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www.organic-services.com | www.check-organic.com a service offered by

Enhancing the Integrity

of the Organic Market


Content

• Challenges for the integrity of organic products

• Approaches to address integrity

• Evaluation of approaches

• The Check Organic approach

• Check Organic modules and functionalities

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Challenges for further growth of the market: Increasing risk of fraud (1)

• Globalization of supply chains

• Multiple certification of an operation and selling product volumes (multiple)

• International supply chains frequently unknown and difficult to evaluate

• Certificate is basis for trade (2 minutes to generate a fraudulent certificate)

• Certificate is provided by the seller

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Challenges for further growth of the market: Increasing risk of fraud (2)

• Verification of scope, validity etc. is difficult and time consuming

• Transparency in the supply chain is difficult to be achieved

Companies are investing into development of supply chains in terms of product

quality, availability, price. Information need to be handled strictly confidential

As a buyer it is sometimes hard (if not impossible) to get required information

• Transparency needs to be improved without compromising the confidentiality of data and companies’ investment into the supply chains!

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Private approaches to address integrity

• Approaches by umbrella organizations and private initiatives (e.g. bionext, AÖL, FEDERBIO)

• Approaches by CBs (e.g. BioSuisse)

• Company approaches (organic certified operators)

– Implementing systematic residue testing schemes

– Implementing internal audit schemes

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Summary

• Public approaches

– contribute to harmonizing data and enforcement

– protect the national market

– services for operators and CBs are restricted

• Umbrella organization approaches and private initiatives

– specific but restricted to certain integrity aspects

– underfunded

• Operator approaches

– expensive, no exchange of critical information

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The organic market needs a new approach

The solution has to

• be implementable globally and be available in real time 24/7

• provide certification statuses

• include flow of goods for checking mass balance based on transactions, and link to certification information

• create transparency while protecting confidential business information

• support companies’ supply chain integrity on local, regional and global level

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The approach of Check Organic: Prevention, detection & investigation

• Allows for verification of certification data online and worldwide in real

time

• Provides the buyer with verified certification data from certification

bodies and not from the party selling to you!

• Links certification data to supply chain data (product, volume, buyer,

seller, date, amount etc.).

• Draws attention to areas which need attention/ action displaying supply

chain graphs and traffic light system

• Allows for targeted plausibility checks and investigations

• Improves transparency, the integrity of products AND respects the

confidentiality of data

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www.organic-services.com | www.check-organic.com a service offered by 9


General

• Information is based on

– Certification information gathered from CBs

– Transaction information gathered from traders

– Internal compliance data gathered by companies

• Information is gathered via Excel upload, manual input or interface (XML web-service)

• All product information is based on a harmonized product nomenclature (matching regulatory, e.g. USDA taxonomy) allowing for data mapping in a multi-lingual data source

• B2B approach, access requires registration

• User pays according to licensed modules, tonnage traded and complexity of services booked

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Internal and CB Compliance

- Production data

- Inspection data (electronic checklists)

- Audit data

- Non-conformities

- Deadline management

- File upload

- Export and interfaces

Supply Chain Management

- Single Operator Verification and Lists

- Supply Chain Monitor/ Mapping

- Volume Monitor/ Mass balance

- Transaction Monitor

- Show certification status in traffic light (e.g. in combination of internal and external standard)

- Batch traceability

Data exchange

Interface to internal ERP system

- Data entry through interfaces

Document/ file upload

- Data entry internal

- Data upload external (customer portal, .xls)

Notification services

- Push mails

- Deadline management

Data exchange and functionalities

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1. Login

2. Operator/ contact master data

10. Notification services

5. Verification single and lists

6. Supply Chain Monitor/ Mapping, Dashboard, Filter

7. Supplier Volume Monitor

8. Transaction Monitor/ Mapping, Dashboard, Sales & Purchase Analysis, Filter

4. Internal audit management

3. Document/ file upload

9. Batch traceability

Check Organic Integrity Tools and external databases

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Enterprise Resource Planning System ERP

Organic Integrity Databases, e.g. NOP

Certifier databases

Other databases

11. Data exchange*

*Data is exchanged via customer portal/ web-form, Excel upload and interface/ web-service


1. Log-in


2. Operator/contact master data


3. Document/ file upload


4. Internal audit management/ checklist


4. Internal audit management/ deadline, non-

conformity, corrective action management


4. Internal audit management

• Allows the user to operate company internal and supplier audits

• Covers the complete audit process (work flow) from entering the findings

and results from the audit using electronic checklists

• The audit/ approval status may be displayed in the traffic light system

• An external certification status may be displayed next to the internal

status in traffic light system

• Management of deadlines, non-conformities, corrective actions and any

other issue which needs follow up

• Many other functionalities including reports and analyses


4. Internal audit management/ status


5. Verification (single search)

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5. Verification (list, static)

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5. Verification (single or list of suppliers)

• For CBs and companies: Find single suppliers by searching for number,

name, product, CB. See information about certification (standard, CB,

status, validity)

• For (CBs and) companies: Set up lists of supply chains and add suppliers

to each list. See information about status in traffic light. Sort by status

(colour of traffic light). For CBs: review these lists during inspection.

