Goods reception

Transfer of responsibility for products at Ex Works delivery terms

The responsibility for the products is transferred when the seller has made the product available for the buyer in accordance with the agreement.

Unless otherwise agreed, the buyer is responsible for loading of products.

The buyer is liable for any risk of loss or damage to the products from the time the products is placed at the buyer’s disposal.

Valid pallets

This is an animation that show what pallets are valid for distribution.

Requirements specifications can be downloaded here:

Requirements for approved EUR-pallets
Specification for reusable 1/1 plastic pallet
Specification for reusable 1/2 plastic pallet
Requirements specification for reusable 1/3 plastic pallet (from NLP)
Specification for reusable 1/4 plastic pallet
Requirements Specification reusable 1/2 wooden pallet
Requirements specification for 1/3 and 1/2 disposable cardboard pallet

The establishment of bilateral agreements for the assessment of shelf life

The risk of food waste is related to the remaining shelf life of a product. To avoid food waste, the players in the grocery industry have agreed to exhibit flexibility in the value chain to handle minor deviations in assessment of shelf life. This is done by establish bilateral agreements.

Bilateral agreements will contribute to more flexible assessment of shelf life, thereby reducing food waste in the value chain (manufacturers, distributors, retailers), considering specific and specific conditions, such as geographical distance to customer / market, and volume of sales.

The grocery industry has defined a table for the assessment of total shelf life, based on a three-division between manufacturer, distributor and retailer / consumer. The table prepared for this applies unless otherwise agreed bilaterally.

For products with short shelf life (42 days or less), conditions such as distance to the market and volume of sales will be decisive for determining optimal assessment of shelf life.

• For products with shelf life between 17 and 42 days it is encouraged to consider establish bilateral agreements
• For products with shelf life below 17 days there shall be established bilateral agreements

How to establish bilateral agreements
The assessment of shelf life as stated in the table is the basis for the bilateral agreements.
All parties can initiate bilateral agreements based on expected potential for reduction of total food waste.

Description of how the risk will be shared should be included in the agreements.

Measuring consumed shelf life in the value chain is an instrument for securing facts and monitoring development.

Some examples of situations where it may be appropriate to establish bilateral agreements:

• Deviant date from the table

One example of reducing waste for products with short shelf life is that a supplier in the eastern part of Norway establish a bilateral agreement with a customer regarding a better date than is stated in the table for deliveries to, for example, northern part of Norway, while for example a customer in the middle and western part of Norway receives deliveries according to the table and with the possibility of deviating dates for smaller volumes for deliveries to the southern and eastern part of Norway.

• Divergence date in the beginning of the week

Products delivered at the beginning of a week is quickly reaching the distributor / distribution centre and the retailer before the weekend and is less prone to simple date deviations. Similarly, it is less appropriate to deliver products with “last day according to STAND” or with date deviations on Fridays, if they will not be received by distributor / distribution centre before Sunday evening / Monday.

• Deviant date for promotions

In advance of a promotional period, a delivery agreement with a few day date deviations may be applicable, as these products will have higher turnover than usual for the distributor / distribution centre and at retailers. To reduce the risk of increased drop by lower turnover than usual at the distributor / distribution centre and at retailer at the end of the promotional period, a better date should be provided than indicated in the table.

• Product / value chain specific assessments

Depending on the product / value chain, it may be advisable to redistribute days. For example:
Product with uneven turnover at retailers and / or a lot of waste at retailers.
Here it may be advisable to redefine days from supplier and / or distributor to retail days.
Product with steady turnover at retailers and / or a small amount of food waste.
Here it may be advisable to redefine days from retail and / or distributor to supplier.

Complaints by Ex Works delivery terms

The buyer shall make a complaint about errors or defects in the products within a reasonable time after the error or defect is discovered or should have been discovered.

Seller who claims that the complaint deadline has been exceeded must do so immediately after the complaint has been received.

The buyer may require replacement, redeployment, price reduction, etc. pursuant to the provisions of the applicable law (Kjøpsloven).

