Dekeyzer-Ossaer - digital business modelling in the meat

processing industry

Comprehensive digitization

Clear objectives, outstanding quality management and

a vision of the future

Dekeyzer-Ossaer was founded as a butcher's

shop in 1980 and steadily built up sales and de-

liveries to the local hospitality industry. After

almost 40 years, the Dekeyzer-Ossaer butcher's

shop has grown into a family-run meat-

processing business, with deliveries throughout

Flanders and Wallonia.

The meat processing consists of the portioning,

preparation, packaging and distribution of meat,

poultry, minced meat and complementary fresh

products. At the meat processors, the ready-to-

cut meat is further processed and individualised

according to the customer's orders’ specifica-

tions. This change in the meat chain is the result

of the consolidation of the former 'butchers' into

a limited number of 'large' players.

The customers are the (wholesale) kitchens of

the catering industry, hospitals, residential care

centres, etc. Production at Dekeyzer-Ossaer is

not a continuous process but is adapted daily to

the demand of the customers by means of the

next day's orders.

It is a service-driven company: fast, proportional

and yet a large range of 2000 products, pack-

aged according to HACCP with labelling and de-

livered within twenty-four hours, just in Time.

The company has 120 employees.

Implementation of digital technology In-

dustry 4.0

Dekeyzer-Ossaer was awarded the title Factory

of the Future (March 26, 2018), an award from

Agoria Vlaanderen. A 'Factory of the Future'

plays a pioneering role in transforming itself into

a dynamic high-tech company. For the Award,

SMEs have to commit to a process that focuses

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Comprehensive digitization

on quality, diversity and innovation. The driving

force behind the digitisation story is the founder

and current managing director of the company,

supported by the members of the board of direc-

tors who have also been selected for their specific

competencies in order to contribute to the devel-

opment of the company. With a view to growth

and digitisation, a smart composition of the board

of directors has been worked on. The members

have business experience and are positive about

digitisation. A strong board of directors is needed

to pursue a sustainable policy and to ensure that

the coming generation changes run smoothly. The

generational change has been prepared step by

step for the past five years in order to be able to

maintain a growth scenario for the future.

The company wants to put a lot of effort into dig-

itizing the practical contacts with the customers:

product information, orders and the follow-up and

invoicing. Where necessary, the IT service can also

support the customers digitally and take over the

screen remotely. For the company, the ad-

vantages of this digitisation - flawless communica-

tion, saving on manual work, speed of action and

insight into real-time activities - are a trigger to

digitise as much as possible and the fact that

about 30%, especially the smaller customers, do

not yet participate in the digital system is not a

brake, but an extra incentive to find out how

Dekeyzer-Ossaer itself can realise the investment

at the customer's premises in a profitable way.

The leverage lies in the lead over the competition

that can be achieved if the ROI can be attained in

a sufficiently long period of time. The company

not only wants to collect information from cus-

tomers according to their orders, but also to col-

lect information about the processing of the prod-

ucts in the kitchen to learn how the range can be

tailored even better to the needs of the cooks.

In addition to contacts with colleagues in the

chain, the company's professional network ex-

tends from colleges of higher education to re-

search institutes, professional federations and

organisations, and sector-specific knowledge and

training centres. In recent years, the company has

invested a great deal in its own research, particu-

larly in the field of digitisation, but also calls on

the support and financing of innovation projects.

Dekeyzer-Ossaer has opted for an internal IT ser-

vice since the start of digitisation, thus playing a

pioneering role for the sector for more than 15

years.

The control system 'Hazard Analysis and Critical

Control Points' ensures that the entire process

within the production process can be controlled.

This can range from checking the temperature to

checking traceability.

Dekeyzer-Ossaer is IFS certified for quality con-

trol. The impact of this quality standard can be

felt in every department. Every step in the pro-

duction process is monitored, and thanks to digiti-

sation, the traceability of every product in every

process can be guaranteed, even if the finished

product leaves the company with a digitised com-

munication system contact between the drivers

and the company. The quality managers continue

to monitor the temperature in the delivery vans.

The company also pays attention to sustainable

production systems and energy solutions; the

links in the production process are analysed and

adjusted in order to optimally reduce the ecologi-

cal footprint. Dekeyzer-Ossaer also invested in

digitisation by developing an e-commerce

platform that generates the majority of orders

digitally and handles them without paper or phys-

ical archives.

