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Ensuring Food Safety and Brand protection
throughout the Supply Chain
Anil Nair
Mondelez International
Regional Corporate ...
Contents
2
Managing Supply Chain Quality Expectations
Integrating Prevention based Food Safety
Approach
Examining Consu...
Our Dream
3
CREATE
DELICIOUS
MOMENTS
OF JOY
Our Values Guide Us
4
Inspire trust.
Act like owners.
Keep it simple.
Be open and inclusive.
Tell it like it is.
Lead from...
We Inspire Trust…
5
The Importance of Food Safety:
– Consumers have a right to trust all food they
purchase…
– It is gener...
Mondelēz International - Overview
6
Net Revenues of $35 billion in 2012
Global snacks powerhouse
Products marketed in 165 ...
A Global Snacks Powerhouse
With $35 Billion In Revenue (1)
7
(1) 2012 reported net revenues
(2) Biscuits includes salty/ot...
We offer many of the world’s favorite brands
8
Our Categories & Power Brands
9
Biscuits
~65% of Biscuit
Revenue
Gum & Candy
~60% of Gum &
Candy Revenue
Beverages,
Cheese...
Our Geographic Presence
10
North America (NA)
Latin America (LA)
Europe
(EU)
Asia Pacific
(AP)Worldwide HQ: Deerfield,
Ill...
Eastern Europe, Middle East & Africa
11
• Region headquarters:
– Dubai (UAE)
• Key markets:
– Egypt, Nigeria, Pakistan,
Ru...
Introduction to BU Quality
Ensure Compliance of Mondelēz
International’s requirements to
assure product Quality and Safety...
• Compliance to QCMS & support to commercialization
T1
– Warehouse/Co Packer Audit support
– SS Management support
– BU-dr...
Managing Supply Chain Expectations
14
Keep Storage Conditions
(Temperature/Humidity)
Incoming
Dispatch
Control any
contami...
?Warehouse
C
O
N
S
U
M
E
R
Lead & Live Consumer Inspired Quality
- Quality
Control
- Quality
Systems/policies
Trade/Market...
Retail Quality Audit - Quality Assessment
- What is it?
16
• Checking the condition of products (Mondelez) in stores
– On ...
Retail Quality Audit - Quality Assessment
- How do we do?
17
• Consumer units purchased and checked at home/office
– Packa...
Proactively Auditing the Supply Chain
18
Plant (Line) Plant
(Warehouse) Customer
(Warehouse)
Consumer
Shelves
Sandwich pos...
Tracking/Sampling at each stage of Supply Chain
19
Our Integrated Prevention Based Food Safety Approach
is a Point of Difference
20
Risk
Categories
Design Procure Convert* D...
QCMS provides the framework for
integrated product design.
21
Design Procure Convert Distribute Trade ConsumerConsumer
Foc...
Design
22
Design Procure Convert Distribute Trade Consumer
We design robust products with food safety in mind
Our design p...
Suppliers
23
Some examples of significant incidents which
highlight the external risks.
Chinese milk powder contaminated
w...
Suppliers
24
Design Procure Convert Distribute Trade Consumer
Risk based supplier approval
Supplier development
Communicat...
Conversion
25
Design Procure Convert Distribute Trade Consumer
Our operations manage product safety based on the
CODEX pri...
Distribution & Trade
26
Design Procure Convert Distribute Trade Consumer
Warehouse & Transportation expectations
Training ...
Consumers
27
Design Procure Convert Distribute Trade Consumer
Communications – product labeling
Understanding anticipated ...
What is Consumer Relevant Quality?
28
Consumer Relevant Quality is a program comprised
of Key Quality Attributes which are...
What Is So Special About CRQ’s ?
29
Consumer Relevant Quality (CRQ’s)
Provides a leading vs. lagging tool, insight to con...
Consumer Relevant Quality Journey
30
IDEATION DESIGN MAKE DELIVER CUSTOMER CALIBRATE CI
CDM 49g Packaging
0%
10%
20%
30%
4...
