By Pitak Supanantakarn Managing Director, TUV NORD (Thailand) Limited 23 rd March 2017 Bangkok Metropolitan Administration INTERNATIONAL STANDARDS &TECHNICAL MANAGEMENT FOR FOOD RETAIL BUSINESS
By
Pitak Supanantakarn Managing Director, TUV NORD (Thailand) Limited
23rd March 2017 Bangkok Metropolitan Administration
INTERNATIONAL STANDARDS &TECHNICAL MANAGEMENT FOR
FOOD RETAIL BUSINESS
CONTENTS
20/03/2017Unternehmenspräsentation 2
Introduction: the age of digitalization, mega-trends & new consumer
mentality and expectations;
Food retails – legal perspectives
Food retails – quality management system perspectives
Global Food Safety Initiatives (GFSI)
Risks and opportunities
Supply chain management
A proven system and lesion learned
Key competencies required for future development
CEO’s stress-test
Question and answer2
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INTRODUCTION: THE AGE OF DIGITALIZATION
“Digital” is not just about technology. It’s about new ways of addressing, creating unique solutions and transforming
business – it will change the ways people doing things !
THE DIGITAL PARADIGM SHIFT
When the new paradigm applies, new rules & regulations will apply, your previous
success guarantees nothing … 4
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Advance robotics3D printingAutonomous vehicle New materials
Internet if things Cloud computing Smart censors RFID
Genome
Physical
Digital
Biological
INTRODUCTION:THE NEW DIGITAL AGE & MEGA TRENDS
Shift in theBusiness-consumer
ecosystem
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THE DISRUPTIVE CHANGES ?
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Data collection Smart sensor Cloud technology Big data analysisSmart phone
Virtual simulation
Authenticity detection3D printingInternet of thingsLocation detectionAugmented reality
Embedded technology
Smart grid
Multiple sources of disruption trigger different forms of business impacts.. resulting in new business and competitive environment.
NEW CONSUMER MENTALITY
Society better educated and informed from variety of sources – social medias, internet, TV, radio, published documents, written words, ..
Concerns shifting from physical attributes to intangible attributes; Services – convenience and values Corporate governance and sustainability – corporate social responsibility,
code of conduct & ethical marketing, safety & security, sustainability Others – customer experience, confidence and predictability
Appetites for conformation – where it comes from, how it’s produced...
Media & NGO’s more vocal and active – bad new travel fast !
Consumers usually react & response to the issues based on “emotional factors”, rather than “scientific evidence”
Reputational risk a huge concern for brand integrity 7
CONSUMER CHANGE FASTERTHAN WHAT RETAILER’S UNDERSTANDING.. CUSTOMER EXPECTATION IS THE KEY
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Retail consumers are changing faster that what the retailers’ understanding.
No longer confined to traditional stores, retail is increasingly
ubiquitous.
Transactions are becoming ever easier using new technology
and digital platform.
Stores are also popping up in new and unexpected places, such
as train stations and truck and bus “stores.”
etc, etc, etc,
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RETAIL: CHANGING BUSINESS LANDSCAPE
CUSTOMER EXPECTATIONS ARE SHIFTING
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Consumers, as individual (B2C) or business (B2B), are increasingly at the center of the digital economy, which is all about they are served.
Customer expectations are being redefined into experiences.
DO IT RIGHT FROM THE FIRST TIME
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RETAILERS MUST TAKE ALL REASONABLE PRECAUTIONS AND
ALL DUE DILIGENCES
FOOD RETAILS: FROM LEGAL PERSPECTIVES
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FOOD LAW AND DUE DILIGENCE DEFENCE
Warranties and Assurances
Records and Instructions
Taking Precautions
Consumer Complaints
Responsibilities
Modification
Codes of Practice
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The System
hygiene and safety of premises and equipment;
quality, composition and safety of food products;
labeling, presentation and advertising;
staff training;
registration and licensing as appropriate;
improvement notices, prohibition or control orders
as may be applicable.
