zimbabwe tqmpresentation 07-99

8/3/2019 Zimbabwe TQMpresentation 07-99

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Total QualityTotal Quality

ManagementManagement--

An EU ImportersAn EU ImportersPerspectivePerspective


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TQM - What ar

e the Key Features?

Everyone in the team, from farmworker / smallholder to the M Dmust feel involvement in every aspect of quality.

This team must be given leadership and trained to create a

universal understanding that the exporters success dependsupon the contribution and participation of every member ofthat team.

It follows therefore, that every team member must feel free to

participate which can be a culture change.

Every team player is provided with the opportunity to performtheir tasks correctly as specified with commitment.


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The principal requirements of T.Q.M.

Involvement

Leadership

Culture change

Commitment

Can only be developed around an effective qualityassurance scheme, which is seamless between the

smallholding / farm, and the supermarket shelf whichis what the UK supermarkets expect of their suppliers.

What do these supermarkets expect of their supply

chain?


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What is driving the supermarket policy?

Ian Merton (J.S.) Our fresh food philosophy is to guarantee

to our customers quality produce sourced throughgrowers prepared to take a long term view of ourrelationship with them.

Bob Hilborn (J.S.) We identify 4 key areas for progress Socially responsible sourcing,

Production systems with ICMS

/ Assured Produce /EUREP standards Food Safety, Consumer communications revealing Q.A. and hygiene

practices right back to the farm backed up byindependent verification.

David Hughes (Wye College) Fresh produce has becomewhat UK retailers describe as a Destination Category(a label shared with fresh meat and wine) for whichshoppers will switch stores.


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What UK supermarkets expect and require of the

supply chain:

A thorough knowledge and comprehension of their

needs

Operating and supplying to meet them

Certified performance and safety complying with UK/EUlaw

Clear training / instruction / review mechanisms

Suitable / specified packaging and logistics

Reliable product / two way flow of information /

innovation

Clear value for money


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A thorough knowledge and comprehension of their needs which must imply a very professional export chain

The expectations reflect those of their customers

First the negatives:

No dangerous residues

No G.M.Os

No exploitation of people

No degradation of the environment

The required varieties grown under ICMS

Working to a defined crop management specification

High levels of confidence generated:

From the consumer

From the supermarket From the distributor

Being aware of the changes in the market-place

Understanding Category Management


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Category Management

This includes supply chain management and integration ofthe export team with the UK distributor and supermarketcomponents.

Multifunctional linkages across the business

Complete electronic integration

Information sharing Innovation Ability to assist / shape customers view of the category

Customer-specific products / services and investments Financial stability

Supply chain management (integrity / efficiency)

Cost management Product range management Promotion and merchandising


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Operating and supplying to meet the

Supermarket needs.

Vertical integration with distributor and supermarket thissupply chain management is one element of Efficient

Consumer Response a policy which takes as its startingpoint how best to serve the consumer?

Note a consequence of supply chain management willbe that supermarkets will deal with fewer suppliers.

Supermarkets / Distributor need suppliers with the volumesand resources to meet their needs

Modern facilities with well trained / experienced staff

Minimal strategic defaults from source farmsLogistics engendering high degree of confidencee.g. dedicated transport / airport facilities


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Certified Performance and Safety

Ensure full understanding of UK 1990 Food Safety Act and

European Hygiene Directive 94/43/EECMeet requirements of Due Diligence a requirement ofthe UK Act on all food suppliers

Use of ICMS and Crop Management Specifications /EUREP

Monitor all critical safety aspects (residues, water quality)

use HACCP to identify and eliminate risksRun harvest and packhouse hygiene to highest possiblestandards

Record all production inputs by field and farmEnsure full audit trail on every package

Remember - the consumer awareness of Food SafetyIssues is higher than ever beforeUK supermarkets are monitoring quality on shelvesintensively e.g. ASDAs Tell Tim hotline to shareinformation about produce and the J.S. Customer

Cares weekly summary.


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EUREP - Principal Objectives

To ensure suppliers are using GAP based on a robustlegal framework where compliance with regulations in

the country of origin is an absolute minimumrequirement.

