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How Track & Trace and Global Batch Traceability
Integrated in Warehouse Management Turn Compliance
into a Supply Chain Value Proposition
with SAPSupply Chain Integrity
white paper
1. Turn Track & Trace Compliance into a Supply Chain
Value Proposition –An Executive Summary 2
2. Why are Track & Trace, Serialization, and Global Batch
Management Becoming Increasingly
Important in our Supply Chain? 2
3. Key concepts of Serialization and Track & Trace 3
4. Batch Management and Global Batch Traceability 6
5. SAP Warehouse Management (WM) and Extended
Warehouse Management (eWM) 9
6. Mobility 10
7. SAP Track & Trace, Global Batch Traceability, and
Warehouse Management solutions: How they work together 15
8. Supply Chain benefits realized by improved product visibility,
batch management, and traceability 18
9. Want to Learn More? 20
Table of contents
1. Turn Track & Trace
Compliance into a Supply Chain
Value Proposition –
An Executive Summary
As Supply Chains become increasingly complex and
demanding, companies need to deploy applications,
services, and mobile solutions that satisfy many parallel
goals. Companies must factor areas of compliance, product
integrity, product visibility, and risk reduction, all while
running their supply chain at full speed and low cost.
This white paper is designed to provide an overview for
businesses and their leaders to understand the concepts of
Track & Trace, Serialization, and Batch Management within
the supply chain and how they are best integrated with
Warehouse and Distribution operations. Benefits that may
be realized are improved product and shipment visibility,
improved operations and inventory management, faster
targeted recall, and others. The information provided will
enable you to best understand how this is important for
your organization, and for SAP companies of all sizes
and industries.
This document is best suited for:
• Understanding the key concepts of Track and Trace and Serialization
within your supply chain
• Understanding the key concepts of Batch Management and
Global Batch Traceability within your supply chain
• Understanding the key integration points of your
Warehouse Management and Distribution to your Global Batch
Traceability and Serialization Solutions
• Exploring Supply Chain benefits realized by improved product visibility,
batch management, and traceability
• Understanding the SAP Serialization, Global Batch Traceability,
and Warehouse Management solutions and how they work together
Supply Chain Value Proposition and Key Business Driver: Faster Time to Insight
Track & Trace, Serialization, and Global Batch Traceability offer businesses and their
supply chains far more than just compliance with government standards. The decision to
serialize and track product in batches opens up a whole new range of options and can provide
real value added benefits for the business. For example, the immediate identification of
internal and external product and associated distribution records enables fast and efficient
execution of product holds, recalls, and withdrawals. The transparency that is gained can also
facilitate improved inventory and waste control. Financial risk and exposure related to product
issues is reduced and brand integrity is better protected.
2. Why are Track and Trace, Serialization,
and Global Batch Management Becoming Increasingly
Important in our Supply Chain?
Serialization
To achieve full Track & Trace the typical approach is to start with serialization
and batch management.
Serialization means to make each single product unique by placing an item identifier on
every single product. Typically the item identifier is a Datamatrix-Code containing at least
the product related GTIN paired with a serial number. This way the product becomes the
vehicle for carrying the information needed for Track and Trace and can be identified
individually. It is also then possible to store further product related information in a
database linked to this unique ID.
Serialization takes place directly at the production lines and in most cases requires new
printing and scanning technologies and software. The next big step after serialization is
achieved is typically the aggregation. Aggregation is the process of building packaging
hierarchies and storing this relationship in a database. If, for example, single products get
packed in a carton and these cartons get packed on a pallet, this relationship has to be
recognized and stored in a database using scanning processes. Each new packing level,
(e.g. cartons or pallets), also requires a unique (serialized) identifier. Aggregation is a major
step towards Track & Trace. The biggest advantage is that once the packaging hierarchy is
built and stored in a database, it can all be found under the highest-level identifier (e.g. pallet).
3. Key concepts of Serialization and Track and Trace
Track and Trace
Track & Trace differs from other brand protection technologies in important ways.
Overt and covert technologies such as holograms, intaglio print, micro text, invisible
images, and digital watermarks offer excellent solutions for authentication, but cannot
distinguish individual items at a unit level and cannot carry or point to item-level data,
something that is required for tracking & tracing.
The key to implement Track & Trace is the ability to assign and access variable data on item,
case and/or pallet levels (depending on the granularity to which items need to be tracked)
and to trace these items through the supply chain. Once the IDs are applied to the products;
all product related events such as ‘produced’, ‘shipped’, ‘received’, ‘dispensed’ will be captured
along the supply chain via scanning of these IDs with mobile devices. From a Track & Trace
perspective, this captured information will be stored in a database (EPCIS) together with product
related information from production such as ‘batch’, ‘manufacturing date’, ‘expiration date’, etc.
Authorities, consumers and/or supply chain partners can access this database to, for instance,
trace the origins of products or to find the status of shipments. For example, this can be done
by taking a picture of the 2D barcode using a smartphone or entering the product ID in a
dedicated website or search field of the database and querying the relevant information.
SAP offers two components to fulfill serialization and Track & Trace requirements.
SAP Auto-ID Infrastructure (SAP AII) and SAP Object Event Repository (SAP OER).
SAP OER provides enterprise level event driven traceability and visibility applications.
SAP AII enables and automates Auto-ID enabled operational processes integrated with
SAP OER and SAP ERP. The picture above outlines how an SAP based solution landscape
for serialization and Track & Trace could look.
SAP AII SAP AII
data center
local sites
SAP ERP
non SAP ERP
production line
warehouse
SAP OER
SAP PI
Serialization and Track & Trace with SAP components
SAP OER quick facts:
SAP OER is an EPCIS-compliant enterprise level solution that serves as the system of
record about uniquely identified objects. It provides visibility on processes, assets as well
as performance along your entire supply chain. Empowered by the extensive tracking & tracing
functionalities of built-in SAP Event Management, SAP OER offers process monitoring,
automated exception resolution mechanisms, proactive alerting as well as extensive
reporting capabilities in one single solution.
SAP AII quick facts:
SAP AII manages auto-ID-enabled (serialized) objects from provisioning of serial numbers
to commissioning, aggregation, and their association with business context. It enables
organizations to integrate serialized information into their business processes by enriching
core enterprise resource planning processes with serialized data. It integrates with SAP ERP
for business process automation and SAP OER for item lifecycle & process tracking.
