FONTERRA'S TRACEABILITY TRANSFORMATION-INTERVIEW WITH GREG MCCULLOUGH - ISSUE 44 NOVEMBER 2017 - GS1 NEW ZEALAND

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FONTERRA'S TRACEABILITY TRANSFORMATION-INTERVIEW WITH GREG MCCULLOUGH - ISSUE 44 NOVEMBER 2017 - GS1 NEW ZEALAND
ISSUE 44 NOVEMBER 2017

Fonterra’s
Traceability
Transformation
–– Interview with Greg McCullough

PIC’S PEANUT BUTTER          4
ACROSS THE WORLD

LAND-TO-JAR TRACEABILITY     6
FOR MANUKA HONEY

TIMES-7 SIGNALS THE FUTURE 13
FOR RFID
FONTERRA'S TRACEABILITY TRANSFORMATION-INTERVIEW WITH GREG MCCULLOUGH - ISSUE 44 NOVEMBER 2017 - GS1 NEW ZEALAND
COMMENT

                        HIGH QUALITY, HIGH IMPACT
 BLANK & COLOUR LABELS                                                                                                                       Time to move on food safety
                                                                                                                                             and traceability
                                                                                                                                             New Zealand has a new Parliament and we keenly await its next
                                                                                                                                             steps with the Food Safety Law Reform Bill. This very important piece
                                                                                                                                             of legislation did not pass before the House rose for the 23 September
                                                                                                                                             Election, despite a year-long process of select committee deliberation
                                                                                                                                             and reading debates.

                                                                                                             It is an “omnibus bill” aimed at improving            those who supply into other countries.                  Other primary industries are moving in the
                                                                                                             three existing Acts – principally the Food Act        New Chinese regulations for ensuring food               same direction and this issue also reports on
                                                                                                             2014 – which govern New Zealand’s food                authenticity and traceability will have                 ApiTrak, the new solution for land-to-jar
                                                                                                             safety system and protect our reputation as a         particular significance across global                   traceability in manuka honey production and
                                                                                                             supplier of safe food to the world. The Food          food trade.                                             supply chains. Our GS1 member case study is
                                                                                                             Safety Reform Bill is important in large part                                                                 Pic’s Really Good Peanut Butter – a fast-
                                                                                                             because of its traceability and recall                With all this in mind, GS1 has recently run a           growing global food brand out of New
                                                                                                             provisions. As written, it will enable new            series of traceability seminars for members             Zealand and one also built on product quality.
                                                                                                             regulations requiring all food producers and          throughout New Zealand. We invited two
                                                                                                             purveyors to establish and maintain their own         international experts to talk about global              This country is moving ahead on food
                                                                                                             systems for tracing food products and                 developments, while our own experts set out             traceability and recall as companies respond
                                                                                                                                                                   the practicalities for businesses in this country       to market signals, and get smarter about

Peacock bros labelling solutions
                                                                                                             ingredients, and for recalling these if and
                                                                                                             when safety concerns arise.                           who want to get serious about maintaining               protecting their brands and trading
                                                                                                                                                                   food safety and consumer confidence.                    connections. Parliamentarians have their part
                                                                                                             Passage through Parliament has definitely                                                                     to play too – and we all look forward to seeing
                                                                                                             been slower than earlier expected. At the bill’s      GS1 Standards, including the GS1 Global                 how they resolve issues from their economy-
We manufacture labels for transport and logistics, chemical identification, food and beverage products,
                                                                                                             last outing in the House (mid-August), it             Traceability Standard, can be part of any               wide perspective. Compliance costs and
fresh produce, timber and hardware identification, healthcare products, harsh environment tags for steel,                                                          solution – and we explained how these can be
                                                                                                             received strong support from Labour’s Damian                                                                  labeling requirements are, undoubtedly, real
glass and aluminum products, retail shelf self adhesive labels and more including RFID tags and labels.      O’Connor – now the Minister of Agriculture            linked to present and likely-future regulatory          and complicated issues.
                                                                                                                                                                   systems. Our message was that New Zealand
When you need to print variable data onto labels we can match one of our thermal transfer ribbons to the     and of Food Safety – but challenge from New
                                                                                                             Zealand First and the Greens. They raised             food businesses should not focus simply on              Safe eating and happy reading!
performance of your thermal transfer printer for the highest print quality.                                                                                        compliance with whatever new regulations are
                                                                                                             concerns about regulatory compliance costs
                                                                                                             on small food businesses and perceived gaps           coming. We were pleased with attendance
◆   Labels manufactured in New Zealand                      ◆   Product/colour labels                        in food labelling requirements. When and              and believe the 210 people at the seminars
◆   Direct thermal & thermal transfer labels                ◆   Professional graphic design assistance       how this bill proceeds in the new Parliament          got real value.
◆   Freight/shipping labels                                 ◆   Print & apply label applicators              should be of real interest to everyone in our
                                                                                                                                                                   Of course many companies are not waiting for
                                                                                                             food industries.
◆   Computer/laser labels                                   ◆   Thermal label printers & ribbon                                                                    official prescriptions on tracing and recall. In        Dr Peter Stevens
                                                                                                             Whatever political and Parliamentary                  this SCAN, we are delighted to interview Greg           Chief Executive
                                                                                                             processes do with this or similar legislation         McCullough of Fonterra Co-operative Group
                                                                                                             from now on, we can be certain on one thing           on that company’s huge progress with food
                                                                                                             – traceability of food and ingredients is fast        safety initiatives and traceability systems over
                                                                                                             becoming a “must have” in the eyes of                 the past four years. Fonterra is using GS1
                                                                                                             consumers and of authorities in New Zealand’s         Standards as an integral part of its move to
                                                                                                             major export markets. Our regulatory                  “trusted source” status on food quality and
                                                                                                             framework is just one component in a much             world-class practice on traceability.
                                                                                                             bigger picture for food businesses, especially

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Contact us today to discuss your needs:                                                                        0800 10 23 56           wholesaling, transport and government. Our readership includes chief         For copies of SCAN: If you are a member and would like more

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                                                                                                            F +64 4 494 1051           executives, sales and marketing managers, account managers, brand and        copies of SCAN, or if you are not a member and would like to
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                                                                                              NZ Ltd
                                                                                                                                       managers, logistics and supply chain personnel, (barcoding) staff and
email: sales@peacocks.co.nz                                                                                                            packaging coordinators.
                                                                                                                                                                                                                    bev.gough@gs1nz.org.

www.peacocks.co.nz
                                                                             Label & Data Capture Systems
                                                                                                             ISSUE 44                                                                                                                                                               3
FONTERRA'S TRACEABILITY TRANSFORMATION-INTERVIEW WITH GREG MCCULLOUGH - ISSUE 44 NOVEMBER 2017 - GS1 NEW ZEALAND
MEMBER CASE STUDY

                                                                                                                                                   Heath says sales growth in China is high                       for systematic GTIN allocation and digital              withdrawal or recall notice (although there
                                                                                                                                                   with two container loads of palletised                         data storage. “Having all our data in one               have, of course, been practice runs).
                                                                                                                                                   cartons leaving each month and                                 spot is definitely a blessing … there’s no              “It’s good to have at our fingertips if and
                                                                                                                                                   consumers there buying entirely online at                      worry about duplication of barcodes and                 when needed … I have to say the updated
                                                                                                                                                   this stage. “If we move to selling through                     allocating a new number is easy.”                       version of this service is better as well,”
                                                                                                                                                   Chinese grocery stores, we’ll be ready for                                                                             Heath says.
                                                                                                                                                   that,” he says.                                                Today the company also has master data
                                                                                                                                                                                                                                                                                    For more information, see
                                                                                                                                                                                                                  and digital images for 53 of its products                        www.picspeanutbutter.com
                                                                                                                                                   The sales growth into Australia and China,                     loaded into the National Product                             Picot Productions: NZBN 9429000076418
                                                                                                                                                   and also South East Asia, has set the basis                    Catalogue (NPC), with only a handful not
                                                                                                                                                   for enlarging Pic’s Really Good Peanut                         yet included. This provides supermarket
                                                                                                                                                   Butter operation in Stoke. The new factory,                    chains in New Zealand and Australia with
                                                                                                                                                   replacing two existing smaller facilities                      anytime-access to all the data they need in
                                                                                                                                                   now in use, is due for completion in late
                                                                                                                                                                                                                  their trading relationships with Pic’s Really
                                                                                                                                                   2018. In fact, New Zealand sales continue
                                                                                                                                                                                                                  Good Peanut Butter. Heath welcomes the
                                                                                                                                                   to grow rapidly as well and the company is
                                                                                                                                                                                                                  much simplified interface between NPC
                                                                                                                                                   planning for significant growth in turnover
                                                                                                                                                                                                                  and suppliers like him since GS1 launched
                                                                                                                                                   over the next five years.
                                                                                                                                                                                                                  the ProductFlow service in 2015. “It’s
                                                                                                                                                                                                                  become a much simpler system to use,
                                                                                                                                                   Digital data                                                   requiring less effort to upload data and
                                                                                                                                                   Pic’s use of GS1 Standards has come a                          making it quicker to release product
                                                                                                                                                   long way since the company joined in                           changes onto the market.”
                                                                                                                                                   2010 for numbers and barcodes to
                                                                                                                                                   support its peanut butter sales to the big                     Heath is also a supporter of
                                                                                                                                                   New Zealand grocers. Heath came on                             ProductRecallNZ, on which the company
    Pic Picot loves talking peanut butter with his customers
                                                                                                                                                   board in 2013 and quickly saw the                              went live in 2015. Pic’s Really Good Peanut

    Peanut butter with really good
                                                                                                                                                   advantages of using GS1’s ProductVault                         Butter has never been subject to a real-life

    use of GS1 Standards
                                                                                                                                                   1 SSCCs are usually 18 digit numbers used to identify logistics units (pallets, cases etc) and their contents.

