions related to real estate is actually very important it's adoption and integration into the Internet of Things diamonds supply chains are very complex obviously everybody wants conflict-free diamonds so that should supply chain transparency on where you know your diamond has come from and how it was mined and then also there's a lot of interest in using blockchain blockchain technology or similar technologies in medical records the Department of Health and Human Services is actually looking at a way to introduce not necessarily blockchain technology as it is called at this point in time but some of those principles into how patient records are stored and shared between different medical groups different doctors as well as with the patient so you know I mentioned this a little bit but this is this is how you know distributed networks and conventional networks work generally at how many of you use like file share or Google Docs or any of those kinds of management systems so that is what you're gonna call that's the one on the far right or my far right your left is a centralized system where there's one copy of the data that many computers or nodes have access to and it's it's in one place there's one copy changes are made you might not be able to track them but that's where they exist however in a distributed network it's out on several synced devices it can be smartphones it can be computers it can be in many different places but it's basically in this case ten identical copies of the document that exists everywhere and that's one of the reasons why it's so hard to mess with or alter the records that are um that are included in the blockchain so just a couple of pieces of I guess terminology lakhtin change technology is the technology as a whole the black chain is actually the ledger the digital ledger in this case that is made up of different blocks of information that we're gonna talk about in just a minute so when you look at traditional storage data if you compare this to how you know you looked at that on the network every time you save a file it's a new independent file yes you can overwrite in some instances or change the file name but it's independent of each other I can make changes to my own document and save it on my computer and maybe attempt to upload it but it doesn't necessarily um you know speak to each other but they're all separate data sets now however when you look at blockchain there are a couple of different pieces that kind of tie together so you have your initial file which is file a and on your blockchain you add new blocks throughout your process and each each file is time-stamped to the next and the previous block and they're all connected to each other in time so when you compare it to the previous slide you know they're there they're separate blocks and you know that this this piece of adding them I'll talk about in a minute but it that depends on what kind of consensus mechanism you're using and so who decides when a block is generated which can be very complex somewhat applied to food so if you look at a traditional and you know data security there are different pieces that may change so it's difficult to know when the active file is different than the original file you know when something has been changed and what has been changed yes in a Word document or something like that you can do track changes but that doesn't work for all the document management systems we use in the food supply chain and and because they're not necessarily communicating with each other or you can't necessarily track from a to H the way that you can in a block chain it's different to know how those differences were created and why they were created so when you look at this there are several elements that are part of your individual Block in the blockchain so every every file has a name every file has a timestamp and then when you look at subsequent blocks in the chain they're quote unquote they're called hashed so that's what the a hash is which is what helps you say that B has the information and is tied back to block a so only new blocks are added you're never replacing your files you are recording basically what happens is you record different transactions that occur in your stage and so for example in a food system it could be at step a you're black maybe the harvest block or that's the original block and we'll talk about this in a very specific example and then that's at a specific time you've been able to capture that in a specific moment and when you move to be it could be processing and you may do several steps in processing so we're going to talk about a fish example but it could be filleting it could be skinning it could be do boning it could be several different steps that are recorded as transactions and depending on how your consensus mechanism is set up that may be an individual block itself each of those different steps or it may be one full block itself recorded as transactions and tied back to your a so basically the reason why people say that blockchain is immutable is because the data from a is tracked all the way down or at least able to be tied back so you can see where changes are made so basically a hacker in order to you know actually change what's in your black chain would have to go back to each of the different blocks and make changes to that data in the exact same way in order for it to not be able to be seen so some people wonder well you know we hear about blockchain technology and how everybody needs to be using it but when is it most appropriate to be used and you know as I tick off some of these things you'll see where it may apply in a food context so there are many participants there are a lot of participants in the food value chain and in your supply chain itself there are distributed participants aka you're in different locations whether it's around the world around the country or even in the same city you have a want or need due to a lack of trust a trusted third party Maria talked a little bit about how complex and how not as well mapped out the seafood supply chain is that's an example where you know we've had issues with knowing is this the fish that is declared as this fish was it actually fished in the country you know if you're doing wild capture or anything like that or was it grown and harvested in that area and do we have that trust in our supply chain to believe that that's true additionally the workflow is transactional in nature so in the case of Bitcoin it tracks I sold you know seven seventeen dollars or seventeen bitcoins of my 20 bitcoins that I so I keep three and that's one transaction listed but I transfer 17 to Bob so when my block gets split I keep my three he takes his 17 but because it's a transaction where I transferred it to him you can see that that follows him and in my block that it that that transaction is done and this is the same with supply chain we have a lot of supply chain information that we need to share with each other in the food system where you know it is I transferred this ingredient to you this packaging and you know to where we're able to you know share this information as it follows that batch or that lot or that you know it could even be a tote of whatever it is that you're purchasing additionally you know especially when it comes to the depending on the type of system that you have whether it's a public or a permission permission lists or a permission system which is generally private blockchains you know whether or not the system is secured to identify the owners so there are sometimes questions and we'll talk about this a little bit and some applications on where it can work in the food system and you know for example facility registrations for foreign facilities there are times where there is fraud there are individuals who attempt to register a food facility that don't have authority to register food a foreign food facility or they may but FDA really needs to know did they have the authority to do that and this allows verification of the identity of the individual who's attempting to register that food facility and then also that they have that approval which could be followed or at least applied in a blockchain technology context additionally whether there's a need to reduce or eliminate manual wreckin reconciliation of your ledger again it's a ledger these are record-keeping practices and then also whether or not you need to be able to resolve disputes that occur it's not as important necessarily in the feed context on this it could be if you're looking at an application where somebody's saying this is organic I have an organic certification with it but if we've monitored what's been going on at least International grain trade related to organics and in some cases of domestic there have been questions about especially imported grains on whether or not they're actually organic and this could help resolve that dispute because you're able to see this grain was produced here here's its certification which is included in your block and it followed me all the way to here where I'm using it as a food processor also the need to enable real-time monitoring of activity as we'll talk about in a context that is you know something something where blockchain has been adapted and used in the food system it's very fast because your ledger is there all in one place and then also the need to have you know full scale view of the digital assets and transparency of transaction history so where what think what has been done where is it occurred and why was it done is all recorded in your black chain so some possible applications you know we've heard a lot about it in the food safety context obviously can help with trace back for recalls there's also possibilities on tracking livestock for disease or carcass quality purposes and the meat industry has been looking at that quite a bit there's also confirming the authenticity of prior notice for import imported foods to make sure that the food you provided prior prior notice on is actually their food facility registrations that's a possibility where FDA I may look to and implement it real-time access to commodity prices and market data there is it's very difficult to get global commodity prices and market data and that can be deemed quote unquote accurate if you're a global