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CPSM1 - Foundation of Supply Management - BrainDump Information

Vendor Name : ISM
Exam Code : CPSM1
Exam Name : Foundation of Supply Management
Questions and Answers : 128 Q & A
Updated On : March 20, 2019
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CPSM1 exam Dumps Source : Foundation of Supply Management

Test Code : CPSM1
Test Name : Foundation of Supply Management
Vendor Name : ISM
Q&A : 128 Real Questions

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ISM Foundation of Supply Management

ISM 2018: Institute for provide management declares R. Gene Richter Scholarship Recipients | killexams.com Real Questions and Pass4sure dumps

by means of SCMR workforce · can also 10, 2018

Six outstanding school college students interested in procurement, give administration or provide chain administration are actually one step nearer to their dream careers.

these days, the Institute for provide management, the main no longer-for-income, independent resource for the provide management profession, announced the winners of this year’s R. Gene Richter Scholarships, awarded collectively with the R. Gene and Nancy D. Richter foundation. every student is receiving a $10,000 award ($5,000 for December graduates) to observe toward their senior-yr training in 2018-2019.  ISM made the announcement at its annual international conference, ISM 2018, held in Nashville from might also 6-9. Winners include:

·      supply Edwards, Howard school

·      Taylor Harris, Arizona State tuition

·      Justin Hyrb, Duquesne university

·      Sarah Jonckheere, Michigan State university

·      Abrah Meyer, Iowa State tuition

·      Matt Rowley, institution of Minnesota

“we're completely happy to welcome these college students to our supply management group, and to supply academic, mentoring and networking alternatives to speedy-music their careers. each of them has verified the advantage so as to add value to the give administration occupation, and we can be excited to music their development within the years forward,” mentioned Tom Derry, CEO of ISM.

the entire Richter scholars were invited to attend ISM 2018, the main world conference for the give management career, which is attracting 3,000 contributors this 12 months. they're also now enrolled in a distinct mentoring program, pairing them with each an government and a outdated scholarship winner. Their mentors escorted them to a Richter Awards Presentation Dinner on may 7, where they have been the visitors of honor.

additionally, twelve months after commencement (may additionally 2020) and following completion of real-world adventure, they are going to have the opportunity to take part in an invite best ExecIn: govt software for the executive leadership of the career held similtaneously with the ISM Annual conference.

The R. Gene Richter Scholarship program became based and named in reminiscence of R. Gene Richter, who turned into a galvanizing drive in the box of procurement. Richter was admired for elevating the profession to world-class stature. He led the supply organizations at the Black & Decker company, Hewlett-Packard and overseas business Machines (IBM). For greater information on the R. Gene Richter Scholarship software, consult with http://www.instituteforsupplymanagement.org/Richter or www.richterfoundation.org.

may also 10, 2018

The exact 8 give chain administration certifications | killexams.com Real Questions and Pass4sure dumps

provide chain management is a starting to be field and a delightful profession, as a fresh survey from the affiliation for supply Chain management (APICS) found that 96 p.c of those surveyed had been extremely convinced with their career in SCM, with ordinary ranking of eight.4 out of 10. The survey also found that it pays to get certified. SCM professionals with as a minimum one certification get paid on commonplace 19 percent greater than people who aren’t certified, and those with two or three certifications earn salaries which are 39 p.c and 50 % greater than the median, respectively.

whether you’re already making a career in deliver chain administration, or are looking to damage into the field, here are eight give chain management certifications that can circular out your resume and provides you a leg up against the competition.

  • APICS certified supply Chain professional certification (CSCP)
  • APICS certified in creation and stock management (CPIM)
  • APICS provide Chain Operations Reference (SCOR-P) Endorsement
  • ISM certified expert in deliver administration (CPSM)
  • ISM certified skilled in organisation variety (CPSD)
  • SCPro Council of supply Chain management specialists (CSCMP)
  • SOLE certified professional Logistician (CPL)
  • NCMA licensed knowledgeable Contract manager (CPCM)
  • APICS licensed give Chain knowledgeable certification (CSCP)

    The association for deliver Chain management (APICS) presents three certifications to exhibit your SCM talents. To be eligible to take the CSCP exam, you’ll want three years related event or a bachelor’s diploma or overseas equal. To preserve the certification, you’ll need to earn a complete of seventy five knowledgeable building facets each 5 years. in case your certification isn’t maintained within five years, it will expire earlier than the 10-yr mark and you'll be required to retake the examination. For each year that your certification is suspended, you’ll deserve to put up an extra 15 knowledgeable building aspects.

    exam charge: $695 for Plus individuals, $965 for Core and non-members

    Retake charge: $450

    Renewal fee: $seventy five for participants, $a hundred and fifty for non-individuals

    Expiration: 10 years

    APICS licensed in creation and stock administration (CPIM)

    You’ll should flow two checks within three years to earn your creation and stock administration (CPIM) certification from APICS, and you’ll deserve to hold your certification every five years with the aid of completing seventy five knowledgeable construction features. When because the cost, be aware that you’ll have to pay the charge for both tests — the payment handiest applies to 1 exam at a time. just like the CSCP certification, you’ll deserve to submit an additional 15 facets for each year your certification is suspended if you let it lapse.