    Pic’s Really Good Peanut Butter is spreading across the world – and the Nelson company
    behind the brand is making smart use of GS1 Standards to keep export growth smooth,
    rather than crunchy. The same jars of the tasty, nutritious nut spread sell in Australian,
    British and American supermarkets with the ease that they do at home.
    In fact Picot Productions Ltd is exporting         centre already operating on the site, every   He says there have certainly been no
    to 13 countries this year, building on the         jar sold in this country and across the       supply chain issues supplying Pic’s Really
    extraordinary success of its products in           world is filled, labelled and packed – 3.5    Good Peanut Butter onto the shelves of
    New Zealand since founder Pic Picot                million of them in 2017!                      major supermarket chains in Australia,
    launched his then-artisan business in 2007.                                                      the UK and the US.
    The brand has firmly established itself as         Numbers and barcodes
    market leader in this country with a range
                                                       Manufacturing Manager Heath Bowman
                                                                                                     Growth
                                                                                                                                                      iICE Validator for NPC
    that includes smooth and crunchy peanut                                                          Last year saw another leap forward for the
                                                       says jar labels carry the barcoded Global
    butter (salted and unsalted), almond and

                                                                                                                                                                                                                                                                     DOWNLOAD
                                                       Trade Item Number (GTIN) for that             company across the Tasman when
    cashew nut butters, and peanut oil.
                                                       particular product, encoded in an EAN-13      Woolworths (with 900 supermarkets)               •   Validate data for Product Flow and NPC standards
                                                                                                     became a customer, in addition to Coles
    Pic’s Really Good Peanut Butter continues          barcode. Cartons are coded with a
                                                                                                     which had been taking Pic’s Really Good          •   Simplify the creation of item and price data hierarchies
    to excite consumers here – and around the
    globe – for its taste, lack of additives and
                                                       GS1-128 and leave the centre on pallets,
                                                       each of these identified with a Serial
                                                                                                     Peanut Butter since 2014. Apparently                                                                                                                           iICE Validator Free Trial
                                                                                                     Australians love the fact that Pic settled,      •   Support multiple industry data requirements
    inclusion of “healthy fats” (unsaturated
    fatty acids) from the Australian-grown nuts
                                                       Shipping Container Code (SSCC)1. All
                                                                                                     back in 2007, on high-oleic nuts grown in                                                                                                                        www.innovit.com/aus/
                                                       products for export leave through the
                                                                                                     Queensland as the fundamental ingredient         •   Remain current with GS1 standards using                                                                      training-downloads
    which are used in its simple manufacturing
                                                       Port of Nelson.                               in all his peanut-based products: These              NPC Certified Software.
    processes. Distinctive visual branding and
    the unrelenting enthusiasm of Pic as                                                             nuts have an especially rich flavour, never
                                                       Heath says GS1 Standards are of
    “brand ambassador” certainly help.                                                               go rancid and have high nutritional value.
                                                       tremendous help to the business in every
    The company has big plans for future               market. “I can’t imagine what it would be     This year the company has begun supply
                                                       like exporting a product such as ours
    growth based at its new site in the Stoke
    area of Nelson, where a larger factory is          without the globally standardised numbers
                                                                                                     into the Tesco chain in the United Kingdom
                                                                                                     and also launched exports into China,
                                                                                                                                                                                                                       www.innovit.com                                          +61 2 8020 2000
    now under construction. At a distribution          and barcodes.”                                selling through the Tmall.com platform.

4                                                                                                                            NOVEMBER 2017         ISSUE 44                                                                                                                                                             5
FONTERRA'S TRACEABILITY TRANSFORMATION-INTERVIEW WITH GREG MCCULLOUGH - ISSUE 44 NOVEMBER 2017 - GS1 NEW ZEALAND
TRACEABILITY CASE STUDY

                                                                                                                                                                                                                                an android smartphone app for the                        locations can also be shared with
                                                                                                                                                                                                                                capturing of unique identifiers on hives,                ApiWeb – New Zealand’s established
                                                                                                                                                                                                                                supers, pallets, drums and jars.                         apiary registration and disease
                                                                                                                                                                                                                                                                                         management system.
                                                                                                                                                                                                                                The identifiers are written onto tags which
                                                                                                                                                                                                                                are then locked to prevent any later                     ApiTrak provides for the use of GS1 GRAIs
                                                                                                                                                                                                                                manipulation of numbers. Automatic data                  (Global Returnable Asset Identifiers) on
                                                                                                                                                                                                                                capture is another critical feature and this             hives, supers and pallets, with GTINs
                                                                                                                                                                                                                                also minimises scope for data manipulation.              (Global Trade Item Numbers) then used to
                                                                                                                                                                                                                                The identifiers are read using the                       identify honey batches extracted from the
                                                                                                                                                                                                                                smartphone app and Near Field                            supers and individual jars of the final
                                                                                                                                                                                                                                Communication (NFC)2 technology, and                     product. Indeed each jar can have a serial
                                                                                                                                                                                                                                automatically uploaded to the cloud. The                 number for tracing back to its batch and
                                                                                                                                                                                                                                latter also receives manually-uploaded data              thereafter, for looking up details of honey
                                                                                                                                                                                                                                of relevance to each honey production and                production and extraction. The smartphone
                                                                                                                                                                                                                                supply scenario.                                         app can read tags on jars, with real benefits
                                                                                                                                                                                                                                                                                         to retailers for stock control and to
                                                                                                                                                                                                                                ApiTrak has five modules related to                      consumers for authentication. ApiTrak
    Hayden Stowell uses his smartphone to read hive tags
                                                                                                                                                                  information on the what, where, how and                       different stages in the supply chain. Data               enables high visibility on all stages of

    Manuka honey traceability to                                                                                                                                  why of each CTE.                                              in each module is of particular interest to              production and supply, for all participants.
                                                                                                                                                                                                                                land owners, beekeepers, hive and super                  For instance, the system can automatically
                                                                                                                                                                  Technology                                                    handlers, honey extractors and those                     alert an extraction facility when honey-

    promote product integrity and safety
                                                                                                                                                                  ApiTrak is cloud-based with data from                         engaged in the bottling of honey in its                  laden hives and supers are being retrieved
                                                                                                                                                                  multiple sources received and stored on                       final form – and of course, individual parties           in the field: Processing resources and
                                                                                                                                                                  secure servers located within New Zealand.                    might be involved in multiple stages of the              storage capacity can then be allocated with
                                                                                                                                                                  Origins’ development work was guided by                       chain. At appropriate points, the system                 greater efficiency.
                                                                                                                                                                  Hayden and Duncan’s strong wish to avoid                      is integrated with the Ministry for Primary
    Fast growth in the size and value of New Zealand’s manuka honey industry is accompanied by high risks of                                                                                                                    Industries E-Cert system and AsureQuality’s
                                                                                                                                                                  the need for users to invest much in new                                                                                               For more information, see
    product counterfeit and food safety. Industry pioneer Hayden Stowell and technology business partner                                                          hardware. The system relies, therefore, on                    reporting requirements. Data on hives and                                 www.apitrak.solutions
                                                                                                                                                                                                                                                                                                         Origins Software NZBN
    Duncan Williamson have created a land-to-jar traceability solution for managing those risks – and at the                                                                                                                                                                                                 9429041522899

    same time, boosting productivity in honey harvesting, extraction, regulatory compliance and packaging.                                                        2 Near Field Communication – the technology used for tap and pay cards at retail point of sale.