grain buyer and blockchain is a potential solution for that additionally managing different assets including transactions and payments for grain or livestock dealers there's this is a very highly regulated industry when you're looking at buying and trading grain and livestock and this is a way that could actually help ensure that payments are made and payments are received additionally when you would connect it in with other technologies it can be used for things such as verifying soil quality field application and weather and farming practices because consumers want to know everything you can show that when I planted this crop I was when you're when you integrate it with things like other other technologies that are able to record this you're able to show that you know I I I did this specific thing I applied this fertilizer on this day and it was appropriate because of this instance I'm combating food fraud if you're able to ensure that this olive oil is olive oil from the country that it says it is um you know that economic adulteration may be able to be reduced or eliminated obviously there's applications and supply chain verifications whether it's organic free-range grass-fed you name it it can be in there and any other kind of supply chain transparency programs that consumers seem to want and things like sustainable sourcing country of origin or farm labor and then also it can help with inventory management it can help me as a food processor know I need more of this item and if you're able to communicate it back to your supplier or communicate it um to your retailer where they need more will say fluid milk is something that's really really hard to manage inventory wise they can communicate better with their processors about you know what they need to be able to change their processing to ensure that you know there's some reductions in food waste so federal agencies are also extremely interested in black chain USDA and several of its constituent agencies are looking at this the agricultural marketing service is probably the further furthest along in several block chain potential adoptions one is specifically in organic they are working they're looking at adopting blockchain technology in order especially like I mentioned with green international grain trade and because we don't produce enough organic grain in the United States to supply our own demand for organic foods in the US and they're looking at working very closely with Customs and Border Patrol in order to make an integrated blockchain based system that would help track and verify that this grain actually has a certification it was produced in private if it's a if it's maybe not grain coming in but it's a green products like an oilseed or something like that and you know tracking that it is verified there and a 'this is looking at it too and so that's the animal health plant inspection service they're looking at integrating it in animal animal health papers and imported products and ensuring that the product is from the region you know we have certain regions where we can buy certain animal products from specifically in the meat area and dealing with you know dizziest concerns for foot-and-mouth African swine fever all these other things where they can verify some of that health paper information that either follows live animals or verifies where a processed meat product comes in and then FDA obviously is very interested in this you know Maria said there IMT is working closely and is partnered with FDA on their traceability concerns and with Frankie honest being you know in charge of food safety and traceability I think is what his new title is coming from Walmart and having a large background in the use of block chain or at least interest on in the food safety and food tracking context you know FDA is blueprint for an era of new food safety that they announced about a month ago didn't say blockchain in name but it did indicate that adopting advanced technologies like black chain in connection with artificial intelligence or machine learning may be actually very helpful to help with both traceback and ensuring food safety for consumers so they're all looking at this so it's really important that you know companies are tracking this well I don't think what FDA is ever gonna say you have to adopt blockchain they will open the doors to say here's how you might be able to adopt it and integrate it into your system and PC is going to talk about how it works in the FISMA context and so I just have a couple of examples this is just a general one but you know talking about seafood again your blocks are gonna depend on what your consensus model looks at in this case the blocks are built based on different actions and you can see the information that's recorded the fish the salmon is caught it's in Alaska it's a salmon we provide you a fish number and then here's a date and as you follow it down you know you follow the different steps so it's filleted and packed you may include a couple extra blocks you know depending on how your system is set up on transportation doesn't sit at a distribution facility for a while this one looks at you know you prepared it for dinner in Kansas City and it was still a fillet number so portion number two from this one salmon and you can see that the hash data of block 1 it ties it back so that's that's kind of the hashing system the numbers don't really make any sense unless you have the full chain in front of you but that helps you tie it back along the chain and then there it was served so say for example there is a listeria outbreak related to these salmon this would provide you when the CDC goes and does all their in develop their interviews with individuals to find out what they ate finding commonalities and food and trying to figure it out this information is all on one block and you can find it and you may be able to figure out it was introduced to the processing facility very quickly what facility you know where it was processed how it was processed so you know there's just it'll be a lot faster because it's all in one place versus you go and do your interview and you're like okay so it looks like these 50 people all ate salmon at this one restaurant but we got to figure out where they got that salmon because this is a restaurant that does catch of the day and it may be from a different fishmonger or from a different you know processed seafood facility and they don't have a dedicated supplier and this just makes it a little bit faster because everything is tied together um and you could also you know if this was a retail step and obviously the last step would be it being sold so if a consumer got sick the grocery store or the retailer would have some information to be able to trace back where they got the seafood from as well and it's just taking basically our one step forward one step back and putting it on steroids and going way faster obviously Walmart has implemented black chain they first did a pilot program with mangoes back in 2017 they worked with IBM and a consortium that they established or that IBM established really with some many of their suppliers and to track mangoes from shelf to tree or from tree to shelf and in this case that happened to be sliced mangoes so it's a little bit different because you instead of following a discreet mango from point A two points point are basically for retailer and they were able to you know they they did sliced mangoes instead which involves some commingling but what used to take about seven days for tracking Walmart was able to take back to two point two seconds and after they adopted blockchain technology and they've also adopted this or at least launched it for leafy greens for some of their stores so that's where their consortium what sets up the rules for how the blockchain works when specific blocks are added to the chain and you know to work with some of their other partners in this because it's very hard to just set up on your own and then another one that's actually very interesting is beef chain it's the first USDA processed verified program this was actually just announced a couple of weeks ago and this is more a supply chain program to receive value at it as a farmer and basically it's Wyoming beef producers who generally focus on grass-fed beef incorporate the use of RFID tags and other Internet of Things technologies for cow calf ranch operations and to be able to track basically from ranch to retailer including that these animals are produced through feedlot where it may be one farm initially and then they get commingled all together into um with other animals from processing and then into retail in this case it's mainly at steaks so beef steaks it may be ground beef a few other things but they're able to communicate this with consumers through a QR code that they're able to scan and trace back to know what farm that cow came and then they also have a program for sheep but this is I don't know how many of you know about process verified but basically USDA kind of says this is an approved or verified process that works that can establish whether it's a supply chain and system or a value-add declaration that you want to make on your food that just recently happened which is great so we're probably going to be seeing more adoption of this in ways obviously value-added is a little bit different than food safety considerations so some of the things that we need to think about practically and legally in application to food because there are more things if you look at a document in your business first things like smart contracts or following payments or anything like that but how is this gonna work for complex supply chains when you think about beef chains they were following steak which is pretty easy it's a steak you know it's not easy to know exactly what cow it came from but her beef chains they're able to do that but think about a sausage think about all of the parts of the cow that we use to make so many different products and you know we use everything you know the beef production area is a waste not want not and that's how most of the food food system is anyway so how are you gonna follow that and and making sure that you're able to communicate this across different blockchain technologies because I may adopt one thing for one retailer you know