Consumer Relevant Quality Journey
31
RACI
R –R&D (Tech)
A –Marketing
C-R&D (Senior)
C-Supply Chain Ops
I –Category Quality...
Evaluation
• Post Launch Reviews
(R&D)
• Retails Quality Audits
(Category Quality)
• Consumer Preference
Testing against P...
Consumer Relevant Quality Journey
33
RACI
R – R&D (Tech)
A – R&D (Senior)
C- Marketing
C- Supply Chain Ops
I – Category Qu...
Consumer Relevant Quality Journey
34
RACI
R –Supply Chain Ops
(Front Line)
A – Supply Chain/Ops
(Senior)
C- Site/Plant Qua...
35
Product Quality Visual Standard
Attribute Red
Unacceptable
Amber
Min acceptability
Green
Target
Recipe
distribution
(In...
Consumer Relevant Quality Journey
36
RACI
R – Supply Chain
(Distribution)
A – Country Q
C- Category Quality
I – Supply Cha...
Consumer Relevant Quality Journey
37
CUSTOMER
GROWTH
PROFIT
Customer
Confidence
Meeting
Customer
Expectations
Consistent
Q...
Consumer Relevant Quality Journey
38
CONSUMER
Consumer
Preference
V’s
Competitor
Products
Making
Every Day
Meeting
Consume...
Consumer Relevant Quality Journey
39
RACI
R – Category Q
(Project Owner)
A – Country Q (Senior)
C - Supply Chain/Ops
C - M...
Consumer Relevant Quality Journey
40
RACI
R – R & D
R – Supply Chain/Ops
R – Country Q
A – Category Q
C - Marketing
I – Su...
CRQ Summary
41
CRQ’s are Key Quality Attributes that are simple flavor
and visual standards
Align to customer and consum...
Middle East Case Study –
Cheese Handling in the Supply
Chain
42
Philadelphia –
Supply Chain Evaluation
43
• 8.00 am: - A Philadelphia Order to a major Key
Account being picked up for del...
Philadelphia –
Supply Chain Evaluation
44
• The temperature inside the van before loading
was +27 DC which is not the idea...
Philadelphia –
Supply Chain Evaluation
45
• It took around another 20 minutes (we were lucky as the average time is around...
Philadelphia –
Supply Chain Evaluation
46
• These cages were then taken inside and kept near the
door (inside the receivin...
BU Quality Observations/Recommendation
47
• A major concern was noted on reefer temperatures once it leaves the port. The ...
Thought for the Day!
48
– A world where all members of the global food industry
have a common platform to manage food safe...
AFRIS. AsianFoodRegulationInformationService.
We have the largest database of Asian food regulations in the world and it’s...
Ensuring Food Safety and Brand Protection
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Ensuring Food Safety and Brand Protection

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From World of Food Safety Conference, Bangkok in 2013

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Ensuring Food Safety and Brand Protection

  1. 1. Ensuring Food Safety and Brand protection throughout the Supply Chain Anil Nair Mondelez International Regional Corporate Quality World of Food Safety, THAIFEX, Bangkok. May 2013
  2. 2. Contents 2 Managing Supply Chain Quality Expectations Integrating Prevention based Food Safety Approach Examining Consumer Relevant Quality Standards Middle East Case Study – Cheese Handling in the Supply Chain
  3. 3. Our Dream 3 CREATE DELICIOUS MOMENTS OF JOY
  4. 4. Our Values Guide Us 4 Inspire trust. Act like owners. Keep it simple. Be open and inclusive. Tell it like it is. Lead from the head and the heart. Discuss. Decide. Deliver.
  5. 5. We Inspire Trust… 5 The Importance of Food Safety: – Consumers have a right to trust all food they purchase… – It is generally recognised across the food industry that food safety is not a source of competitive advantage – We all want the highest appropriate standards applied across the value chain, to assure the highest levels of consumer protection.