All errors and defects must be based on the things that the seller is responsible for.

Purpose of labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU)

The purpose of a standard for labelling of Stock Keeping Unit (SKU) and Distribution Unit (DU) with subsequent electronic data interchange (EDI) is to:

• Achieve an efficient flow of products from manufacturer to consumer
• Ensure traceability through the value chain, which is important in case an event or crisis occurs which requires a recall or withdrawal of the product

The basis for this is the labelling of each Distribution Unit (DU) with a unique SSCC.

This code is the main key in the electronic Despatch Advice and is linked to information about which GTIN which the Distribution Unit (DU) consists of, the number of Stock Keeping Units (SKU) batch / lot number and shelf life information if applicable.

SSCC is the most important key for traceability of Distributions Units (DU), see Recommended way to track and trace a product in the value chain.

For that reason SSCC shall not be reused until after a minimum of 6 years.

Recommended way to track and trace a product in the value chain

Efficiency and traceability are achieved primarily through:

• Synchronization of product information between the various parts in the value chain.
  The purpose is for all players to obtain correct and coherent product information about the products. Between suppliers and retail chains in the Norwegian groceries sector the EPD database is used for the registration, quality assurance and distribution of product information.

• Electronic Data Interchange (EDI) between the actors.
  The purpose is to reduce manual operations and reduce lead time in the value chain. The most widely used EDI messages are order, order confirmation, Despatch Advice and invoice.

• Standardized labelling of outer packaging.
  The purpose is to contribute to faster and more efficient shipping, distribution and receipt of the products. A common labelling concept for the grocery industry is used here; GS1-128.

To ensure rational product and information flow in the distribution chain, STAND recommends a uniform labelling of Stock Keeping Units (SKU) and Distribution Units (DU).
This simplifies the labelling of the manufacturer / supplier, shipment by shipper / freight forwarders and merchandise at distributor / store.

This labelling concept also applies to types of transport units other than pallets.

For fish and fish products, the following applies:
STAND has decided to refer to Norwegian Standard NS17099:2020 “Information technology — Fishery and aquaculture products — Requirements for labelling of distribution units and pallets in the trade of fishery and aquaculture products” for products that fall under this category. This standard replaces todays NS9405: 2014 “Fish and fish products. Requirements for labelling of distribution units and pallets in the trade of fish and fish products», and is valid as from 30. September 2020.

It can be ordered from Standard Norway.

Guidelines for labelling of Stock Keeping Units (SKU)

Type of bar code symbol
When labelling with bar code on Stock Keeping Units (SKU) GS1-128 bar code shall be used.

Identical information
Same information (GS1-128 AI) should only occur once per label.

Size and design of labels
Since the shape and size of the Stock Keeping Units (SKU) is highly varied, size and design of the label may also vary.

Quality of labels
It is a prerequisite that the labels are readable throughout the value chain for the entire life span of the unit. Therefore, the quality of GS1-128 bar codes must minimum fulfill print quality with “Grade C” according to standard ISO / IEC 15416.
To achieve “Grade C” when reading, “Grade B” or better is recommended at printing.
Quality of labels and bar codes can be verified at GS1 Norway.

Placement of labels on Stock Keeping Units (SKU)
It is recommended that the Stock Keeping Units (SKU) is labelled on two sides.
If labelling can only be done on one side, the label on the Stock Keeping Unit (SKU) must be on the same side as one of labels on the pallet (consistent orientation).

By column stacking the Stock Keeping Unit (SKU) label will be oriented towards one pallet label (either on the short or long side of the pallet).

By bond stacking (like bricks) the Stock Keeping Unit (SKU) label could be oriented towards the two labels of the pallet. That is, both on the short and the long side of the pallet.