or for one customer how is that gonna work as some new customer comes to me and wants to also use this information to make sure that it's interoperable another piece to consider is who can participate is this gonna be set up like one of the service providers that already exists like IBM's system it is a private blockchain or do we want to go towards a public one and but at least with private you're able to change permissions on who can read who can edit things you know how they can view different blocks in the chain and who's gonna bear the cost I think is the biggest question for the food industry you know your service providers you know that exist and are all around us right now we'll be able to tell you how much it would cost for you to adopt it within your company but is this something that's gonna be passed down to consumers or not with are they willing to bear that and or are we gonna get to a point where FDA does require the adoption of some advanced or increased tracking technology and system and then who's gonna set the rules of your consensus mechanism or the standards that you follow within it and especially if conflicts and data does arise it's also really important to who's gonna set the standards to make sure that the systems interoperate with each other it doesn't make sense to adopt in one technology if someone else isn't going to be able to accept what being how you've set up your information in your block or in your own chain and then how is the data shared is it restricted are their confidentiality problems with the information that you're putting in your block you know what transactions you're recording who owns that data you know when we think about big data there's always question on who owns what within that data who also owns the intellectual property behind the system and how is liability share it if problems arise say I'm able to figure out that this was a contamination problem at the farm level for a fresh fruit or vegetable but do I have liability if I process it into something somewhere else and I'm not able to eliminate that and then also what regulatory framework is going to apply if any so with that I can take some questions but I know we're probably tight on time I just want to remind the audience that the exam at the end will be multiple choice we can take it one or two questions yes hi hello okay hi Emily thank you for your presentation I have a question about if there's anyone that is not from a single source ingredient because you're talking about trials with mangos and beef I mean the prepared foods world so it's pretty messy just train the funeral with a number of ingredients that go into one product so is anyone trying this what I and the other question is what type of architecture in terms of Technology is needed for this technology to succeed yes most of those companies are still trying to figure it out I guess is the best way to put it because the supply chain is so complex it's hard enough to set up your supply chain program under FISMA let alone at an advanced technology that might help you run that and I have not seen anything public nor any of the companies that we've been working with you know considering this technology adoption have done that yet as to the architecture piece I'm gonna leave that to one of the many service providers that are provided around us that have black chain technology and I'm not a computer scientist but I can tell you generally you should be able to adopt this fairly easily in the context of you already are keeping these records for for supply chain purposes to begin with whether it was FISMA or business reasons or anything like that but it will take computer systems because that's this this works on you know generally on a cloud-based system you know it may be different depending on the technology that you adopt but the architecture may depend on the service you hi Emily thank you very much for your nice presentation I have a question that somebody needs to upload that data right in a blockchain so in that case how you will like we will control that this person is not manipulating that diet and data in the so I think that's hard it's the same with any data management system garbage in garbage out you just have to have some trust within your people that the data that they're uploading to the block is appropriate now when it comes to crypto currencies it's a little bit different because there are you know verification steps where everybody on that block has to verify that that information is correct in the food system I think it's a little bit different because we're recording what we did versus what we're trying like a transaction that we're trying to achieve so it's a little bit different but again it takes trust in your people and there can be some verifications especially if you adopt another technology like you know speed sensors or something like that in your processing facility that can verify that the information you're doing is correct so advanced technologies combining them all together is better than one technology on its own that's really just a really advanced Excel spreadsheet just to kind of capitalize off of what he said so that that human component what layers of accountability are there currently well I mean it's gonna depend on your blockchain technology system but what what's currently you know like me as me representing food companies like what what prevents um you know Joe your QA guy from uploading and correctional formation is that what you're asking so essentially like I've heard I've heard some information about like retinal scans or fingerprints or things like that I mean do you know anything about that at all or document management systems however I mean I think about my data and but but there are ways to verify that the individual is who they say they are that's uploading the information but that doesn't prevent data integrity problems well so that's what I mean like it not necessarily identifying but like who actually was the person that did it I mean now currently sure some people do have you know different systems for you know being able to log into your computer to track who it says is doing it but and I don't necessarily know too many companies that are using biometric scanners for example to verify that I am Emily in putting this information specifically but it is something that could be adopted it's just the capital investment might not be something that a company is willing to absorb at this point I'm okay thank you final speaker in this session I'm gonna speak up I hope you can hear me in the other side yeah very good thank you so our next speaker is dr. Fernando Vasavada he is a emeritus professor from the University of Wisconsin I better mention the River Falls Wisconsin campus eat a lot will be part of their kids we just have it I know he wants it I'm gonna it's not gonna hurt I'm from her rep to that you got me have you good to go anyway no no they started hmm I didn't get the check or anything what I'm sure I haven't no okay thank you her you come on down thank you her whoa Emily was talking low and I'm talking late hi can you guys hear me good and herb you are not right once in your life this was not invented in Silicon Valley it happened in Washington DC all right but I want to talk to you about changing face a little bit and talking about validation verification you heard the word food-safety how many times did you count too many times and this simply means I if I was behind and we were worrying about how we do anytime boys and with all that the computation I could simply say that if you tell me this is how you're sharing food safety are you doing it right way and if you're doing it right way behavior records to prove it so anybody else can look at it and say yep you do and what you say you will do and what you do will achieve the goals that you have in assuring food safety any questions this is one of those topics that is a confusion for some people some people know what they are and then they listen to people like me and Kate can here's more so we're gonna try to straighten out a little bit by the way of introduction I think Herbert did a good job but one thing I wanted to point out that I've been in academia 35 years before I switch gears and work with the FDA for a while and start at the Alliance I'm used to be speaking in 45 minutes lots and they gave me only 25 minutes so let's see how many will do that the bottom line is all food system includes elements of validation verification to prove that you say what you do that you're actually doing it and it assured the food safety right whether you look at hasip that's the whether you look at principle six in hazard whether you look at meat and poultry has a regulation that came from the mega regs you look at juice has or you look at any other food safety management system and it's a GFS ice cream or whatever else you have to prove people that you know what you're doing and what you're doing gonna show the food safety me on this okay so even though it is so simple in a nutshell there's often confusion about the difference between validation verification in the context of food safety management system and part of this confusion comes from the European system versus American system you say potato I say potato and then you bring an iso in it and GFSI and all the mou essays and you don't know what you're doing but at least you don't right thing but you can prove to people that you don't right thing right so that's where we come in my goal today is to define and discuss the key concept which i'm already done discuss verification requirement for the FISMA our perimeter control regulation and then PC Qi perimeter control qualified individual its role and responsibility in context of validation and then one thing I added the last is do's and don'ts now your do's and don'ts might be different than mine and we'll talk about that but there are certain things you don't want to do when your validation verification and they certainly think that you should take care to do that all right so let's look at the concept and definition validation is science behind your food safety it is not taking somebody's word face value but do you have the right food safety plan you have to obtain evidence that control measures if properly implemented are capable