    examination payment: $495 per examination for Plus individuals, $690 per exam for Core and non-individuals

    Retake fee: $250

    Renewal fee: $75 for members, $one hundred fifty for non-members

    Expiration: 10 years

    APICS provide Chain Operations Reference (SCOR-P) Endorsement

    The SCOR-P endorsement from APICS validates your capabilities in the deliver Chain Operations Reference (SCOR) mannequin and techniques. The SCOR model is a supply chain approach that helps hyperlink SCM to enterprise goals, metrics, processes and other interior departments and stakeholders. The examination is included within the course, which noticeably covers the SCOR model to aid you apply it to true-life deliver chain issues, assist organizational desires, enhance effectivity, prepare SCOR initiatives and implement methods. 

    exam price: The exam is protected within the course fee, which varies per software

    Retake fee: $350

    Renewal fee: N/A

    Expiration: N/A

    ISM certified expert in supply management (CPSM)

    The Institute for provide management (ISM) presents a professional in supply administration (CPSM) certification that validates your competencies on provide management features across several industries. move three exams so that you can take in any order — to qualify, you’ll want three years of full-time SCM experience able that isn’t clerical or support. To retain and renew your certification after 4 years, you’ll deserve to earn 60 hours of accredited carrying on with education credits. in case you already passed ISM’s CPSD certification (see below), you will not need to take the groundwork exam for the CPSM certification, on account that it’s included in both. if you aren’t already a member, the cost of the non-member price for the exam also contains twelve months of ISM Direct membership.  

    application charge: $119 for individuals, $179 for non-members

    exam charge: $229 for participants, $379 for non-participants

    Retake fee: $379

    Renewal charge: $seventy five for participants, $a hundred and fifty for non-participants

    Expiration: 4 years

    ISM licensed expert in company diversity (CPSD)

    The 2d certification from the ISM is the licensed knowledgeable organisation variety (CPSD) certification, which which you can earn on exact of the CPSM certification from ISM. The CPSD certification carries two checks — however you could skip the foundational exam in case you already dangle your CPSM exam. To qualify for the exam, you’ll need three years of organisation variety or management event and a bachelor’s diploma, or five years of experience. To preserve your certification, you’ll deserve to finished 50 hours of accredited continuing training credit over a three-yr duration.

    software charge: $119 for individuals, $179 for non-contributors

    examination payment: $229 for individuals, $379 for non-members

    Retake fee: $379

    Renewal fee: $seventy five for members, $one hundred fifty for non-individuals

    Expiration: three years

    SCPro Council of supply Chain management specialists (CSCMP)

    The SCPro Council of supply Chain administration authorities (CSCMP) certification is pleasing in that it combines a multi-degree schooling with a 3-tiered examination system. There are three levels of SCPro certification and the first level, Cornerstones of provide Chain management, covers the basics and eight points of give chain management. at the 2d stage, analysis and software of provide Chain Challenges, you’ll be demonstrated in your capacity to observe SCM expertise in distinct situations. The third and final degree, Initiation of provide Chain Transformation, certifies your ability to “positively have an impact on a firm” through a fingers-on mission that demonstrates your expertise.  

    you'll should renew your certification for all three ranges every three years, for you to require 60 hours of eligible professional building activities. you'll should complete at the least 20 hours of expert construction annually, however no greater than 30 hours per yr.

    degree 1 examination fee: $650 for individuals, $975 for non-individuals

    level 2 exam charge: $1,095 for members, $1,500 for non-members

    stage 3 examination price: N/A

    Renewal payment: $50 for contributors, $a hundred for non-individuals

    Expiration: four years

    SOLE licensed skilled Logistician (CPL)

    The international Society of Logistics (SOLE) offers a licensed professional Logistician (CPL) certification in logistics, which is a key aspect of give chain management in definite industries corresponding to commerce, protection, federal and local executive agencies and education. The examination takes area over a six-hour period, with three two-hour periods; you are going to need to flow all three tests earlier than which you could earn your certification.

    To qualify for the CPL exam, you’ll want as a minimum 9 years’ experience training or instructing logistics and two years’ journey in as a minimum two fields of logistics. each and every year of undergraduate accredited coursework in logistics subjects is such as 365 days of knowledgeable adventure, as much as four years. For those with a grasp’s diploma or doctoral degree, you’ll need 4 or three years’ additional journey, respectively.

    exam payment: $225 for contributors, $375 for non-contributors

    Retake price: $50

    Renewal price: N/A

    Expiration: doesn't expire

    NCMA certified professional Contract supervisor (CPCM)

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    Prestigious provide management Scholarship Doubles Award for Eligible faculty Seniors | killexams.com Real Questions and Pass4sure dumps

    Institute for give management® declares it'll award $10,000 scholarships for the R. Gene Richter Scholarship in 2018

    TEMPE, Ariz., Oct. 19, 2017 /PRNewswire/ --The Institute for give management® and the R. Gene and Nancy D. Richter foundation have announced that they have got doubled the celebrated, annual R. Gene Richter Scholarship for people searching for education in deliver administration, supply chain management or procurement to the volume of $10,000 ($5,000 for December graduates). historically, the organizations awarded $5,000 scholarships ($2,500 for December graduates). functions for the scholarship program are now open, and the full scholarship software can be discovered here.