Solution highlights:
• Tracking and Integrity Assurance: Secure the supply chain through authentication,
visibility and condition monitoring
• Impact Analysis and Response Planning: Optimize strategy selection in response
to quality, safety, compliance issues to protect the brand, customers and public
• Recall Management: Execute efficiently the reverse logistic processes
associated to recalls
• SAP OER efficiently stores and relieves your ERP transactional system of your
high volume of serialization data, thus system performance is maximized for
operational personnel
Key benefits:
• Regulatory driven serialization and compliance tracking from point of manufacture
to point of consumption
• Ensuring compliant manufacturing, distribution, and monitoring of finished
goods’ conditions during transport and storage to avoid spoilage
• Eliminate compliance violations, real time quality feedback and reduced quality
and compliance costs
• Fast assessment of scope and risk of issue, shorten time to call back and
reduced recall costs
Customer examples:
• Achieved faster processing and better product quality (24 hours “farm to shelf”)
• Reduced the costs of product safety
• Improved ability to introduce new products to market quickly
• Ability to track product through the complete production and delivery cycle
• Compliance for foodstuff, life science and tobacco traceability
Global Batch Traceability (GBT) is an SAP application that runs across multiple systems
and products. Here you can visibly link finished goods with raw materials, services, and assets
required for manufacturing or distribution. This application provides a clear view of how
batches of product have been incorporated into a product line and links the genealogy of
product batches to purchase orders, production orders and deliveries. Users are able to
perform both top-down and bottom-up analysis on batches and quickly determine the root
causes of quality issues. Another benefit of GBT is the ability to run multiple batches in the
same search, reducing the time to insight. It also provides critical information with respect
to parent-child relationships and has the ability to effectively track rework, repack, and
expedite product recalls and stock withdrawals.
Global Batch Traceability provides the following:
• Visual representation and corporate-level view of product genealogy
• Extensive, multi-batch query functionality and graphical displays that improve
time to insight
• One click reporting, enabling the execution of targeted holds, withdrawals and recalls
• Data Verification and Maintenance to effectively identify and resolve
missing links in data
• Streamline product recalls with targeted batch investigations and timely reporting
• Mitigate corporate risk through proactive compliance and faster response
to product issues
• Complements and extends the existing traceability solutions from
SAP (SAP Auto-ID Infrastructure, SAP Object Event Repository, and
SAP Event Management) for end-to-end visibility and action
4. Batch Management and Global Batch Traceability
GLOBAL BATCH TRACEABILITY
...better AND faster
Global Batch Exploration Precision Action
CUSTOMER / SUPPLIER
MANUFACTURING
Maintain Broken Batch Links
Root Cause Results
Root Cause Analysis
Product Issue Notifications • Notifications
• Holds
• Withdrawals
CUSTOMER
• Targeted Recalls
• Enable Internal Reports
GLOBAL BATCH
TRACEABILITY
REPOSITORY
SAP
ERP2
SAP
ERP3
3rd party
Batch
System
3rd party
Batch
System
Business
Partner
System
Business
Partner
System
Business
Partner
System
3rd party
Batch
System
SAP
ERP1
Product Issue Notifications
MANUFACTURING
Features ERP Batch
Management
Top Down / Bottom Up Analyze (Tree View) Yes Yes
Top Down / Bottom Up Analyze (Graphical View) No Yes
Across system tracing capabilities No Yes
Considering Non SAP Systems No Yes
Considering Handling Units, Serial numbers No Yes
Considering Non SAP Tracked Objects (e.g. Pallets) No Yes
Analyze multiple tracked objects in one run No Yes
Identify broken links and maintain batch network No Yes
Report (Distribution records) to inform the government
office and customers No Yes
New data model for high performance No Yes
Following the principles of SAP Track & Trace and SAP GBT described makes it possible to
know at any point in the product‘s life-cycle, the following product related information:
• Who is the manufacturer of this product?
• When and where was it produced?
• When was the product shipped and received by certain parties?
• Where is the product supposed to be at a certain time?
• What is the expiration date of the product?
• Is the product ID known by the database? Is it genuine?
• How long was the product in the supply chain before reaching consumption?
• And much more depending on the granularity of stored information
Having this information in a database makes it easier for all parties such as
manufacturers, authorities, and consumers to:
• Separate counterfeited product from genuine product
• Increase consumer safety
• Confirm payment of taxes and duties
• Discover grey-market products
• Optimize the supply chain and logistics
• Gain information about consumers
• Offer customer loyalty programs
Global Batch
Traceability
The difference between ERP Batch Management and SAP Global Batch Traceability:
Warehouse Management Solutions
SAP provides two warehouse management solutions: WM and EWM. WM
(Warehouse Management) is available and embedded in the core SAP ERP solution and
works effectively with simple warehouse operations. Extended Warehouse Management EWM
is SAP’s re-engineered warehousing solution. EWM is a standalone solution, can run in
“decentralized” state and is great for complex, high volume distribution centers.
It also offers a host of additional value added services, such as:
• Task interleaving
• Slotting
• Labor management
• Track & Trace
• Yard management
Who Adopts SAP Extended Warehouse Management and Why?
Manufacturing & Distribution Industries:
• Consumer Products & Life Sciences
• Retail & Wholesale Distribution
• Discrete Manufacturing & High Tech
• Process Industries & Chemicals
• Logistics Service Providers
SAP WM and New Customers:
• Existing ERP customers with legacy or “Niche” warehouse solutions
• Existing ERP WM customers
• New customers with legacy solutions, multiple solutions, multiple architectures
5. SAP Warehouse Management (WM) and Extended
Warehouse Management (eWM)
6. Mobility
Their reasons for selecting EWM:
• Reduce costs through better warehouse efficiency, increased labor productivity
and better space utilization
• Increase transparency in stock and processes
• Increase flexibility in warehouse process modeling
• Implement customer specific put-away and retrieval strategies
• Quickly onboard new customers
• Better manage value added distribution processes
• Strong integration with other SAP solutions
• Integrated Material Flow System (MFS) for automated storage and retrieval
Regardless of whether you run SAP’s EWM or WM warehousing solution, the key is to
effectively tie and quickly process critical product data across the total system, to include:
• Product numbers
• Product master data
• Deliveries and shipments
• Serial numbers
• Batches
• Customer information
The business case of mobility for a company implementing Track & Trace is very obvious:
on one side, mobile scanning is the only feasible solution to ensure mobile event capturing.
Should barcode technology be deployed for Track & Trace purposes, the implementation of
a mobile application is the only way to guarantee that product IDs are scanned as they
move across the supply chain. On the other side mobile phones, smart phones or PDAs are
the perfect device to use for product ID verification purposes (you always carry them, they
have mobile cameras that can work as barcode scanners and can connect to your system
via GPRS, 3G, LTE or WiFi).
Common Track & Trace mobile business requirements:
• Event Capturing (Warehouse): Scan barcodes and link them to ERP reference
documents (e.g. deliveries / orders).
• Print advanced labels (Warehouse): Print labels from fixed printers for
serialization and re-aggregation in warehouses.