    The solution is ApiTrak – a traceability                      expected to ramp up once the current            GS1 design
                                                                                                                                                                   “We need to give our customers assurance that what they are buying is
    system for use by all industry participants                   season is completed.                            In 2015 Origins called on GS1 to assess
    to authenticate manuka honey, and to                                                                                                                            authentic and we will be able to demonstrate this with ApiTrak. As we grow the
                                                                                                                  honey traceability opportunities, initially
    manage any food safety issues in its                          “We’ve developed a system that is                                                                 business to include extraction processing and bottling, we will be one of the
                                                                                                                  through detailed analysis of a well-
    production and supply. ApiTrak is based                       easy-to-use, affordable and adaptable to                                                          only honey businesses that is truly integrated from the land right through to
                                                                                                                  established manuka honey business in
    largely on a GS1-designed model of                            the specific needs of industry participants
                                                                                                                  Northland. Awanui-based Mana Kai Honey            the brand. ApiTrak will be vital to our growth.” - Victor Goldsmith, General Manager of
    traceability that encompasses land, hives,                    whether they are vertically integrated or
                                                                                                                  operates over 2000 hives and also offers          Ngati Porou Miere Limited Partnership and a member of ApiTrak’s advisory board.
    honey extraction and storage facilities,                      operating at one stage of the supply chain
                                                                  only,” says Hayden. “New Zealand is             commercial honey extraction and storage
    testing and certification steps, and final
                                                                  estimated to have around 825,000 hives          services for other beekeepers in the North.
    packaging into jars for sale to consumers
                                                                                                                  The analysis led GS1 to propose an
    worldwide. The system works on cloud-                         and all of them could be identified and
                                                                  managed using ApiTrak … the potential           industry-wide system that would be              Benefits to ApiTrak module users
    based computing, purpose-built
                                                                  advantages are huge in terms of honey           based on clear and unique identification
    smartphone apps, automatic data capture                                                                                                                       Landowner Module                    Beekeeper Module                    Interim Storage                   Extraction Facility                 Bottling Facility
                                                                  quality and global reputation, and of           of individual hives and supers1, of
    from tamper-proof tags, and unique                                                                                                                                                                                                    Facilities                        Module                              Module
                                                                  industry productivity.”                         pallets carrying these supers, of drums
    identification of the critical components
                                                                                                                  of bulk honey and of jars of consumer-          »» Transparency on the              »» Easy-to-use system for            »» Close the current             »» Visibility on incoming honey     »» More efficient interface with
    along the honey supply chain.
                                                                  Hayden knows the industry well, having          ready product.                                     numbers of hives located on         managing hive and super              information gap between          and rapid digital harvest           labs enables test results to
    ApiTrak has been developed by Origins                         co-founded and managed several manuka                                                              their property, exact               locations and movements              hive and extraction.             declarations.                       be easily encoded on labels.
                                                                  honey ventures since the early 2000s. He        GS1’s system design put strong focus also          locations and hive                  – direct productivity
    Software – the traceability solutions firm of                                                                                                                                                                                          »» Improve information flows     »» More efficient interface with    »» Faster and more accurate
                                                                  established the Honey Network bulk honey        on identifying Critical Tracking Events            ownership.                          benefits.
    Hayden (Chief Executive) and Duncan                                                                                                                                                                                                       through the whole supply         testing labs and closer             uploading of information to
                                                                  auction site (www.honeynetwork.co.nz) in        (CTEs) in honey production and supply           »» Knowledge of how much            »» Ability for digital capture of       chain.                           linkage of results with             E-Cert system – with
    (Chief Technology Officer). This spring has
                                                                  2014 and is a member of the Maori Honey         chains, and on Key Data Elements (KDEs)            honey is produced from              data even without mobile                                              honey in drums.                     productivity gains to result
    seen its commercial launch after seven
    years in development, including beta                          Working Group. Duncan is a 35-year              in relation to each of these CTEs. In general      each hive.                          reception.                                                         »» Faster and more accurate            from this.

    testing during the 2016-17 honey                              veteran of the New Zealand information          terms, CTEs are “instances where product        »» Direct access to product         »» Harvest declarations can be                                           collation of information, and    »» Efficient generation of

    production season. ApiTrak is now available                   technology sector. Both are intent on           is moved between premises, is                      test results for honey              declared digitally, perhaps                                           uploading of E-Cert reports.        export documentation.
                                                                  creating world-leading traceability,            transformed, or is otherwise determined to         harvested on their land.            from the field.                                                    »» Automatic generation of          »» AsureQuality is better
    to land owners and honey producers of any
    size, anywhere in New Zealand. Adoption is                    authentication and marketing systems for        be a point where data capture is necessary                                          »» Pre-alert to the extraction                                           drum labels and packing             placed to gather statistics
                                                                  various of this country’s primary industries.   to trace a product.” Generally, KDEs are                                               facility on incoming hives                                            slips.                              and identify any
                                                                                                                                                                                                         and supers.                                                        »» AsureQuality is better              adulteration of product.

    1 Supers are the trays in which bees deposit honey. There are multiple supers in each hive.                                                                                                       »» Automatic compliance with                                             placed to gather statistics
                                                                                                                                                                                                         AsureQuality requirements.                                            and identify any
                                                                                                                                                                                                                                                                               adulteration of product.

6                                                                                                                                          NOVEMBER 2017          ISSUE 44                                                                                                                                                                         7
FONTERRA'S TRACEABILITY TRANSFORMATION-INTERVIEW WITH GREG MCCULLOUGH - ISSUE 44 NOVEMBER 2017 - GS1 NEW ZEALAND
FEATURE INTERVIEW                FEATURE INTERVIEW

                                                                                              Quality, trust
                                                                                              and traceability:
                                                                                                                      transforming                                              • traceability
                                                                                                                                                                                • meeting customer needs
                                                                                                                                                                                                                                 When I joined Fonterra, one of my first
                                                                                                                                                                                                                                 jobs was to build the team to help deliver
                                                                                                                                                                                                                                 our Trust in Source strategy and unlock the
                                                                                                                                                                                                                                                                                   What does product safety and quality
                                                                                                                                                                                                                                                                                 mean for you?
                                                                                                                                                                                                                                                                                 Two things. We want to make safe food –