of controlling the identify hundred so are you doing the right things right verification on the other hand is saying okay you've got the plan design are you following it correctly are you following it appropriately are you doing the right things there are a lot of definition CFR 117 point three is the legal definition from the FISMA regulations an AK map you might have heard about that that comes from the hasip regulations you might have a codex definition again it is used you say potato I say potato basically all it means is you are validating the process you have you varied in the control you have and then you vary find that you applying it in right ways verification deals with proper implementation it's the application of methods procedures tests and other evaluations in addition to monitoring is different from monitoring to determine whether a control measure or combination control measure is or has been operating as intended and to establish the merit of food safety by verifications are those activities other than monitoring that determine the value of the food safety now you notice the definition they separate the monitoring from verification just because your monitor doesn't mean that you're verifying all the time in short very validation needs a subset of the verification activities as a manner if occur new regulation is says verification validation are separate if you look at the whole hasip regulation there's the validation and verification and other thing is in order to make it easier for the industry to comply with the regulations not all preventive controls are required to be validated okay all right so in a simplistic term I can tell to my undergraduate students oh they'll pass the exam that he was talking about say what you know knew what you saw say and prove it to me that you're doing what you say you will be doing okay where additional procedures may include use of scientific principles and data in all days it was okay to pop take somebody's publish papers staple it to your premises okay now you might have to implant validation and actually show that it's working the way supposed to work you can use the expert opinion expert sometimes MIT consultant it cost is not free extension used to do a lot of those things you never see a lot of those things in a sort of altruistic way those days are gone then you get what you pay for PC Qi has to do this your your plan person has to be involved and nice thing about PC Qi is unlike SQL practitioner it doesn't have to be your employee it could be somebody else what kind of factors would you consider when you do the validation well of course you've got to do hazard analysis so you got to know what hazards you're dealing with food formulation lot of hazards come from formulation and remember this I shouldn't say it in the podium understanding it but there are a lot of creative product development and chefs and cooks and everybody else they were introduced hazards in your product without even realizing this okay so be careful my new product for food formulation establish process and the change in the current process equipment and and then I deal with the regulation one thing is very important to publish data and industry data there are a lot of publications but industry data are hard to come by I'm walking on the floor talking to people have you done validation well we are done but we can talk about it this is a shared responsibility if you don't talk about it nobody knows what kind of problems you had and how can I avoid it but I can preach till I turn blue that's not going to change those are proprietary information you should you should worry about that where do you find the information about validation of course peer review scientific literature let me ask you something how many of you lately reviewed or refer the group Google Scholar sure Fame one two three four out of fifty five people that's that's actually high usually that I don't have any handle and Google Scholar is good but that's not the only sort regular guidance that is your go-to source if you tell the inspector that is inspecting your plant or auditing a fan that I got this information of FDA Gary hazard guide there will be no question if you tell them because my consultants said so and your consultant doesn't have a good reputation they will belonged a trade association is a guidance IDF ng ma there's a lot of information there internal and external scientific studies and of course the extension universities will have you're there as well how often do and I like my first bullet ideally you would do validation before you will build the roof on your house before it rains all right but if you can do it you would do in the first 90 calendar days because you you're instituting new system you're putting new equipment 90 days good enough and if you can do in 90 days to the right a complex system you're pcq I can write a justification or FTA that is kinetic as more than 90 days and don't say indefinite more than 90 days you can I say we expect to finish it in 150 days or whatever so that won't work that way and you do reanalysis indicates the need for the validation now let's switch a gear to the preventive controls enough is mine particularly if you read the FISMA guidelines or a regulation and I did the pre proposal I read the final proposal and many times when our trouble falling asleep I flipped to the web page and I read the proposal and I can fall asleep FISMA is a good regulation it's a good intention and only thing that is required under this regulation is that you have a written food safety plan now how many years you've been in business and you don't have a written food safety plan you're going about what Bob said or he did why do you doing this because that's how John taught me to do it John retired in 2002 you helped over it to food safety plan and that includes verification procedure supply chain program a new requirement of record okay so here is the language in case you want to know facilities required to conduct verification activities as appropriate to the facility food and nature of the privity control that is a key phrase what is appropriate for you and you for safety plan may not be somebody else's even if the making the same product with the same or similar ingredients also you to do the monitoring corrective actions calibration process of monitoring and verification instrument product testing and my mental monitoring and I make a comment about product testing in a minute that was one of the thing that caused a lot of hard bunch to a lot of people and I'm so used to be testing 10 grams of sample from one ton of supply chain and I'm thinking there's no Salmonella well let's talk about it and you do reanalysis so there's a process verification in case you are saying they took my ccp away and i am really missing it ccp is not gone that's your process verification only a preventive control chain you have is the processor control community control that's the CCP you gotta verify the effectiveness you got into the equipment calibration record review and remember targeted sampling and testing not remote sampling and testing not half as our sampling and testing targeting does it give you the data that you want a virgin verification a big deal one of the biggest hazard in the industry right now is the food allergens right labor review is one of the main way to control this before after during at the RO supply chain label reviews the main thing and then visual inspection is equipment for supply chain there's a second party third party when I used to teach food Quality Assurance I used to like my section about the audits this is the first party audit there's a second party or if there's a third party audit why don't you like it when there's a party involved right now when they supporting well some people are tough they are the party poopers they can make your life miserable give you a lot of answers other people are the second part of your third for auditors they would say you need to do these things before you get the regular auditorium target is sampling testing another good way to do that and and in system verification you'll do the reanalysis third party or is that internal audit let's talk about verification a little bit product testing and environment is a good weight do this as a matter of fact when the preventive control rules came out in a preliminary publication there was a big question about how we gonna do this the regulatory perspective is you can do product testing and environment monitoring in any way that works for you it is your product your plan your food safety system whatever is appropriate for you we'll just come and check it and we'll find efficiency we'll let you know and in some cases need the product testing nor environmental monitoring may be appropriate so if you can show that in your case and does is not applicable you don't have to do that ok all monitoring is required to be reviewed by the PC Qi or somebody designated within seven working days there are a lot of Records we just heard Emily talk about the blockchain and all you have to put a write data in your system this will provide that there's a write data where it because you record into and calibration product testing all of those things you have to do and it has to believe you in a reasonable time seven days is reasonable if it is not then you got to do with something with your system also the record review has to be performed overseen by the PC Qi okay that's a preventive control or qualified individual when issues are identified during the review corrective action is required people used to do kappa kind of thing you know corrective actions up but this is required when you find the problem okay so what about the food safety plan reanalysis well even if everything is right you wearing a favorite shirt every day you're going to church every Sunday you are devote a religious person and God forbid nothing happens to you you still have to do the revaluation every three years this was on another headache or or hard like people have wait a minute they say I'm going to do every year has a plan out to real every year GFSI tells me every two years fine do every week for all I care but she ought to do at least once every three years or whenever there is a reason for you to do that but they significant