To encourage viable I.C.M.S minimising inputs whilstachieving viable yields for producers

To recognise existing Best Practice and develop itfurther to meet consumer needs through partnership

with growers and suppliers.

EUREP participating retailers (26)

Include:

Safeway, J Sainsbury, Tesco, Waitrose, UK others inEurope include:- Albert Heijn, Coop Italia, Rewe,

Promodes, SparAustria, Tengleman, Migros, GB,Delhaize.


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Clear training, instruction, review mechanisms

Q.A. systems require effective staff management and

their development through formal training

Quality training achieves the desired result only if thegrowers are integrated into the supply chain

Training programmes must include relevant hygiene

instructions

Trainers themselves need training a role for co-ordinationfrom export associations

Q.A. system must involve full written checks, with

feedback to the form and regular formal reviews of the

results of checks at source and destination.

With a clear commitment between the exporter and UK

distributor, the latter can have the confidence to jointlyinvest in training programmes, thus increasing the

supermarkets confidence in the relationship.


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Suitable / Specified packaging and logistics

The key phrase is punctual delivery to programme which

implies that food reliable logistics must underwrite exportsThe product and the package are an integral unit in the

context of handling and marketing from the point of

preparation and export.

Be aware of the increasing demand for convenience

produce the move towards semi-prepared products with

need for extended shelf life.

Innovation drives value creation, as does time and money

spent on presentation.

Check every delivery of packaging against specification - at

the time of arrival.

Increasing complexity of packaging implies specialisedequipment to pack and deliver produce in optimum

condition to the point of export.


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Reliable Product / 2 way flow of information

Reliable product needs T.Q.M. at every stage for reliability of :

Eating qualityInherent safetyThe UK importer needs reliable suppliers for reliable product

Two-way flow of information of accurate information andintelligence will benefit all partners

Use it in developing flexibility to respond both to changes in themarket place, and to problems arising

Additionally the information should be used to stimulate supplier

generated innovation (the only long term source of competitive

advantage)

Reliable suppliers will benefit in the climate of slower growth in the

fresh produce market

Synergise their strengthsMore stable returns

Potential for economies of scale with fewer suppliers in play


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Clear value for money

Prices for fresh produce in UK stagnating declining in 99

Oversupply situation

How do we fight back?

Short supply chains needed

Farmer consumer (farmers market)

Farmer - retailer consumer (U.K. largest farms)

Farmer distributor retailer consumer

Farmer export group distributor retailer consumer

With thin margins it is difficult to justify a longer chain

The UK supermarkets require T.Q.M. and all done at the lowest possible cost.

With static margins the supply chain needs to seek:

More efficiency in production and marketing

Product differentiation / added value

Logistics efficiency

With quality assured, programmed supply chain, the supermarkets need to

minimise distribution and inventory costs, reduce wastage and maximise market

opportunities.

The consumer should benefit from better availability, less out-of-stock situations,fresher produce, longer shelf-life and potential cost-savings.


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What is Mack doing to meet the challenges in

this new market place?

Investing further in its distribution centre

Investing in new systems and machinery Building more self-contained teams specialising in

individual products Investing heavily in staff training

Developing new packaging, new product development Submitting to comprehensive 3rd party auditing

Investing heavily in communications / databases and on-line systems with our customers giving almost instant

response to changes in orders Spending even more time with customers and in

customers stores Giving searching examinations to every aspect of our

business seeking effective cost-reduction Investing heavily in time spent overseas at source

Participating in Effective Customer Responseprogrammes


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What is E.C.R.?

Fully understanding our customers and consumers Jointly managing the different categories of produce on

the shelves (category management) Develop long term initiatives with our customers to build

shopper-loyalty, rather than concentrating on short-termprice-offs, though these are a useful marketing tool

The 4 components of E.C.R.:

Category Management

Efficient promotions Effective new product development

Continuous replenishment from the supply side


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Mack Multiples DivisionMack Multiples Division

Transfesa RoadTransfesa Road

Paddock WoodPaddock Wood

TonbridgeTonbridge

KentKent

TN12 6UTTN12 6UT

UNITED KINGDOMUNITED KINGDOM

zimbabwe tqmpresentation 07-99

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