Bar codes
The following recommendations apply to GS1-128 bar code symbols:

• The orientation of the bar code should be such that the bars are vertical (picket fence).
• Size factor is in the range of 25 to 94% of nominal size.
• The minimum bar code height is 13 mm.
• Minimum 5 mm height on human readable text.
• The location of the bar code should be such that the bottom of the bar code is about 32 millimeters from the bottom of the Stock Keeping Unit (SKU).
• The bar code symbol included quiet zone (margins), must be at least 19 millimeters from a vertical edge to avoid damage to the label.
• If the height of the Stock Keeping Unit (SKU) is less than 50 mm, the bar code should be placed as high as possible and information to be written in plain text can be placed to the left of the bar code

Placement of bar code symbols on the Stock Keeping Unit (SKU)

Placement of bar code symbols on Stock Keeping Units (SKU) with height less than 50 mm

Product information on Distribution Unit (DU), with example of Distribution Unit (DU) label

The standard differs on different types of pallets depending on the content.

Only Standard pallet and Promotional Unit can provide a clear labelling of product information that applies to the entire pallet.

Standard pallet
A Distribution Unit (DU) containing the same product (same GTIN) with fixed count of Stock Keeping Units (SKU) and where labelling of unique product information on the Distribution Unit (DU) is possible.

It is recommended that a Standard pallet only contain Stock Keeping Units (SKU) with the same batch / lot number and shelf life date.

There are two different types of Standard pallet:

• Standard pallet with height 120 cm
• Standard pallet with height 60 cm (Standard Pallet – Low)

Standard pallet – Low is used for low-frequency products and for products with short shelf life.

A product can only be used on one type of Standard pallet, either 120 cm height or 60 cm height.

Standard pallet with height 120 cm

Standard pallet with height 60 cm (Standard pallet – Low)

Standard pallet shall be labelled with product and transport information.

Since product information and transportation information are usually known at different times, the practical solution is to label the device with two different labels:

1. Product information label (incl. SSCC)
2. Label with transport information

Product information on the GS1 product label for Standard pallet

SSCC (License Plate)
Must be labelled with GS1-128 AI 00 on the GS1 Product label on each Standard pallet in human readable text and in the bar code. The SSCC provides a unique identification of each Distribution Unit (DU). Because of traceability a SSCC shall not be reused until after a minimum of 6 years.

The bar code containing the SSCC should be the lowest bar code on the label. It is recommended to have a bar code containing only the SSCC and no other AI’s.

GTIN – Global Trade Item Number
Standard pallet must be labelled with GTIN. This can be done in the following ways:

• Primarily, GTIN for the Stock Keeping Unit (SKU) should be used
• GS1-128 AI 02 must be used. The count of Stock Keeping Units (SKU) is also required on the Distribution Unit (DU) using GS1-128 AI 37
• The Distribution Unit’s (DU) own unique GTIN can also be used, using GS1-128 AI 01.

Product name
The product’s name must be written in human readable text on the Distribution Unit’s (DU) product label. Product name must be based on the text in the Norwegian grocery data pool – EPD database, and consists of product name, attributes, and product description. The product description labelled on the Distributions Unit (DU) must correspond to the text in the Despatch Advice and the invoice.

Batch / lot number.
GS1-128 AI 10 is generated by the manufacturer and used to track the product back to specific production series.

If all Stock Keeping Units (SKU) on the pallet have the same batch / lot number, this is indicated on the label in human readable text and bar code. If the pallet contains Stock Keeping Units (SKU) with different batch / lot numbers, batch / lot number is omitted on the label. However, all unique batch / lot numbers must be stated in the electronic Despatch Advice.

Shelf life information
GS1-128 AI 15 should be labelled on all Distribution Units (DU) that contain Consumer Unit (CU) with “Best before date” printed on them.
Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

Net weight (in grams)
GS1-128 AI 3103 shall be used for variable measure products. Net weight means weight of product excluding packaging (the same weight that is being invoiced).

Gross weight (in whole kg)
Shall be labelled in human readable text on each Distribution Unit (DU). Gross weight means weight of products, packaging and pallet (load carrier).

Max. top load (in whole kg)
Must be labelled in human readable text.
Distribution Units (DU) that can not be stacked (in transport or storing) are marked with: Cannot be stacked (Kan ikke stables).