changing the product or the process you are to do that okay when there's an unanticipated problem there's a hurricane there's a flood there's some kind of supply chain problem you have to do that and then you know to make sure when you do the reanalysis you're proving the control is effective because when you find out that you're preventing control not effective you have to do the reanalysis we and also include the review of the plan of course make sure that is still accurate and give you a record to identify trends and verify that food safe event being followed and again it is a role and responsible piece of Qi so we say please secure so many times anybody in the audience use a piece of Qi fantastic then you know what it is right we just save some time be secure is responsible for I friend of mine who works in a Miss cancel he had this card made of PCT you are a responsible person and so you ask him what is this responsible person he says anything goes wrong I am responsible that's a good approach to take that's a good way to know so let's talk about do's and don'ts what thing you would do when you consider whether it is and verification will do your product operation facility that sounds so facetious if you don't your product what are you doing in the plan you would be surprised how many people come in the industry from somewhere left or because my cousin has a somebody working here or worse my brother-in-law told me to hire you right there would be the problem so you have to know your product operation facility you do the robust hazard analysis you know to be a prayer aware of the industry trend hazards and consumer behavior oh my god how are you gonna pretty consumer behavior there's always an idiot in a crowd and that's going to make your life miserable but that's the reality you're dealing with that you choose a proper target organism surrogate for process control validation especially when you're dealing with the non-thermal processing or so on the new technology you have you can't just use your pa3 six seven nine or whatever I organism is to use that's a big deal use that is no testing is necessary or conduct verification activity at the frequency that is required by the law and have a PC Qi not just one piece EQ I have more than one piece occurring because PC QR responses are a lot complex not everybody is interested in looking at the number it's like being an accountant and being a creative artist at the same time people are different interests different aptitude so you wear a piece ik you are doing different things what is the dull part of the validation verification what do not assume the validation for one parameter automatically transfer to other parameter lot of companies get into this trap the only is alternative testing methods heard the word CBD we don't testing what kind of method is using you don't know are you doing testing or tasting all right that's a different thing you have to use validated method you have to use accredited lab otherwise all your data are not that effective don't forget that review the food plan is necessary don't ignore signal senior management role now at least from what I've observed there is a lot of interest among senior management especially since the peanut butter case and the people things are done right and there are some resources which is good thing and the last bullet Ivor don't be complacent it never happens to me I'm using organic I go to a Baptist Church none of that will apply to you because Salmonella doesn't care history against even less so don't be complacent let's summarize global food safety program is changing paradigm we know that since Bop limited control rules require a written food safety plan part of his validation verification and you have to have a properly trained PC Qi to implement that so how many you have heard this thing before last two years hey you heard this right you're talking about we educate while you regular tell you what education part is over now will regulate expect the FDA to require process validation to support proven to control validation and evidence that measures such as or the process in your Duggal control your hazard expect high for four eighty degrees issue they stays a lot of problem in the GMP implementation there's a lot of Pro problem with the hazard analysis and monitoring for eighty three is something that you have to respond to is that require that correction you will have to do so expect more of those safe food is a good business I like this I used to tell people jokingly as I did the pathogens and all food safety is a is a real requirement of food business you know why because that people don't buy anything you kill your customer you lost the customer forever good news is they won't buy somebody else's either but as a whole the industry is going of hurting about that variation verification minimize potential food safety disaster and then it is the associate over that regularly compliant I would venture to say that you cannot assure people that you are within the right side of the law if you don't have a proper verification validation once you agree pen so if you're interested in some more detail information this a good source of information publication came out about three years ago four years ago it's a practical industrial view on framework for the FISMA implementation and it's online that you can download finally I'd like to thank Jeff and Herbert for organizing this and monitoring this I'd like to thank I have to nineteen for this opportunity and then FISMA and F SPCA for all the help I from them in last about seven eight years I've been involving them last but not least I want to thank you I see some favorite savory and favorable and familiar faces you know who you are I'm glad you are here that made my day if I ruin your day show me afterwards and I'll buy your beer thank you I have to speak into this thank you I'm not going anywhere okay so I will take a couple of questions well I think what we'll do is invite all speakers out right and we'll open up Florida all kinds of questions as an old math teacher at Hine said questions wise foolish and in the middle I got to be none off again oh yeah yeah yes are there questions you've not asked yet would like to ask now this is a lot of Trinity all three of the speakers are here yes you want a longer version of the time hey yeah hello oh hey y'all if no one else can ask questions I might have two questions the first is for the gentle well maybe for everybody but what are some of the most common mistakes you see people making with verification and validation in their food safety plans one of the most common mistake I see is not doing preventative medication because they don't know what it is and they don't think it applies to them second common mistake I see is that they've taken something that you've done for somebody else and automatically transfer that if the validation done for the chicken and poultry you can apply for the almonds and nuts everything is different also it is can you hear me it is not the one so it is not a one-off you cannot just implement you have to continuously train your people and you have to be on top of the game because things can sleep very well very quickly into you know bad practices so continuous improvement and training is necessary and in my point as an attorney it's people not recording that they did their verification or not following the procedures that are outlined to conduct that verification appropriately because with FISMA it all boils down to your records their accuracy and stating what you did I also have a question all right also I just I'm grumpy I don't like technology I love keeping paper records but do you see paper records becoming a thing of the past with blockchain and new technologies III think it's gonna depend on your system in your company sure if you switch to a black chain solution does that make the need for paper records obsolete potentially probably because it's not gonna be on the block it's not going to be able to be verified the way that it can and track the same way but FDA is never gonna say you can't keep paper records because small businesses especially don't always have the ability to make use and manage sophisticated computer based paper paper work and record management systems so there will always be a place for them and there will always be space for them in regulations but that doesn't mean that if you adopt blockchain they're going to be as useful as they are because when something goes wrong with your computer when the when the system crashes it's a paper neck and the saves you making and also a lot of companies do that they have a paper record same separately another facility and recognize that within 24 hours you to make it available so that's you know the same plant same same city that's okay but paper records are not going over for good hello my name is Ray and I had a question probably for everybody but it has to do with kind of the same concept about moving off of paper my company is a family-run business and it's about 50 years old getting to them to move to another technology is very painful GFSI that was a discussion the G going from the G tens on on our cases that was a discussion it's always trying to push to get there you have any pointers rethought saan how we get there willingly without the government saying you have to do this without our customers saying you have to do this I'm usually at a loss and I lose the fight so I mean that's the challenge with any technology adoption when I think about attorneys ten years ago you could take my blackberry from me from my cold dead hands but now I use an iPhone I think it's just training a lot of it is training a lot of it is open communication about why you're switching to a new technology or adopting a new technology and and making sure that you're there even if mistakes are made to help them correct them and it's more of people thing than you know a focus on well FDA told us we had to do this or our customers told us we have to adopt this new system you know just making sure that they know that you're there and working with them through the glitches because no technology adoption is seamless no matter how sophisticated the company is I think it is a there is a there is a difference between enforcing something