• Print simple labels (Mobile): Print labels from mobile printers for serialization
and re-aggregation anywhere.
• Event capturing at 3PLs: Integrating 3PLs, performing Track & Trace operations,
into your Track & Trace solution.
• Event capturing (Drivers): Drivers, van sellers and trade marketers can scan
product IDs during the point of delivery to their customers.
• ID verification: Consumers and Inspectors can verify product IDs and report
possible counterfeits via a mobile application.
Movilizer for SAP Track & Trace
The Movilizer Enterprise Mobile Platform is the fastest way to develop, deploy and run
enterprise mobile apps. Mobility delivers business improvement and innovation, but the
technology is complex and fast-moving. The Movilizer Platform gives you the agility to
react to changing requirements without compromises. The Movilizer offers "out of the box"
functions to scan any type of Track & Trace events, print labels and to verify product IDs.
Movilizer for Track & Trace – Architecture
With the Movilizer Enterprise Mobile Platform mobile apps are built up from Movelets –
a description of your mobile business process built in your backend system using the
Movilizer Connector. Movelets are deployed to user’s devices by the Movilizer Cloud and
then run on the device using the Movilizer Client. The Movilizer allows you to focus on
designing the best mobile solution for your business requirements while our mobile
platform manages and optimizes the technology.
Firewall
Non sap T&T
repositories
SAP AII SAP EM SAP OER
movilizer cloud
BInaries
XML
Movilizer connector running on an
sap netweaver 7.0 ABAP Stack
EPCIS / PML / RFC / IDOCS
handhelds
in warehouses or plants
customers / inspectors
using various types of
hardware
fixed barcode scanners Label printing
from the cloud
Customer Data center
The Movilizer Client is a very small footprint software (some few Kilobytes) written in
different native languages (depending on the target device) capable of running on
most mobile phones, smart phones, PDA’s, Tablet PC’s, industrial devices, etc.
The Movilizer Cloud is a secured multi-tenant and hosted middleware with 99%
guaranteed availability that can connect any backend system with any mobile device
by sending and receiving business data in both directions.
The Movilizer Connector is a SAP certified “out of the box” connector available for
SAP systems, which once installed on the system, accelerates the integration of the
system with the Movilizer Cloud. The Movilizer SAP connector contains the business
logic of the mobile Track & Trace application.
Key differentiators:
1. Easy Deployment
• Beside industrial devices it runs on any simple mobile phone
• It is deployed in seconds (device setup can be done by the end user)
• It does not require any end user training
• You are 100% in control of future changes and enhancements in the app
2. Easy Usability:
• It is device agnostic
• Configuration instead of development (Movilizer customizing in SPRO)
• It allows changing processes on the fly
• You can create "mash-ups" (interfacing SAP with non-SAP) on the mobile device
3. Easy Integration:
• Multi Backend integration via the Movilizer cloud (with SAP OER, SAP AII,
SAP eWM, SAP ERP or non SAP).
• Optimized for sites with poor infrastructure (maximum data compression)
• Development only in backend (e.g. ABAP/4).
Functional features:
1. Capturing logistics events:
Capture events across the internal and external supply chain
(e.g. shipping, receiving, unpacking, packing).
2. Authenticate and verify product IDs:
Enable internal and external people to authenticate and verify product IDs.
3. Handling exception events:
For example decommissioning
4. Label printing:
Enable any label to be printed out of the Movilizer cloud
(e.g. relabeling or repackaging processes). Requires no footprint to be deployed locally
other than a local printer. Over 2000 printer types supported with out of the box drivers.
5. Integration of 3PLs:
3PLs with warehouses using handhelds can be integrated with the Movilizer
via the Movilizer Warehouse Gateway.
6. Support of inspections and seizures:
Via the Movilizer for seizure management, inspectors can use
any mobile device to capture IDs on the field.
7. Additional usage of Movilizer as a mobile platform:
Additionally, Movilizer is more than only a solution for Track & Trace. Movilizer is
an Enterprise Mobile Applications Platform which can be used for many other processes
besides Track & Trace (e.g. SAP MM, for Workflows, SAP PM/CS, SAP SD, SAP CRM).
Verify Product ID Scan ID
Week
Monday
TU WE TH FR
SAP’s Solution Portfolio today
SAP Track & Trace, Global Batch Traceability, and Warehouse Management solutions
enable product, part, component and asset traceability from raw material to the point of
consumption and sale. Integrated SAP Solutions enable product/part serialized traceability,
goods and assets in transit, as well as traceability for process monitoring and compliance.
Combining these solutions offers a wealth of capabilities that support your organization in
improving operational efficiency, reducing safety stocks, complying with regulations, reducing
costly fire-fighting, improving customer service, improving brand integrity, and providing
faster time to insight. All solutions are offered with interfaces to your SAP Business
Suite of applications.
Here is a view of how your organization can integrate their processes with the
applications as described, to provide a comprehensive Supply Chain Integrity solution:
7. SAP Track & Trace, Global Batch Traceability, and
Warehouse Management solutions: How they work together
supply chain integrity process
Product Genealogy
Item Serialization
and Product
Traceability
Quality Issue
Handling
Process Visibility
and Goods/
Assets in Transit
Raw Material
and Component
Supplier
Customer
Account
Management
Cross-
Function
Outbound Logistics
Product
Tracking
Manage by Exception, Track and Trace, and Regulatory Reporting
Issuance and
Management of
Quality Defects
Tracking
Visibility
Internal
Production
Operations
Warehousing
and
Distribution
End- Product
Genealogy
Batch
Traceability
Product Serialization
Inbound Logistics
Condition Monitoring
Supplier
Batch
Traceability
Component
Product
Genealogy
Product
Authenti-
cation
From a functional and transactional perspective, this is how your Warehouse
Management solution, GBT, and OER system would “talk” to each other:
system integration for maximized
supply chain integrity
SAP
ERP1
SAP
ERP2
oer: serialization data
authority / compliance reporting
pi- sasn‘s
Event Manager
Event Services
Tracking Services
Authentication
Alert Framework
Event Handlers
Common Services
Central Number Range Mgmt
Master Data Mgmt
Security & Archiving
All Services
Locations, Reading Points
ID Types
Auto ID Infrastructure
EPCIS Vocabularies etc.