    "past winners of the annual R. Gene Richter Scholarship have in fact benefited from the application's tuition assistance, executive mentoring, junior mentoring and networking," referred to Tom Derry, ISM CEO. "we are blissful to extend this 12 months's scholarship award to continue to speedy-song promising, future leaders of deliver management into the career."

    students eligible for the scholarships should be of their senior yr during the 2018–2019 educational year and be enrolled full-time in an authorized provide management software with the intention of specializing within the provide management occupation. Winners of the scholarships are awarded the $10,000 (December graduates might be awarded $5,000) for use towards tutorial costs. moreover, students are enrolled in a mentoring software the place they are paired with both an executive in give chain management and a old scholarship winner. latest-12 months recipients are invited to attend ISM2018, Annual conference in Nashville, Tennessee, can also 6-9, 2018. They should be the visitors of honor at a special Richter Awards Presentation Dinner on Monday, may 7, 2018 and should be escorted to this ceremonial dinner with the aid of their mentors.

    additionally, twelve months after commencement (may additionally 2020) and following completion of precise-world experience within the box of provide chain administration, Richter students are invited to take part in an invitation best ExecIn: government application for the executive leadership of the profession held similtaneously with the ISM Annual conference.

    The R. Gene Richter Scholarship software become based and named in memory of R. Gene Richter, who become a galvanizing force within the box of procurement. Richter is admired for elevating the profession to world-class stature. He led the give organizations at the Black & Decker enterprise, Hewlett-Packard and international company Machines (IBM). For more suggestions on the R. Gene Richter Scholarship application, discuss with www.instituteforsupplymanagement.org/Richter or www.richterfoundation.org.

    About Institute for provide administration®

    Institute for give administration® (ISM®) serves provide management authorities in additional than 90 nations. Its 50,000 global individuals everywhere manage $1 trillion in corporate and govt supply chain procurement annually. based in 1915 because the first provide administration institute in the world, ISM is dedicated to advancing the follow of provide administration to pressure value and competitive abilities, contributing to a affluent and sustainable world. ISM leads the occupation in the course of the ISM record On business®, its extremely regarded certification programs and the ISM Mastery model™. For greater guidance, visit: www.instituteforsupplymanagement.org.

    Media contact: Riley Conover, rconover@instituteforsupplymanagement.org, 480-752-6276

    Institute for Supply Management logo. (PRNewsFoto/Institute for Supply Management)

     

    View customary content with multimedia:https://www.prnewswire.com/news-releases/prestigious-deliver-administration-scholarship-doubles-award-for-eligible-college-seniors-300539755.html

    supply Institute for give administration


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    Foundation of Supply Management

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    Blockchain Technology — The New Foundation of Effective & Transparent Supply Chain Management | killexams.com real questions and Pass4sure dumps

    MEDICIBlockedUnblockFollowFollowing

    Feb 12, 2018

    Read the full story here.

    Consumers know surprisingly little about most of the products in everyday use. A highly connected and extensive network of retailers, distributors, transporters, storage facilities, and suppliers stand between individuals and products they consume. An average consumer only gets to enjoy the end result of design, production, delivery, and sales process of products, without ever knowing the chain of events and parties making it possible.

    Let’s look at the flower business as an example of the scale and level of inefficiency of modern processes. The value of the global flower trade industry is nearly $105 billion. Around 700,000 metric tons of cut flowers are shipped each year. Shipping information passes through many hands, increasing the potential for delays in transport. One shipment can require sign-off from 30 unique organizations and up to 200 communications. A single lost form or late approval could leave the container stuck at port.

    The entire process can take more than one month, but with digitization and blockchain-based process management, the container’s path can be traced with exceptional transparency and security, not mentioning the elimination of delays, resulting in significant cost savings for all parties. Any interested party with the goal to explore a particular step in the process to perform the quality assessment will be able to audit the network in which every step is verified by the relevant performing party.

    The above-described inefficiencies do not cover all existing issues. Sweetbridge Foundation details more pressing problems facing global supply chains today, which include:

  • Lack of liquidity: At any given moment, there are $3.9 trillion tied up in the net working capital in supply chains. Liquidity solutions are frequently expensive, tie up borrowing capacity, and are often unavailable to companies that need it most. Working capital optimization is a critical need for supply chain participants.
  • Inefficient allocation of resources: Only 75% of the $70 trillion in global supply chain assets are utilized at any given time. Factories, warehouses, planes, ships, trains, and trucks are expensive, yet there is a surprising amount of excess capacity across the extended network. Companies maintain information silos and asymmetries as a competitive advantage and avoid disclosing their unused capacity. This prevents significant optimizations in supply chains.
  • High risks inherent in optimization: Organizations find it difficult to measure the performance of their systems and, consequently, to retain effective talent for the purpose of supply chain optimization. Enabling such optimization can easily lead to efficiency gains of 5 to 10% ($2.7 trillion to $5.4 trillion globally).
  • Disruptive change: Today’s disruptive pace of technological change presents existential risks for entities from all industries. Current supply chain participants must increase their global agility, transparency, and efficiency to quickly respond to sudden shifts affecting today’s markets.
  • Needless to repeat, supply chain management remains one of the most complex and impactful parts of commerce and retail, with very little innovation brought into this seemingly unsexy industry. Fortunately, supply chain management and logistics are among the cases where blockchain technology is believed to be having advantages over conventional systems. The specter of benefits resulting from supply chain processes being carved into ledgers encompasses greater security, efficiency & transparency, among other things.