or reluctantly accepting something and actually embracing it and this distance has to do with mindset and realizing that even if it is not in the next two or three years digitization is coming so the sooner one embraces said the easier it is to be on you know on this journey that is actually going to fuel economy and businesses like yours smaller businesses family businesses and just another thought there will be a generational shift in the food industry soon you know there are a lot of younger people that we need to get interested and implemented into our working at our companies and you know they're much more willing to adopt new technologies and make things easier on themselves if you can find a way that this technology or system makes it easier for them all the better so they can focus on more important things all right yeah hello my name is Ramu Gallegos I'm where I work for a raw material supplier and my questions it seems like everything you were discussing has to do with relation to a certification that seems to be F CCS 2200 it seems that all the aspects are covered under that certification so I was wondering what is the difference between phasma and that particular certification every people shopping mall and there is a mall cop yes yes so security first and then they say hey the police yes so it's my voluntary but but you know well one is the industry adapter standards they don't have a regular you bite to it FDA regulation as a regulatory might FSS see the sqm take they have a done good job trying to trying to sort of harmonize that's none of the good good people use their standards some of them are more stringent than the FDA standards which I can understand but one is the industry standards we doesn't have a regulatory bind to hi I'm min – and I work at Washington State University so I have a question like if a company comes to me and gave me the parameters that these are the parameters we need to validate so as a professor or university laughs do we have any other responsibilities just to validate those parameters should be asked questions with the company to see like whether they are actually giving us the right parameters they gonna validate or we just validate what they gave us and we write a record and give it back to them do you on the short answer you wanna write them back times that you should that means your responsibility – because the outcome was something they were guarding from somewhere else they may not know so if you if you notice something that is missing in their unit its you need to do recommend short answer would be if the pain is enough money do that and then do something yeah and on the legal side the company should be giving you good information because if their validation is not correct that's a problem that they have an FDA won't be afraid to enforce that right exactly visit the various booths and and have a lot of information about the show thank you very much my name is Andy Kennedy and I am an adviser to global food traceability Center and we'd like to welcome Mike edge it who's the industry and solution strategy director for in for and was one of the motivations for traceability central last year when I was walking around the show I realized that there are all these technology companies out there scattered all throughout the through IFT so I thought it would be good to bring them all together so you could see all these great technologies so he really helped inspire me to pull this together so I'd like you folks to welcome Mike and he will be talking to you about in port thank you thank you it's great to know that I'm inspiring people that's a great way to start the day so I'll give you a little information on infor and myself first of all so as I said my I'm the industry and solution strategy director for infor focused on the food and beverage industry now if you're not familiar with in four in four is about a three billion plus dollar company in the enterprise software space we sell to a variety of industries but one of the ones we focus on a lot is the food and beverage industry and so a lot of the time that we spend is devoted a lot to the investment we can make in the food beverage industry my background is actually I'm a chemist by training spent the first ten plus years of my life as a food technologist and company is like Quaker Oats and Borden's and then I moved into more of a marketing role also at Quaker Oats and then with with with bunkie so I've been with bunkie Borden's and Quaker Oats throughout my career and then for the last half of my career it's been much more focused in the enterprise software space so kind of give you some background of what we've been where my background is and what my interests are so give me a little first what I wanted to talk about first was there's already been a lot of conversations about watching and where is the future of blockchain and especially when you're looking at traceability people think oh traceability and blockchain they're kind of wondering the same and that's wall traceability is going to go and you know thank you this mouse to work they've actually brought this up in one of the other the other sessions not too long ago you know the idea the first thing that got people thinking of blockchain being kind of the foundation of traceability had to do with this little project that Walmart did with with IBM and they wanted to figure out how do I take product that in the past had taken me seven days to go back and track back to where a mango came from and get that down fast and they actually through the work that they'd been doing they got it down to two point two seconds which is pretty impressive when you think about it so going from something in the past that they tried to figure out where did this product come from and to get that from seven seven days down to two point two seconds sounds great and for those of us in technology we think that's fabulous if we could roll it anywhere but it gets a little bit more complicated when you get outside of just the world of produce and we're gonna talk a little bit about them and that's not to take away at all from what's going on here and going on in other areas or companies that are focused on trying to do more in the areas of blockchain but like I said today what I really want to talk about is how do you get yourself prepared for the future of traceability because they traceability nowadays there's a lot more than just hey where did my product go or where did my product come from we need a lot more information than just simply that but let me first before we do that talk a little bit about the current state of blockchain and where we see blockchain right now in the universe so you know there's a lot of excitement you know the promise of the technology could transform the way we do business think if you could always trace anything back in like two point two seconds there would be so slick it's a long ways to go before we can do it with everything in the food supply chain but it's a great idea and there's a lot of big names out there putting you know putting time and effort into blockchain technology you know we've mentioned a few of them you'll see there's a lot of other companies that are involved with the IBM you'll see blockchain also being used heavily in other manufacturing industries it's really big and like aerospace and defense in automotive so it's actually something that's continually being built out and then my favorite is this last thing I've done a lot of companies that are just worried that blockchain is going on and I'm missing the boat and I've talked to probably too many people have said my boss has said what is a blockchain strategy and use the response back as well what do you really want to accomplish with it so like any technology it can be it can provide some great opportunities we really need to look fundamentally as to what it really is and what we want to do see right now there's a lot of proof of concepts out there a lot of stuff going on as it relates to numerous companies that are out testing the waters with various proofs of concept but they're really still very much in the lessons-learned stage if you were actually in the presentation before this there's a book reference to how for example Walmart is now rolling this their blockchain into just kind of the leafy green suppliers are coming into them once again this is just the next level in the testing that has to go forward to actually make blockchain something that's more fundamental and of course there's lots of press releases lots of talks and lots of people and partnerships we're even you know talking to a number of companies about how they want to envision blockchain what do they see is the potential of blockchain within their business and what do they want to see investing in the future as it relates to this for the fact the matter is there's really not a lot of return on investment yet so lie aside from you know cryptocurrency you know Bitcoin which is kind of the foundation behind most of this most everything else is really just still looking for a killer app I mean let's be honest at the end of the day some of the great things about traceability maybe are kind of cool but I'm not sure what the business business benefit of it is I mean another one they got a lot of press not well back in Thanksgiving was a couple turkey companies that can tell you what farm your turkey came from I don't know why you care except maybe it's a good marketing thing it's nice to be that transparent but I'm not sure that it provides a lot of quality benefits here to your suppliers or your company or your customers so you got a lot of these projects though that are you know facing a lot of issues with scalability adoption and feasibility in fact the matter is you know when you look at technology it's often the technology we can figure out it's the human behavior behind it to support it that takes a lot longer so as the supply chain becomes much more complex much more much larger than say it just in a produce business the opportunity that first within that supply chain to basically just not play along all of a sudden it's a screws up the whole concept of what blockchain is going to be able to do for you in this is this industry so and this is kind of what you see this is you know a lot of people like