• For companies: Receive information via e-mail in case the status or the

scope of certification for a supplier changes

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6. Supply Chain Monitor/ Mapping

• The user can map supply chains by simply adding suppliers and sub-suppliers (as

far as the supply chain is known) manually (static).

• In case certification information is available in the system (from the respective CB)

the certification status is displayed through traffic light system.

• Real time updating of the certification status by CBs in their own databases allows

for an up to date visual (traffic light) about certification statuses of suppliers.

• All data are exportable to Excel.

• This functionality is already operational as FairMonitor with FLOCERT, the global

certifier for the fair trade system of FLO.

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• The full supply

chain is displayed

including traffic

lights

• Detailed supplier

information is

listed when

double-clicking on

single operator


6. Supply Chain Monitor/ Dashboard

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The dashboard provides an easy overview about certificates pending or withdrawn


6. Supply Chain Monitor/ Filter

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The function allows to filter a

specific supply chain, a

storage or supplier level


7. Supplier Volume Monitor• Certification data is one core element of the system. Data is gathered from CBs and national

platforms, e.g. the USDA Organic Integrity Database.

• The second core element is data from participating traders. Traders may provide data via

interface/ web-service from their ERP system. Smaller operators may input transaction data

manually (customer portal) or upload an Excel file.

• Based on transactions the mass balance is calculated per trader in real time and is displayed

as integrity status.

• The traffic light system shows the certification and the integrity status (balance of

quantities produced and/ or traded).

• This functionality is already operational with FEDERBIO Integrity Platform, FIP. FEDERBIO

is the umbrella association of the organic industry in Italy.

• All transactions are documented. The supply chain map is created dynamically.

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7. Supplier Volume Monitor/ traffic lights

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150630_AöL Präsentation Beispiele aus CHECK ORGANIC FIP.pptx - Verknüpfung.lnk


7. Supplier Volume Monitor/ Mapping

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Organic Grain Export UA’s

supplier details chosen as

example on next slide


7. Supplier Volume Monitor/ Organic Grain Export UA –supplier overview with certification and integrity status

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7. Supplier Volume Monitor/ OS_Farmer Artem – Account of available (released) and delivered quantities

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There is a slight over-delivery, which caused the traffic light to turn red. When farmer, buyer and certifier are notified, they can check the reason and take appropriate steps, e.g. the certifier releases a higher quantity turning the traffic light automatically green.



Supercheap Offer’s supplier

details chosen as example

on next slide


7. Supplier Volume Monitor/ Supercheap Offer – Supplier overview

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OS_Farmer Harry• All products: Certification status is invalid (withdrawn), certification status of all

crops and integrity status is automatically invalid

OS_Farmer Eva: • Overall

certification status is yellow (durum wheat has an invalid certification status)

• Overall integrity status is yellow (delivery amounts durum wheat, soybeans and sunflower seeds too high



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Comparison of Supercheap Offer

‘inventory’ with Organic Grain Trader

‘supplier overview’ on next slide


7. Supplier Volume Monitor/ Supercheap – Inventory vs.

Organic Grain Trader Turkey – Supplier overview

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The integrity status of sunflower seed is automatically turning red at both companies because of divergence in quantities; after notification the certifier can clarify the situation – if positive, the status turns green again.



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‘Supplier overview’ of Organic

Grain Import GmbH on next slide


7. Supplier Volume MonitorOrganic Grain Import GmbH – Supplier overview

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Integrity status of all crops is yellow due to the certification and integrity issues of sub-suppliers,

alerting the “last in the chain”, that there are problems to be followed-up.


8. Transaction Monitor

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• All transactions can be documented based on delivery notes. Actual

transactions and supplier relationships are analysed, and the supply chain

is created dynamically.

• The dashboard summarizes all transactions in one view and shows a

graphical display of traded volumes per product. Each transaction is listed

in the respective tables for sales and purchase transactions.

• All transactions can be filtered and analysed using individual criteria

(time, supplier, product group, etc.).

• Other than for the Supplier Volume Monitor no mass balance is calculated

and thus no integrity status displayed.


8. Transaction Monitor/ Dashboard

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8. Transaction Monitor/ Purchase & SalesAnalysis

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8. Transaction Monitor/ Dynamic Mapping

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Based on delivery

notes the supply

chain map is

created

dynamically.


9. Batch traceability

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Batch Traceability is

another module that can be

integrated into Check

Organic, but is offered

through partnership with

an external service provider


10. Notification service

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• Mail notifications are part of the information system between operators

along the supply chain and with certification bodies.

• Mails are generated automatically by Check Organic.

• Push mails are sent in case of changes, e.g.

– certification status,

– change of products

– integrity status and

– any other necessary need for keeping parties informed.


11. Data exchange

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• Interfaces/ web-services can be programmed for any purpose, e.g. to

– Enterprise Resource Planning (ERP) systems

– Organic Integrity Databases, e.g. NOP, Check Organic, certifier

– Batch Traceability systems

– Other databases

• Other ways of data exchange is through

– Customer/ web portal with manual data entry

– Excel file export and upload


Contact

Gerald A. Herrmann, Directormobile: +49 177 [email protected], www.check-organic.com, www.group-integrity.com

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mailto:[email protected]

http://www.organic-services.com/

http://www.check-organic.com/

http://www.group-integrity.com/

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