    In fact, as IBM emphasizes, traceability and transparency are some of the most important foundations of logistics. Supply chain management on a distributed ledger allows for a more efficient issue tracking and resolution, reduces delays from paperwork, increases consumer and partner trust, minimizes courier costs, improves inventory management, as well as offers to reduce or completely eliminate fraud and errors. The tech corporation explains that distributed ledgers that create a permanent and shared record of every transaction associated with an asset create an unbroken chain of trust. Each record is time-stamped and appended to the event before it. With that, blockchains have the potential to generate breakthroughs in three areas: visibility, optimization, and demand.

    Continue reading here.


    Ending Supply-Chain Slavery: Is Asia Ready? | killexams.com real questions and Pass4sure dumps

    February 27, 2019

    By Melissa Chong

    More than 40 million people are victims of modern-day slavery. Two-thirds of them are in Asia, and most of them toil in industries deeply embedded in global supply chains. But a growing international movement is calling businesses to account for human rights, and supply-chain transparency is the new frontline in this ongoing battle.

    Supply-chain slavery—consumers will demand its end  

    Speaking at a recent conference, Michael Fletcher, chief commercial officer of supermarket giant the Co-op, said that concern for the plight of supply-chain workers may be nearing a tipping point where consumers will demand corporate action to end slavery, just as educated consumers began to push for a phase-out of plastics.

    We’ve come a long way since 2010, when the voluntary UN Guiding Principles on Business and Human Rights (UNGPs) ended years of international stalemate over corporate responsibility. We’re entering uncharted territory, as one national government after another mandates corporate transparency on human rights in their supply chains. As of 2018, eight G20 countries had passed legislation to fight supply-chain slavery.

    First came the UK’s groundbreaking Modern Slavery Act 2015, requiring companies with annual revenues of more than £36 million to annually report the steps they have taken to eliminate slavery and trafficking from their supply chains. It was a first in Europe and the second globally after the California Transparency in Supply Chains Act 2010.

    A year later, France passed its Duty of Vigilance Law—one of the broadest measures to date. Australia passed its own bill last November, the Modern Slavery Act 2018, effective in 2019, that covers an estimated 3,000 entities in Australia.

    Similar laws are already in place in the Netherlands, the United States, and the European Union, and Canada and Hong Kong may soon join the international fraternity as well. The latter has renewed its push for a law that includes civil and criminal liabilities for individuals as well as their corporate entities.

    Will Asia be next?

    This movement is still largely confined to the West, but Asia could be next.

    “It is likely to happen. Something is already taking place,” says Professor Surya Deva, Asia-Pacific representative of the United Nations Working Group on Business and Human Rights. “For instance, Indonesia has already issued some regulations in the fishing sector. Thailand is another example.”

    Indeed, Thailand this month released for public comment the final draft of its National Action Plan on Business and Human Rights (NAP), begun after allegations of slavery in its fishing industry first swept the nation in 2013. Slated for launch in late 2019, and led by the Ministry of Justice, the NAP will focus on the priority areas of labor; land, the environment, and natural resources; empowering human rights defenders; and cross-border investment and multinational enterprises. Following closely behind is India, with the zero draft of its NAP out this month, and Indonesia is starting its own NAP process.

    “What is happening in Thailand and also in India regarding national guidelines on responsible business conduct, I think, are the two biggest policy movements that may pave the way for this type of legislation,” says Livio Sarandrea, business and human rights advisor from UNDP, who is leading the international team helping various governments with their NAPs. “I don’t think it’s impossible that this might happen. But if it does happen, what’s even more important is that they are serious about it and implement it.”

    Negotiations for a binding treaty

    At the United Nations, negotiations are under way for a binding treaty requiring governments to regulate the activities of businesses under human rights law. The zero draft, released in July 2018, calls for states to make human-rights compliance a precondition for doing business, regardless of the business case for doing so. Interestingly, discussions have included removing the distinction between parent companies and subsidiaries, addressing the perennial difficulty of applying national laws to prevent corporate malfeasance that is often extraterritorial.

    Unlike previous attempts by the UN, Professor Deva believes this treaty has a chance for success.

    First, the UNGPs are now widely accepted, providing a springboard for other initiatives. Second, states now realize that corporate misdeeds lead to negative outcomes—whether it’s tax evasion, interference in the democratic process, or long, drawn-out lawsuits. Third, an unprecedented civil society mobilization continues to put pressure on states to stop corporate misconduct.