I said look at blockchain as traceability especially if you're looking at it from some of the press that's been out there for the food industry and the fact of the matter is it's a lot more than that this was a research done by Deloitte just a few months ago and now in all honesty this is more than just food companies so they were looking at I think all different manufacturing companies but a big point of them was still looking at it from the standpoint of transactions and payments okay that was where they fundamentally saw the opportunity of blockchain next after that was much more of some of the quality and traceability areas but the point really is that blockchain is so much more than traceability and if you look at it is just traceability I think you're kind of missing the opportunity of what could be associated with it so it's actually I kind of go yeah we could do that but and it kind of reminds me I was I was in Brooklyn a few weeks ago and I'm walking down the streets in Brooklyn Street they look kind of similar to this and I walk by and there's just coming up on this car and the windows are all open the sunroof open and they're blaring some music listen musics really loud didn't think anything of it till I got to the car and realized there was nobody in it it's like this doesn't make any sense and then I look and sure enough there's like three or four people sitting on a balcony like two floors up listening to this music coming out of their car so yeah that worked but it's probably not the most cost effective and efficient way to get some music on your porch in Brooklyn and it kind of reminds me was actually another quote by a gentleman at ed Gardner who made the comment that you know many of the goals companies believe blockchain will accomplish could be solved faster less expensively and better without invoking blockchain so I don't want you what I don't want you to come away with Miss thinking that I'm telling you blockchain is bad that's not it at all but if your fundamental objective is to try to do the greatest job you can do when it comes to Trent to to be able to handle some of the capabilities you want in traceability there's other things you really need to do so I want to talk about what I see is kind of the four foundations of companies that are really trying to get traceability to be more than just hey I know where my product came from or I know where my product went highlighted really for or maybe really five things here first it is formula management so that capability not only to know what your formulas are but also having the processes behind them to better control them and manage them also having a robust quality management system in and of itself you want more than just you know a simple quality management system you want one that's flexible that you can modify based on the needs that you have within your business then obviously you want to have basically they recall readiness that fundamental capability and you think about from a track and trace area and then the area a lot of people don't think about which is actually equipment safety and maintenance we spend a lot of time worrying about it but the products coming in but we don't necessarily think about how do I keep track of all the equipment in the plant and how do I know what's going on and at the end of the day you want to tie these things all together you want to make sure you've got a solution that's integrated and based on open standards so they looked at a couple of these for you in a little bit more detail and explain a little bit about them some of these you may be familiar with and some you may not and and just you know I want you to understand some of these are a lot of these are combination of software solutions that are in the market and some commentary on processes that need to go against them you'll find there's a number of companies in the marketplace they're able to support some of these things if you want to make sure that they're all solutions that are very designed specifically for the food and beverage industry so this is a good first example so we're talking about greater confidence in your formulas and labeling you really what I'm talking about from the foundation first is having what we refer to as a product lifecycle management software solution okay there's a lot of PLM solutions out there if you go out and research them and look at what the analysts say a lot of the analysts coverage is not for food and beverage it's much more other PLM systems more from a discrete perspective you're actually finding the solution that actually can manage it from a process manufacturing perspective it's going to be take care of these core things you want to be able to do you want to be able to automate your label compliance okay including things like ingredients and nutrition statements you're gonna want to be able to eliminate all those time-consuming processes of making sure things are legit so in other words I want to know that when I decide to create a product and I want to sell it in Canada but I've only been selling in the u.s. in the past it's still legal to do that and you want to have a system in place that allows you to flag that quickly feel comfortable that what you're shipping out the end of the door is going to comply not only from an ingredients perspective but even the label that goes against it on top of it then you also want to make sure you've got guidelines that are set down at that material level so in other words if you want to make a claim that if something is let's say it's low salt thinking about it because Morton's right there something that's low salt that doesn't mean you don't have any salt in the product you want to make sure that you've got the capabilities for your solution to actually do the math to actually tell you already are able to still make those claims and actually understand what those claims may be based on what specific part of the world or country may be selling a product to then all those you also have those rules also regarding manufacturing so some of those restrictions may apply not only to where your ship a product but then also come fundamentally to where you can manufacture it but the last point there is kind of fundamental to when you look at it from the standpoint if I want to trace things it's you want to have your lot you want have your lot control to put it bluntly it's got to be meaningful and some of the problems that we've seen in the produce er and the reason the produce has become so big as an issue is lots are kind of mingled together the lot is this is today's production okay so you've got to figure out how you want to start defining those Lots so you can better break them down when you do go back and trace you want to put a full day's production on hold because you don't have a good a good way to break it out and it's not anything new for us we've dealt it in certain segments of the food industry for year I mean if you think about like the dairy industry we don't keep each farm that comes in and kind of keep them a little tiny silos in during process milk we load them together but we still find ways to segment that throughout the day and segment where various Lots as they come in so you still have the capability to be able to do that properly the next area kind of leads into that in the sense of having a robust quality management system okay there's a lot of systems out there for quality management you can look through what is out there and you got to kind of see what you need for your specific business because it can vary an awful lot but fundamentally what you want to make sure you've got is something that allows you to specify your test requirements not only fun it's not across the board you want to be able to customize those you want to know what are the test requirements is you've got to have for a specific product maybe based on a specific customer so the needs of one customer may be very different than a different customer even though fundamentally they're the same product that you're trying to ship out the door you want to be able to make sure that you've got those requests that can be triggered for inspection based on receipt materials what I mean by that is you may decide that after you had a trusted supplier for a number of years and they're providing you the lab data ahead of time you may not want to do the same sort of test date or when they're coming in the door you're just going to trust them they do it you bring a new vendor on board you may have different attitudes about that even though it's the same fundamental product you're buying from them you may want to put higher test data throughout that whole thing than you've had before now your mains be saying okay I get all this but now you've lost me and I understand what it has to do with traceability fact the matter is when you trace back you want to be able to trace back not just what the product is you want to understand what kind of testing you've done of those ingredients or the entire finished product throughout the test the whole procedure so when you think about that yes I guess we could capture all of that as part of blockchain but then you're gonna have to define just determine who defines what that is and what has to be captured and if it varies by individual product that gets pretty complex it's the important thing is you want to make sure whatever tool you've got to trace your products throughout its lifecycle also is able to capture that quality metrics that you've done with an individual products through up it throughout his process know you want to manage things like customer specifications one of the slick things people don't think about often is when we're selling products especially if you're in a b2b environment you may not necessarily want to carry you don't necessarily definitely don't want to carry a specific SKU for every single customer if you don't have to even though each customer may have slightly different requirements from a specification perspective so a good quality management management system shall allow you to be able to segment that out so in other words if you've got one product and you're arranged for specific parameters this wide but you've got a customer that's only this wide for that parameter you ought to be able to pick out those products