Temperature requirements
shall be labelled in human readable text if the product has a temperature requirement.

Product labelling on Standard pallet

Example on the GS1 product label for Standard pallet

Promotional Unit

A Unit defined as a Stock Keeping Unit (SKU) containing a fixed number of Consumer Unit (CU), intended for display in stores.

Promotional Unit can be 1/1 pallet, 1/2 pallet or 1/3 pallet.

Each Promotional Unit has its own load carrier.

Promotional Unit consisting of 1/2 pallet or 1/3 pallet are placed on a slave pallet. This constitutes a transport unit.

If slave pallet is omitted, this must be agreed bilaterally. For example, for 1/2 pallets with good stability, they can be tied together and exclude the slave pallet. This allows for better use of the pallet by increasing the Promotional Unit, thus allowing more items on the pallet.

Promotional Units are labelled with two levels of SSCC:

• At the lowest level is labelled with Product label for Promotional Unit as a Stock Keeping Unit (SKU) with the addition of SSCC. The product label is labelled on each Promotional Unit.
• The whole Promotional Unit is labelled with Standard shipping label for the groceries sector. If the Promotional Unit is a 1/1 pallet, this is labelled as a Standard pallet.

Labelling of Promotional Units provides increased traceability in the value chain

Product information on the GS1 product label for Promotional Unit

SSCC (License Plate)
Must be labelled with GS1-128 AI 00 on the GS1 Product label on each Promotional Unit in human readable text and in the bar code. The SSCC provides a unique identification of each Distribution Unit (DU). Because of traceability a SSCC shall not be reused until after a minimum of 6 years.

The bar code containing the SSCC should be the lowest bar code on the label. It is recommended to have a bar code containing only the SSCC and no other AI’s.

GTIN – Global Trade Item Number
Promotional Unit must be labelled with GTIN. This can be done in the following ways:

• Primarily, GTIN for the Stock Keeping Unit (SKU) should be used
• GS1-128 AI 01 must be used

Product name
The product’s name must be written in human readable text on the Distribution Unit’s (DU) product label.  Product name must be based on the text in the Norwegian grocery data pool – EPD database, and consists of product name, attributes, and product description. The product description labelled on the Distributions Unit (DU) must correspond to the text in the Despatch Advice and the invoice.

Batch / lot number
GS1-128 AI 10 is generated by the manufacturer and used to track the product back to specific production series.

If all Stock Keeping Units (SKU) on the Distribution Unit (DU) have the same batch / lot number, this is indicated on the label in plain text and bar code. If the Distribution Unit (DU) contains Stock Keeping Units (SKU) with different batch / lot numbers, batch / lot number is omitted on the label. However, all unique batch / lot numbers must be stated in the electronic Despatch Advice.

Shelf life information
GS1-128 AI 15 should be labelled on all Distribution Units (DU) that contain Consumer Unit (CU) with “Best before date” printed on them.
Consumer Unit (CU). Alternatively, the expiration date (GS1-128 AI 17) may be used for shelf life marking.

Net weight (in grams)
GS1-128 AI 3103 shall be used for variable measure Stock Keeping Units (SKU). Net weight means weight of product excluding packaging (the same weight that is being invoiced).

Gross weight (in whole kg)
shall be labelled in human readable text on each Distribution Unit (DU). Gross weight means weight of products, packaging and pallet (load carrier).

Max. top load (in whole kg)
must be labelled in human readable text.
Distribution Units (DU) that can not be stacked (in transport or storing) are marked with: Cannot be stacked.

Temperature requirements
shall be labelled in human readable text if the product has a temperature requirement.

Product labelling on Promotional Unit 

Example of Stock Keeping Unit (SKU) label with SSCC for Promotional Unit

Units where product information can not be entered on their own label

Mixed pallet
Two variants of Mixed pallets are described; with and without intermediate pallet.
On Mixed pallet it is not possible to enter product information on its own label.

