Traceability Using QAD’s Enterprise Edition QAD Midwest User Group Traceability Using QAD’s Enterprise Edition Steve Dombroski – Sr. Manager Industry Solutions, QAD

QAD Midwest User Group Safe Harbor Statement The following is intended to outline QAD’s general product direction. It is intended for information purposes only, and may not be incorporated into any contract. It is not a commitment to deliver any material, code, functional capabilities, and should not be relied upon in making purchasing decisions. The development, release, and timing of any features or functional capabilities described for QAD’s products remains at the sole discretion of QAD.

Agenda Traceability – Why and when How QAD addresses these issues QAD Midwest User Group Agenda Traceability – Why and when Traceability in the news Traceability industry issues How QAD addresses these issues Solutions overview Component positioning Serialized Inventory Management Item Attributes Enhanced Quality Management Lot Trace Workbench Example Summary

Traceability Why and When

Traceability In The News QAD Midwest User Group Traceability In The News

Traceability Industry Concerns QAD Midwest User Group Traceability Industry Concerns Media coverage of food issues increasing Mainstream media now looking for issues Traceability builds relationships with consumers Consumers want to know exact food origin Farmers facing legal concerns on quality Responsibility if issue tracked back New regulations impacting the industry Food Safety Modernization Act (FSMA) Safe Quality Food Program (SQF)

How QAD Addresses Traceability and Quality

Traceability Positioning QAD Midwest User Group Traceability Positioning Receiving Production Shipment

Traceability Product Overview QAD Midwest User Group Traceability Product Overview Serialization Track & trace lot ID AND serial ID License plates for multi-levels Serial ID stages Item attributes and test results Lot attribute track and trace Certificate of analysis E-records / e-signatures Enhanced quality Inspection specifications Documented test results Lot track and trace Backward / forward lot traceability

Serialization Benefits QAD Midwest User Group Serialization Benefits Helps minimize contamination incidents Assists in resolving issues quickly if incident occurs Improves customer service Increases inventory accuracy Reduces inventory costs Ability to easily trace materials at multiple levels

Serialization – Core EE QAD Midwest User Group Serialization – Core EE A Unique Identification Number What is License Plate Inventory? A Unique Identification Number

Serialized Inventory Management QAD Midwest User Group Meeting Serialized Inventory Management Serial Master & History Data independent from lot inventory Serialized Packaging Hierarchies Serialization fully integrated with inventory transactions Support of specific packaging transactions Label Printing Services Setup printers for label printing Print labels directly from key transactions Label design using 3rd party software (label template) Label format definitions Generate file with fixed and variable data according to label format

Item Attributes Helps identify lots/sub-lots to ensure food safety QAD Midwest User Group Item Attributes Ability to maintain information by item characteristics Ability to track & trace with item attributes Supports the definition of descriptive attributes Grade Country/location of origin Supports Fully definable labels Control parameters Helps identify lots/sub-lots to ensure food safety

Item Profile Example QAD Midwest User Group Item Profile Parameters Attributes Attribute Details

Enhanced Quality Product Overview QAD Midwest User Group Enhanced Quality Product Overview Framework for controlling product quality Streamlines inspection for material handling and shop floor activities Test specifications Items and inventory Items and routing operations Quality and test records Quality orders with test records Production order test records

Product Overview Extends quality data to enterprise operations QAD Midwest User Group Product Overview Extends quality data to enterprise operations Can update item lot and sub-lot attribute values Traceability with attributes Certificate of Analysis Test Specification Attributes Specification Details

Enhanced Quality Key Benefits QAD Midwest User Group Enhanced Quality Key Benefits Improved quality and conformance to specifications Improved supplier quality Control of non-conforming materials Improved lot traceability Improved inspection procedures

Lot Trace Workbench Single access point QAD Midwest User Group Lot Trace Workbench Single access point Backward & Forward tracing Current inventory and historical data Analysis enabled user interface Flexible and extended list of search criteria Extended list of relevant information Trace within a trace Drill down capabilities Data extraction Saved search trails

Lot Trace Workbench Benefits QAD Midwest User Group Lot Trace Workbench Benefits Provides real-time access to current data Provides access to historical data Enables root cause analysis Which material was used in production? What supplier supplied the raw materials? Provides report on impacted inventories How much of affected inventory is still in stock Where has the material been used Where have the materials been shipped

Traceability Example

Traceability Example QAD Midwest User Group Company description Olive Oil producer Produce bulk oil Produce retail bottles Branded and private label Business issues Fresh olives from multiple growers Shelf life issues all inventory levels Multiple grades of olives Different characteristics determine end products Need to track Lot number of production batch Olive characteristics Hierarchical serialization Pallet, Case, Supplier batch

Product Serialization QAD Midwest User Group Product Serialization Serial numbers assigned to multiple product levels Serial number on pallet and item Lot number assigned to produced batch of bulk item Company can see finished product and serialization

Customer Product Issue QAD Midwest User Group Customer Product Issue Customer notifies producer there is an issue with product Producer invokes the lot trace workbench to begin action Lot trace workbench can follow complete history of item Finished product can be traced to lot number

Order History QAD Midwest User Group Process begins by tracking order history Serialization process activated Serial ID of the item is tied to both: Order Number Shipper ID Quick tracking capability

Material Traceability QAD Midwest User Group Material Traceability Using serial number and transaction number All transaction steps can be verified Tracing back to produced date and activity

Item Attributes Each attribute given unique ID number QAD Midwest User Group Item Attributes Each attribute given unique ID number Each ID has a description Each attribute has assigned values Attributes are user configured

Linking Customer to Lot Number QAD Midwest User Group Linking Customer to Lot Number Using Lot Trace Workbench transaction data linked back to item lot number Order number and quantity shipped tracked Customer name linked to transaction id

Producing Batch Information QAD Midwest User Group Producing Batch Information Traceability can be performed back WIP item and lot number Quantity produced, transaction records and order numbers are available

Quality Issue Detected QAD Midwest User Group Quality Issue Detected Workbench trace follows all ingredients Testing data can be pulled Quality tests show a non conforming value Traceability can match back to each lot affected

Minimize Effect of Problem QAD Midwest User Group Minimize Effect of Problem Remaining inventory of contaminated items can be located Quantity on hand, location can be determined Steps can be taken to remove contaminated item

Supplier Notification QAD Midwest User Group Supplier Notification Supplier can be notified to inspect their inventory Contact information of supplier and responsible party can be traced Incoming batch numbers traced

Forward Trace to Analyze Impact QAD Midwest User Group Forward Trace to Analyze Impact Forward trace links all transactions Beginning of material receipt through shipment of end items All steps in between are traced Item attributes allow for specifying information that may be valuable in tracing process As well as the list of forward linked transactions starting with receipt of this specific inventory record till the end of the finished product shipped to customers, having all the information in one click away:

Summary Industry issues today dictate: QAD Midwest User Group Summary Industry issues today dictate: Improved serialization processes Improved trace and trace capabilities Multi level item serialization Serialization and Traceability improve Inventory accuracy Customer service Cost reductions Quality control integrated into business processes Lot Trace Workbench is a single access point to trace all product activity

Call To Action Determine your requirements QAD Midwest User Group Call To Action Determine your requirements Serialization and Traceability Quality management Visit QAD.Com for initial information Discuss options with your account manager Schedule a vision engagement Meet with QAD vertical management team Qscan assessment to determine system needs

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