                                                                                                                      Fonterra
                                                                                                                                                                                • opening up lines of communication.
                                                                                                                                                                                                                                 potential we could see. We built the plan       and at the end of the day, if you don’t do
                                                                                                                                                                                The change in our organisation has come          for getting the company where it is today.      that you won’t have a business. The second
                                                                                                                                                                                largely through the deliberate, structured       Actually I think we have done quite a good      thing is striving to distinguish your
                                                                                                                                                                                approach we have taken to strengthening          job. Coming in from the customer side,          products and delight the consumer. It’s
                                                                                                                                                                                food safety and quality culture. It’s been       my perspective did help. Inside Fonterra        their view of quality that counts. We must
    As Group Director – Food Safety, Quality & Regulatory Affairs, Greg McCullough is part of a team leading                                                                    about re-orienting our thinking to put           we talk about it as being a shift from          have products that meet their expectations
    transformation within Fonterra Co-operative Group. New Zealand’s dairy giant is moving from commodity                                                                       customers and consumers first. The first         ‘doing our best’ to ‘being the best’. We        and this includes products that can be
                                                                                                                                                                                phase was in New Zealand and some key            have really focused on improving as much
    producer to customer-focused global nutrition business. Greg talks with SCAN about the critical importance                                                                  global markets. We recently had
                                                                                                                                                                                                                                                                                 traced back through production. At
                                                                                                                                                                                                                                 as we can, acknowledging the reality that       Fonterra, we put huge efforts into listening
    to Fonterra of product quality, of customer trust and of traceability systems based on GS1 Standards.                                                                       independent verification of the progress         you’re never going to be market leader          to what customers want and delivering on
                                                                                                                                                                                made in our core region and the focus is         in everything.                                  their expectations.
                                                                                                                                                                                now on incorporating the same successful
    Greg joined Fonterra in August 2014, having previously held senior Safety and Quality management roles at                                                                   approach to the business globally.                  Where did you start with                     Before joining, when I was one of
    Mead Johnson Nutrition in the US and at France-based multinational Danone. He returned to New Zealand                                                                                                                        strengthening Fonterra’s Food Safety            Fonterra’s customers, my company used
                                                                                                                                                                                We really want our customers to
    with 15 years’ global food industry experience – and a keen interest in dairy farming (his own farm near                                                                                                                     and Quality focus?                              to do taste trials. Even in trials in the
                                                                                                                                                                                experience and believe in the change in
                                                                                                                                                                                                                                 We started in two areas – our                   Netherlands, New Zealand milk just tasted
    Rotorua is milking 1700 cows this season).                                                                                                                                  what we do and how we work with them.
                                                                                                                                                                                                                                                                                 better … there is definitely something
                                                                                                                                                                                For instance, I am now on the governance         infrastructure and our people. In terms of
                                                                                                                                                                                                                                 our infrastructure, we had a stringent look     very interesting about product quality
                                                                                                                                                                                board for three of Fonterra’s biggest
       Following the WPC80 precautionary                        we had great efficiency, well developed                      ‘Deliver what matters most to our                                                                   at all our assets, and have invested a lot to   from Aotearoa.
                                                                                                                                                                                customers … it’s unusual for the Food
    recall1 in 2013, Fonterra committed to                      systems and processes, and ongoing                           customers and consumers – keep our                 Safety and Quality head to be so involved        help ensure those assets – factories are the
    move to a customer and consumer-                            commitments to food safety and                               promises and show we stand for                                                                      most obvious – are world class for                Does your approach to safety and
                                                                                                                                                                                in commercial relationships, but it is part of
    focused dairy nutrition business, instead                   quality and to continuous improvement2,                      uncompromising food safety and world                                                                delivering safe, quality products. As part      Quality vary depending on the market
                                                                                                                                                                                how we’ve changed in our relationship
    of an efficiency focused manufacturing                      opportunities were identified to improve                     class quality. Demonstrated through every                                                           of this we focused on the importance of         Fonterra is supplying?
                                                                                                                                                                                with customers. We put technical people in
    and ingredients supplier. What progress is                  some of our processes, systems                               aspect of our grass to glass supply chain.’        front of them.                                   the customer and along with this, on the        We strive for a consistent approach
    being made in this transformation?                          and culture.                                                                                                                                                     quality of the assets we are using to           irrespective of the markets we are
                                                                                                                             It is this commitment, and the strategy                                                             deliver for customers.                          producing for. Every day, we aim to make
    Four years on, we are making good                                                                                                                                              Of course you were a customer
                                                                Trust is, of course, hard to earn and easy                   supporting it that we call Trust in                                                                                                                 the best possible product, which exceeds
    progress. As a team we are turning                                                                                                                                          yourself back in 2013
                                                                to lose so since early 2014, we have                         Source. Trust in Source encompasses our                                                             Just as importantly, Fonterra has invested      the standards set by governments and the
    Fonterra into the customer- and                                                                                                                                             The companies I worked for previously
                                                                undertaken a conscious, strategic                            global food safety and quality strategy,                                                            in our people and in strengthening our          expectations of our consumers.
    consumer-focused co-operative we aspire                                                                                                                                     were themselves large customers of
                                                                transformation that requires focus and                       Focusing on removing risk, building trust                                                           food safety and quality culture. We started
    for it to be. Someone in the audit team of                                                                                                                                  Fonterra. I knew this co-operative very well
                                                                input from everyone in the organisation                      and creating value. The strategy covers                                                             by making sure we were clear on our               What is the biggest challenge to
    one of our biggest customers said recently,                                                                                                                                 from the other side, and I could see both
                                                                as well as with our farmers, partners,                       the following:                                                                                      expectations, what we stand for, around         Fonterra in maintaining and improving
    ‘if you shut your eyes a few years ago and                                                                                                                                  the passion of the people at Fonterra as
                                                                suppliers and third parties.                                                                                                                                     food safety and quality, and what we            Food Safety and Quality?
    re-opened them now, you wouldn’t think                                                                                   • people and culture                               well as the potential the whole                  expect of our people as a result. Then we
    this was the same company’.                                 This is shown in our purpose to be the                                                                          organisation had to deliver on its                                                               It requires constant focus, effort and
                                                                                                                             • food safety and quality monitoring and                                                            looked at both our senior leaders as well as
                                                                world’s most trusted source of dairy                                                                            commitments to change. I think one of                                                            vigilance; from everybody, all of the time.
    Following the precautionary recall, we                                                                                     risk assessments                                                                                  the hidden, or informal leaders in our
                                                                nutrition, as well as in our organisation-                                                                      the reasons they brought me in was                                                               People and culture are critical. We have
    realised we needed to change. Whilst                                                                                     • food defence                                                                                      business and how they can role model the
                                                                wide commitment which is to:                                                                                    because Fonterra was interested in having                                                        just launched a major campaign among
                                                                                                                                                                                                                                 behaviours we are seeking. We have also
                                                                                                                                                                                a Kiwi in this new role, someone who                                                             our people called ‘FSQ it’s up to you’.
                                                                                                                                                                                                                                 invested a lot in building the capability of
                                                                                                                                                                                understood the New Zealand culture, and                                                          Basically, we really want everyone to
    1 WPC80 is a whey protein concentrate ingredient produced by Fonterra. In August 2013, the company instigated the precautionary recall of close to 38 tonnes of WPC80                                                        our people.
                                                                                                                                                                                who had also led Quality and Food Safety                                                         recognise that food quality is up to them,
    after testing indicated possible contamination with clostridium botulinum. Subsequent testing confirmed no contamination. Fonterra’s traceability and recall capabilities
    were then subject to rigorous review.                                                                                                                                       in big global organisations.                                                                     not just to their
    2 As identified in the report of an independant WPC80 inquiry panel for the Fonterra Board, October 2013.                                                                                                                                                                                           Continue on page 10

8                                                                                                                                                        NOVEMBER 2017          ISSUE 44                                                                                                                                        9
FONTERRA'S TRACEABILITY TRANSFORMATION-INTERVIEW WITH GREG MCCULLOUGH - ISSUE 44 NOVEMBER 2017 - GS1 NEW ZEALAND
FEATURE INTERVIEW                FEATURE INTERVIEW

     managers or to me as the Head of Safety        into this product which helps enable very    our SAP applications into the company-              When will Fonterra complete the full
     and Quality. We want every single person       vulnerable children to live’.                wide traceability system.                        traceability transformation?
     in the company to think about safety                                                                                                         We are well on track to have a fully
     and quality before they make decisions            Have some production processes been       As of now, we have a majority of our
                                                                                                                                                  electronic traceability solution by 2020.
     and in everything they do. It’s about          redesigned as part of the safety and         supply chain footprint integrated into
     them thinking, ‘we are a food company.         quality transformation?                      our global electronic batch repository
                                                                                                                                                     The company has recently launched a
     OK what could be the result of my actions                                                   (including ingredients and packaging).
                                                    Yes and no. Obviously we want our                                                             traceability app for consumers of Anmum
     on the job today? If I was a customer                                                       Where a batch of product is in the
                                                    business to be as efficient as it can be …                                                    infant formula – QR Codes that can be
     or consumer, would I be making that                                                         repository, we can track and trace
                                                    for instance, we maximise, through a                                                          scanned with a smartphone to see batch
     same decision?’                                                                             all elements of it electronically
                                                    stringently validated process, the time                                                       numbers and other product details. How
                                                                                                 within minutes.
                                                    we run our machinery before it needs to                                                       has that gone so far?
     As part of this, we have pictures showing
                                                    be cleaned again. We have all key                                                             We have launched our product
     people’s children eating our products, and                                                     That implies need for a common
                                                    processes well documented, knowing that                                                       authentication solution first in New
     we’re bringing products in from all over                                                    language between trading partners and
                                                    a lot of unwanted things can happen if                                                        Zealand … we want to get the technology
     New Zealand, and the world, that our                                                        capacity to rapidly share information?
                                                    we exceed operating limits. We also know                                                      right here before taking it into the Chinese
     ingredients go into, for our people to try …                                                Developing a common language shared by
                                                    that if we run X many hours on this                                                           market. We know that once it’s launched in
     it becomes pretty clear that what mum                                                       all partners in complex supply chains is not
                                                    particular product, we will produce the                                                       China, almost every tin will be scanned!
     and dad make at work, their kids will be                                                    easy and yet it is critical to achieving
                                                    best possible form of it.                                                                     Chinese mums and dads are paying good
     consuming at home, or other people will                                                     effective and timely traceability right along
     be eating in other parts of the world. We’re                                                                                                 money for imported product and they will
                                                        Turning to traceability systems, how     the chain. Fonterra is addressing that
     also sharing personal stories on why Food                                                                                                    be wanting to confirm every time that it is
                                                    far have you come since the WPC80            challenge through adoption of GS1
     Safety and Quality matter. For example,                                                                                                      authentic, that it really does come from
                                                    precautionary recall?                        Traceability Standards … GS1 concepts and
     we’ve had one of Fonterra’s big customers                                                                                                    Fonterra and New Zealand.
                                                                                                 terminology are foundational to our
     from the US – an importer of milk protein      Back then, completing an end-to-end trace
                                                                                                 traceability. Critical Tracking Events, Global   Our system is a bit different because
     concentrate which they use in a product        required the querying of multiple internal
                                                                                                 Trade Items Numbers, Serialised Shipping         consumers scan a unique QR Code and
     for premature babies – to talk about           systems across several geographical                                                                                                                         system – and that enables milk to be                          programme and I suspect Block Chain
                                                                                                 Container Codes … these are embedded in          when they reach our product
     nutrition for a baby born eight weeks early.   regions, with work by multiple teams.                                                                                                                       traced back to farms.                                         could be an extension on that.
                                                                                                 our framework. They are the language we          authentication site they can see which
     This customer could explain to the people      Fonterra has transformed its traceability
                                                                                                 use in talking with trading partners,            plant made the product they’re holding
     in our factories that, ‘the powder you make    system with significant investment in                                                                                                                          How does “Trust in Source” relate to                          Do you see the transformation in assets,
                                                                                                 including suppliers, customers and               and where the milk was sourced (the
     is vitally important because we then turn it   technologies. We have built a bridge from                                                                                                                   the “Trusted Goodness™” quality seal                          systems and culture having improved
                                                                                                 logistics providers.                             typical collection area).                                     that Fonterra launched in 2016?                               Fonterra’s overall performance yet?