Mixed pallet without intermediate pallet:
Pallet consisting of several different products.

Mixed pallet with intermediate pallet:
Pallet consisting of several different products, where each product is stacked in one or more layers, and where each different product is separated by an intermediate pallet.

The choice of type of mixed pallet depends, among other things, on handling costs, transport / environmental costs and storage technology and must be agreed bilaterally between the parties.
Packaging and stability of the Stock Keeping Unit (SKU) must be considered when choosing type of a Mixed pallet.

If intermediate pallet(s) are used, it shall always be ordered the amount of Stock Keeping Units (SKU) to complete a layer.

Mixed pallet (both with and without intermediate pallet) is labelled with Standard shipping label for Norwegian grocery sector.

Customer packed pallet

When a supplier assembles products for delivery to the final recipient, the products are packaged and labelled with SSCC at two packaging levels.

Customer packed units are labelled for delivery to the end-user and the Distribution Unit (DU) is labelled for delivery to the transit warehouse.

On Customer packed units it is not possible to enter product information on the Distribution Unit (DU) label.

A customer-packed pallet can be Customer packed unit – multiple route, multiple customers, Customer packed unit – single route, multiple customers, or Customer packed unit – single customer.

• Customer packed unit – multiple route, multiple customers is a unit of products for two or more end recipients that will be split in transit storage.
• Customer packed unit – single route, multiple customer is a unit of products for two or more end recipients on the same route or transport.
• Customer packed unit – single customer is a unit of products that are intended for only one end recipient.

This Customer packed units does not need to have its own load carrier and is being loaded on a standardized transport unit (for example, an EUR pallet).

Customer packed unit – multiple route, multiple customers and Customer packed unit – single route, multiple customer is stacked in columns per. end receiver.

Customer packed unit – multiple route, multiple customers is split after products receipt in the transit warehouse, and the individual Customer packed unit is forwarded to the final recipient. A prerequisite is that all Customer packed units located on one Distribution Unit (DU) are destined for the same transit warehouse.

Bar code requirements for labelling with GS1-128 on Distribution Units (DU)

Bar code label with GS1-128 bar codes shall be done according to GS1 General Specifications Chapter 5.4.

Note in particular:

• Size factor is in the range of 50 to 94% of nominal size.
• The minimum bar code height is 32 mm.
• When labelling GTIN (AI 01 and AI 02) always use 14 digits.
  When GTIN has 13 digits, you must enter a leading 0 (ex. 07038010000065).
• For bar code labelling with GS1-128, a separator, called Function Code 1 (FNC1), is used between the individual information elements (AI’s).
  This applies except for the AI’s that have predefined fixed length.
  The following AI’s in this document have predefined length AI 00, AI 01, AI 02, AI 15.
• It is recommended to have the AI’s to be followed by FNC1 at the end of the bar code, as the FNC1 code may be omitted.
• It is important to the requirements for quiet zone (margins) to be adhered to.
  At size factor 50%, the right and left quiet zone margin is 5 mm, and at the size factor 94% the quiet zone margins are 9.4 mm.

Requirements for the design of the Distribution Unit (DU) and palletization

The Distribution Unit (DU) is the unit the Stock Keeping Units (SKU) is stacked on / packed in for transport to distributor.

Design of a Standard pallet (Standard pallet and Standard pallet – Low)

A Standard pallet must contain the same product (same GTIN) with a fixed number of Stock Keeping Units (SKU), in a fixed pallet pattern, with equal number of Stock Keeping Units (SKU)on each layer, and where labelling of unique product information on the Distribution Unit (DU) is possible.

The pallet structure shall contain as little excess volume of “air” as possible.

Standard pallet
Maximum pallet height must be 1200 mm incl. pallet. All pallets with total height above standard 1200mm with maximum height of 1250 mm to be agreed bilaterally between supplier and their customers.

Tolerance limit for existing products is 1249 mm.

Standard pallet – Low
Maximum pallet height shall be 600 mm incl. pallet.
Standard pallet – Low is used for low-frequency products and for products with short shelf life.