FOOD LAW AND DUE DILIGENCE DEFENCE
Con’t
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FOOD LAW AND DUE DILIGENCE DEFENCE
HOW WILL YOU PROVE IT?
THE ANSWER IS SIMPLE.. YOU MUST HAVE IN PLACE A COMPANY-WIDE QUALITY SYSTEM
TO ENSURE THAT;
FOOD SAFETY
FOOD QUALITY
REGULATORY
CUSTOMERS’ REQUIREMENTS AND EXPECTATIONS
.. ARE EFFECTIVELY MANAGED THROUGHTOUT THE
ENTIRE BUSINESS PROCESSES.
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DO IT RIGHT FROM THE FIRST TIME
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A COMPANY-WIDE QUALITY MANAGEMENT SYSTEMS
FOOD RETAIL: FROM QUAITY MANAGEMENT PERSPECTIVES
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GLOBAL FOOD SAFETY INITOATIVES (GFSI)
Global Food Safety Initiative (GFSI), non-profit foundation created under Belgian law, was coordinated and launched in May 2000. The GFSI objectives;
• Promote convergence between food safety standards through maintaining a benchmarking process for food safety management schemes
• Improve cost efficiency throughout the food supply chain through the common acceptance of GFSI-recognized standards by retailers around the world
• Provide a unique international stakeholder platform for networking, knowledge exchange, and sharing of best food safety practices and information
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WHAT ARE THE MAJOR SCHEMES THAT APPLY TO FOOD MANUFACTURERS?
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BRC Global StandardsBRC Global Standard is a leading safety and quality certification program, used by over 20,000 certificated suppliers in 90 countries, with certification issued through a worldwide network of accredited Certification Bodies. The BRC Food Safety Standard is a leading global brand recognised by thousands of customers worldwide, and has certificated over 15,000 suppliers in over 100 countries around the globe.
Safe Quality Food Institute (SQF)The SQF Certification program helps reduce assessment inconsistencies and costs of multiple assessment standards. What’s more, the SQF Program is recognized by the Global Food Safety Initiative (GFSI) and links primary production certification to food manufacturing, distribution and agent/broker management certification.
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WHAT ARE THE MAJOR SCHEMES THAT APPLY TO FOOD MANUFACTURERS?
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International Featured Standards (IFS)The IFS certification is based on a quality and food safety standard for retailer (and wholesaler) branded food products, which is intended to enable the assessment of suppliers’ food safety and quality systems, in accordance with a uniform approach. This IFS Food applies to all the post-farm gate stages of food processing.
Food Safety System Certification (FSSC)FSSC 22000 is the world's leading, independently managed,
nonprofit food certification scheme for ISO 22000-based certification of food safety management systems. Acknowledged by GFSI for the manufacture and processing of foods and food packaging materials, FSSC 22000 retains the flexibility to add scopes in line with market demands.
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FOUNDATION IN SCIENCE
CodesOf
Practice
GFSI Recognised
Schemes
ISO StandardsISO 22000
Codex AlimentariusStandards
HACCP Principles
Legislation Requirements
Principles
Standards
Schemes
Supplementary Codes
Source: CIES France25
DO IT RIGHT FROM THE FIRST TIME
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A COMPANY-WIDE RISK MANAGRMRNT & LIMITING YOUR LIABILITY
FOOD RETAIL: RISK MANAGEMENT PERSPECTIVES
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RISKS AND OPPORTUNITIES
Positive risk Negative risk• Opportunistic • Growth• Possibility
• Controllable • Unacceptable• Avoidable
General Risks:• To reputation; adverse publicity arise from complaints, recall, etc. • To profits; compensation, fines, litigation cost, recall expenses, management distraction, etc.
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WHAT ARE THE RISKS
20/03/2017
Security risks – information security and data privacy Strategic risks – business strategy & direction Financial risks – market and credit risks Operational risks – performance Compliance risks – legal, contractual and ethical issues Business interruption risks – financial, liability & consequential losses Reputational risks – brand image, goodwill , etc.