Product ID Hierarchy
Handling units
erp/ warehouse mgt system
inventory, shipments, deliveries
Inventory
Management
Production
Supply
Quality
Management
wm
Sales &
Distribution
RF Data
Processing
GR / GI
WM Txns
S / Ns
Gbt:
BATCHes,
deliveries
External third-party integration
With an increasingly outsourced supply chain, the need for collaboration over company
boundaries is becoming more than ever a burning need. The proliferation of the lean
enterprise and just in time concepts mean more outsourcing, increased dependency on
external suppliers and carriers, smaller warehousing sites, less long term commitments to
providers, and significantly faster supply chains. It is imperative to connect third party logistic
providers and external agents to your Warehouse and Supply Chain systems on a nearly
“Ad-hoc basis”. It is also fundamental to reduce the footprint of required infrastructure to
maximize agility and reduce cost. Movilitas offers a comprehensive Track & Trace,
Warehouse Management and SAP AII/OER integration solution for 3PL operations,
including an out-of-the-box, lean mobile package. Solutions may be on-site or cloud-based
and will improve data integrity and lower total operational cost.
3PL integration:
Third party logistic providers (3PLs) and other supply chain partners
(e.g. truck drivers, external agents) without access to the corporate network can be securely
connected to your SAP WMS and Track & Trace system via the Movilizer Cloud. You can use
public networks for data sync (no need for Wi-Fi) and you can even allow your partners to
bring their own devices in order to connect to your SAP systems via the Movilizer cloud which
of course supports all imaginable security features.
inside corporate network
outside corporate network
sap wm / ewm
movilizer connector
sap oer / AII
movilizer connector
corporate network
movilizer connector movilizer connector
movilizer
cloud
With Movilizer you do not develop apps, but ABAP Movelets. Movilizer for SAP Warehouse
Management and SAP Track & Trace is a collection of Movelets that can be combined as
required based on the customer’s requirements. Thanks to the Movelet concept, a mobile
process can run without any changes on multiple devices. As an example, it is possible to
run a Movelet for a transfer order confirmation, which is developed once in the SAP backend,
on a Windows Mobile PDA, an Android, iPhone, Blackberry, Windows 8 or even on a web
browser. Additionally, Movelets are able to use mobile phone cameras to read barcodes,
print labels via Bluetooth-enabled mobile printers, and read or write RFID tags. You can
also combine SAP Movelets with non-SAP Movelets, in case you use different ERP or WMS
systems across multiple sites or legacy solutions.
As previously stated, there are many benefits that may be realized. Improved product and
shipment visibility, improved operations and inventory management, faster targeted recall,
and others. Additional detail as follows:
Improved Inventory Visibility
Batch information in GBT can be tied to deliveries/shipments and those deliveries can
give immediate visibility of the particular stock within the warehouse or distribution center
operation, such as:
• Warehouse stock balance by bin and/ or storage type
• Material bound for rework
• Material in transit, picked for shipment
• Material on truck, bound for shipment (pre or post goods issue)
• Material stock by customer shipment, warehouse, DC
Improved Shipment Visibility
You always want to know where and what product was shipped and when it arrived at its
destination. Improved shipment accuracy and the ability to reconcile shipped goods
immediately at point of delivery via reconciliation of serial numbers. This provides increased
inventory visibility and potential reduction in asset diversions and shipment shortages.
Immediate proof of delivery can automatically trigger payment, thus improving your order
to cash process and speeding up cash receivables.
Fulfillment Visibility
Transparency and visibility across the order-to-cash process enables companies to monitor
the sales order fulfillment cycle and more efficiently track the logistics process all the way
through receivables. Being prepared to effectively deal with unplanned supply chain
disruptions is a must in today’s economy. A visible and effective order-to-cash process
supports faster, more educated decisions, helps reduce operational costs,
and ultimately improves customer service.
Optimized Inventory and Warehouse Operations
Improved inventory visibility coupled with standardized warehouse processes leads to
optimized stock levels, lead times, replenishment levels and improved warehouse efficiency.
SAP Performance Benchmarking has established a 7% improvement in on-time deliveries
where supplier collaboration and improved visibility of PO and Bills of Material were
available. Also, 44% fewer out-of-stocks were noted for those users having real-time
visibility to warehouse status and inventory.
8. Supply Chain Integrity - Benefits realized by improved
product visibility, batch management, and traceability
Improved Procure-to-Pay process
Poor visibility of inventory and supplies can lead to excess inventory levels and lead times,
especially when you have outsourced parts of your manufacturing process. Data accessibility
and transparency are important to achieve faster and more insightful solutions to pending
problems. Did you know that companies typically see a 15% reduction in purchase orders
requiring expediting where buyers have online access and better visibility to PO status?
Improved Quality and Recall Management
Quality is always a key differentiator, regardless of which market you may be in. Customer
complaints, manufacturing issues, customer and supplier disputes, customer and distributor
complaints need to be proactively minimized and managed effectively to maintain brand
integrity and market share. Also, the ability to conduct fast and efficient product issue
investigations, perform root cause analysis and automate quality holds and recalls will
lead to lower operational cost, reduced risk, and improved customer safety, satisfaction and
brand integrity. With the SAP solution suite, it is possible to support immediate recall, hold
and withdrawal actions though the direct linkage to the external and internal distribution
records. This visibility, time to insight and action, and ability to react more quickly and
internally will help differentiate you from the competition in today’s markets.
Benchmarking has established a 21% lower customer rejection rate when production,
materials, operations, and exceptions are visible in real time.
Improved Waste management
It is important to know exactly which products need to be scrapped due to a production
or warehousing problem, to minimize waste and speed up operations. SAP Benchmarking
has established a 47% lower scrap rate when using a quality system to support supply chain
planning, root cause analysis, quality notifications, and advanced product quality planning.
Improved returns management
You always need to know where returned products came from. The solutions covered
here can easily identify critical product information like end market, expiration date,
origin, and distribution chain history.
Competitive Advantage
There are several competitive advantages to this solution suite, such as:
• Product verification, in order to check if it is authentic and compatible.
This will increase in importance as we move to personalized medicine delivery
and administration
• Consumer reward programs
• Consumer product information, with real-time updates
• Counterfeit authentication
• Immediate proof of delivery and expedited billing
Brand Integrity
Product piracy is an increasing problem for businesses in the broadest range of industries.
A growing number of companies are forced to confront piracy with measures such as
Serialization and Tracking & Tracing. Results from surveys show that nearly every second
consumers consider counterfeiting as a serious problem, and nearly the same amount
reported falling victim to counterfeiting.
Did you know:
• Up to 15 percent of all medicinal products in the world are counterfeit (WHO)
• Drugs often lack essential active ingredients, or contain dangerous contents,
which can result in treatment failure or even death
3PL and CMO integration
• Add-Hoc integration of 3PL’s allows real time data/info in your systems without
the need of an additional IT infrastructure
• Easy integration of external parties such as consumers opens a whole new range
of customer interaction and data collection possibilities
• Pre-configured content and limited end user training speeds up time to deploy
• Less manual interface intervention and oversight
Supply Chain Integrity
About Movilitas Consulting
Movilitas Consulting, an SAP software and services partner, provides end-to-end
SAP Supply Chain, Track & Trace and Mobility Solutions. Movilitas Consulting solutions
enhance customers’ control of their extended supply chain, ensure compliance with
global regulations and optimize field-based business processes helping to accelerate
the pace of business performance.