  6. 6. Mondelēz International - Overview 6 Net Revenues of $35 billion in 2012 Global snacks powerhouse Products marketed in 165 countries No. 1 in Biscuits, Chocolate, Candy and Powdered Beverages No. 2 in Gum and Coffee Approximately 110,000 employees Donated more than one billion servings of food since 1997
  7. 7. A Global Snacks Powerhouse With $35 Billion In Revenue (1) 7 (1) 2012 reported net revenues (2) Biscuits includes salty/other snacks Biscuits(2) 32% Chocolate 27% Gum & Candy 15% Beverages 17% Cheese & Grocery 9% Latin America 15% EEMEA 11% Europe 39% North America 20% Asia Pacific 15% • Nearly 75% of revenues in fast-growing snacks categories • In December 2012, we announced a reorganization of our management and reporting structure following the Spin-Off of Kraft Foods Group. Beginning in 2013, our operations, management and operating segments will reflect: Asia Pacific; Eastern Europe, Middle East & Africa (“EEMEA”); Europe; Latin America and North America. Accordingly, we will begin reporting on our new segment structure during the first quarter of 2013, including all historical periods we present. For purposes of this presentation the above pie chart reflects this structure based on our 2012 Net Revenues.
  8. 8. We offer many of the world’s favorite brands 8
  9. 9. Our Categories & Power Brands 9 Biscuits ~65% of Biscuit Revenue Gum & Candy ~60% of Gum & Candy Revenue Beverages, Cheese & Dairy Chocolate ~50% of Chocolate Revenue ~50% of Beverages, Cheese & Dairy Revenue
  10. 10. Our Geographic Presence 10 North America (NA) Latin America (LA) Europe (EU) Asia Pacific (AP)Worldwide HQ: Deerfield, Illinois Eastern Europe, Middle East and Africa (EEMEA)
  11. 11. Eastern Europe, Middle East & Africa 11 • Region headquarters: – Dubai (UAE) • Key markets: – Egypt, Nigeria, Pakistan, Russia, Saudi Arabia, South Africa ,Turkey, and Ukraine. • Net Revenues*=$3.7 billion * In December 2012, we announced a reorganization of our management and reporting structure following the Spin-Off of Kraft Foods Group. Beginning in 2013, our operations, management and operating segments will reflect: Asia Pacific; Eastern Europe, Middle East & Africa (“EEMEA”); Europe; Latin America and North America. Accordingly, we will begin reporting on our new segment structure during the first quarter of 2013, including all historical periods we present. For purposes of this presentation the net revenues provided above reflects this structure based on our 2012 Net Revenues.
  12. 12. Introduction to BU Quality Ensure Compliance of Mondelēz International’s requirements to assure product Quality and Safety in the Supply Chain. 12
  13. 13. • Compliance to QCMS & support to commercialization T1 – Warehouse/Co Packer Audit support – SS Management support – BU-driven consumer complaint evaluation and support T2 – Consumer Premium coordination – Technical trade liaison, including BU-driven trade complaints – Licensing support – Label compliance approval (legal oversight) including final artwork verification – Manage due diligence/regulatory compliance issues involving imports T3 – QA input PAM – Development of BU Q Systems and Policies – Training KFI requirements for BU functions and support to BU assessments • Business value programs T4 – Field audits – Quality building programs with the trade (freshness, trade returns, unsalable, quality yield initiative) T1 T2 T3 T4 BU Quality Best Practice - 4 Tier Programs
  14. 14. Managing Supply Chain Expectations 14 Keep Storage Conditions (Temperature/Humidity) Incoming Dispatch Control any contamination Pest/ Chemical Traceability Control of returned product FIFO Principles Hold & Release Damage/ physical/ heat Quality System Quality Management System
  15. 15. ?Warehouse C O N S U M E R Lead & Live Consumer Inspired Quality - Quality Control - Quality Systems/policies Trade/Market Quality feedback from Trade Consumer complaints Field AuditWarehouse
  16. 16. Retail Quality Audit - Quality Assessment - What is it? 16 • Checking the condition of products (Mondelez) in stores – On Shelf availability, Shelf-ready packaging, Temperature