    A growing civil society movement

    Over the last few years, there has been an observable increase in civil society activism in Asia targeting corporate human rights performance, and more actors have joined the clarion call for greater corporate accountability.

    “The growing civil society momentum on business and human rights is difficult to miss,” says Ismail Wolff, cofounder and executive director of ASEAN Parliamentarians for Human Rights, which recently expanded its programs to cover business and human rights issues.

    The Business and Human Rights Resource Centre, an established research institute and a keen observer in this space, has noted a similar trend. “There is a growing business and human rights movement in Asia, and we can see this in the growing interest in forming groups to look at business and human rights issues in the region,” says Golda Benjamin, their Southeast Asia researcher. “This growth in the movement is necessary precisely because Asia’s economic role is ever growing in the world. Asian countries’ investments outside and inside the region are expanding significantly.”

    Growing discontent 

    High-profile cases of corporate human rights abuses, from catastrophic dam collapses in Laos to forced evictions in Cambodia, factory fires in Bangladesh, and murders of human rights defenders in India, continue to fuel public outcry in Asia. Companies are feeling the pressure to be transparent—and not just after the fact. In this environment, companies in Asia will do well to be proactive about human rights, particularly in their supply chains, keeping an eye on possible regulations coming their way.

    This article previously appeared, in slightly different form, on the blog of Corporate Citizenship, and is reposted here by permission.

    Melissa Chong, a 2018 Asia Foundation Development Fellow, is a consultant at Corporate Citizenship, a management consultancy specializing in sustainability and corporate responsibility, where she is an advocate for human rights in Southeast Asian businesses. She can be reached at melissa.chong@Corporate-Citizenship.com. The views and opinions expressed here are those of the author, not those of The Asia Foundation.


    Smart packaging: challenges and opportunities in the supply chain | killexams.com real questions and Pass4sure dumps

    Technology

    New packaging technologies have the ability to monitor a product and its environment and act on any changes in the two. These innovations have the potential to dramatically improve supply chain operations, but companies must first overcome some significant challenges.

    Enhancing product traceability—or the degree to which product information and locality can be ascertained at any given point within the supply chain—is one of the most critical supply chain improvements that a company can make.1 Traceability ensures that every node in the supply chain can be confident in the authenticity of the product because it can track where the product has been. It helps members of a supply chain detect whether products did not come from the manufacturer, were diverted during transport, were introduced or re-introduced at inappropriate times and locations, or re-entered the supply chain after they were identified to have been administered already. In other words, by improving traceability, companies are better equipped to know whether a product has been diverted, counterfeited, or otherwise tampered with during transportation and storage—serious concerns for many supply chains.

    One way that companies can improve product traceability is by using innovative new packaging technologies known collectively as smart packaging. Smart packaging solutions have the potential to greatly enhance the effectiveness and efficiency of supply chains, particularly in industries such as food and beverage and pharmaceutical and health care. However, some major challenges still lie in the way of full-scale adoption of these packaging technologies. Companies should be well-versed in both the benefits and challenges of smart packaging before they pursue potential applications.

    What is smart packaging?

    A smart package is anything that offers "something extra" in addition to the containment of the product. These "extras" could be anything from extended shelf life to displays and indicators for temperature, pH, moisture, and freshness, to a tracking device. In this sense, smart packaging is closely related to other terms for innovative packaging products, such as active packaging and intelligent packaging.

    Active packaging: The main aim of active packaging technology is to sustain product quality and prolong shelf life. Active packaging responds to a triggering event (such as exposure to ultraviolet light or a decrease in pressure) by releasing or absorbing substances from or into the packaged product or its surrounding environment. Typically, this involves different components,such as moisture or gas scavengers or antimicrobial films, being embedded into the packaging itself.2,3 A good example of active packaging is oxygen scavenger technology that is used in packaging for oxygen-sensitive products such as pharmaceuticals, cosmetics, food, and additives. Oxygen scavengers remove or decrease the level of oxygen in the package, which can help maintain product safety and extend shelf life.

    Intelligent Packaging: According to most packaging experts, intelligent packaging is mainly used "to monitor the condition of a packaged product" and to "capture and provide information on the quality of the packaged good during transport and storage."4 A simple definition of intelligent packaging is "packaging which senses and informs." Accordingly, intelligent packaging systems consist of hardware components, such as time-temperature indicators (TTI), gas detectors, freshness and/or ripening indicators, and radio frequency identification (RFID) systems.

    Smart packaging: Smart packaging has been introduced as a combination of intelligent and active packaging. This type of advanced packaging system can monitor changes in a product or its environment (intelligent) and act upon these changes (active).5 It can actively monitor and control the environment of a package and communicate with an external interface (either electrical or optical).

    Smart packaging often uses sensors or smart labels to monitor product quality, storage conditions, or the outside environment.6 For example, smart packaging with TTIs can record both time and temperature and provide a partial or full temperature history of a product.7 Another example is RFID-based packaging. Sensor-based RFID technology can be integrated into the product's packaging to track and trace the origin of the product and any sources of contamination or tampering within the supply chain.

