1 AIT Asian Institute of Technology

Creating shared value through food traceability : what contribution can HAVI supply chain solutions make to improve the food safety strategies of its customers in China?

AuthorLisa Kirkpatrick
NoteA project submitted in partial fulfillment of the requirements for the degree of Professional Master in Corporate Social Responsibility, School of Management
PublisherAsian Institute of Technology
AbstractThe purpose of this paper is to examine the role of lead logistics provider, HAVI Supply Chain Solutions (HAVI), in the supply chain management of its customers’ food and beverage supply chain in Greater China, specifically in the area of food traceability. To make recommendations that will support the evolving traceability requirements of its customers and also lead to enhanced internal traceability that will produce a competitive advantage over and above compliance with food safety and loss mitigation. HAVI’s customers are Quick Service Restaurants (QSRs) such as McDonalds and Subway. QSRs are not only expected to routinely deliver high-quality and safe products for human consumption but are also subject to heightened stakeholders’ concerns for trust, transparency and traceability. Literature review posits a multi-stakeholder collaborative approach towards “full chain electronic traceability” where all supply chain participants cooperate to link up their internal systems with other external traceability systems. This will necessitate supplier engagement and capacity building so that suppliers understand and comply with the new food and safety regulations and also appreciate the need for unique datasets to identify product and information flows with pinpoint precision. The use of GS1 business standards will assist in the syntax and semantics for supply chain data capture and selective sharing between trading partners. However, this becomes problematic because of the complexity created by the sheer volume of transactions involved in the majority of manufacturing situations and the lack of adequate documentation, especially given the number of bodies involved in the supply chain. Although no agreement has yet been reached on international standards, guidance is provided by the Global Food Traceability Center on the design and implementation of traceability policies to cater for a wide range of requirements and promote regional standardization. Given the discrepancy between theory and practice, some recommendations for HAVI would be to collaborate with trading partners on data sharing protocols to generate business value, a proof of concept trial to engage suppliers on what they need to do to improve their traceability performance and using technology to automate processes. Rather than being just a means to safeguard brand reputation and future sales by the removal of contaminated products from the marketplace, traceability also creates opportunities for societal “shared value” through increased confidence and the promotion of food choices, and among supply chain participants through improved network supply efficiency and overall profitability.
Year2015
TypeProject
SchoolSchool of Management (SOM)
DepartmentOther Field of Studies (No Department)
Academic Program/FoSMaster of Business Administration (MBA) (Publication code=SM)
Chairperson(s)Grunbuhel, Clemens
Examination Committee(s)Welford, Richard ; Vatcharapol Sukhotu


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