  17. 17. Retail Quality Audit - Quality Assessment - How do we do? 17 • Consumer units purchased and checked at home/office – Package damage, print, easy open, inner unit wrap, coding – Product damage, appearance, filling, colour, ingredients
  18. 18. Proactively Auditing the Supply Chain 18 Plant (Line) Plant (Warehouse) Customer (Warehouse) Consumer Shelves Sandwich position Detailed/accurate data recording Product identification Product Sampling Evaluating the Supply Chain Saudi Arabia –Oreo Breakages
  19. 19. Tracking/Sampling at each stage of Supply Chain 19
  20. 20. Our Integrated Prevention Based Food Safety Approach is a Point of Difference 20 Risk Categories Design Procure Convert* Distribute Trade Consumer • Design Safety Analysis • Specifications • HACCP • Supplier QA • Plant & Equipment Design/Capability • Contracts • Selection/ Approval • Material Monitoring • Continuous Improvement • Specifications • HACCP • Supplier QA • Traceability • Sanitation & Pest Control • Complaint Mgmt • Process Capability & Control • Traceability • Warehouse Controls • Complaints • Warehouse Control • Specification • Labelling • Consumer Response • Process Capabilities *Applies to internal & external plants MicrobiologicalChemical Physical Scope Risk Preventio n Programs Starts with Design and grounded in sound Preventative Programs
  21. 21. QCMS provides the framework for integrated product design. 21 Design Procure Convert Distribute Trade ConsumerConsumer Focus on what’s important Design it in Make it right every time Talk about it in a meaningful way Listen, learn, and improve
  22. 22. Design 22 Design Procure Convert Distribute Trade Consumer We design robust products with food safety in mind Our design process includes product safety gates at key development stages Packaging integrity is a key element Internal global food safety team provides expertise
  23. 23. Suppliers 23 Some examples of significant incidents which highlight the external risks. Chinese milk powder contaminated with melamine sickens 1,253 babies German Dioxin egg scandal spreads across EU LOS ANGELES (AP) — The normally quiet almond industry has suddenly found itself struggling with a food producer’s worst nightmare: a salmonella outbreak that has sickened more than two dozen people and prompted a nationwide recall.
  24. 24. Suppliers 24 Design Procure Convert Distribute Trade Consumer Risk based supplier approval Supplier development Communications (specifications, expectations) Material Monitoring program
  25. 25. Conversion 25 Design Procure Convert Distribute Trade Consumer Our operations manage product safety based on the CODEX principles of HACCP Founded on solid PRPs CCP Process capability is validated against proven science Internal Audit programs
  26. 26. Distribution & Trade 26 Design Procure Convert Distribute Trade Consumer Warehouse & Transportation expectations Training and coaching of trade partners Supply chain traceability Retail product audits
  27. 27. Consumers 27 Design Procure Convert Distribute Trade Consumer Communications – product labeling Understanding anticipated products use Proactive use of consumer contacts Monitoring for emerging food safety issues
  28. 28. What is Consumer Relevant Quality? 28 Consumer Relevant Quality is a program comprised of Key Quality Attributes which are simple flavor and visual standards aligned to customer and consumer expectations measured throughout our supply chain Making Every Day
  29. 29. What Is So Special About CRQ’s ? 29 Consumer Relevant Quality (CRQ’s) Provides a leading vs. lagging tool, insight to consumer‘s expectations Integrates Retail Assessment programme providing a powerful tool for market calibration Differentiates Mondelez , builds competitive advantage
  30. 30. Consumer Relevant Quality Journey 30 IDEATION DESIGN MAKE DELIVER CUSTOMER CALIBRATE CI CDM 49g Packaging 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Appearance Coding Registration Sealing Back Seal Alignment Category % %G %A %R CONSUMER