                                                                                                                                                  Our QR Code app actually enables us                           The Trusted Goodness™ quality seal is a                       Our journey has taken us to a quite
                                                                                                                                                  to see where each tin of Anmum is being                       promise from Fonterra to our consumers                        different place. I think Fonterra is defined

                                                         Product Content Syndication solutions                                                    scanned – and it will be really interesting
                                                                                                                                                  to see where our products are being
                                                                                                                                                                                                                that they can trust the food we make. Trust
                                                                                                                                                                                                                in Source is our internal strategy to ensure
                                                                                                                                                                                                                                                                              in the market by our focus on safety and
                                                                                                                                                                                                                                                                              quality, and by our transparency around
                                                         for eCommerce marketplaces                                                               taken and used. In contrast, most of                          we meet that promise every day, from the
                                                                                                                                                                                                                farm to the customer.
                                                                                                                                                                                                                                                                              production and product tracing.
                                                                                                                                                  our competitors’ QR Codes simply pass
                                                                                                                                                                                                                                                                              Overall, the company is doing well around
                                                                                                                                                  the customer through to a generic
                                                                                                                                                                                                                   Fonterra is clearly looking at how new                     the world … our products are sought
                                                                                                                                                  website with no visibility on where the
                                                                                                                                                                                                                technologies can support the business.                        after and we just can’t make enough of
          Do you struggle with the increasing demands                                                                                             scan occurred.
                                                                                                                                                                                                                What about block chain?                                       some! In China, for instance, half the
          for product data to support your omni-channel                                                                                              How does the Anmum app support                             In terms of large-scale traceability, we have
                                                                                                                                                                                                                                                                              pizzas eaten there are made using our
                                                                                                                                                                                                                                                                              mozzarella cheese. The popularity of our
          and e-commerce requirements?                                                                                                            Fonterra’s big goals for traceability and                     a strong long term strategy, which is about
                                                                                                                                                                                                                                                                              products around the world, particularly
                                                                                                                                                  consumer trust?                                               connecting our data with supply chain
                                                                                                                                                                                                                                                                              among food professionals, is very high.
                                                                                                                                                  QR Codes and our authentication solution                      partners. So yes, we are looking at the
                                                                                                                                                                                                                                                                              Fonterra is recognised for making really
          Innovit’s PIM eCommerce Product Content                                                                                                 are our chosen technologies for better                        potential of Block Chain as well. Our
                                                                                                                                                                                                                                                                              good products.
                                                                                                                                                                                                                partnership with PwC and Alibaba3 will
          Syndication Solution provides data quality                                                                                              communication with consumers and for
                                                                                                                                                                                                                explore how it might relate to what we are
                                                                                                                                                  building their trust in Fonterra’s branded                                                                                  Today we are far more than an ingredients
          and data governance workflow which                                                                                                      products. Our plan is to eventually have                      doing already. We think Block Chain might                     and commodity supplier. You see that in
                                                                                                                                                                                                                dovetail quite nicely into our current
          optimises and accelerates the syndication                                                                                               QR Codes on all our paediatric and infant
                                                                                                                                                                                                                solution. It’s technology for sharing and
                                                                                                                                                                                                                                                                              how Fonterra’s output is increasingly sold
                                                                                                                                                  formula range. The extent and pace of this                                                                                  away from the Global Dairy Trade (GDT)
          of master data to support the needs of                                                                                                  will depend on consumer demand and the                        authenticating data – and we are certainly                    platform … we’re moving far more into the
                                                                                                                                                                                                                open to that although it’s early days.
          different trading partners and sales channels.                                                                                          attributes of particular products. The                                                                                      traded product category. Our significant
                                                                                                                                                  information being shared with consumers                       Fonterra has an enormous amount of                            investments in quality assets and systems,
                                                                                                                                                  is backed by our internal traceability                        computing horsepower with our trace                           and in people, are paying off.

          Speak with Innovit to help realise your company's global data strategy.

                                                                                                                                                  3 The parties, along with NZ Post, agreed in March 2017 to jointly research the use of Block Chain in product verification and tracing systems.

                                                        www.innovit.com                                 +61 2 8020 2000

10                                                                                                                         NOVEMBER 2017          ISSUE 44                                                                                                                                                                   11
FONTERRA'S TRACEABILITY TRANSFORMATION-INTERVIEW WITH GREG MCCULLOUGH - ISSUE 44 NOVEMBER 2017 - GS1 NEW ZEALAND
GS1 NEWS         TRACEABILITY PERSPECTIVE