Principles for the construction of a palletpattern, central in calculation of top load weight, ref Top load labelling system.

When creating a pallet pattern, the following applies:

• A packaged Distribution Unit (DU) must be form stable and handling-friendly
• A Distribution Unit (DU) shall withstand regular transport, handling and storage through the value chain
• For single article Distribution Units (DU), all layers must contain the same number of Stock Keeping Units (SKU), and in a fixed pallet pattern
• Requirements for equal number of Stock Keeping Units (SKU) on each pallet / identical layer from pallet to pallet, with the possibility of variation between the layers
• The pallet should not have overhang
• The Stock Keeping Unit (SKU) should be placed on the pallet as it is exposed in the store
• Do not glue between pallet layers or between Stock Keeping Units (SKU) in the same pallet layer
• If a transport label or product label is attached directly to Stock Keeping Unit (SKU), the label must not overlap between 2 Stock Keeping Units (SKUs), either horizontally or vertically
• All pallets with total height above standard 1200mm with maximum height of 1250 mm to be agreed bilaterally between supplier and their customers.

Types of pallet pattern

When constructing Distribution Units (DU), the Stock Keeping Unit (SKU) must be placed in accordance with a given pallet pattern. These are referred to as bond stacking and column stacking. Pallets can also be built as a combination of bond stacking and column stacking.

Bond Stacking
Bond Stacking means that the units on every other layer are different, thus locking each other to a greater or lesser extent, but it reduces the compressive strength by approx. 40%.

Example of good pallet utilization and stacking with bond stacking, for good stability.

Column Stacking
Column stacking means stacking packages on top of each other without overlapping with other packages. This form of stacking gives maximum strength in terms of pressure load due to that the corners have better roll stiffness than the sides, but the stack gives poor stability without additional use of shrink wrap, strap, ribbon or similar.

Example of column stacking in the lower pallet layers, and bond stacking on the top layer. Combining the different stacking methods achieves good stack strength on the lower layers while the pallet is locked on top.
This is often a good alternative to intermediate pallet sheets.

Use of plastic to secure the pallet through the value chain

• Shrink / stretch film must not be so tight that the packages are deformed
• Shrink / stretch film must be tight around to the pallet
• No tail of plastic must hang loose
• Shrink / stretch film must not cover the fork lift openings on the pallet
• Shrink / stretch film must not be fastened around the pallet blocks

Use of intermediate pallet sheets
Intermediate pallet sheets must be minimized and used only if this is necessary to ensure quality and transportability of the pallet.
Intermediate pallet sheets are preferred if the alternative to this is intermediate cartons, “Ears” on the Stock Keeping Unit (SKU) or use of corner trims.
Where intermediate pallet sheets are used, the following requirements apply:

• The pallet sheet to be used for standard euro pallet should have dimensions of 750 mm * 1150 mm, ie 50 mm less than the length and width of the current load carrier
• The pallet sheet must be of rigid cardboard or corrugated cardboard.
  • The stiffness of the pallet sheet must pass the following test: If the short edge of the plate hangs 500 mm from a flat surface (eg a table), the pallet sheet must not bend down more than 50 mm, see illustration below
• No more than one intermediate pallet sheet between each layer
• The intermediate pallet sheet must not be fastened and be flat
• Only a whole intermediate pallet sheet, i.e. without holes or perforations, shall be used
• In case of questions, one is encouraged to contact the packaging supplier

See also Automated storage at distributor – greater understanding of the depalletization process

Example of intermediate pallet sheet that does not meet quality requirements. The intermediate pallet sheet is a thin paper and is not suitable for automatic warehouse systems

Example of what happens when using “thin paper” intermediate pallet sheets.
The sheet is hanging down in the robot. It blocks for sensors that check that the layer is separated from the rest of the pallet. The robot will stop, and manual error correction must be carried out before the machine can be restarted.

Example of pallet with intermediate pallet sheets, too big – hanging on outside the pallet.
Is not suitable.