that auto production that just met those and not have to carry multiple sk use so it's an opportunity to lower your inventory costs but also meet the requirements you have from your customers and then a number of other things as it relates to you know alerts and triggers and obviously you want to be able to bring in lab requests and collect data now the thing that most people think about when it comes to traceability is a good trace engine I want to trace forward and backward within the supply chain I want to see where I made a product what products need to be placed on hold I want to be able to look and see kind of visual aids to make it easier there's a lot of there's a lot of tools out there for traceability this is a picture of our graph like a lot tracker and other than me reading all these bullets let me just show you a couple of things instead so this gives you an example of what this looks like from infor and like I said there's a anybody that's in this space if you're dying you're good and this is going to be integrated within your ERP if they don't have a slick traceability engine you want to ask them when they're gonna start building that in because it's something you're fundamentally need and it's got to be able to pull in the other data like I mentioned so you want to be able to pull in the quality metric data to go along with it so it makes sense Ritu in Basel here I'm not sure how easy that is to see from back there but what we've highlighted there in blue that's basically a finished good and the specific customer that that bought it okay and it gives in there and then it tells you things like what the product is in the lot number and so forth and what you're able to do is actually go back in the chain simply by looking at it graphically so now what it's highlighted is that as the fundamental product that we produced and its lot number and now all these other sites these other things way to the right are all the other customers that got that same product that was a problem for you and actually it could go so far as to scroll back and actually look at the individual components on the other side of it also so you can see what each individual raw material is they go so if you're interested can show you more about that I mean we can go through an HID each section and it highlights what more you can actually get but it also gives you the fundamental detail behind it so this is actually the components if you went to that next stage and that chain then I just showed you it shows you the bulk ketchup that we made but it also shows you each of the packaging materials that went into them producing their product if you were to go so far as to click on a specific lot number then it will bring you up information on what's the lab results against that what was the process that we use to make that so that's the stuff that allows you to quickly look back but half-chewed is capturing all that stuff you need fundamentally if you really want to take your traceability to the next level and this is just going the full way the other direction so if those seven customers that I mentioned here's the detail on those seven customers that shows you exactly what you sent them shows you that they are all that lot number that we talked about and actually in our solution you actually have the capability if you want to can actually send an email out to all these people and say please put this stuff on hold we think those are not there's an issue and the same token under solution like this we can go all the way back and determine everything else that's been made from a suspect raw material and isolate that also so it does give you that quick confidence to put it behind and like I said we do a lot of this graphically because we find that it's much more easy for someone to use and it also makes it something it's very Universal for us to be able to use frankly around the globe and like I said the last area that people don't think about quite as much is the whole idea of managing your equipment so there are a lot of asset management tools out there and you see it probably a lot of you have them you may not even know you have them they're out in your facility trying to help your plant managers Airport you're your maintenance managers try to maintain equipment properly the problem is often these things sit out there in a silo so they're not good they're not something that's actually speaking to the rest of your business systems so you don't necessarily capture some of the same information so think about that if you want to know contrary to what we've talked about way back at the beginning when I was talking about blockchain and people were thinking you know the mindset really was the problem with this product is at the source well we've all been in the food industry too long enough to know the problem is not always at the source it isn't necessarily the raw material and maybe something that happened within your manufacturing process itself and this allows you to start to see that so now if you've tracked this together you can see whether or not quipment is being maintained properly throughout its throughout the business throughout the manufacturing process it helps you get to see whether or not you've got the stats that you need for various certification requirements it even can start to be used if you try and get bigger push towards sustainability initiatives and environmental initiatives all of these are things that you can pull out of a good enterprise asset management solution but at the end of the day none of this stuff I think really is as powerful if they sit in isolation you've got to get all these products to work together in a uniform area and frankly going back to the first comment about blockchain you're going to be able to have to do it then too because the underfoot underlying foundation of blockchain is you're going to have to be in a position where you can easily share that stuff on the cloud yes as a commercial obviously you for supplies all of this stuff okay but probably if you're working with your software vendor they provide some of this stuff too and I'm not telling you we don't want to talk to you and we don't want to sell you so if we do but I want you to make sure you always talk to your whoever your IT leaders within your organization explain to them what you're struggling with because I deal with IT leadership all the time and I don't think they always know the pain points that you're people like yourself are going through on a day-to-day basis and your expectations both from a development perspective and a quality perspective so utilize your IT company your IT leadership within your organization to figure out what you can do and then we can always help as can other vendors to help supplement what you have in place to make it even better but fundamentally that always gives you like I said the foundation to get all the information out foundation for traceability and often you want to have these so they support standards for things such as growing initiatives such as blockchain so at the end of the day so what's traceability today you know don't wait for blockchain but be ready to support it so keep it in mind the blockchain is something fundamentally that may be really beneficial to us in the future I think if you look at most analysts they're gonna tell you the real benefit is 5-10 years away okay which sounds like a long time but let's be honest in the world it could be that could go by really really quick so you want to make sure you're keeping that all in mind as it relates to trying to develop or having solutions in place that are based on open standards and also that all your systems start to talk away together but also start looking at traceability is much more than I want to quickly isolate a problem look at it's actually a number of areas that you can help your companies define what they want to accomplish by our better visibility of traceability so it could be just simply compliance yes I want to be able to meet however I define things whether it's from a FISMA perspective that I said I was going to do these various things or maybe some other associations your shoulder associated with that you want to do things with but it may also be information you've got a lot of companies that are looking at traceability so they want to provide greater information so in other words back to the example earlier of the turkey companies that were telling everybody where that which farm their turkey came from you ain't want to do that for a lot of products and we're seeing more and more companies that are wanting to provide that information but you can't do that unless you trace all that information from the beginning and try to capture all of that within your within your business and frankly at the end of the day this can be a real differentiator for you if you're really are taking the traceability to its full extent and understanding all the information you can capture so then what we really thought like to thank is you can actually start to treat traceability not as some quality requirement but traceability and being really good at this really can you can start to treat traceability and quality as a competitive advantage hopefully that helps thanks for your time there's my contact information feel free and well I'll take a few questions if there are any or also we've got a booth over to 12 if anybody wants to stop by and ask any questions so Mike what kind of companies do you work with and and have you seen an uptick in interest in traceability in marketplace yeah we have like I said what we've seen is an uptake and people wanting to capture more information and traceability the that grappled a lot tracking thing that you showed your little graphical thing we've had that for decades and it was actually kind of want something we actually created with one of our customers who wanted to make traceability a something they really could compete on they actually use it as a marketing tool so they could show everybody where their products came from but now we're seeing companies and I need to understand how we can capture more data from a supply chain perspective so I can actually show where I came from any other questions all right thank you very much

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