     Traceability platforms attract interest                                                                                                                          Times-7 antennas enable
     New Zealand food exporters are increasingly interested in
     commercially-available technology platforms for product
     traceability, including fTRACE and SHPING.
                                                                                                                                                                      RFID worldwide
                                                                                                                                                                      Lower Hutt company Times-7 has taken its next bold step in the fast-growing world of RFID (radio frequency
     Such platforms give companies of any size                    The company says importers and consumers          designed to support legal compliance and          identification) by launching a new efficient, robust and lightweight antenna.
     the data storage and access capabilities they                can scan its fish and see: the species, time      certification requirements along with various
     need for meeting consumer information                        and place it was caught, how it was caught,       other supply chain functions. The                 Globally recognised for quality design and                   Of course RFID technologies can be                           commercial worth. The local investor group
     demands on product provenance,                               and the name and nationality of the catch         companies that use these services must still,     manufacture of ultra-high frequency (UHF)                    coupled with any data standard but                           behind Times-7 brought in Jos and a
     ingredients and safety. They also make it                    boat. Leigh Fisheries – based on the east         of course, make consistent and rigorous use       antennas, Times-7 has orders pouring in                      Times-7’s UHF expertise is a strong fit                      revamped board to take the business much
     easier for food producers, processors and                    coast north of Auckland and branded as LEE        of GS1 Standards for identification and data      for its new A5020 model – another piece                      with the growing application of GS1’s                        further as RFID expands rapidly. An
     distributors to participate in efficient data                FISH – sees traceability as an integral part of   capture, and ensure these data are uploaded
                                                                                                                                                                      of the company’s niche technology for                        Electronic Product Code (EPC) standard                       electrical engineer by profession, Jos had a
                                                                                                                                                                      enabling RFID solutions that track                           for traceability in difficult and busy                       successful previous international career in
     sharing with supply chain partners and                       its promise to provide customers around the       to whatever platform is selected.
                                                                                                                                                                      well-defined items in diverse industrial,                    environments worldwide. Times-7 and                          technology companies.
     regulators.                                                  world with the best quality fresh fish on the
                                                                                                                                                                      retail and healthcare environments.                          GS1 New Zealand have long acknowledged
                                                                  market (see www.leefish.co.nz).                   SHPING, created by a Melbourne-based                                                                                                                                        “RFID is getting much more focus these
                                                                                                                                                                                                                                   their complementarity.
     Both fTRACE and SHPING use GS1                                                                                 company, has similar services which, it says,     The A5020 puts Times-7 even more firmly                                                                                   days because tag prices have fallen
     Standards for item identification and                        fTRACE is owned by GS1 Germany – a sister         “combine brand protection, compliance and         on the map as take-up of RFID surges in                      Chief Executive Jos Kunnen says his                          dramatically and readers have become a lot
     barcoding: Both have developed smartphone                    organisation of GS1 New Zealand – and uses        consumer engagement”. SHPING consumers            North America, Asia and Europe. The                          company’s move beyond small runs of                          smarter,” says Jos. “Five years ago, people
     apps that enable consumers to scan                           cloud-based technology for storing,               can scan any product barcode with its app         antenna – made using an aluminium                            custom-designed and -made antennas                           were also being put off because tag read
     products and instantly see their place of                    organising and distributing data to meet the      and so “learn what’s in it, where it’s from and   composite material that is precision cut to                  – the previous strategy that built Times-7‘s                 rates were just not good enough … we’ve
     origin, batch number, use-by-date and other                  multiple needs of diverse companies.              if it is authentic”.                              the company’s patented design – creates                      reputation among RFID solution providers                     helped show that once you get the right
     desired information.                                                                                                                                             exactly the read field that is required in                   – has certainly changed its fortunes. This                   antennas, everything can fall into place.”
                                                                  In addition to the consumer app in support        Representatives of fTRACE and SHPING              many demanding situations.                                   year Times-7 is on track for export revenues
                                                                                                                                                                                                                                                                                                The biggest RFID growth potential, he says,
                                                                                                                                                                                                                                   of several million dollars and Jos expects
     Leigh Fisheries is one of a handful of New                   of marketing and trust – a form of business-      presented at the recent GS1 Traceability          It is the second new model since Times-7                                                                                  is with UHF applications.
                                                                                                                                                                                                                                   the figure to more than double within
     Zealand food companies already using                         to-consumer (B2C) traceability – fTRACE is        Roadshow (see www.gs1nz.org/services/             shifted gear in 2015 to begin high volume
                                                                                                                                                                                                                                   three years.                                                 The A5020 is an evolution from the
     fTRACE, in this case to support fresh                        also developing comprehensive                     events-and-trainings/industry-events/             production of antennas that are engineered
                                                                                                                                                                                                                                                                                                previous A5010 model, being smaller,
     seafood exports into Asia, the United States                 services for B2B data sharing and                 traceability-oct-2017/).                          and manufactured to world-best standard                      He says the company is addressing itself to
                                                                                                                                                                                                                                                                                                lighter and more easily fitted in many
     and Europe.                                                  information analysis. These services are                                                            but are also sufficiently low cost for mass                  an accessible market for UHF antennas
                                                                                                                     For more information, see www.fTRACE.com                                                                                                                                   locations with minimal reduction in its read
                                                                                                                     and www.SHPING.com                               deployment in large-scale RFID                               worth around US$50 million – not bad for a
                                                                                                                                                                                                                                                                                                field. The antenna pattern is also sealed in a
                                                                                                                                                                      applications. Thousands of Times-7                           10-employee business based in Lower
                                                                                                                                                                                                                                                                                                watertight plastic casing. While the A5010
                                                                                                                                                                      antennas are now going into manufacturing                    Hutt’s light industrial area and drawing
                                                                                                                                                                                                                                                                                                is contract manufactured in the USA,
                                                                                                                                                                      plants, warehouses, retail stores and                        largely on suppliers from elsewhere in the
                                                                                                                                                                                                                                                                                                Times-7 is making the new model entirely in
                                                                                                                                                                      hospitals where there is high value in                       Hutt Valley!
                                                                                                                                                                                                                                                                                                Lower Hutt: Its small, well-organised factory
                                                                                                                                                                      identifying and tracking products, assets,
                                                                                                                                                                                                                                   Times-7 was formed in 2006 to                                can manufacture and test up to 200 units a
                                                                                                                                                                      tools, medical devices and so on. Large
                                                                                                                                                                                                                                   commercialise locally-grown new ideas for                    day. Long may this business stay in the Hutt
                                                                                                                                                                      applications of the previous, A5010 model
                                                                                                                                                                                                                                   antenna design. The years since have seen                    as more orders come in, says Jos.
                                                                                                                                                                      include the baggage-handling operations
                                                                                                                                                                                                                                   Times-7 engineers develop around 400                          For more information, see www.times-7.com
                                                                                                                                                                      of one of the United States’ largest airlines.
                                                                                                                                                                                                                                   patented designs, a tenth of these still of                   Times-7 Holdings Limited: NZBN 9429033894362

                                                                                                                                                                         RFID certification

     Design alchemy with barcodes                                                                                                                                        RFID practitioners in this country can
                                                                                                                                                                         now gain certification from the United
                                                                                                                                                                         States-based RFID Professional
     Creativity in label and packaging design can definitely encompass good                                                                                              Institute with this body recently
                                                                                                                                                                         appointing the New Zealand RFID
     barcodes, as WelTec¹ design students have demonstrated this year.
                                                                                                                                                                         Pathfinder Group to be an onsite
     GS1 New Zealand and WelTec have                              to appreciate both the need for barcode           designed her label around the idea of a              proctor and exam centre for its
     collaborated again in 2017 to provide                        compliance and the scope for creativity           product that involves an “old-school                 examination process. New Zealand is
     students with an understanding of                            around barcodes.                                  chemist experimenting with the creation of           the first to participate in extension of
     barcode technology, and with skills                                                                            beers … each inspired by a different                 this US-based certification which
                                                                  GS1 has awarded a prize for the best                                                                   involves candidates being examined
     for making good barcodes part of                                                                               scientific phenomenon like dark energy
                                                                  barcode project work by a student in 2017,                                                             on all types of RFID system, and on
     attractive labels and packaging.                                                                               or ultra-violet light.
                                                                  this being won by Alienor Durand Gondys                                                                their use in business and consumer
     WelTec senior lecturer Craig Anderson                        for her label design on a made-up craft           “I really enjoyed thinking outside the box in        applications. Prabakar Parthiban of
     says real world projects provide the best                    beer she calls “Ale-Chemist” (see right).         order to incorporate barcodes into my                Times-7 is the first New Zealander to
     learning for students and in this instance,                                                                    designs in a way that would create value for         be certificated after sitting the exam.
                                                                  Alienor, a second year student in WelTec’s                                                                                                                       Holding Times-7’s A5020 model antennas are (from left) Senior RF Engineer Prabakar Parthiban, Operations
     training input from GS1 has enabled them                                                                       the aesthetic of the design and the barcode
                                                                  Bachelor of Creative Technologies,                                                                                                                               Manager Paul Roling and Chief Executive Jos Kunnen
                                                                                                                    itself … it’s about making a product stand
                                                                                                                    out from the crowd,” Alienor says.
     1 WelTec is the Wellington Institute of Technology, a public polytechnic based in Petone, Lower Hutt.                                                            Note: Times-7 refers to the speed of radio waves which is thought to be the same as the speed of light, ie both travel round the Earth at the equator more than seven times in
                                                                                                                                                                      a second.

12                                                                                                                                            NOVEMBER 2017           ISSUE 44                                                                                                                                                                         13
FONTERRA'S TRACEABILITY TRANSFORMATION-INTERVIEW WITH GREG MCCULLOUGH - ISSUE 44 NOVEMBER 2017 - GS1 NEW ZEALAND
GS1 NEWS

 READY TO
                                                                                             Time to consider 2-D barcodes?
 IMPROVE                                                                                     Consumer demands for more information
                                                                                             on products and the particular needs of
                                                                                                                                                 usually a GTIN (Global Trade Item Number)
                                                                                                                                                 which identifies the product as, for example,
                                                                                                                                                                                                      There is increasing use of 2-D barcodes
                                                                                                                                                                                                      around the world in retail and in supply

 BUSINESS
                                                                                             online retailers will likely make                   a 400g can of beans made by a particular             chain management. GS1 makes no
                                                                                             2-dimensional (2-D) barcodes – either QR            food manufacturer.                                   prediction on mass take-up of QR Codes
                                                                                             Codes or DataMatrix barcodes – increasingly                                                              or DataMatrix in New Zealand. However
                                                                                             common over the years ahead.                        The rise of online retailing compounds the           new barcode scanners have a life of about

 EFFICIENCY?
                                                                                                                                                 issue by, at times, introducing ambiguity            seven years – a long time given current
                                                                                             Businesses might want to factor this into           around the product being purchased.                  technology trends.
                                                                                             their decisions when investing in new               Generally, a shopper will see their desired
                                                                                             barcode scanners from now on:                       product as a photograph or illustration on
                                                                                             Equipment for 2-D scanning is more                  the web. But what if there are variations in
                                                                                             expensive but there is a “future proofing”          the product’s appearance that do not
                                                                                             advantage given the onward march of the             warrant a change in GTIN? The online
                                                                                                                                                                                                      A medical product’s DataMatrix containing the correct
                                                                                             QR Code and the DataMatrix.                         retailer might need “sub-identification” of          GTIN, batch number and use-by date (30 April 2019), and
                                                                                                                                                 these variations to ensure the customer gets         an additional identification assigned by the manufacturer
                                                                                             Most scanners today work only for the               exactly what they want. 2-D barcodes can             (10311161). This barcode also identifies NZ as the country
                                                                                                                                                                                                      of origin (‘554’ is an ISO country code used within the
                                                                                             traditional, linear form of barcode found on        be the solution, carrying a GTIN and a               GS1 System).
                                                                                             virtually all retail products. These barcodes       sub-identifier for reference by the retailer
                                                                                             can contain only one identifying number –           when fulfilling an order.