Intermediate pallet sheets with holes. Is not suitable.

Endringslogg

Guidelines and routines for tracking, recall and withdrawal

In its framework, STAND has defined guidelines, recommendations and best practices for how products should be marketed in the distribution chain, and how information on this should be exchanged between the parties.

Central to this is the consideration of the consumer and his expectation for safe food.

The guidelines for tracking, recall and withdrawal do not define food quality requirements, but describe what procedures and processes the industry has established to mitigate any unwanted effects should an incident or crisis occur in a product.

Best practices

The guidelines describe best practices in this area.
By following STAND’s framework, the guidelines will be achievable for all parties involved.

Some important prerequisites for best practice.

• Routines and processes must be simple, predictable and intuitive
• Products and deliveries / load carriers must be labeled in a unified, standardized and correct way so that they can be traced through the value chain.
• Product information must be registered in the Tradesolution EPD
• Detailed tracking information must be exchanged digitally between the parties and follow the products through the value chain.
• Action must be taken quickly when an incident or crisis occurs

By ensuring that a total industry complies with STAND’s framework, consumers’ demands and expectations for safe food are fully met.

Objective of the guidelines

The guidelines are aimed at “Contribute to meet consumers’ expectations for safe products”.

Target Audience:

• Anyone who may or will be involved in any recall or withdrawal
• Everyone involved in the production or labeling of products and packaging covered by the guidelines

Products / areas to which the guidelines apply:

• Recommended for food and non-food products, except pharmaceuticals
• Other inputs, plants, animals or foodstuffs
• Materials and articles that are intended to come into contact with, or may affect, inputs or foodstuffs.

Medicines are exempt from the guidelines. Here we refer to separate regulations, not described here.

Certain types of food may be subject to additional regulatory requirements beyond what is described here. An example is the EU’s new tobacco directive (EU 2014/40) which make the requirements for traceability of tobacco products more stringent, but is not described here.

Prepare a Risk Analysis

At the heart of the legislation is the duty of each company to carry out a risk analysis of the health risks the products represent and how the company will relate to this in terms of traceability.

The purpose of the analysis is to reduce / prevent risk through

• Withdrawal of products from the market, or
• Efficient notification or recall of products from consumer

This assumes that the parties are aware of the risks the products may pose and have a preparedness that ensures that they react quickly, correctly and effectively in unwanted incidents. A Risk Analysis should therefore be performed on new products based on an intended relevant incident, so that it can be implemented as quickly as possible should a real incident occur for the product.

The risk analysis consists of three elements that both the government and industry should work on in an equal way:

• Risk Assessment
• Risk Management
• Risk Communication

See more about risk analysis here Design and content of a Risk Analysis.

Product tracking requirements

The legislation requires that each company must have systems to document which products are purchased from each supplier and which customer has purchased the company’s finished products.

This also includes raw materials and other input that are covered by the legislation.

There is no requirement in the legislation for which type of systems to be used for this.

Businesses can practice more comprehensive tracking systems than the minimum regulatory requirements require, but this is either based on self-imposed requirements or agreements with, and orders from the contracting parties.

Tracking means being able to follow the physical flow of goods. This is often referred to as chain traceability, and assumes that all parties meet the requirements and follow the guidelines for tracking.

Tracking takes into account the legal requirements for all parties to be able to trace their products one step forward and one step back in the value chain.

Tracking one step forward:

This means to the address the products are delivered to.

An invoice system containing information about item number / item name, customer number / customer name and invoice date is sufficient to be able to trace one step forward in the value chain.

If the company is using batch/lot numbers for their products, this should be included in the invoice, despatch advice and the like, or linked directly to the company’s own systems.

Tracking one step backward:

This means the address from which the products are delivered.

The company must keep a log of received products describing which products were purchased from whom and in which quantitiy, and date.

If the addresses for where products are delivered from or delivered to are not in accordance with the legal ownership of the products and the invoice process, this should be agreed separately between the parties.