TUV NORD Thailand
CORPORATE GOVERNANCE RISKS
TRADITIONAL BUSINESS RISKS Food safety Food quality Regulatory requirements Customer requirements & specific needs
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NO MORE BUSINESS AS USUAL !
Business as usual is not only not going to get us prepared for the digital challenging retail business, but it also puts us & our culture on a reactive path
SUPPLY CHAIN RISK MANAGEMENT: THE KEY ISSUES
WhoIs It?
Are They Capable?
How can I trust
them?
Key information Key information
Nature of business Physical location Processors/
manufacturer information Supplier information
Standard & quality Reliability Responsiveness Flexibility Cost Value
Key information Reputation risk Quality Safety Cost Value Service
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THE 4 GENERATIONS OF SUPPLIERS
No QA policies Variable standards No budget for QA, ,
OHS, EMS, CSR Cost driven culture No visibility
Very Low Performance
Policies exist, not ‘owned’ at board level
Some auditing Budget exists but
QA seen as a cost Systems/
standards seen as impractical
Little visibility
Low Performance
GENERATION 3
QA policies exist and reviewed
Some board commitment
Good communication
Positive attitude from management
Visibility to stakeholders
Medium Performance
Full board commitment
Leading policies beyond legal minimum
Excellent communication and commitment
Internal & external auditing
QA a competitive advantage
High Performance
CONTINUOUS IMPROVEMENT JOURNEY
90 % Supply ChainAchievement
AwardGENERATION 4
REACTIVE PROACTIVE
GENERATION 2GENERATION 1
Source: Divers lever 32
Very Low Performance
Entry
Compliance
Low Performance
Medium Performance
Commitment
Cooperation
High Performance
PER
FOR
MA
NC
E
TIME
SUPPLIER IMPROVEMENT: BUILDING A STAIRWAY TO SUCCESS
Continuous improvement – PDAC Cycle
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Unternehmenspräsentation 34
A PROVEN SYSTEM & LESSON LEARNED
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FOOD RETAIL: RISK MANAGEMENT PERSPECTIVES
• Supplier profile & selection criteria
• Ongoing performance
Know your products - Criteria & specification are clearly defined;
2. Formulation and Raw Materials• List of raw materials, ingredients and formula
• Packaging specification
• Product characteristic
• Traceability of materials
1. Partner Identification
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FOOD RETAIL: RISK MANAGEMENT PERSPECTIVES
• Process flow diagram and operating procedures
• Quality control plan
• Product identification and traceability
3. Production Process and Control;
4. Technical Specification Sheets• Packaging list) – consumption units, sales, grouping and
distribution
• Finished product spec. and lot no. & batch identification
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FOOD RETAIL: RISK MANAGEMENT PERSPECTIVES
Know your products - Criteria & specification are clearly defined;
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• Labeling – legal special instruction, allergens • Intended use – sensitive group of consumers
5. Specific Requirements
FOOD RETAIL: RISK MANAGEMENT PERSPECTIVES
Know your products - Criteria & specification are clearly defined;
• Comply with legal requirements
• Clear language (multi-lingual) and consider need for picture
• Include: a) direction for proper use and storage and b) waning against improper use and about dangers
RETAIL BUSINESS: MINIMIZING RISK & LIMITING LIABILITY
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1. Effective Implementation of an Integrated Food Quality and Safety Program that addresses;
• A companywide quality management system
• Food quality and safety
• Customer and market requirements
2. Adequate Labeling – will help avoid goods being found to be unsafe food;
3. Reduce Scope of External Complaints
• Fare and clear sales teams – ethical approach
• After sales services – consumer hotlines, customer service center..
• Proactive culture – implement incident and crisis management program, periodically conduct mock test.
4. For Retailers
• Set criteria of approved suppliers, processors/ manufacturers
• Identify manufacturers, contract manufacturer and importer of all goods sold
• Avoid direct importation of goods
RETAIL BUSINESS: MINIMIZE RISK & LIMITING LIABILITY
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5. For Contract Manufacturers
• Keep written records of specification, design, orders by brand-owner.