The greatest impact is currently being made by

the use of (big) data for the production improve-

ment and the performance of the company. In the

future, this data can also be used as artificial intel-

ligence in function of customer profiles and order

predictions. Predicting the market offers opportu-

nities to optimize the price setting.

Comprehensive digitization

Depiction: objectives of digitisation

De Keyser-Ossaer is deploying digitisation with specific objectives:

1 A clear offer

In terms of customer-friendly ordering options, the wide range of 2.000 products

can be consulted at any time in a clear and user-friendly manner.

2 Insight into prices

Transparent overview of prices, tailored to the individual customer with his or her

customer profile and with insight into the promotions.

3 User-friendly ordering

User-friendly software for the orders with the possibility to track and trace the or-

der, also by the customer. Traceability of the products is an additional service to the

customers and strengthens their confidence. Traceability thus becomes a sales ar-

gument, with in general: the origin of the meat, the slaughterhouse, the prepara-

tions, the packaging, the transport, the consignee.

4 Automation of the production process

The automation of the production process supported by soft screens to monitor and

control the different batches of orders. By collecting (big) data throughout the pro-

duction process, the best possible composition and follow-up of the orders can be

calculated.

5 The packaging department

In the packaging department, the products from the different departments come

together and the orders have to be put together. Once again, the digitisation is

strongly supportive to regroup the more than 500 orders per day from the 10 pro-

duction lines for the many unloading points across Flanders and Wallonia. In the

packaging department, the products are linked to the customers by means of bar-

codes and the labelling is done automatically with the data on the shelf life, the in-

gredients, the tracing data, and all other useful information.

6 Making the technical sheets available

Making the digital technical data sheets of the products available means relieving

customers (the kitchens in hospitals and other institutions are obliged to do so) and,

in this sense, providing an extra service. The business model is extended with this

additional service that is included in the sale of a product.

7 Automatic invoicing

Automatic invoicing via an online platform enables customers to simplify their pay-

ments and accounts. Customers do not have to follow up the payments themselves,

this service is offered to them online.

8 The integration of digitisation in Industry 4.0

The integration of the above digitisation in production is the final step for Industry

4.0. The mass data exchange provides alternatives in the business model.

Challenges in the implementation of digi-

tal technology

In the past, the most difficult threshold that had

to be taken was that of linking the different steps.

The data exchange between the server and the

machines was not easy, but our own IT depart-

ment searched for solutions.

There is currently a threshold for external cus-

tomers who are not yet able to cope with digitisa-

tion, but the benefits for Dekeyzer-Ossaer are so

great that customer support for digitisation is be-

ing considered.

There are a number of permanent barriers to the

creative search for solutions. In cooperation with

other companies and with centres of expertise,

the protection of 'business secrets' always re-

mains an obstacle to open cooperation and the

necessary time will have to be invested to build

trust. Finding the necessary qualifications, both

on the IT level and for other jobs, is a recurring

point of attention. The ICT service in particular is

a potentially weak link, because it is very sensitive

to staff turnover, as only three employees are in-

volved. Finally, keeping up to date is general and

being able to cope with the rapid evolutions in

the field of food and technology is a prominent

working point.

The company sees more levers than barriers to

digitisation. The dioxin crisis in 1999 was the big-

gest trigger for digitisation because the company

had just made a heavy investment to expand pro-

duction. With the establishment of the Federal

Agency for Food Safety, it was clear that the agri-

food sector had to take the lead in maximising

consumer safety, and digitisation could better

guarantee this.

It was not only the digital guarantee that became

an asset, but the possibilities to link additional

information to it and to facilitate communication

with suppliers and customers were seen as an op-

portunity to make the business model more effi-

cient. For example, digitisation not only supports

the process in terms of monitoring the food chain

and offering save food. Insight into the tracing of

products also offers opportunities to follow up on

other matters, in order to increase productivity,

automate bookkeeping and handle orders digital-

ly. All this leads to a better service to the custom-

ers.

With the better service to customers, their expec-

tations and demands are also higher, and it is an

advantage for the company if they can be met.

