J.B.C. Hoebeek
Traceability of distributed defects in fast-moving consumer markets.
Literature survey,
Report 95.3.LT.4511, Transport Technology, Logistic Engineering.
Fast-moving consumer markets are demand areas for products which are
usually produced in batches, distributed in high volumes, and directly
used by individual end customers. Distributed defects are quality
non-conformities of product or packaging, which are found already in
distribution channels or in the market itself. Traceability refers to
the ability of a company to locate individual batches or even units of
products in the total logistics chain. The issue of traceability of
distributed defects is therefore generally an attention area of quality
assurance.
Under pressure of today's competition on the fast-moving
consumer markets, the issue of quality assurance has regained the
attention and awareness of companies operating on these markets. Important
trigger for this trend is that, obviously, customer intimacy can easily be
lost when product or packaging defects occur or even are being
distributed. However, most efforts are currently put into curing the
symptoms of this kind of accidents commercially or legally.
Distribution processes are additionally influenced by cost reduction
requirements. Specifically, the combination of these trends results into faster
moving of goods, more flexibility during manufacturing, broader product ranges,
variation/differentiation of products and raw materials, shorter lead
times and smaller stocks. These recent developments call for a modification of
the quality assurance around distribution of goods; i.e. next to the commercial
and legal solutions for distributed defects problems mentioned before, more
physical challenges like tracking, tracing and identification are found at
distribution.
Tracing of individual batches and/or single units of products can be done
effectively by using information systems and electronic messaging techniques
in the administration. However, this effectiveness disappears immediately when
the registration of the physical situation of production and distribution
is not executed timely, accurately and reliably. This emphasizes the need
for proper registration (i.e. identification) to monitor individual product
processes and product moves.
To improve the traceability of distributed defects in fast-moving consumer
markets it is therefore recommended to choose an appropriate product
identification technique. A quick choice can be made by assessing a
diagram which displays the functionality ranges of available techniques
depending on the batch size and total trade volume of the product to be
identified. An area for further study is to quantify the exact values of
critical batch sizes and total trade volumes, so the diagram can be
used in an absolute sense rather than in a relative sense.
Reports on Logistic Engineering (in Dutch)
Modified: 2000.05.30;
logistics@3mE.tudelft.nl
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