                                                                                             GTIN allocation                                     It is also useful to note that a barcode will         “live” on the service. Notifications in the
                                                                                             GS1 has publicised a new version of its GTIN        fail GS1 Verification if it contains a GTIN           latest 10 months (107) included 92
                        TIMBER & HARDWARE          PACIFIC COMMERCE                          Management Standard, making it easier for           which should be changed but has not been              withdrawals where the product in question
                            EXCHANGE                   EXCHANGE             NARTA TRADING    members to know when they need to                   (under the Standard). Verification is not just        did not reach consumers: In January-
                                                                              EXCHANGE       allocate a new Global Trade Item Number             about the technical correctness of the                October 2016, there were 85 withdrawals
                                                                                             to a changed product. Three basic questions         barcode symbol: The validity of the GTIN in           and a total of 109 notifications.
PACIFIC HEALTH                                                                                                                                   relation to the particular product and to
                                                                                             are set down to guide decision making:
  EXCHANGE                                                                                                                                       other GTINs already in use are also assessed
                                                                                                                                                                                                       Pride in Print
                                                                                             • Do I expect my trading partners or                by GS1. (Suppliers and customers might still
                                                                                                                                                 agree on the use of the GTIN in question if it        GS1 is a Host Associate to the 2017 Pride in
                                                                                               consumers to notice the difference

           5 SIGNS YOU SHOULD INVEST IN EDI                                                                                                      meets their specific purposes and the barcode         Print competition – the print industry’s
                                                                                               in the product?
                                                                                                                                                 does scan.)                                           premium event for excellence in print and
                                                                                             • Is there a regulation or industry requirement
                                                                                                                                                                                                       packaging design.
                                                                                               to create a new GTIN in this case?
         P   Manual processes are time consuming and require additional resources.           • Is there a supply chain significance in the       ProductRecallNZ activity                              GS1 will assist competition organisers
                                                                                               change? For example, is the product               Food and grocery businesses are making                in promoting all aspects of print quality,
         P   Data accuracy is compromised through lack of automation.                          bigger or heavier, or does it contain more        good use of ProductRecallNZ, with 107                 not only barcode quality and innovation.
                                                                                               or less content?                                  notifications through this GS1 service in the         We encourage GS1 members to consider
         P   Loss of business due to outdated processes and technology.                      If the answer to any one of these is “yes”,         first 10 months of 2017. ProductRecallNZ              entering their best labels and packaging
                                                                                                                                                 enables fast, simultaneous communication              in 2017.
                                                                                             then a new GTIN should be applied to the
         P   Inefficient inventory management.                                               changed product. If you’re still unsure you         of recall and withdrawal notices to other
                                                                                                                                                                                                       For more information, see
                                                                                             can use the decision tool on the GS1 global         supply chain participants.
                                                                                                                                                                                                       www.prideinprintawards.
         P   Overheads limiting growth.                                                      website: https://www.gs1.org/1/gtinrules/
                                                                                             en/decision-support
                                                                                                                                                 By 31 October, more than 2000 food and                co.nz
                                                                                                                                                 grocery companies were registered and

        Pacific Commerce have helped hundreds of companies improve their
               efficiency by reducing manual procurement procedures.                         Juliet Tweed                                                                   Korey Zondag
                                                                                             Juliet Tweed is our new Customer                                               Korey Zondag recently joined GS1 as a
                                                                                             Engagement Manager, with a brief to                                            Verification Technician, based in
                                                                                             promote exceptional customer experience                                        Wellington. He was previously a category
                                                                                             of GS1 New Zealand’s services and                                              team leader with Relay, the book,
                                                                                             solutions by members and others. Juliet                                        magazine and convenience store chain
                                                                                             was previously a corporate account manager                                     operating at New Zealand airports. In this role,
                                                                                             at Fumacare, part of the Rentokil Initial group,                               Korey was responsible for the management of
                                                                                             where she looked after a large portfolio of commercial                         print material into stores at Wellington International Airport.
                                                                                             clients in Auckland’s West and North. Juliet is keen on music
                                                                                             (listening, playing and writing), and spends other spare time
                Pacific Commerce is a member of the PNORS Technology group                   reading and tuning into Podcasts.