9. Want to Learn More?
Movilitas Consulting NA
10330 Old Columbia Rd.
Columbia, MD 20146
Phone: 800-359-1712
Email: info.na@movilitas.com
Movilitas Consulting EU
Julius- Hatry- Straße 1
68163 Mannheim
Phone: +49 6211502040
Email: info@movilitas.com
EUROPE
north america
Contact us

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Supply Chain Integrity White Paper

  • 1. How Track & Trace and Global Batch Traceability Integrated in Warehouse Management Turn Compliance into a Supply Chain Value Proposition with SAPSupply Chain Integrity white paper
  • 2. 1. Turn Track & Trace Compliance into a Supply Chain Value Proposition –An Executive Summary 2 2. Why are Track & Trace, Serialization, and Global Batch Management Becoming Increasingly Important in our Supply Chain? 2 3. Key concepts of Serialization and Track & Trace 3 4. Batch Management and Global Batch Traceability 6 5. SAP Warehouse Management (WM) and Extended Warehouse Management (eWM) 9 6. Mobility 10 7. SAP Track & Trace, Global Batch Traceability, and Warehouse Management solutions: How they work together 15 8. Supply Chain benefits realized by improved product visibility, batch management, and traceability 18 9. Want to Learn More? 20 Table of contents
  • 3. 1. Turn Track & Trace Compliance into a Supply Chain Value Proposition – An Executive Summary As Supply Chains become increasingly complex and demanding, companies need to deploy applications, services, and mobile solutions that satisfy many parallel goals. Companies must factor areas of compliance, product integrity, product visibility, and risk reduction, all while running their supply chain at full speed and low cost. This white paper is designed to provide an overview for businesses and their leaders to understand the concepts of Track & Trace, Serialization, and Batch Management within the supply chain and how they are best integrated with Warehouse and Distribution operations. Benefits that may be realized are improved product and shipment visibility, improved operations and inventory management, faster targeted recall, and others. The information provided will enable you to best understand how this is important for your organization, and for SAP companies of all sizes and industries. This document is best suited for: • Understanding the key concepts of Track and Trace and Serialization within your supply chain • Understanding the key concepts of Batch Management and Global Batch Traceability within your supply chain • Understanding the key integration points of your Warehouse Management and Distribution to your Global Batch Traceability and Serialization Solutions • Exploring Supply Chain benefits realized by improved product visibility, batch management, and traceability • Understanding the SAP Serialization, Global Batch Traceability, and Warehouse Management solutions and how they work together
  • 4. Supply Chain Value Proposition and Key Business Driver: Faster Time to Insight Track & Trace, Serialization, and Global Batch Traceability offer businesses and their supply chains far more than just compliance with government standards. The decision to serialize and track product in batches opens up a whole new range of options and can provide real value added benefits for the business. For example, the immediate identification of internal and external product and associated distribution records enables fast and efficient execution of product holds, recalls, and withdrawals. The transparency that is gained can also facilitate improved inventory and waste control. Financial risk and exposure related to product issues is reduced and brand integrity is better protected. 2. Why are Track and Trace, Serialization, and Global Batch Management Becoming Increasingly Important in our Supply Chain? Serialization To achieve full Track & Trace the typical approach is to start with serialization and batch management. Serialization means to make each single product unique by placing an item identifier on every single product. Typically the item identifier is a Datamatrix-Code containing at least the product related GTIN paired with a serial number. This way the product becomes the vehicle for carrying the information needed for Track and Trace and can be identified individually. It is also then possible to store further product related information in a database linked to this unique ID. Serialization takes place directly at the production lines and in most cases requires new printing and scanning technologies and software. The next big step after serialization is achieved is typically the aggregation. Aggregation is the process of building packaging hierarchies and storing this relationship in a database. If, for example, single products get packed in a carton and these cartons get packed on a pallet, this relationship has to be recognized and stored in a database using scanning processes. Each new packing level, (e.g. cartons or pallets), also requires a unique (serialized) identifier. Aggregation is a major step towards Track & Trace. The biggest advantage is that once the packaging hierarchy is built and stored in a database, it can all be found under the highest-level identifier (e.g. pallet). 3. Key concepts of Serialization and Track and Trace
  • 5. Track and Trace Track & Trace differs from other brand protection technologies in important ways. Overt and covert technologies such as holograms, intaglio print, micro text, invisible images, and digital watermarks offer excellent solutions for authentication, but cannot distinguish individual items at a unit level and cannot carry or point to item-level data, something that is required for tracking & tracing. The key to implement Track & Trace is the ability to assign and access variable data on item, case and/or pallet levels (depending on the granularity to which items need to be tracked) and to trace these items through the supply chain. Once the IDs are applied to the products; all product related events such as ‘produced’, ‘shipped’, ‘received’, ‘dispensed’ will be captured along the supply chain via scanning of these IDs with mobile devices. From a Track & Trace perspective, this captured information will be stored in a database (EPCIS) together with product related information from production such as ‘batch’, ‘manufacturing date’, ‘expiration date’, etc. Authorities, consumers and/or supply chain partners can access this database to, for instance, trace the origins of products or to find the status of shipments. For example, this can be done by taking a picture of the 2D barcode using a smartphone or entering the product ID in a dedicated website or search field of the database and querying the relevant information.
