Carrefour doit tre la rfrence en termes de protection de la sant, de la scurit du consommateur et de

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TRACEABILITY Responding to consumer needs
IAMA 14th Annual World Food Agribusiness
Forum June 12-15, 2004 Montreux - Switzerland
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Traceability is part of the quality process

• To respond to consumer expectations
• To respect the law
• To put consumer safety first by setting up an
  efficient withdrawal procedure in the event of
  an alert or a crisis
• To build upon trust throughout the food chain by
  duly setting up preventative operations

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To respond to consumer expectations

• Explicit needs
• Composition, taste, smell, texture, purity of
  the product, accurate information
• Implicit demands
• Consumer health and safety, honest transactions,
  ability to manage situations of alert or crises

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Consumer expectations

• The main crises in Europe BSE, GMO, dioxins or
  serious uncertainties, crop treatment residues
  or animal medicines and pollution, have
  generated consumer demand for reassurance
• This demand has led to an expectation for product
  traceability that enables us to know its origin
  and its journey throughout the production
  chain.

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Identification of risks in the food chain most
serious risks/ 2000-2002
 Source BVA-ANIA-oct 2002
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Identification of risk in foodstuffs Main
actions to be put in place by the Food Industry
 Source BVA-ANIA-oct 2002
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To respect the law

• Directive 2001/95/CE (General Product Safety)
• Act diligently to respect safety obligations
• Participate in the follow-up of product safety
• Communicate information on product risk to the
  official authorities
• Update and provide necessary documents to trace
  the origin of a product
• Implicit demands
• Ensure traceability at every stage of production,
  transformation and distribution
• Set up product recall procedures for unsafe
  foodstuffs and inform the relevant authorities
• Entry into force 01/01/05

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In case of an alert or a crisis, to put consumer
safety first by establishing an efficient recall
system

• For a national brand
• Cooperation between Carrefour and the supplier
• For an own brand
• The retailer becomes a producer
• The retailer must put into place all the
  necessary protection measures (withdrawal or
  recall procedures) and even prove that he has
  respected all his obligations (quality follow-up
  and traceability)
• His partners, the own-brand producers, are held
  jointly liable
• To permanently update contractual documents which
  link them to their partners specifications
• To hold all the necessary information that allows
  them to limit the impact of a potential quality
  incident control plan, traceability elements

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To build upon trust throughout the food chain by
duly setting up preventative operations

• Establishment of good practices to prevent risks
  throughout the production chain is a
  prerequisite (definition of specifications and
  production practices, supplier audits and our
  internal practices)
• Traceability is an additional disposition to
  ensure safety of the consumer in case a
  defective batch has to be withdrawn
• This step only allows for the  withdrawal/recall 
  mechanism to be activated as rarely as possible
  and to define a certain  precision in
  traceability (batch size), making it easier to
  manage, where this precision is part of the
  probability of risk and therefore of risk
  prevention

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Setting up an effective system of traceability
3 options

• Carrefour line products, from raw materials to
  the store and to the consumer control of
  professional tools
• Carrefour brand products, from the producer to
  the store and to the consumer Trace-One and
  Star-Trac.
• National brands the system of the producer and
  Star-Trac.

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The quality path
Carrefours response
Club FQC Trace One
2003
2001
Carrefour Organic Lines Internationalisation FQC
2000
Soya Line no GMO Brazil
1997
Carrefour Bio PGC (organic)
1995
FQC/ Fruit and Vegetables Line
1992
Start of FQC / 1st Bovine Line
1991
Organic Boule Bio
1985
Carrefour brand
Free Products
1975
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Carrefour Quality Lines
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Quality lines specifications, methods of
analysis and risk management aim to defend the
health and safety of the consumer

• Specifications of production methods Get rid of
  antibiotic growth factors, animal feed (since
  1995), absence of chemical treatment after
  harvest, prevent the spreading of manure on urban
  purification sites
• Risk management methods Applying method
  analyses and HACCP risk management, traceability
  from producer/transformer to the consumer

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Traceability is a key element of the Carrefour
Quality Lines concept  

• Traceability allows for the verification of
  product characteristics and of their safety but
  also the credibility of the information given to
  the consumer
• This application of traceability joins other
  areas where it is already mandatory (organic
  products, bovine meat, etc) and that have
  brought about the introduction of tools which are
  available to professionals
• Carrefour carries out audits and controls to
  ensure the proper implementation of these tools

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Traceability of  Carrefour brand products

• A recall importance of specifications, good
  practices of production, transport and storage
  etc
• The main role of traceability in this context is
  to quickly and efficiently control the
   dysfunction
• Today, 2 traceability tools for Carrefour brand
  products are in the stages of development
• TRACE-ONE to manage the specifications and
  trace Carrefour products from the supplier to the
  warehouse
• STAR-TRAC to manage traceability between the
  warehouse and the stores

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TRACE-ONE to manage 6.000 Carrefour product
specifications

• The electronic management of 6.000 references in
  real time allows us
• To have daily product specifications at hand
• To quickly identify the products concerned by an
  alert or a crisis
• This management is safe, open to other retailers
  and centralised in an effort to simplify the
  process

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TRACE-ONE to trace Carrefour products from our
suppliers to the warehouse

• A file for each batch is made up of the following
  information
• The batch number
• The Use by date
• The date and place where a product was produced
• Product specific information (raw materials,
  results of analyses and controls)
• The identification and the destination of pallets
  made with this batch (SSCC or parcel code)

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STAR-TRAC to maintain traceability from our
warehouses to the store

• In the warehouse, during the preparation of
  pallets for the store, Star-Trac establishes the
  link between the number identifying the
   mother  pallet and that of the  daughter 
  pallet
• The link  Batch n/SSCC  is therefore
  maintained from the producer (see above
  Trace-One batch file) through to the store and
  it is this link which is needed to withdraw a
  suspect product.
• The Star-Trac tool uses the international
  codification standard EAN 128, based on SSCC
  this also applies to national brands

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Traceability in practice

STAR-TRAC
UL Unité Logistique UE Unité d'expédition
UE Hétérogène
Livraison
Réception
Stockage
Liaison
Label already applied by the producer
Use of producer label for storage
Label with new SSCC
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Conclusion

• Traceability is a tool, a concept that is part of
  a global step towards quality (good preventative
  practices, ability to manage the
   dysfunctions , honest information given to the
  consumer)
• Traceability will only work however, if the whole
  of the production chain adopts the same approach.
  It is a working partnership.
• It is therefore a crucial stake for Carrefour, in
  terms of satisfying implicit and explicit
  expectations of the consumer and in terms of
  respecting legal obligations