    The ultimate goals of these three packaging innovations include shelf-life extension, freshness monitoring, exchanging information on quality with consumers, safety improvement, improving convenience, enhancing traceability, and improving targeted recalls, among others. As reported by a 2018 Market Research Future research report, the global smart packaging market is currently estimated at US$46.74 billion and is forecast to grow at a healthy compound annual growth rate (CAGR) of 5.16 percent from 2017 through 2023.8 The expected growth of smart packaging suggests that companies need to continue to learn more about these packaging innovations in order to keep pace with their competitors.

    Supply chain applications

    There are many potential applications for smart packaging in areas where traditional packaging has not been able to adequately handle heightened customer expectations and increased product complexity. Consumers are looking for cost-effective, easy-to-transport, and aesthetically pleasing packaging that not only can guaranteethe freshness and integrity of the product but also can inform them about product history and/or condition. Smart packaging can be used to relay this information—sometimes through interacting with the consumer's smartphone or other device.

    In particular, there is a great potential for smart packaging in industry segments where traceability is a top priority, such as food and beverage and pharmaceutical and health care.

    Food supply chain: Packaging has become an essential technology in the food chain to ensure safety, avoid undesired reactions, satisfy consumer expectations, and increase food shelf life.9 It is not surprising, then, that the food and beverage sector is currently the largest market for smart packaging, accounting for more than 45 percent (or US$10.8 billion) of global sales in 2015.10 Indeed most smart packaging solutions were developed and targeted toward the food supply chain in an effort to reduce food loss and waste.

    According to the Food and Agriculture Organization (FAO) of the United Nations, each year one-third of all food produced globally for human consumption—1.3 billion tons—is lost or wasted, causing massive financial losses and squandering natural resources.11 In the United States alone, 126 million metric tons of food were wasted in 2017, with approximately 57 million tons of that waste being generated in the consumer stages of the food supply chain.12 Although all actors in the food chain have a role to play in preventing and reducing food waste, the prevalence of household waste suggests that smart packaging's ability to reduce spoilage and extend shelf life can play a large role in addressing this problem.

    Many technologies exist today that can either track or test (but usually not both) agri-food products for contamination as they travel through the supply chain. However, these techniques are cost prohibitive, and testing slows down the supply chain since qualification and quantification tests for randomized samples are often performed through external technical and certified laboratories. Also, it is currently difficult to get the data related to testing and tracking to the end-user because of gaps or breaks in the data stream or an inability to share the information with the consumer. Thus, the industry still needs technologies that can seamlessly track, test, and share data about agri-food products throughout the supply chain without requiring any significant change to the existing infrastructure. There is, for example, great interest in the industry in creating an effective detection and monitoring system that can provide data about any exceptions to certain sets of target markers, such as chemical, physical, or biological indicators for organic and inorganic volatile compounds and pathogens. This data could be used in mathematical models to generate predictions about product quality and shelf life.

    One example of such a system might be a label-like technology that is applied to food packaging or a container and provides tracking and sensing. The data from the label would be uploaded on the Internet without any human intervention for information sharing and analysis. For example, smart RFID tags could be integrated with a sensing element such as a chemical responsive coating, litmus paper, or conductivity electrode that would detect any changes in the food that might indicate spoilage. This information would then be read by smart RFID tag readers, allowing the company to track not only the location of the food but also its quality. Although RFID infrastructure is well-developed and has gained significant momentum over the last decade, there are currently only a few commercially available smart packaging systems that use RFID tags to track and record food quality.

    Pharmaceutical and health care supply chain:Pharmaceutical and health care industries are also large potential markets for smart packaging. As reported by the 2018 Market Research Future report, the health care segment accounted for around 15 percent of the global smart packaging market in 2015 and is expected to grow at a CAGR of over 12 percent from 2016 to 2024.13

    The health care and pharmaceutical segments are seen as a major growth market for smart packaging because there is such a big need to improve supply chain visibility in these industries. Smart packaging solutions (such as RFID-enabled packaging, Wi-Fi-enabled devices, and smart automatic dispensers) could help companies better detect potential theft, counterfeiting, or contamination of medications. In order to ensure that patients receive authentic, quality medications, companies must be able to trace the individual product back to the originating manufacturer and track and monitor the product as it leaves from and arrives at the various nodes throughout the supply chain. They also want to see in real time when a product is diverted, thereby having the opportunity to intercept the shipment and remediate the risk of lost revenue due to the theft, as well as the potential to use that product to create counterfeits. By providing this level of visibility and traceability, smart packaging could also help companies comply with government regulations and health care reforms.

    Smart packaging can also be used to relay information to consumers to help them better understand a product and how to interact with it safely. It can help patients adhere to their prescribed medication regimen. Smart pill bottles, smart caps, smart automatic pill dispensers, and smart medication cabinets, for example, could communicate with the consumers' smartphones, tablets, or other Wi-Fi-enabled devices to remind them to take their medication. These smart packaging solutions could also supply consumers with a dosage schedule for attaining optimum results. Some examples of commercially available products include (but are not limited to) Pilleve, TAD, PillDrill, Baswen, Inpower, MedMinder, and AdhereTech.

