Questions and answers
What should be the new system of management, control and analysis that ensures the success of the business?
Most importantly, the company must know in real time all the actual geolocation, responsible and product characteristics throughout the production and logistics chain. In addition, she needs to receive immediate warnings about discrepancies between the planned (target) and actual data, including geolocation, graphs, changes in product weight, and more. Such warnings should contain sufficient information to resolve the problem as soon as possible.
Such an operational control system should be universal and not have restrictions on the types of cargo and the complexity of multimodal logistics. It should be as cheap as possible, easy to use, not require paper media, additional product labeling, the installation of additional equipment along with the cargo or the hiring of additional employees.
For her, the ability to track the characteristics and history of the product along the entire chain of its transformations from the feedstock to the final product is crucial. Information should be easily transmitted in a single format, sequentially to each participant in the production and logistics chain, and be a unified marker of reliability and transparency.
The system must be independent and certify the reliability and transparency of the entire supply chain up to and including the final product. Such certificates are important for each participant in the chain in relations with financial institutions, consumers, investors and regulatory authorities.
Attempts to create such a system have been made repeatedly in recent years in the world, but were either unsuccessful or not widely used due to severe restrictions on the number of operations and the high cost of their implementation and maintenance (in particular, based on the blockchain). There are known cases of the development of such systems by the companies themselves, which required them to make significant investments and expenses for their maintenance. However, as you know, they and their certificates were not considered independent by financial institutions, regulatory bodies and the market, which also significantly discounted their significance.
Is VAREYE an example of a positive creation of an online operational control system applicable in the real industry?
Of course. It became the Swiss VAREYE system, which entered the market in 2019 and is based on a combination of a highly secure cloud platform, the generation of chains of its own QR codes, identification and geolocation embedded in all modern smartphones. VAREYE is a global system of online identification, control, analysis and certification of production and logistics chains from raw materials to the final product of any complexity.
The system provides the user with all the information on the product creation chain online – the current characteristics of the product (including batch number and mass), changes in its weight as it moves along the chain of transformations, storage and transportation, the individual responsible for a particular batch of the product at a given time (in particular, for the data necessary for its quick identification and communication with it) when and where the product was transferred to the next responsible person in the supply chain and where it is currently located, including of the actual geolocation during transportation by sea and by road.
Given the huge flow of information, how can a VAREYE user quickly identify a problem and respond?
VAREYE automatically and immediately warns the owner by e-mail of any discrepancies from the parameters specified by the owner: route geolocation, product weight, discrepancies of the next responsible person designated by the cargo owner.
Information is transferred along the chain between the persons responsible for the product as by scanning from a smartphone to a smartphone a secure and interconnected chain of QR codes containing all the information about the cargo and the history of its origin, transformation and logistics.
The system also identifies the actual geolocation of the responsible person who is required to be with the cargo and is responsible for its safety (for example, the captain of the vessel or the driver of the truck). This item is especially important because Alternative information on the actual geolocation of the cargo is received by the owners either late or technically impossible if the carrier’s GPS transponders are turned off or missing.
All information immediately becomes available to the product owner online and can be transmitted both to his computers and smartphones. Alerts can be sent both to the performers and to the management of the choice of the product owner.
As a result, the VAREYE system provides highly effective protection for the owner and makes it impossible or economically unfeasible for a wide range of fraudulent activities with respect to the product and its owner. The system is an effective tool for ensuring reliability, security and transparency of the entire chain from raw materials to the final product.
What’s volume can be?
VAREYE has no limitations in terms of volumes of raw materials, products or substances. It is based on a mass balance concept per each shipped lot of raw material, so no particular limitations apply.
Is personal responsibility of each Custodian provided by VAREYE better, cheaper and technically easier than GPS transponders, plumbs etc?
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How to calculate my package delivery price?
There is no personal responsibility in most of the transportation chains and in any transformation point today in the world, so VAREYE adds to the existing information a full set of additional and very much needed information that complements what AliExpress or DHL can deliver. For sure it is cheaper than using dedicated and expensive pieces of equipment to track a single logistics route because the technical requirements are limited to the availability of a PC and/or (depending on the stakeholder in the value chain) a smartphone.
VAREYE is similar to tracking a parcel with AliExpress, but it applies not only to logistics, but more broadly?