  • 6. SAP offers two components to fulfill serialization and Track & Trace requirements. SAP Auto-ID Infrastructure (SAP AII) and SAP Object Event Repository (SAP OER). SAP OER provides enterprise level event driven traceability and visibility applications. SAP AII enables and automates Auto-ID enabled operational processes integrated with SAP OER and SAP ERP. The picture above outlines how an SAP based solution landscape for serialization and Track & Trace could look. SAP AII SAP AII data center local sites SAP ERP non SAP ERP production line warehouse SAP OER SAP PI Serialization and Track & Trace with SAP components
  • 7. SAP OER quick facts: SAP OER is an EPCIS-compliant enterprise level solution that serves as the system of record about uniquely identified objects. It provides visibility on processes, assets as well as performance along your entire supply chain. Empowered by the extensive tracking & tracing functionalities of built-in SAP Event Management, SAP OER offers process monitoring, automated exception resolution mechanisms, proactive alerting as well as extensive reporting capabilities in one single solution. SAP AII quick facts: SAP AII manages auto-ID-enabled (serialized) objects from provisioning of serial numbers to commissioning, aggregation, and their association with business context. It enables organizations to integrate serialized information into their business processes by enriching core enterprise resource planning processes with serialized data. It integrates with SAP ERP for business process automation and SAP OER for item lifecycle & process tracking. Solution highlights: • Tracking and Integrity Assurance: Secure the supply chain through authentication, visibility and condition monitoring • Impact Analysis and Response Planning: Optimize strategy selection in response to quality, safety, compliance issues to protect the brand, customers and public • Recall Management: Execute efficiently the reverse logistic processes associated to recalls • SAP OER efficiently stores and relieves your ERP transactional system of your high volume of serialization data, thus system performance is maximized for operational personnel Key benefits: • Regulatory driven serialization and compliance tracking from point of manufacture to point of consumption • Ensuring compliant manufacturing, distribution, and monitoring of finished goods’ conditions during transport and storage to avoid spoilage • Eliminate compliance violations, real time quality feedback and reduced quality and compliance costs • Fast assessment of scope and risk of issue, shorten time to call back and reduced recall costs Customer examples: • Achieved faster processing and better product quality (24 hours “farm to shelf”) • Reduced the costs of product safety • Improved ability to introduce new products to market quickly • Ability to track product through the complete production and delivery cycle • Compliance for foodstuff, life science and tobacco traceability
  • 8. Global Batch Traceability (GBT) is an SAP application that runs across multiple systems and products. Here you can visibly link finished goods with raw materials, services, and assets required for manufacturing or distribution. This application provides a clear view of how batches of product have been incorporated into a product line and links the genealogy of product batches to purchase orders, production orders and deliveries. Users are able to perform both top-down and bottom-up analysis on batches and quickly determine the root causes of quality issues. Another benefit of GBT is the ability to run multiple batches in the same search, reducing the time to insight. It also provides critical information with respect to parent-child relationships and has the ability to effectively track rework, repack, and expedite product recalls and stock withdrawals. Global Batch Traceability provides the following: • Visual representation and corporate-level view of product genealogy • Extensive, multi-batch query functionality and graphical displays that improve time to insight • One click reporting, enabling the execution of targeted holds, withdrawals and recalls • Data Verification and Maintenance to effectively identify and resolve missing links in data • Streamline product recalls with targeted batch investigations and timely reporting • Mitigate corporate risk through proactive compliance and faster response to product issues • Complements and extends the existing traceability solutions from SAP (SAP Auto-ID Infrastructure, SAP Object Event Repository, and SAP Event Management) for end-to-end visibility and action 4. Batch Management and Global Batch Traceability GLOBAL BATCH TRACEABILITY ...better AND faster Global Batch Exploration Precision Action CUSTOMER / SUPPLIER MANUFACTURING Maintain Broken Batch Links Root Cause Results Root Cause Analysis Product Issue Notifications • Notifications • Holds • Withdrawals CUSTOMER • Targeted Recalls • Enable Internal Reports GLOBAL BATCH TRACEABILITY REPOSITORY SAP ERP2 SAP ERP3 3rd party Batch System 3rd party Batch System Business Partner System Business Partner System Business Partner System 3rd party Batch System SAP ERP1 Product Issue Notifications MANUFACTURING
  • 9. Features ERP Batch Management Top Down / Bottom Up Analyze (Tree View) Yes Yes Top Down / Bottom Up Analyze (Graphical View) No Yes Across system tracing capabilities No Yes Considering Non SAP Systems No Yes Considering Handling Units, Serial numbers No Yes Considering Non SAP Tracked Objects (e.g. Pallets) No Yes Analyze multiple tracked objects in one run No Yes Identify broken links and maintain batch network No Yes Report (Distribution records) to inform the government office and customers No Yes New data model for high performance No Yes Following the principles of SAP Track & Trace and SAP GBT described makes it possible to know at any point in the product‘s life-cycle, the following product related information: • Who is the manufacturer of this product? • When and where was it produced? • When was the product shipped and received by certain parties? • Where is the product supposed to be at a certain time? • What is the expiration date of the product? • Is the product ID known by the database? Is it genuine? • How long was the product in the supply chain before reaching consumption? • And much more depending on the granularity of stored information Having this information in a database makes it easier for all parties such as manufacturers, authorities, and consumers to: • Separate counterfeited product from genuine product • Increase consumer safety • Confirm payment of taxes and duties • Discover grey-market products • Optimize the supply chain and logistics • Gain information about consumers • Offer customer loyalty programs Global Batch Traceability The difference between ERP Batch Management and SAP Global Batch Traceability:
  • 10. Warehouse Management Solutions SAP provides two warehouse management solutions: WM and EWM. WM (Warehouse Management) is available and embedded in the core SAP ERP solution and works effectively with simple warehouse operations. Extended Warehouse Management EWM is SAP’s re-engineered warehousing solution. EWM is a standalone solution, can run in “decentralized” state and is great for complex, high volume distribution centers. It also offers a host of additional value added services, such as: • Task interleaving • Slotting • Labor management • Track & Trace • Yard management Who Adopts SAP Extended Warehouse Management and Why? Manufacturing & Distribution Industries: • Consumer Products & Life Sciences • Retail & Wholesale Distribution • Discrete Manufacturing & High Tech • Process Industries & Chemicals • Logistics Service Providers SAP WM and New Customers: • Existing ERP customers with legacy or “Niche” warehouse solutions • Existing ERP WM customers • New customers with legacy solutions, multiple solutions, multiple architectures 5. SAP Warehouse Management (WM) and Extended Warehouse Management (eWM)
  • 11. 6. Mobility Their reasons for selecting EWM: • Reduce costs through better warehouse efficiency, increased labor productivity and better space utilization • Increase transparency in stock and processes • Increase flexibility in warehouse process modeling • Implement customer specific put-away and retrieval strategies • Quickly onboard new customers • Better manage value added distribution processes • Strong integration with other SAP solutions • Integrated Material Flow System (MFS) for automated storage and retrieval Regardless of whether you run SAP’s EWM or WM warehousing solution, the key is to effectively tie and quickly process critical product data across the total system, to include: • Product numbers • Product master data • Deliveries and shipments • Serial numbers • Batches • Customer information The business case of mobility for a company implementing Track & Trace is very obvious: on one side, mobile scanning is the only feasible solution to ensure mobile event capturing. Should barcode technology be deployed for Track & Trace purposes, the implementation of a mobile application is the only way to guarantee that product IDs are scanned as they move across the supply chain. On the other side mobile phones, smart phones or PDAs are the perfect device to use for product ID verification purposes (you always carry them, they have mobile cameras that can work as barcode scanners and can connect to your system via GPRS, 3G, LTE or WiFi). Common Track & Trace mobile business requirements: • Event Capturing (Warehouse): Scan barcodes and link them to ERP reference documents (e.g. deliveries / orders). • Print advanced labels (Warehouse): Print labels from fixed printers for serialization and re-aggregation in warehouses. • Print simple labels (Mobile): Print labels from mobile printers for serialization and re-aggregation anywhere. • Event capturing at 3PLs: Integrating 3PLs, performing Track & Trace operations, into your Track & Trace solution. • Event capturing (Drivers): Drivers, van sellers and trade marketers can scan product IDs during the point of delivery to their customers. • ID verification: Consumers and Inspectors can verify product IDs and report possible counterfeits via a mobile application.
