Camperdown Dairy International

Loosening the one-child policy and the deadly 2008 melamine contamination of local product have driven continuing high demand for infant formula in China.

But exporting baby formula to China is not open to just any foreign manufacturer.

In 2013, China clamped down on the flood of foreign infant formula companies. Importing manufacturers must provide the Certification and Accreditation Administration of China (CNCA), plus meet a series of requirements under the Infant Formula Milk Powder Production License Examination Rules (2013).

Product inspection, product safety-control and product traceability come under the Infant Formula Milk Powder Production License Examination Rules.

Starting from scratch, Gavin Evans says Camperdown Dairy International took the opportunity to research cutting-edge product ID technologies. This took about 12 months, partly concurrently with gaining Chinese Government accreditation.

“We went on the education journey with several suppliers. Some would just provide the hardware and were saying, ‘Good luck finding a solution on the rest…’ That didn’t work for us. Some provided a total service offering, but it was the Matthews’ offering of a total solution, the flexibility in getting it up and running, and their approach that won it over, along with the knowledge of the team.”

“This is a rapidly evolving area in terms of consumer product, and Matthews provided excellent insight into the market trends around this style of coding and the equipment. They provided the solution for both the hardware — the laser — and the software and cloud-based traceability system through their relationship with Trust Codes.”

“But they were also prepared to share the risk with us and to move this forward on a tight timeframe, which showed their partnering spirit rather than just as an ‘arms length’ equipment supplier.

CAMPERDOWN DAIRY INTERNATIONAL

INDUSTRY:DAIRY
APPLICATION:QR CODE AS A DATA CARRIER FOR SERIALISATION

BACKGROUND

Camperdown Dairy International (CDI) is a vertically integrated dairy business that controls its supply chain from the farm gate, through processing and distribution to the end consumer.

Its state-of-the-art powder facility provides high quality bulk powder and infant formula, which are sold in Australia and exported, mainly to Asia, where demand for Australian products is high.

The business began in 1891 as the Camperdown Cheese & Butter Factory, moving into vertical integration in the early 2010s.

SITUATION

Demand for Australian infant formula remains high in China, resulting from the loosened one-child policy and deadly 2008 melamine contamination of local product. Import opportunities were strengthened by production permits being renewed for only 61% of local formula manufacturers and the new China Australia Free Trade Agreement. However, new strict import guidelines mean foreign manufacturers must provide the Certification and Accreditation Administration of China (CNCA) and meet a series of requirements under the Infant Formula Milk Powder Production License Examination Rules (2013).

Camperdown needed to have strong producttraceability processes in place to meet these guidelines and gain Chinese Government accreditation.

“It was the Matthews’ offering of a total solution, the flexibility in getting it up and running, and their approach that won it over, along with the knowledge of the team.”

— Gavin Evans, General Manager – Powder for Camperdown Dairy International Pty Ltd

While track-and-trace can be achieved through other forms of less-sophisticated serialisation, Camperdown believes this type of QR-laser coding is the most secure, and provides the most upside from point-of-sale, brandprotection and development angles.

The unique, scannable code allows all those in the supply chain to see in the cloud where that product is at any time — from the manufacturer through to the ultimate consumer. As a manufacturer, it gives Camperdown a much better ability to be able to recall product, should that need ever arise. (This is far superior to a static batch code that cannot be scanned, where the manufacturer has to effectively use their own shipping logs to track down product.)

Anti-counterfeiting

The laser technology gives Camperdown depth of information, speed with in-line marking, accuracy to match its manufacturing requirements and supports the business’s growth — all with the confidence they have a secure and difficult-to-reproduce code from an anti-counterfeiting perspective.

Authentication

Authentication can occur throughout the supply chain.

The solution at Camperdown’s factory incorporates in-line validation with a camerabased system, by ensuring each printed code is verified and scannable; it’s then uploaded to the secure Trust Codes cloud.

Using their smartphones, consumers can scan the code to receive information that authenticates the product as genuine; documentation in the menu shows a variety of data, including when the product was shipped providing proof of provenance.

BUSINESS NEEDS

Camperdown wanted a total service offering from the solution provider, encompassing both hardware and software.

With no assurance from the Chinese Government that either they, or a certain solution, would be successful in gaining accreditation, Camperdown looked for a supplier with leading-edge knowledge of market trends and international requirements, a wide range of technologies and strong technical capabilities and support.

The supplier also needed to be flexible and nimble regarding suggesting and implementing different solutions. Once Chinese Government accreditation was obtained, the solution needed to be able to quickly implemented, allowing Camperdown to produce enough volume for export.

PROCESS NEEDS

The coding solution needed to allow full supply chain traceability, from factory to end consumer, and be able to be integrated into Camperdown’s production lines. The code needed to be indelible.

To scan the code, Camperdown wanted the scanning app (via iPhone) to be easily available to minimise any barriers to adoption; they did not want any extra steps in consumers needing to download a specific scanning or proprietary app.

Consumer linkage

Chinese consumers use the scanning capability in the free, highly popular Chinese messaging app, WeChat. Camperdown believes the high scanning take-up rate has been due to its ease, rather than consumers needing to download a separate program. This was another of the key decision makers around the service offering Matthews provided in partnership with Trust Codes.

The solution adds further value to Camperdown by giving the consumer the ability to interact with the manufacturer at POS, as well as allowing Camperdown to continue

Key to working with Matthews was clearly they were the ones who we felt provided a high quality solution — but also were prepared to get in the trenches with us and work through all the processes.”

— Gavin Evans, General Manager – Powder for Camperdown Dairy International Pty Ltd

SOLUTION

Starting from scratch, Camperdown researched cutting-edge product ID technologies over 12 months, investigating a wide range of suppliers.

They chose to work with Matthews Australasia, because of the company’s total hardware and software solution, flexibility in getting it up and running, team’s knowledge and partnership approach.

Working in conjunction with Trust Codes’ cloudbased platform, the solution uses a Matthews’ Solaris scribing laser to mark each tin with a unique, serialised QR code (generated by Trust Codes). Matthews’ production-line software iDSnet integrates with Trust Codes and the advanced Solaris laser scribing system on the production line, to provide Camperdown with an end-to-end solution.

The Trust Code provides advanced cryptographic code generation and fraud-tracking algorithms, as well as the consumer interface.

Using their smartphones, consumers can scan the QR codes on individual formula tins to identify and authenticate that individual product and see its history. Scanned information also shows key data about Camperdown Dairy, Australian dairy products, and how best to consume the product.

OUTCOME

Track and trace

The track-and-trace system’s effectiveness resulted in the Chinese Government accrediting Camperdown to import powdered infant formula. This enabled the Australian manufacturer to sign deals with distributors, with a retail value around $9 billion.

interacting with consumers once they’ve scanned the code and registered.

Camperdown’s positioning as a vertically integrated dairy business that controls its entire supply chain is a point of difference. The scannable QR code instantly brings the company to the consumer, in the supermarket or their home, rather than adding the extra (often not executed) step of consumers looking up websites on their computer later.

Future flexible

Camperdown has found the solution simple to use with the intuitive, user-friendly iDSnet.

The software’s flexibility means the manufacturer can continue maximising its benefits in the future. For example, when Camperdown finishes implementing a new ERP system that will integrate with the coding system, they can extract even more value from in-line processing data.

The solution has allowed new-market entrant Camperdown to quickly build consumer trust, in contrast to its large multinational competitors who have built trust with Chinese consumers over years.

Camperdown was keen to be seen as an early adopter and the technology has now become a key selling point for Camperdown’s new product range. Its distribution partners also see the technology as a point of difference.

Video