Comprehensive digitization

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In every step of the implementation of digitisation

there are advantages, either in terms of productiv-

ity and performance, or in terms of growth oppor-

tunities for the company. It is these benefits that

are the main triggers. The example of automatic

portioning is very illustrative in terms of benefits,

and this is two-fold. The exact calibration of the

cutting machine and the automatic cutting saves

on 'loss' due to inaccurate weighing on the one

hand and on the other hand the customer gets a

better service by correct quantities that can be

used immediately in the recipes.

The opportunities for growth are also clear. A

butcher can process 70 kg/hour with an error mar-

gin of 20%, the automation makes it possible to

process up to 700 kg per hour without weighing

errors. Digitisation is a strong lever for growth.

For the future, it is being investigated whether dig-

itisation can go even further in function of a new

marketing concept in which the processing of

meat in a sustainable manner and in a short chain

can become a new quality label or certification.

For this reason, the company is investing in (the

latest) technologies such as blockchain, in which

data on animal feed and the interventions of vet-

erinarians can also be included.

According to the company, sustainability and the

short chain must be seen in the context of the

fight against food waste, and new freezing tech-

niques can support this story. Blockchain can be a

quality label to support the story of less miles food.

This makes it necessary to make the mindset of

the partners in the network ICT minded.

Digitization to improve work conditions

and participation of employees

Digitisation supports the work content and condi-

tions for most functions from the perspective of

social innovation, with extra attention to the in-

volvement, creativity and autonomy of the em-

ployees.

An example is the digital support for autonomy by

deploying a digital platform so that employees can

process orders themselves. For the operators, the

instructions are made simple and transparent and

are provided with 'easy' choices. The idea is that

performance is much better if employees are sup-

ported by digitisation. A touch screen must func-

tion according to a simple logic and thus protect

employees from stress. Digitisation means that

orders received in the afternoon (extra service to

customers) can still be delivered stress-free by the

next day.

The work of the operators is steered by the incom-

ing orders and accompanied by appropriate in-

structions and information so that the work can be

carried out without any additional workload. The

supporting software ensures that not all the oper-

ators need specific butcher training. Concretely,

seven operators have a butcher's training course,

while others have a wide range of preparatory

training courses. Various employees have a migra-

tion background and therefor only a limited com-

mand of the Dutch language. Here too software is

supportive. For all operators, anyone with the nec-

essary skills can also move on to another job with-

in the company.

Digitisation has not fundamentally changed the

division of labour, but it has ensured that employ-

ees can be flexibly deployed for other tasks in addi-

tion to their regular workplace. Work is organised

and distributed based on competencies and,

where possible, on the preference of employees.

Flexible tasks are carried out by employees who

wish to take part in them. The digital platform can

also be used for a system of 'check at work' in

which the management can automatically see who

is at work.

Keeping track of the work status of employees can,

if necessary, be automatically made available in

this company. In this way, the company wants to

be one step ahead of the time when the govern-

ment wants these data to be available automati-

cally.

Comprehensive digitization

The employees are very involved and are also

strong internal partners in the implementation and

improvement of the production process. They are

strongly involved in the quality system and through

the production managers, their comments and re-

marks about the digitisation are taken into account

in the following software developments. We are

working on a digital platform with information

from and for employees. Over the past fifteen

years, the digitised production process has been

expanded and adjusted by the comments of the

operators. Step by step, errors have been eliminat-

ed based on the operators' information. What

went wrong is recorded per line and then filtered

out in the work instructions.

The information platform of and for employees al-

so makes it possible to distribute the work via the

platform and to fill in the working hours yourself.

Thus, holidays and overtime can be arranged mu-

tually and linked to the production planning. The

digital support makes it possible to better adapt

working hours to individual demands in terms of

work-life balance.

Despite the fact that digitalisation is taking over

many tasks, employment has been increasing. The

original butchers have been trained as operators.

Older employees in this company could also be in-

cluded in the story of digitisation, sometimes at a

slower pace than younger employees, but with us-

er-friendly software this should not be an obstacle.

Comprehensive digitization

Photo: Technician using digital tablet while examining meat

Source: Fotolia, WavebreakmediaMicro

Source of original Text

Industry 4.0 – Examination of five Sectors

Report of the foundation Innovation and

Work

on behalf of the Socio-Economic Council of

Flanders

Brussels, June 2019