Vadym Tsekhanovskyi

Small step for Food Safety — one GIANT leap for entire supply chain management and completely changing meanings of the meaning of Track&Trace
U.S. Food & Drug Administration (#FDA) announced “The new era of smarter food safety”
April 30, 2019. The statement announced bringing into #Food Supply Chain core principles from the pharmaceutical industry of end-to-end #supplychain #digitalization and data integration which challenging everything we used to know in Track&Trace solutions (including the meaning of words “#traceability”, “#transparency”), assets management and supply chain management
Three simple questions for self-assessment of your existing strategy. In the case at least question in missing – there is a high probability that existing strategy need to be carefully reexamined
1) Minimum salable units #serialization
2) Real-time inventory visibility where is each minimum salable unit now in supply chain
3) Real-time data where each minimum salable unit has been in the supply chain at ALL steps starting from the manufacturer
In the case at least question in missing – there is a high probability that existing #strategy need to be carefully reconsidered as not corresponding to #challenges of even 5 years horizon
#supplychainmanagement #customerexperience #foodsafety#digitaltransformation

There are two key strategies of supply chain protection and customers protection
1) Bring more authorizations and liabilities 
2) Bringing real-time transparency based on supply chain end-to-end digitalization and data integration
Both strategies already have real-life examples in different industries even in the same country
Strategy 1. More authorizations and liabilities – 1M+ counterfeited parts in military equipment in spite of the most severe liabilities and authorization requirement in the world for military equipment — Defense Federal Acquisition Regulation Supplement (DFARS). Leading eCommerce platforms can only dream about such capabilities and may not reach it even in 20-30 years
https://youtu.be/rN8ilnn20yA…
Strategy 2. End-to-end supply chain digitalization and real-time transparency – already implemented in Turkey for pharma supply chain (managing end-to-end journey for $6Bn minimum salable units with ROI -18 hours after 3 years of deployment), tested in California, and as a result since 2023, will manage $600Bn+ market of prescript medications in the US
For sure, the most widespread “consumers protections” based on sellers verification and liabilities can show further improvements but there are two major concerns 
1) it may be avoided. The case with DFARS might be a perfect example
2) Most of existing “consumers protections” requires multiple actions and professional expertise from a consumer which most of the consumer just can’t afford
There is a challenge for nowadays industry leaders which strategy choose in order to remain competitive already in 3-5 years — further improvements of existing “steam engine” or start driving “Tesla”

Traceability and Transparency – popular but confusing terms because often used as buzzwords. Let’s compare them in a simple way using figures for food recall cases
In the US average recall costs $10M however can hit manufacturer up to $100M. At the same time causing an immediate effect for capitalization ~2.4% drop in share price every day. In case recall will be handled poorly it may cause average ~22% total share price drop.
Traceability — mostly may help to identify faster the source of outbreaks but has little chances to provide inventory visibility where all potentially dangerous products located now. Multiple additional investigations, inventory inspections, removals, losses will occur. Moreover – almost no chance to identify directly certain consumers purchased dangerous products

Transparency which is not possible to achieve without end-to-end supply chain digitalization – it’s an opportunity not just identify a source, limit negative effect by setting exact time frames of outbreaks but due to real-time inventory visibility in a matter of second “switch off” all certain products (minimum salable units) and immediately inform consumers already purchased products

Among multiple events «1st Industrial Pioneers Summit» was one of the most important where the best of the best companies were represented only by top management (C-level, VP, Managing Board etc) Even among the best of the best, there are different points of views what is Industry 4.0 for speakers at «1st Industrial Pioneers Summit»: Group 1. For 40% speakers Industry 4.0 is about processes inside of #DigitalFactory without deep look “before” and “after” using terms #SmartManufacturing, cyber-physical systems, #IoT и #5G which can be considered still as Industry 3.0 components Group 2. For 30% it’s already beyond #DigitalFactory trying to figure out it from the point of customer experience in ways how to enable flexible mass production Group 3. For 30% of the most advanced companies — Industry 4.0 and 4th Industrial Revolution challenges are- digitalization and data integration of entire #end2end#valuechain where #DigitalFactory is just one of many elements creating superior #customerexperience BTW: As a result of the Summit at least 2 companies from Group1 informed organizers of starting active exploring solutions form Group 3 and particularly #end2end supply chain digitalization #industry4#digitaltransformation

Avalanche Chain will attend Hannover Messe, Home of Industrial Pioneers in Hannover, Germany, on 01 — 05 April, 2019

Albert Einstein said: “The definition of insanity is doing the same thing over and over again, but expecting different results.”
For sure there is a fight between Brand Owners and Counterfeiters but according to some forecasts predicting negative impact from Counterfeit and Piracy $4.2 Trillion already by 2022 – Brand owners are not winning.
There are three key problems in eCommerce:
1) Trust-based approach for choosing “right” Seller and Sellers verification
2) Packaging and Marking are primary methods of physical products identification
3) Consumer is finally responsible for all checks and inspections
Avalanche Chain solution solves that puzzle brings crystal clear real-time transparency into Supply Chain, enabling certain Product verification across entire Value Chain, making Packaging&Marking a secondary tool and able to make all necessary checks without Consumer participation. 

5 sec. explanation why serialization, QR codes, RFID etc without real-time info about the current owner is very limited in a fight with Counterfeit and leaving the consumer blind as to the real source of the product.
According to the serial number, QR code, RFID etc — in both case it will be the same feedback from the manufacturer

5 sec. explanation why traceability may not help