The principle is the same as tracking a parcel but with a much wider implication. A parcel is something not changeable from the beginning to the end of the chain, that involves exclusively transportation. VAREYE can track any transformation process from raw material to an intermediate semi-finished product to a finished good. Moreover, VAREYE can tell any moment WHO was the custodian of that precise material.
I.e., transporting grain from A to B just involves the ‘AliExpress’ concept. But transporting grain and delivering pasta involves the above, plus transportation and stocking to ‘C’ (warehouse), plus transportation to ‘D’, plus transformation at ‘D’ from grain to pasta, plus transportation to ‘E’, plus transformation at ‘E’ (packaging of pasta and dispatch).
Doesn't VAREYE facilitate possible collusion between chain members?
On the contrary, many anomalies can be tracked online or can be pursued, because of the availability of additional and readily-available information, in a fraction of time in respect to what a full audit or a full investigation would require.
What about information security? How vulnerable is VAREYE?
The VAREYE QR code cannot be read by anyone other than the product owner, the next person responsible for the product, and the next person in the chain.
Information on the current status of the product, the previous and next responsible person appointed by the owner is available to the next persons in the chain.
In this case, all information about the chain, including data on the actual routes and transformations of the product is seen solely by the product owner. The information provided to the owner by the VAREYE system online is key in the operational planning, management and analysis of the owner’s production, commercial, logistics and financial process.
But VAREYE does not need commercially sensitive information that does not affect the operational control of the product – for example, prices, premiums and discounts on the product, logistics rates, storage and product transformations.
Thus, the system is commercially safe due to its structure and specified information flows. Electronic and physical protection of the system is also not in doubt.
Doesn't VAREYE enhance the role of the human factor?
Definitely yes. VAREYE relies on the custodian of any good to be effective, and by definition a custodian must be a person; it is exactly as any supply chain works today but adding traceability throughout the full supply chain, not only in transportation.
Isn't VAREYE vulnerable to failure when a mobile device is lost or damaged?
VAREYE is linked to a telephone number and to its owner, the custodian, and not to a physical smartphone. Replacing the smartphone and inserting a new or existing SIM card would keep the process going, as no information is stored locally and all QRCs are released, stored and controlled by VAREYE.
How much does such a system cost for its user? In the current crisis conditions, everyone has to tightly control their expenses.
VAREYE does not require investment in equipment, personnel or its special training on the part of the owner.
The system does not require additional product labeling or the creation of additional labels. Also, the transfer or storage of information on paper is not required.
For VAREYE functionality, it is enough to have smartphones in the chain of responsible for the product and operating computers in the customer’s office. All operational activities of the system are carried out directly by VAREYE.
The influence of VAREYE on increasing the cost of the product is negligible and is repeatedly blocked by additional resource savings, accelerated information flows and increased added value by increasing the reliability of the product owner for its consumers and financial institutions.
Why does it make sense to use VAREYE as an independent and not your own system? For example, just buy a license for independent use of the platform?
VAREYE acts as an independent entity in the certification of transformation and logistics chains from raw materials to the final product and operates in Switzerland in accordance with the requirements of Swiss and international legislation.
VAREYE certificates can be presented by the owner to financial institutions, regulatory authorities, as well as partners as an independent confirmation of its reliability and transparency of the product origin, processing and logistics chains.
At the owner’s request, VAREYE may provide online information to financial institutions, regulatory authorities, and owner’s partners involved in financing or processing the product. Such information is independent, which is important for compliance with financial institutions involved in product and logistics product chains. In fact, VAREYE is an alternative highly secure and independent information channel that can be used in contracts and financial activities of the product owner and transmitted to them to the next owner as a certificate of their own reliability and transparency, and a tool that increases the reliability and transparency of the next owner in the eyes of its consumers and the market community as a whole.
Thus, with the help of VAREYE, safety is achieved, and full online operational control of the owner over the transformation chain and multimodal product logistics. Moreover, the entire process is certified by VAREYE as an independent third party, and the information is stored by VAREYE for an unlimited time in the interests of the owner.
Is it possible to carry out via VAREYE with my products?
Of course. It is advisable to start with test batches and then introduce the system along the entire production and logistics chain. Usually the whole process does not take more than three months.