  31. 31. Consumer Relevant Quality Journey 31 RACI R –R&D (Tech) A –Marketing C-R&D (Senior) C-Supply Chain Ops I –Category Quality I –Country Quality Consumer InsightIDEATION RACI Responsible Person that performs some or all of the tasks Can be more than one person – segmented task or procedure Accountable Person that will be held to account for performance/delivery only one person allowed Consulted Person or Persons that need to be consulted regarding the task Informed Person or Persons that need to be informed regarding the task
  32. 32. Evaluation • Post Launch Reviews (R&D) • Retails Quality Audits (Category Quality) • Consumer Preference Testing against PPQS (Marketing) • Consumer Response & Complaints via Care Lines (Category Quality) 32 Consumer Relevant Quality is specified, calibrated and improved via Quality Measures along I2M within the supply chain Idea Development Development • Quality Perspective (Category Quality) • Concept Test (R&D / Marketing) • Meridian Data Quality (R&D) • Product Testing (R&D / Marketing) • Visual Standards (R&D) Execution • Pre-Launch Quality Risk Assessment (Category Quality) • 1st Production Approvals (R&D / Supply Chain)    Cycle Time Metrics PDR to Launch Approval Launch Approval to First Production  1st Prod to Release QualityMeasuresI2M
  33. 33. Consumer Relevant Quality Journey 33 RACI R – R&D (Tech) A – R&D (Senior) C- Marketing C- Supply Chain Ops I – Category Quality I – Country Quality Product Specification Development Naked & Packaging Process Specification Development DESIGN Key Product Attributes Key Quality Attributes Standard Running Conditions Plant & Equipment Process Capability R – R&D (Tech) A – R&D (Senior) C- Supply Chain Ops I – Category Quality
  34. 34. Consumer Relevant Quality Journey 34 RACI R –Supply Chain Ops (Front Line) A – Supply Chain/Ops (Senior) C- Site/Plant Quality I – Category Quality I – Country Quality Live Monitoring of Key Product Attributes & Key Quality Attributes Live Monitoring of Process Standard Running Conditions MAKE
  35. 35. 35 Product Quality Visual Standard Attribute Red Unacceptable Amber Min acceptability Green Target Recipe distribution (Inclusions) Uneven Fair distribution Even distribution Quality Improvement Product Quality Visual Standards
  36. 36. Consumer Relevant Quality Journey 36 RACI R – Supply Chain (Distribution) A – Country Q C- Category Quality I – Supply Chain Ops Transport & Storage Condition Mgmt DELIVER
  37. 37. Consumer Relevant Quality Journey 37 CUSTOMER GROWTH PROFIT Customer Confidence Meeting Customer Expectations Consistent Quality Shelf Space Preference over Competitors
  38. 38. Consumer Relevant Quality Journey 38 CONSUMER Consumer Preference V’s Competitor Products Making Every Day Meeting Consumer Expectations Consumer Trust
  39. 39. Consumer Relevant Quality Journey 39 RACI R – Category Q (Project Owner) A – Country Q (Senior) C - Supply Chain/Ops C - Marketing C - Country Q I – Supply Chain Ops (Front Line) Market Place Buy Back Post Production Quality Reviews Consumer Preference Testing Consumer Response Consumer Complaints CALIBRATE CDM 49g Packaging 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Appearance Coding Registration Sealing Back Seal Alignment Category % %G %A %R
  40. 40. Consumer Relevant Quality Journey 40 RACI R – R & D R – Supply Chain/Ops R – Country Q A – Category Q C - Marketing I – Supply Chain Ops (Front Line) Product Specification complianceCI Prioritised Corrective Action Plans implemented at agreed stage in CRQ Process - Ideation Design Make Deliver
  41. 41. CRQ Summary 41 CRQ’s are Key Quality Attributes that are simple flavor and visual standards Align to customer and consumer expectations at the point of sale and consumption Measured throughout our supply chain Delivering consistent products that provide consumer preference over our competitors
  42. 42. Middle East Case Study – Cheese Handling in the Supply Chain 42
  43. 43. Philadelphia – Supply Chain Evaluation 43 • 8.00 am: - A Philadelphia Order to a major Key Account being picked up for delivery from the Distributor warehouse (temperature +6 DC) • Cartons were loaded manually into the reefer truck and was stacked properly (but cartons exposed to direct sunlight for a short period!).