• Implement its own system to ensure compliance with buyers’ requirements
6. For Brand Owners
• Establish product specifications
• Implement periodic inspection and testing
• Employ independent third party to verify the system and assess risks
• Exert control over marketing
RETAIL BUSINESS: MINIMIZING RISK & LIMITING LIABILITY
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Effective risk Management Productivity
Strong preferred-
brandSystem Management: Integrated Business Assurance System
FOOD RETAIL BUSINESS: RISKS, PERFORMANCE & SERVICE
Risk portfolio
Performance portfolio
Service portfolio
TUV NORD Thailand
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ประวตัิวิทยากร
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ชือ่-สกุล: นายพิทกัษ์ สภุนันทการ
ภมูลิาํเนาเดมิ: อาํเภอปราสาท จงัหวดัสรุนิทร์
สถานภาพสมรส: สมรส (บุตร 1 คน)
ความสนใจ: การตลาด การเกษตร การเมอืง จติวทิยาและปรชัญา
งานอดเิรก: อ่านหนงัสอื ทาํสวนเกษตรผสมผสาน และสรา้งวมิานในอากาศ
โทรศพัทม์อืถอื: +66 – 81 - 933 8986, +66 – 81- 6329 4016
E-mail (Office): [email protected]
E-mail (Private): [email protected]
การศึกษา (EDUCATIONAL QUALIFICATION)
วิทยาศาสตรม์หาบณัฑิต - เกษตรศาสตร ์(พชืไรน่า – ปรบัปรงุพนัธพ์ชื) มหาวทิยาลยัเกษตรศาสตร ์
(พ.ศ. 2535)
วิทยาศาสตรบ์ณัฑิต - เกษตรศาสตร ์(พชืศาสตร ์- สาขาพชืสวน) มหาวทิยาลยัขอนแก่น (พ.ศ. 2530)
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ประวตัิวิทยากร – (ต่อ)
ประสบการณ์ทาํงาน (WORKING EXPERIENCE)
กรรมการผูจ้ดัการ - บริษทั ทฟู นอรด์ (ประเทศไทย) จาํกดั ธนัวาคม 2557 - ปัจจบุนั
บริษทั บีเอสไอ กรุป๊ (ประเทศไทย) จาํกดั - สถาบนัมาตรฐานองักฤษ (British Standard Institute)
กรรมการผูจ้ดัการ กุมภาพนัธ ์2556 – พฤศจกิายน 2557
กลุ่มบริษทั เอสจีเอส – บริษทั เอสจีเอส (ประเทศไทย) จาํกดั
ผูอ้าํนวยการ – ฝา่ยพฒันาธุรกจิ ภาคพืน้เอเชยี แปซฟิิก (สายธุรกจิอาหาร) มกราคม 2555 – มกราคม 2556
กลุ่มบริษทั อินเตอรเ์ทค เทสติ้งเซอรว์ิสเซส - บริษทั อินเตอรเ์ทค เทสติ้งเซอรว์ิสเซส (ประเทศไทย) จาํกดั
ผูอ้าํนวยการ – ภาคพืน้เอเชยี แปซฟิิก (สายธุรกจิอาหาร) มกราคม 2552 – ธนัวาคม 2554
กรรมการผูจ้ดัการ – สายงานธุรกจิดา้นสนิคา้อุปโภค-บรโิภค กุมภาพนัธ ์2547 – มกราคม 2552
บริษทั เจริญโภคภณัฑอ์าหาร จาํกดั (มหาชน)
ผูช้ว่ยกรรมการผูจ้ดัการ – สาํนกัประกนัคุณภาพ (Corporate QA) กนัยายน 2546 – มกราคม 2547
บริษทั รีเทล ซพัพลาย ลิงคส์ จาํกดั
ผูจ้ดัการทัว่ไป
มกราคม 2544 – สงิหาคม 2546
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Thank you for your attention
Pitak SupanantakarnTUV NORD (Thailand) Ltd. 1858/75-76 TCIF Tower, Bang-na Trad Rd., Bang-na, Bangkok 10260Tel. +66 2751 4050 Mobile: +66 08 6329 4016 E-mail: [email protected]