How can CSR be applied? Nedspice, a business case study of - The added value of sustainable sourcing. Vietnam April 2018

Transcription

1 How can CSR be applied? Nedspice, a business case study of - The added value of sustainable sourcing Vietnam April 2018

2 Willem van Walt Meijer Nedspice team member We cannot only take from society, we have to contribute or.. we will not survive 2

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5 Nedspice Group - Global network

6 Drivers behind Nedspice Business positioning Economic 1.Global trend for outsourcing non-core processing missing economies of scale and quality Consumer 1.Demanding and ever changing food safety regulations in consuming countries Solutions 1.Supply Chain operations at origin brings control, quality and cost advantages 6

7 How we got there? Traders since 1870 Manufacturer at origin since 1998 Up-stream sustainable Supply Chain integrator since

8 Nedspice Business positioning Nedspice trendsetter in technology and business system innovation 1.Quality development starts at the farm FARM/COLLECTOR 1.Full supply chain tracking & tracing 1.Sustainability farming 1.Leading edge processing environment PROCESSING 1.Cost advantage & Market feel 1.Global reach: 400+ customers 34 countries CUSTOMER 1.High service levels 8

9 Nedspice Group - Customers

10 Nedspice Group - global sales

11 NFPP Vietnam

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13 Competitive Vietnamese export Market requirements delivered from ORIGIN through compliant Nedspice farmers network + leading edge Nedspice factory & logistics

14 THE KEY ISSUE IN VIETNAM Pesticide Contamination Exporter Up to 30 % of farms have issue at a point in time Exporter Exporter Limitations on export

15 THE KEY ISSUE IN VIETNAM Pesticide Contamination So, backward Integration Exporter 1. Pesticides & Allergens control Exporter Exporter 2. Towards Sustainable supply chain with farm management training and certification RA/NFPP 3. Tracking & Tracing, 100% testing of every delivery from farm level 4. Cost lower and quality up

16 Nedspice upstream sustainable business foundations for competitive Vietnamese export International Export Quality standards MRL Tracking & Tracing & 100% testing to learn, pay for performance and a guarantee to customers Growing Successful Sustainable s Monitoring & advise to improve farming Pay, price Protection & Finance for Performance NFPP always buys every day

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20 Supply channel management NFPP/RA s NFPP s NFPP Buying station NFPP extended network s NFPP Franchise / T&T s Indirect Channel s s s Traders

21 Roll-out 2018 Growth districts in Binh Phuoc province Total pepper farmers: 10,000 Total production: 20,000 tons Target: farmers New: 1000 farmers Volume: tons = new

22 Status NFPP KPI s and objectives 2020 Progress Plan 2018 Plan 2020 s # o0 >3000 Volume NFPP 380MT 880MT 1.100MT 1.800MT MT MT Volume as % of total sourced pepper 4% 8% 14% 20% 26% 30% loyalty 72% 68% 88% 90% 80-90% 90% Staff

23 NL Embassy Viet Nam government MARD s & Traders Province Leadership & Regional AEC Vietnamese Pepper Association Groups, Co-op s & individual

24 Key Success Factors Nedspice of start of sustainable sourcing Clear sustainable business opportunity Sustainable business system design Lead by example from the top to the long term 24

25 Key Success Factors Vietnam 1. Bring market requirements which make a difference for customers & consumers back to objectives of farming performance 2. Coach small holder farmers to achieve these requirements and reward results at individual farm level 3. Patience 4. Capture added value of raw material through superior processing. Taking advantage of this input functionality into superior product, service and cost. Sales force to market these benefits accordingly to targeted customers. 25

26 Integral Management Creating Value with sustainable raw materials as starting point Focus on Value Customer Grow sales with focus on where value is Competitive advantage Customer management & marketing Capture Value Processing Production efficiency Recipes Stock level Create Value Procurement Channel efficiency Quality objectives Credibility to customers 26

27 Nedspice approach in broader context 1. Alignment with Vietnamese government objectives 2. Closeness to local and international sustainable business development Nedspice chairmanship of International Sustainable Spices Initiative Notably: McCormick, Unilever, Kerry, Olam, many other leading companies US spices Board India spices Board In Vietnam active participation in MARD, AEC, PPD, DARD at several levels and VPA, projects & roles 27

28 Summary impact on business results 1. Major contribution to deliver on ever increasing world market quality standards 2. Nedspice learned for own benefits a lot from going to the source and improved its procurement and supply chain operations First step to structural cost reductions Market feel delivering better buying result Multi channel & farmer approach delivers lower risk profile 3. Enhances to attract and retain talent 4. Sustainability of source and company is becoming step by step a integral part of the company positioning i.e competitive position enhancing growth of new business and trust 28

29 Nedspice Sustainability KPI s summary

30 Nedspice Sustainability KPI s summary 30

31 TEAMWORK