    Smart packaging applications are not limited to the food and pharmaceutical industries. Other industries, such as personal care, automotive, and logistics, may also beinterested in adopting smart packaging in order to improve product protection and real-time tracking and to prevent incidents of thefts, diversion, organized crime, and counterfeiting.

    Challenges ahead

    In spite of the promise of smart packaging, several challenges lie in the way of it being more broadly adopted. Here are just a few of the major ones that companies need to be aware of:

    Extra cost: Smart packaging solutions are not cheap, especially compared to more traditional packaging solutions such as corrugated boxes, stretch wrap, and pallets. One reason for this extra cost is that smart packaging is not yet in the mass manufacturing stage, which would reduce its costs.

    Lack of solid business case: Furthermore, because most smart packaging products are still in the early stage of development, there are no long-term proven successes. This lack of data makes it difficult to develop a solid and robust commercial business model for the product. Moreover, there is not yet any sense of the total cost of ownership for smart packaging. Nor is there any comprehensive estimate about the costs that the technology could take out of the supply chain or the value it could provide. Industry needs a comprehensive end-to-end value chain study that would include the final cost of the packaging solutions, where these solutions can be deployed, key customers most willing to adopt new packaging solutions, and where the technology has the maximum potential to provide a significant impact.

    Need for new manufacturing techniques: Before smart packaging can be applied to a variety of products, manufacturers will need to develop techniques for fabricating such sensors and indicators that are compatible with current packaging standards. Printing is one manufacturing technique that has received significant attention from the research and manufacturing community. Researchers have found printing methods to be revolutionary approaches for fabricating smart packaging due to their ability to directly deposit electronics (for example sensors, batteries, RFID tags, and displays) on flexible substrates in an efficient, scalable, and cost-effective manner.14,15,16,17

    Sustainability: Many of the components of smart packaging are not completely sustainable and simply do not fit into the environmentally friendly, green world that customers expect. In certain cases, some of these components (for example, batteries, sensors, displays, and circuits) are challenging to recycle. Without some degree of sustainability, the potential for smart packaging's implementation in a "sustainable world" will not be possible. It is vital to understand and measure the environmental impact of smart packaging components and their long-term viability. Solutions might include the use of electronics that could convert natural sources of energy such as solar energy to electricity, or the application of "green" flexible electronics that are mounted on biodegradable materials, such as paper.

    Legislation: Smart packaging's complex composition also creates legal complexity. Because smart packaging is made up of so many different components, it is subject to more regulations and legislation than traditional packaging. Tracking and complying with these regulations will require significant time and resources from manufacturers and their customers. Moreover, as innovative solutions are developing fast and manufacturers and customers want to incorporate these new technologies into their packaging, legislation frameworks need to be flexible and easily updated to support and keep up with this highly innovative and fast-moving sector.

    Privacy Issues: Security and data privacy issues are also top concerns for smart packaging systems that have real-time monitoring and tracking features. Smart packaging systems may collect sensitive nonpublic information about the customer (such as identity, behavior, location, and preferences). This information must be protected against theft. Cryptography systems and blockchain are among the leading potential solutions to resolve these issues. Cryptography will help smart packaging to store information so that it cannot be read by anyone except the intended recipient. Blockchain is a chain of digital "blocks" that contain records of transactions. Blockchain technology will make it difficult to tamper with a single record without a hacker being detected.

    Next steps

    Smart packaging has great potential for improving supply chain effectiveness and efficiency. There are many applications that could improve customer satisfaction; increase visibility; improve security and reliability of supply; prevent product diversion, counterfeit, and theft; and reduce product wastage. Integrating smart packaging solutions into the existing end-to-end supply chain could help companies increase sales by improving customer satisfaction and loyalty and reduce expenses by improving key processes, reducing theft, and managing waste.

    However, industry must overcome some significant obstacles to the implementation of smart packaging, such as high mass-production costs, the complexity of integrating smart devices into current packaging lines, and concerns about security, data privacy, and sustainability.

    In some cases, advanced manufacturing technologies, such as roll-to-roll printing, and the implementation of the Internet of Things and blockchain may hold the answer to these problems. But in order to address and resolve all of the fundamental issues related to implementing smart packaging, cross collaboration among every node in the industrial supply chain is needed. Experts in manufacturing, analytical science, predictive models, data analytics, criminology, and business are needed to define a systematic approach for the integration of smart packaging solutions into the supply chain. Furthermore, both academia and industry need to work together to understand all of the tactical and operational parts of the supply chain that will be impacted by this new technology in the long term. Organizations and research institutes (see sidebar on the Axia Institute) could strive to bridge the gap between academia and industries. In the end, companies will need an integrated systems approach that will help them understand packaging trends and adapt their packaging and supply chain to meet changing demands.

    The Axia Institute and smart packaging

    Located in Midland, Michigan, the Axia Institute is a research and education center dedicated to developing effective and sustainable solutions to improve public and private value chains.

    The Axia Institute is interested in providing innovations in smart packaging, traceability, artificial intelligence and data analytics, security, talent development, government regulations, and standards. It fosters collaboration and an integrated systems approach to value chain optimization, and it can help industries understanding packaging trends and adapt their packaging and their supply chain to meet changing demands.