  44. 44. Philadelphia – Supply Chain Evaluation 44 • The temperature inside the van before loading was +27 DC which is not the ideal temperature while delivering Philadelphia. • Truck reached the outlet receiving area after a 25 minute drive. The temperature of the truck at that time was down to +4DC. All supplier truck s were positioned outside this small receiving area which was right on the road. No separate receiving area for chilled/ambient products. Receipts inside the outlet were on a first-in-first-come basis and we were No.17 in the queue.
  45. 45. Philadelphia – Supply Chain Evaluation 45 • It took around another 20 minutes (we were lucky as the average time is around 45 to 90 minutes) for the outlet representative to come and ask us to off-load the cargo onto their receiving cages provided (as shown in the above pictures). There was no checking of temperature to ensure the products have arrived in the right conditions. All cartons were stacked inside the cages provided in the open (products had direct sunlight for atleast 5 minutes. Outside temperature +36 DC)
  46. 46. Philadelphia – Supply Chain Evaluation 46 • These cages were then taken inside and kept near the door (inside the receiving area) for bar-code checks and receiving into their warehouse inventory/system. The products sat there for the next 30 minutes since other suppliers were also in the queue. The temperature in this area was around +30 DC. • These receiving cages were then taken into the storage areas (a few meters inside the outlet). The temperature of the storage area was +8 DC. It’s a small warehouse with all chilled items from milk to cheese being stored. The Philadelphia cartons were kept on the floor. Just a meter away, in one corner in the same warehouse – there was a segregated area for keeping damaged/expired items for destruction. We found some cartons of expired/damaged cartons of milk/juices. However, there was no spillage or any evidence of cross-contamination at that time. •
  47. 47. BU Quality Observations/Recommendation 47 • A major concern was noted on reefer temperatures once it leaves the port. The container arrives unplugged during transit from the port to warehouse. This as you know is harmful for the product (especially during summer). The data logger confirms that the container temperature at the time of warehouse arrival was around +18 DC (it should never go above +8C). During the 30 days transit (source to Bahrain port) it was consistently maintained at +5C. Needs to be taken up on a priority with the port authorities as this is not acceptable as Kraft delivers CIF in a reefer container and we expect to see the products off-loaded at your warehouse within the set temperature (as done from origin). • Trucks shall be conditioned to the specified temperature prior to loading. Also internal temperature of the vehicle shall be checked and recorded before loading. • Need to influence the Key Accounts staff to priortise reefer deliveries to be accepted/quickly taken to the warehouse to maintain ideal temperatures at all times. It would be also recommended to have the front of the receiving area covered to avoid direct sunlight on the products if not having a dedicated temperature controlled off-loading area for reefer products. Also keeping damaged/expired items in the same warehouse is not recommended as it risks cross- contamination and odour transfer.
  48. 48. Thought for the Day! 48 – A world where all members of the global food industry have a common platform to manage food safety and protect our consumers, wherever they may be… – … allows us to focus on making Delicious products
  49. 49. AFRIS. AsianFoodRegulationInformationService. We have the largest database of Asian food regulations in the world and it’s FREE to use. We publish a range of communication services, list a very large number of food events and online educational webinars and continue to grow our Digital Library. We look forward to hearing from you soon! www.asianfoodreg.com adrienna@asianfoodreg.com

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