      a Level 8, 1 Chandos Street, St Leonards NSW 2065 Australia | t 0061 2 9468 3333
 14           w www.pacificcommerce.com.au | e info@pacificcommerce.com.au   NOVEMBER 2017   ISSUE 44                                                                                                                                                              15
FONTERRA'S TRACEABILITY TRANSFORMATION-INTERVIEW WITH GREG MCCULLOUGH - ISSUE 44 NOVEMBER 2017 - GS1 NEW ZEALAND
New members/rights to use holders May – October, Welcome!
                                Chicken N Things (2012)          Forgotten 43 Brewing Limited    Kida Food Limited                New Zealand So Real Natural    Ryan’s Kitchen 2015 Limited      The Secret Farmer Limited
      New Members               Limited                                                                                           Food Products Limited
                                                                 Formulators & Co Limited        Kirk’s Kai Limited                                              Salute Restaurant 2017           Thermakraft Limited
                                China Sourcing Pty Limited                                                                        New Zealand Southern           Limited
8 Water New Zealand Limited                                      Framecad Limited                Kitchen Table Nz Limited                                                                         Tile Concepts Limited
                                                                                                                                  Hemisphere
                                Classic Bake House                                                                                                               Scott & Leicester Limited
Abra Trading Limited                                             Fresh Cut Flower Wholesalers    Kiwibranz Limited                                                                                Topline 2017 Limited
                                International Limited                                                                             New Zealand Uniyou Health
                                                                 1992 Limited                                                                                    Scott Robert Miles Brindle
Acm (Nz) Pty Limited                                                                             Korpiko Nz Limited               Food Limited                                                    Tracyh (2016) Limited
                                Classic Decor (2017) Limited
                                                                 Fresh Shellfish Limited                                                                         Scrubco Limited
Acuda Group Limited                                                                              Koyama Wines Limited             New Zealand Wine And Spirit                                     Trade Me Limited
                                Coco Mango Limited
                                                                 Garden Enterprises &                                             Merchants Limited              Sgcb Holdings Limited
Afterglow Limited                                                                                La Maison Foods Limited                                                                          Trade Tested Limited
                                Coco Shed Limited                Information Limited
                                                                                                                                  New Zealands Best Food And     Shenzhen Xiaobai
Air Balance Marketing Limited                                                                    Landcorp Farming Limited                                                                         Trailman Importing
                                Colab Wine Merchants             Gathered Game Limited                                            Beverage Limited               Entertainment Meida Co., Ltd
Alltrade Tools Nz (2016)        Limited                                                          Lane Lifestyle Farms Limited                                                                     Trinity Road Limited
                                                                 Glass Vice Products Limited                                      Northpine Limited              Simply Pure Limited
Limited                                                                                          Ledfocus Limited                                                                                 Tui Property Holdings Limited
                                Comag Agencies 2017
                                                                 Go Green Plastics Limited                                        Nz Horizon Trading Limited     Skinnies Limited
Aotearoa New Zealand Fine       Limited                                                          Lindy Curtis                                                                                     Tunods Limited
Wine Estates Lp                                                  Gobsmackingly Good Limited                                       Nz House Of Honey Limited      Sol Natural Limited
                                Control Room Brewing                                             Little Dragon Nz Limited                                                                         Turners Global Marketing
Aotearoa Social Enterprise      Limited                          Good Chow Nz Limited                                             Nzcc Limited                   Sosimple Limited
                                                                                                                                                                                                  Limited
Trust                                                                                            Lloyd Family Wines Limited
                                Cook Hawke’s Bay                 Good Pantry Limited                                              Obsidian Wines                 Soundlab Limited
                                                                                                                                                                                                  Two Tykes Limited
Apetiza Limited                                                                                  Lubrication Wines Limited
                                Courage My Love Limited          Grandma’s No1 Crackling Co                                       Olives On The Hill Limited     Southern Clams Limited
                                                                                                                                                                                                  Unovent Limited
Ararimu Valley Water Limited                                     Limited                         Lumnz Limited
                                Craft Gin Company Limited                                                                         One Tree Hill Publishing       Southern Cross Merchants
                                                                                                                                                                                                  Valic Nz Limited
Aromatics 2016 Limited                                           Grant Success Limited           Macarons Etc Limited             Limited                        Limited
                                Cranky Goat Limited                                                                                                                                               Vec Limited
Asiaedge Marketing Limited                                       Green Hill (Nz) Limited         Maimai Nz Limited                Oppo New Zealand Limited       Southern Wild Seafoods Nz
                                Creative Object Limited                                                                                                                                           Village Bakery 2016 Limited
                                                                                                 Mama Says Limited                                               Limited
Astra New Zealand Creation                                       Greenhouse Bk Limited                                            Oravida Nz Limited
                                Creative Woodcraft Limited                                                                                                                                        Virginia-Pacific Water Bottling
Limited                                                                                          Manhaas Industries Limited                                      Spence Farms Limited
                                                                 Greenlea Premier Meats                                           Orchard Botanics Nz Limited
                                Davis Apiaries Limited                                                                                                                                            Limited
Atlas Savas Turkish Bakery                                       Limited                         Manuka Infused Nz Limited                                       Starfish International Limited
                                                                                                                                  Orcus Distribution Limited                                      Vitis Cellars Limited
Limited                         Delicious Nutritious Food
                                                                 Grinning Gecko Cheese           Manuka Nature Limited                                           Stellare New Zealand Limited
                                Company Limited                                                                                   Orthopediatrics Nz Limited                                      Vosmac Holdings Limited
Ayrpak Kgp Limited                                               Company Limited
                                                                                                 Mawish Food Limited                                             Steve Test Member
                                Djs Health Trust                                                                                  Oval Superstars Limited                                         W. White (Wholesale) Limited
Bailey International Limited                                     Grownatural International
                                                                                                 Maxwell Exports Limited                                         Sugar Free Food Limited
                                Domestic Agencies Limited        Limited                                                          Pacific Collections Limited                                     Wellearth Endeavour Limited
Bao Skin Care Limited                                                                                                                                            Summit Produce Limited
                                Down At The Farm 2017            Grumpy Farmer New Zealand       Mcphail Sports Limited           Palmer Resources Limited
Basic Industries Limited                                                                                                                                                                          Wellington Beverage Co
                                Limited                          Limited                         Meco Processing Nz Limited                                      Suntory Coffee New Zealand
                                                                                                                                  Parisettes Dressings Limited                                    Limited
Bci New Zealand Pty Limited                                                                                                                                      Limited
                                Drinksmith Limited               Gtz Trading Limited             Mee’s Bees Limited                                                                               Wetta Industries Limited
                                                                                                                                  Pepper And Me Limited
Beauty Life Limited                                                                                                                                              Sup Limited
                                Drynz Limited                    H.b. Fuller (New Zealand)       Michael Smith Trading As                                                                         Wharepapa Landholdings
                                                                                                                                  Perroplas Nz Limited
Bekland Limited                                                  Limited                         Scooter Holdings                                                Super Wing Samoa Ltd.
                                Dunbar Estates Limited                                                                                                                                            Limited
                                                                                                                                  Pet-Dreamers Trading Ltd
Best Abroad Limited                                              Happy Beekeeping Limited        Millennium Plastics Limited                                     Takoha Wines Limited
                                Earth Starch Limited                                                                                                                                              Whitcoulls 2011 Limited
                                                                                                                                  Pirate Enterprises Limited
Best Foods Nz Limited                                            Havana Brothers Bakehouse       Milligans Feeds Limited                                         Talisman Enterprises Limited
                                Eat My Lunch Limited                                                                                                                                              Whole Smoked New Zealand
                                                                 Limited                                                          Pirate Nation Limited
Big Chicken Retail Limited                                                                       Mountain Adventure Nz                                           Taranaki Bio Extracts Limited    Limited
                                Eco Farm New Zealand
                                                                 Hawkesbury Estates Limited      Limited                          Pkn Trading Limited
Bismuth 209 Limited             Limited                                                                                                                          Te Awanga Estate Limited         Wild Dispensary Limited
                                                                 Healthy Hydration Company       Mountain River Venison           Plumpandco Limited
Black And Blue Limited          Ecolibrium Biologicals Limited                                                                                                   Teddy Lane Limited               Wild Honey Nz (2017) Limited
                                                                 Limited                         Limited                          Polarcold Stores Limited
Blake Lissington                Elanine Limited                                                                                                                  Temuka Pottery New Zealand       Winston Nutritional Limited
                                                                 Healthy Start (Nz) Limited      Mukund & Priyanka                Possum Pam Nz Limited          Limited
Blendz 2010 Limited             Elysian Trading Limited                                                                                                                                           Wise Boys Limited
                                                                 Henny Penny Otago Limited       Enterprises Limited
                                                                                                                                  Post Art (2017) Limited        The Agri Company Limited
Bln Limited                     Embrium Holdings Limited                                                                                                                                          Wme Products Limited
                                                                 Henry Manufacturing Limited     Muscle Pharm
                                                                                                                                  Potter Brothers Limited        The Barbers Shop
Bluebell Nz Limited             Enforture Limited                                                                                                                                                 Wood Engineering
                                                                 Hi Vis Trends Limited           Myohm Limited
                                                                                                                                  Pow Horticulture Limited       The Big Little Tree Company      Technology Limited
Boost Promotions Limited        Enzyme Wizard New Zealand                                        Net Success Group Limited
                                                                 Holdfast Estate Limited                                                                         Limited
                                Limited                                                                                           Primal Health Foods Limited                                     World Of Fitness Limited
Boris And Angel Limited                                                                          New Zealand Dairy Dessert
                                                                 Innocent Packaging Limited                                                                      The China Hub Inc. Limited
                                Etchart Limited                                                                                   Pure Pac Limited                                                World Partnership Limited
Brainjam Production Limited                                                                      Company Limited
                                                                 Invita(Nz) Limited                                                                              The Damn Good Food
                                Excella Limited                                                                                   Pure Restaurant Limited                                         You Know We Aint Limited
Breson Fittings Limited                                                                          New Zealand Dr. Semeli                                          Company Limited
                                                                 Jcmatthew Nz Limited            Health Management Co. Ltd        R F Data Systems Limited                                        Yume Limited
                                Family Herb Co. (2017) Ltd
Bushgate Family Trust                                                                                                                                            The Fresh Berry Company Of
                                                                 Jessica Susan Eastwood          New Zealand Flour Mills          Rage Against Chemicals                                          Zeli Holdings Limited
                                Farah (New Zealand) Limited                                                                                                      Nz Limited
Bushmans Honey Limited
                                                                 Jo’s Homemade Limited           Limited                          Limited
                                Fentec Group Limited                                                                                                             The Fresh Fruit Company Of       Zenith Distribution Limited
Car-Fe Limited
                                                                 Juice Products New Zealand      New Zealand Kauritree            Real Pet Food Company          New Zealand Limited
                                Fern Ridge Produce Limited                                                                                                                                        Zeosoft Holdings Limited
Carter Consolidated Limited                                      Limited                         International Trading Compan     Limited
                                                                                                                                                                 The Green Seed Limited
                                Filbert Industries New Zealand
Cce Group Limited                                                Julians Berry Farm Limited      New Zealand Premium              Ripresa Limited
                                Limited
                                                                                                 Whitebait Limited
                                                                                                                                                                 The Honey Collective Ltd                Rights to
Chaotic Hop Brewing Limited                                      Kaks Marketing (Fiji) Limited                                    Rochfort Downs Limited                                                Use Holders
                                First Light Nutrition Limited                                                                                                    The Market Limited
                                                                                                 New Zealand Seaweeds
Chempro Nz Limited                                               Kalex Wines 2013 Limited                                         Ruben Brewing Company
                                Flowlibe Limited                                                 Limited                                                         The Mcelhinney Wine Group
                                                                                                                                  Limited
Cherry International Limited                                     Karo Nz Limited                                                                                 Limited                          Fieldpak Limited
                                Forever 4 Kidz Limited

                                          Questions? Please contact the GS1 New Zealand Team

          Vijay Todkar                                           Craig Russell                                              Juliet Tweed                                        Bev Gough
          Business Development Manager                           Territory Manager,                                         Customer Engagement Manager                         Membership Services Administrator
                                                                 South Island & Sector Manager                                                                                  (aka ‘Director of First Impressions’)
          T 09 820 3782                                                                                                     T 09 820 3792
                                                                 Food & Grocery
          M 021 711 169                                                                                                     M 027 534 8708                                      T 04 494 1050
          E vijay.todkar@gs1nz.org                               T 03 310 8082                                              E juliet.tweed@gs1nz.org                            E bev.gough@gs1nz.org
                                                                 M 021 711 070
          Vijay is based in Auckland                                                                                        Juliet is based in Auckland                         Bev is the ‘meet and greet’ point
                                                                 E craig.russell@gs1nz.org
          and is responsible for                                                                                            with responsibility for GS1                         of contact for members either
          assisting members to                                   Craig is based in Christchurch                             relations with members and                          calling, emailing or visiting our
          implement traceability,                                with responsibility for GS1                                customers throughout the                            Wellington office.
          AIDC (auto scanning) and                               relations with members                                     Greater Auckland Region.
          RFID into their supply chains.                         throughout the South Island.

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FONTERRA'S TRACEABILITY TRANSFORMATION-INTERVIEW WITH GREG MCCULLOUGH - ISSUE 44 NOVEMBER 2017 - GS1 NEW ZEALAND
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