    At the Axia Institute, researchers are developing a large portfolio of smart packaging solutions which enhance safety and traceability. These efforts include passive RFID-based sensing technologies that do not require any batteries and are customizable for different products. These technologies provide capabilities that go beyond tracking, such as sensing, serialization, and anti-tampering. The Institute is also developing both near-field and far-field RFID sensor technologies. Axia Institute's RFID-based sensor technology can be integrated into packaging and allows for the seamless interrogation of products in the supply chain with minimal human interaction. One example is an RIFD-based smart pill bottle solution developed by the researchers at the Axia Institute. This smart pill bottle limits unauthorized access to prescription medications by biometric authentication, tracks medication distribution via RFID technology, and reduces overdose risk by dispersion of anti-tampering materials when necessary.

    Established by Michigan State University (MSU) in 2013, the institute expands on MSU's top-ranked Supply Chain Management program. The Institute was founded by leaders in value chain creation and development at MSU, including the Eli Broad College of Business, the College of Agriculture and Natural Resources, College of Engineering, College of Social Science, and School of Packaging. Founding donors include The Dow Chemical Company, Dow Corning Corporation, Herbert H. & Grace A. Dow Foundation, Rollin M. Gerstacker Foundation, The Dow Chemical Company Foundation, and the Charles J. Strosacker Foundation.

    Notes:

    1. T. Kelepourist, K. Pramatari, and G. Doukidis, "RFID-enabled traceability in the food supply chain," Industrial Management & Data Systems 107, no. 2 (2007): 183-200.

    2. I.S. Arvanitoyannis and A.C. Stratakos, "Application of modified atmosphere packaging and active/smart technologies to red meat and poultry: a review," Food and Bioprocess Technology 5, no. 5 (2012): 1423-1446.

    3. P. Prasad and A. Kochhar, "Active Packing in Food Industry: A Review," Journal of Environmental Science, Toxicology and Food Technology} 8, no. 5 (2014): 1-7.

    4. J.P. Kerry, M.N. O'Grady, and S.A. Hogan, "Past, current and potential utilisation of active and intelligent packaging systems for meat and muscle-based products: A review," Meat Science 74 (2006): 113-130.

    5. M. Vanderroost, P. Ragaert, F. Devlieghere, and B. De Meulenaer, "Intelligent food packaging: The next generation," Trends in Food Science & Technology 39 (2014): 47-62.

    6. Y. Wyser, M. Adams, M. Avella, D. Carlander, L. Garcia, G. Pieper, M. Rennen, J. Schuermans, and J. Weiss, "Outlook and Challenges of Nanotechnologies for Food Packaging," Packaging Technology and Science 29 (2016): 615-648.

    7. T. Janjarasskul and P. Suppakul, "Active and intelligent packaging: The indication of quality and safety," Critical Reviews in Food Science and Nutrition 58, (2018): 808-831.

    8. Market Research Future, Smart Packaging Market Research Report, April 2018.

    9. E. Poyatos-Racionero, J.V. Ros-Lis, J.L. Vivancos, and R. Martínez-Mañez, "Recent advances on intelligent packaging as tools to reduce food waste," Journal of Cleaner Production 172 (2018): 3398-3409.

    10. Market Research Future, 2018.

    11. Food and Agriculture Organization of the United Nations, "SAVE FOOD: Global initiative on food loss and waste reduction," retrieved from http://www.fao.org/save-food/en on January 13, 2019.

    12. U.S. Food Waste-Statistics & Facts. Retrieved from https://www.statista.com/statistics/530098/weight-of-wasted-food-by-facility-us/ on August 21, 2018.

    13. Market Research Future, 2018.

    14. Y. Kim, B. Jung, H. Lee, H. Kim, K. Lee, and H. Park, "Capacitive humidity sensor design based on anodic aluminum oxide," Sensors and Actuators B: Chemical 141 (2009): 441-446.

    15. M. A. Leenen, V. Arning, H. Thiem, J. Steiger, and R. Anselmann, "Printable electronics: flexibility for the future," Physica Status Solidi (a) 206, no. 4 (2009): 588-597.

    16. T.M. Kraft, P.R. Berger, and D. Lupo, "Printed and organic diodes: devices, circuits and applications," Flexible and Printed Electronics 2 (2017): 033001.

    17. J. Semple, D.G. Georgiadou, G. Wyatt-Moon, G. Gelinck, and T.D. Anthopoulos, "Flexible diodes for radio frequency (RF) electronics: a materials perspective," Semiconductor Science and Technology 32 (2017): 1-45.

     

     

    Dr. Bahar Aliakbarian is a research associate professor at the Axia Institute within the Department of Supply Chain Management and adjunct associate professor at the School of Packaging at Michigan State University.

    bahara at msu.edu

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    We Want to Hear From You! We invite you to share your thoughts and opinions about this article by sending an e-mail to ?Subject=Letter to the Editor: Quarter 2019: Smart packaging: challenges and opportunities in the supply chain"> . We will publish selected readers' comments in future issues of CSCMP's Supply Chain Quarterly. Correspondence may be edited for clarity or for length.

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