"Red October" traces deliveries of Alenka using QR codes

2019: Ensuring traceability of delivery of Alenka using QR codes

On November 5, 2019 it became known that the Red October company implemented the project on ensuring traceability of the products from factory to the buyer.

As of November, 2019 the total amount of products which are turned out by Integrated Confectioners holding — over 360 thousand tons per year. A permanent problem for the company were unfair distributors and sometimes retail chain stores which violated sales terms of products and sold goods not where agreed. Therefore shareholders set the accurate object — to construct transparent model of distribution. It was necessary to know precisely where and as products get. Criteria were simple: minimum increase in product cost, lack of deterioration in its quality and preserving of volumes of its production. After a set of experiments in holding decided to use drawing unique QR codes, and for consumers mobile application that they could understand too where and when products are made was developed.

For project implementation chocolate as it has standard geometrical forms was selected and on it it is easy to place the QR code. At the same time selected the line of production of Alenka chocolate because it already has the maximum automation and almost ideal conditions. No other products could be coded because of their irregular shape and poorly automated equipment, noted in holding.

The bench tests which are carried out "Global Printing Sistems" showed that it is enough to customer to remake design of primary and secondary packagings. But when case reached balancing and commissioning, real conditions of production introduced the amendments. Vibration, insufficient illumination, pollution of optics of video cameras packaging microparticles because of their close (no more than 3 mm from a surface) arrangements to the tiles moving by, instability of motion speed of conveyer belts that is noncritical for production, but is very critical for printing and reading of the QR code of 1.5 × 1.5 cm in size on the tile which is "flying by" by with a speed of 1.2 m/s (5 tiles/sec.) — all this demanded additional technical solutions, replacement of earlier selected equipment by more expensive.

It was possible to transfer printing of codes to printing house, but it would not solve the main problem: how to read out codes at such speed on real production. One more feature of the project — the requirement of respect for the principle of "nested doll" which should provide determination of all identifiers primary and secondary packagings by the identifier of secondary packaging of the top level. So it is insufficiently simple to apply the code on a tile, it is necessary to do it at each stage of packaging with preserving of all communications. Chocolate bars at first pack to show boxes — cardboard boxes. Several show boxes with the identifiers are already a part of a box. Several tens of boxes, in turn, are a part pallets. A system should save information on all "nested doll". Therefore it was necessary to create and print branching codes of aggregation for show boxing, a box and so on.

The holding noted that it was required to provide use of additional printers and readers at each stage of packaging that led to rise in price of the project. But the company managed to achieve the minimum technically achievable indicator of loss of information — no more than 1% of data on all turned-out products.

In holding did not go on the way of drawing unique QR codes to printing houses. First, printing houses are not ready to it, secondly — it raises the price of the label, and it is inadmissible in production of food products. Thirdly, the main loss of information (not read out QR code) happens at not reading of the code because of mechanical damages of the label by production and, especially, during the transporting and sale of goods in shop. Fourthly, it is all the same necessary to put printers for printing of codes of aggregation.

According to holding, as a result the actual number of not read out codes appeared equal 2-3%. From them 1% are losses by production, and 1-2% are lost until the goods reach the buyer. But to trace a way of goods from factory to the consumer, such accuracy more than is sufficient, consider in holding.

As of November, 2019 capital costs made about 83000 euros (about 6 million rubles), operating expenses make about 62000 euros (4.5 million rubles) a year on 9 thousand tons of products. Thus, introduction to the system of one QR code cost 5 kopeks. Additional costs on personnel and expenses at a log operator in total added 2 more kopeks.

The holding did not begin to replicate the solution as it will significantly increase project cost and will in addition bring nothing. If the company makes at least one more goods with such codes, then it is necessary to transfer all system of printing of codes of aggregation to a log operators. During the made experiment the operator only reported what aggregated code he sent to what consumer. But also it takes for it from holding money and if he should make and enter unique codes into a system, it will significantly raise its costs and costs of factory.

The holding considers that the experiment quite was repaid and it will be useful to any large producer of food products. But considered to expand it for other types of products at factory inexpedient.^[1]

Notes