  • 12. Movilizer for SAP Track & Trace The Movilizer Enterprise Mobile Platform is the fastest way to develop, deploy and run enterprise mobile apps. Mobility delivers business improvement and innovation, but the technology is complex and fast-moving. The Movilizer Platform gives you the agility to react to changing requirements without compromises. The Movilizer offers "out of the box" functions to scan any type of Track & Trace events, print labels and to verify product IDs. Movilizer for Track & Trace – Architecture With the Movilizer Enterprise Mobile Platform mobile apps are built up from Movelets – a description of your mobile business process built in your backend system using the Movilizer Connector. Movelets are deployed to user’s devices by the Movilizer Cloud and then run on the device using the Movilizer Client. The Movilizer allows you to focus on designing the best mobile solution for your business requirements while our mobile platform manages and optimizes the technology. Firewall Non sap T&T repositories SAP AII SAP EM SAP OER movilizer cloud BInaries XML Movilizer connector running on an sap netweaver 7.0 ABAP Stack EPCIS / PML / RFC / IDOCS handhelds in warehouses or plants customers / inspectors using various types of hardware fixed barcode scanners Label printing from the cloud Customer Data center
  • 13. The Movilizer Client is a very small footprint software (some few Kilobytes) written in different native languages (depending on the target device) capable of running on most mobile phones, smart phones, PDA’s, Tablet PC’s, industrial devices, etc. The Movilizer Cloud is a secured multi-tenant and hosted middleware with 99% guaranteed availability that can connect any backend system with any mobile device by sending and receiving business data in both directions. The Movilizer Connector is a SAP certified “out of the box” connector available for SAP systems, which once installed on the system, accelerates the integration of the system with the Movilizer Cloud. The Movilizer SAP connector contains the business logic of the mobile Track & Trace application. Key differentiators: 1. Easy Deployment • Beside industrial devices it runs on any simple mobile phone • It is deployed in seconds (device setup can be done by the end user) • It does not require any end user training • You are 100% in control of future changes and enhancements in the app 2. Easy Usability: • It is device agnostic • Configuration instead of development (Movilizer customizing in SPRO) • It allows changing processes on the fly • You can create "mash-ups" (interfacing SAP with non-SAP) on the mobile device 3. Easy Integration: • Multi Backend integration via the Movilizer cloud (with SAP OER, SAP AII, SAP eWM, SAP ERP or non SAP). • Optimized for sites with poor infrastructure (maximum data compression) • Development only in backend (e.g. ABAP/4).
  • 14. Functional features: 1. Capturing logistics events: Capture events across the internal and external supply chain (e.g. shipping, receiving, unpacking, packing). 2. Authenticate and verify product IDs: Enable internal and external people to authenticate and verify product IDs. 3. Handling exception events: For example decommissioning 4. Label printing: Enable any label to be printed out of the Movilizer cloud (e.g. relabeling or repackaging processes). Requires no footprint to be deployed locally other than a local printer. Over 2000 printer types supported with out of the box drivers. 5. Integration of 3PLs: 3PLs with warehouses using handhelds can be integrated with the Movilizer via the Movilizer Warehouse Gateway. 6. Support of inspections and seizures: Via the Movilizer for seizure management, inspectors can use any mobile device to capture IDs on the field. 7. Additional usage of Movilizer as a mobile platform: Additionally, Movilizer is more than only a solution for Track & Trace. Movilizer is an Enterprise Mobile Applications Platform which can be used for many other processes besides Track & Trace (e.g. SAP MM, for Workflows, SAP PM/CS, SAP SD, SAP CRM). Verify Product ID Scan ID Week Monday TU WE TH FR
  • 15. SAP’s Solution Portfolio today SAP Track & Trace, Global Batch Traceability, and Warehouse Management solutions enable product, part, component and asset traceability from raw material to the point of consumption and sale. Integrated SAP Solutions enable product/part serialized traceability, goods and assets in transit, as well as traceability for process monitoring and compliance. Combining these solutions offers a wealth of capabilities that support your organization in improving operational efficiency, reducing safety stocks, complying with regulations, reducing costly fire-fighting, improving customer service, improving brand integrity, and providing faster time to insight. All solutions are offered with interfaces to your SAP Business Suite of applications. Here is a view of how your organization can integrate their processes with the applications as described, to provide a comprehensive Supply Chain Integrity solution: 7. SAP Track & Trace, Global Batch Traceability, and Warehouse Management solutions: How they work together supply chain integrity process Product Genealogy Item Serialization and Product Traceability Quality Issue Handling Process Visibility and Goods/ Assets in Transit Raw Material and Component Supplier Customer Account Management Cross- Function Outbound Logistics Product Tracking Manage by Exception, Track and Trace, and Regulatory Reporting Issuance and Management of Quality Defects Tracking Visibility Internal Production Operations Warehousing and Distribution End- Product Genealogy Batch Traceability Product Serialization Inbound Logistics Condition Monitoring Supplier Batch Traceability Component Product Genealogy Product Authenti- cation
  • 16. From a functional and transactional perspective, this is how your Warehouse Management solution, GBT, and OER system would “talk” to each other: system integration for maximized supply chain integrity SAP ERP1 SAP ERP2 oer: serialization data authority / compliance reporting pi- sasn‘s Event Manager Event Services Tracking Services Authentication Alert Framework Event Handlers Common Services Central Number Range Mgmt Master Data Mgmt Security & Archiving All Services Locations, Reading Points ID Types Auto ID Infrastructure EPCIS Vocabularies etc. Product ID Hierarchy Handling units erp/ warehouse mgt system inventory, shipments, deliveries Inventory Management Production Supply Quality Management wm Sales & Distribution RF Data Processing GR / GI WM Txns S / Ns Gbt: BATCHes, deliveries External third-party integration With an increasingly outsourced supply chain, the need for collaboration over company boundaries is becoming more than ever a burning need. The proliferation of the lean enterprise and just in time concepts mean more outsourcing, increased dependency on external suppliers and carriers, smaller warehousing sites, less long term commitments to providers, and significantly faster supply chains. It is imperative to connect third party logistic providers and external agents to your Warehouse and Supply Chain systems on a nearly “Ad-hoc basis”. It is also fundamental to reduce the footprint of required infrastructure to maximize agility and reduce cost. Movilitas offers a comprehensive Track & Trace, Warehouse Management and SAP AII/OER integration solution for 3PL operations, including an out-of-the-box, lean mobile package. Solutions may be on-site or cloud-based and will improve data integrity and lower total operational cost.