Actions to be made in case of an incident or crisis

Alarm / Notification

An incident can occur in all steps of the value chain, at the consumer, retailer, distributor or at the supplier itself. It is important that the supplier is notified as soon as possible.

Notification of an incident shall be given to one alert point at each operator. The alert point should be agreed in advance and always be staffed / available.

The industry has decided that for products registered in the Tradesolution EPD base, Tradesolution ReCall portal should be used for blocking, recall or withdrawal. Access is available at epd@tradesolution.no

For products not registered in the Tradesolution EPD base, a Notification schema for recall, withdrawal or blocking of a product may be used provided that this has been agreed between the supplier and the distributor/wholesaler. Notification schema can be downloaded from Downloads.

Required information to follow an alarm / alert

To identify the scope of the alarm / alert, the product’s GTIN / EPD, best before date, batch / Lot number and SSCC on affected pallets must always be stated. This applies regardless of whether the product is registered in the Tradesolution EPD base or not.

By using the portal, the supplier gets / is secured

• Easier, faster and more efficient registration, as well as quality assurance of the necessary product information
• Ensure that necessary information is distributed quickly and efficiently to all relevant recipients
• Simplifying the dialogue between the parties
• All dialogue and information exchange is done in the portal and can be logged and stored.

Here you can see an animation that shows how a recall can be done in practice, using the ReCall portal.

The ReCall portal can also be used in situations where you want to withdraw products with quality defects.

Distributors have built their own systems and routines for alerting crisis situations and blocking the products at their distribution warehouses and retailers. This is not part of the ReCall portal.

The following routine applies when registering an incident or crisis

1. Register a new case
2. Determine severity and health hazards
3. Notify affected parties / recipients
4. Register distribution and what to do with the product
5. Register tracking information for affected batches / lots
6. Describe further actions to be taken, with press releases and other additional information
7. Closing the case

The practical implementation of the routine is described here Routine when registering an incident or crisis, in the Tradesolution ReCall portal.

Conclusion

Through the guidelines, the industry contributes to satisfying consumers’ demands and expectations for safe products, provided that an overall industry complies with the guidelines.

Should an incident or crisis occur, there are routines and tools that, in a simple, fast and secure way, limit incidental damage.

An accurate and limited recall or withdrawal will be possible.

This reduces costs for all parties in the value chain and minimizes potential reputational loss.

Definitions – Priority target measures

The target measures are based on three important dimensions in the term «service level»:

• Quantity – availability
• Time – reliability
• Administration – security

The priority targets measures should be followed and evaluated continuously with focus on level, trends and development.

Target measures Correct quantity – availability

The target measure “Correct quantity” measures availability as precision in quantity delivered.

Definition:

The quantity ordered is the amount that the customer initially ordered.
Not delivered quantity represents deviations in delivery.

Target measure At the right time – reliability

The target measure “At the right time” measure reliability as precision in delivery time.

The target measure is used to measure compliance with time limits defined in the agreement between the parties.
The target measure can be used along several dimensions in the value chain.
Examples may be if orders are sent at the right time, if order confirmations are sent at the right time, if delivery is picked up at the right time, if Despatch Advice is sent at the right time, etc.

Definition (with example order):

Delayed or premature is determined by whether exchange / delivery is within the agreed time frame.
At Incoterms Ex Works delivery terms, the assessment of the supplier’s reliability is on the supplier’s ramp.
The delivery is received when the order / delivery etc., is acknowledged for.

Target measures Correct Administration – Security

The target measure “Proper Administration” measures security as compliance between what is ordered in the order and what has been delivered and has been invoiced, that is, the correct product without errors and with the correct documentation.

Definition:

Correct administration means that Despatch Advice, shipping notes, invoices etc. are complete and error-free in relation to the delivery.
Only credit and debit notes affecting physical delivery are included in the measurement.
The target measure can also be used to measure the quality of orders from the customer.

Examples of calculation of service level for priority target measures can be found in the document

Examples of priority target measures