  • 17. 3PL integration: Third party logistic providers (3PLs) and other supply chain partners (e.g. truck drivers, external agents) without access to the corporate network can be securely connected to your SAP WMS and Track & Trace system via the Movilizer Cloud. You can use public networks for data sync (no need for Wi-Fi) and you can even allow your partners to bring their own devices in order to connect to your SAP systems via the Movilizer cloud which of course supports all imaginable security features. inside corporate network outside corporate network sap wm / ewm movilizer connector sap oer / AII movilizer connector corporate network movilizer connector movilizer connector movilizer cloud With Movilizer you do not develop apps, but ABAP Movelets. Movilizer for SAP Warehouse Management and SAP Track & Trace is a collection of Movelets that can be combined as required based on the customer’s requirements. Thanks to the Movelet concept, a mobile process can run without any changes on multiple devices. As an example, it is possible to run a Movelet for a transfer order confirmation, which is developed once in the SAP backend, on a Windows Mobile PDA, an Android, iPhone, Blackberry, Windows 8 or even on a web browser. Additionally, Movelets are able to use mobile phone cameras to read barcodes, print labels via Bluetooth-enabled mobile printers, and read or write RFID tags. You can also combine SAP Movelets with non-SAP Movelets, in case you use different ERP or WMS systems across multiple sites or legacy solutions.
  • 18. As previously stated, there are many benefits that may be realized. Improved product and shipment visibility, improved operations and inventory management, faster targeted recall, and others. Additional detail as follows: Improved Inventory Visibility Batch information in GBT can be tied to deliveries/shipments and those deliveries can give immediate visibility of the particular stock within the warehouse or distribution center operation, such as: • Warehouse stock balance by bin and/ or storage type • Material bound for rework • Material in transit, picked for shipment • Material on truck, bound for shipment (pre or post goods issue) • Material stock by customer shipment, warehouse, DC Improved Shipment Visibility You always want to know where and what product was shipped and when it arrived at its destination. Improved shipment accuracy and the ability to reconcile shipped goods immediately at point of delivery via reconciliation of serial numbers. This provides increased inventory visibility and potential reduction in asset diversions and shipment shortages. Immediate proof of delivery can automatically trigger payment, thus improving your order to cash process and speeding up cash receivables. Fulfillment Visibility Transparency and visibility across the order-to-cash process enables companies to monitor the sales order fulfillment cycle and more efficiently track the logistics process all the way through receivables. Being prepared to effectively deal with unplanned supply chain disruptions is a must in today’s economy. A visible and effective order-to-cash process supports faster, more educated decisions, helps reduce operational costs, and ultimately improves customer service. Optimized Inventory and Warehouse Operations Improved inventory visibility coupled with standardized warehouse processes leads to optimized stock levels, lead times, replenishment levels and improved warehouse efficiency. SAP Performance Benchmarking has established a 7% improvement in on-time deliveries where supplier collaboration and improved visibility of PO and Bills of Material were available. Also, 44% fewer out-of-stocks were noted for those users having real-time visibility to warehouse status and inventory. 8. Supply Chain Integrity - Benefits realized by improved product visibility, batch management, and traceability
  • 19. Improved Procure-to-Pay process Poor visibility of inventory and supplies can lead to excess inventory levels and lead times, especially when you have outsourced parts of your manufacturing process. Data accessibility and transparency are important to achieve faster and more insightful solutions to pending problems. Did you know that companies typically see a 15% reduction in purchase orders requiring expediting where buyers have online access and better visibility to PO status? Improved Quality and Recall Management Quality is always a key differentiator, regardless of which market you may be in. Customer complaints, manufacturing issues, customer and supplier disputes, customer and distributor complaints need to be proactively minimized and managed effectively to maintain brand integrity and market share. Also, the ability to conduct fast and efficient product issue investigations, perform root cause analysis and automate quality holds and recalls will lead to lower operational cost, reduced risk, and improved customer safety, satisfaction and brand integrity. With the SAP solution suite, it is possible to support immediate recall, hold and withdrawal actions though the direct linkage to the external and internal distribution records. This visibility, time to insight and action, and ability to react more quickly and internally will help differentiate you from the competition in today’s markets. Benchmarking has established a 21% lower customer rejection rate when production, materials, operations, and exceptions are visible in real time. Improved Waste management It is important to know exactly which products need to be scrapped due to a production or warehousing problem, to minimize waste and speed up operations. SAP Benchmarking has established a 47% lower scrap rate when using a quality system to support supply chain planning, root cause analysis, quality notifications, and advanced product quality planning. Improved returns management You always need to know where returned products came from. The solutions covered here can easily identify critical product information like end market, expiration date, origin, and distribution chain history. Competitive Advantage There are several competitive advantages to this solution suite, such as: • Product verification, in order to check if it is authentic and compatible. This will increase in importance as we move to personalized medicine delivery and administration • Consumer reward programs • Consumer product information, with real-time updates • Counterfeit authentication • Immediate proof of delivery and expedited billing
  • 20. Brand Integrity Product piracy is an increasing problem for businesses in the broadest range of industries. A growing number of companies are forced to confront piracy with measures such as Serialization and Tracking & Tracing. Results from surveys show that nearly every second consumers consider counterfeiting as a serious problem, and nearly the same amount reported falling victim to counterfeiting. Did you know: • Up to 15 percent of all medicinal products in the world are counterfeit (WHO) • Drugs often lack essential active ingredients, or contain dangerous contents, which can result in treatment failure or even death 3PL and CMO integration • Add-Hoc integration of 3PL’s allows real time data/info in your systems without the need of an additional IT infrastructure • Easy integration of external parties such as consumers opens a whole new range of customer interaction and data collection possibilities • Pre-configured content and limited end user training speeds up time to deploy • Less manual interface intervention and oversight Supply Chain Integrity
  • 21. About Movilitas Consulting Movilitas Consulting, an SAP software and services partner, provides end-to-end SAP Supply Chain, Track & Trace and Mobility Solutions. Movilitas Consulting solutions enhance customers’ control of their extended supply chain, ensure compliance with global regulations and optimize field-based business processes helping to accelerate the pace of business performance. 9. Want to Learn More? Movilitas Consulting NA 10330 Old Columbia Rd. Columbia, MD 20146 Phone: 800-359-1712 Email: info.na@movilitas.com Movilitas Consulting EU Julius- Hatry- Straße 1 68163 Mannheim Phone: +49 6211502040 Email: info@movilitas.com EUROPE north america Contact us