WHITE PAPER BRAZIL Achieving certification to IFS Food more than a piece of paper

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1 WHITE PAPER BRAZIL Achieving certification to IFS Food more than a piece of paper Supported by:

2 Collaboration: The IFS Food Standard is a GFSI (Global Food Safety Initiative) recognized standard for auditing food manufacturers. The focus is on food safety and the quality of processes and products. It concerns food processing companies and companies that pack loose food products. IFS Food applies when products are processed or when there is a hazard for product contamination during primary packing. The Standard is important for all food manufacturers, especially for those producing private labels, as it contains many requirements related to the compliance with customer specifications. The IFS Global Markets Food is a standardized food safety assessment program for retailers as well as industry branded food products. The program is meant to support small and/or less developed businesses in the development of their food safety management systems and making the first step towards the implementation of the IFS Food Standard. Ting Indústria de Alimentos Em Conserva Ting was founded 15 years ago by a group of professional commited to product quality and consumer satisfaction. More than 20 years of experience in Food manufacturing, one of the most reputable companies in the industry in the country. Specialized exclusively in canned Food manufacturing. Ting s main distribution products are mushrooms and olives serving the wholesale and retails and has gained the trust of numerous chains of restaurants and supermarkets. The ingredients used in the manufacture of Ting products come from selected producers and before being packaged, undergo a strict selection process and internal quality control. All these precautions to ensure the safety and satisfaction of partners, customers and consumers Ting has its own logistics system to deliver your products to any location in Brazil efficiently and safely.

3 1 Introduction Retailer question to new supplier: Can you prove your food is safe? There is one challenge that is shared by all food manufacturers. For their consumers, their customers, their regulators and for themselves, the food that they sell must be safe to eat and they must be able to prove it. To do so requires credible food safety management systems. Demanded by the retailers, who must deal with the immense costs of failure, third party certification has become both the solution to that challenge and a condition for market access. Retailers around the world used to do supplier audits through their own quality assurance departments. Then, in 2003, the associated members of the German Retailer Federation (HDE) in partnership with its French counterpart (FCD), collaboratively developed and implemented IFS Food. It s a business to business quality and food safety standard that delivers certification and is recognised by the food industry s neutral platform, the Global Food Safety Initiative (GFSI). From the beginning, IFS Food was distinctive. The challenge of inconsistency in auditing was addressed by a ground-breaking credentialing system. The IFS database provided a shared workspace for the retailers and their suppliers. There was a comprehensive supplier support and training programme. In 2016, IFS Food is in its sixth version and is supported by retailers around the world. Certificates are held by 15,000 food manufacturing sites and there are now IFS standards for other parts of the supply chain, including wholesale, logistics and packaging. Achieving certification is not easy, particularly for smaller businesses. This case study will tell the story of a pioneer manufacturer in Brazil. After a five-year transformation programme they can share their experience and will tell you what it meant to them, both personally and as a business. If you are either a food manufacturer thinking about certification or a certification body involved in delivering it, this has been written for you. You will get an insight into the dynamics of change from the people who actually experienced it. If you are a retailer or regulator you will find out about the challenges and benefits. Many companies that have not achieved certification may defensively mention the old thinking: If it s not broken, why fix it? For companies that have achieved certification, they will talk about the new thinking: Drive for efficiency. Create more customer value with less waste. If you do what you always did, you get what you always got. Certification is providing food manufacturers everywhere with a new framework for change. 3

4 2 Before IFS: The starting point Ting Indústria e Comércio Ltd, founded in 2001, is based in Monte Mor, 120kms north of Sao Paulo in Brazil. They pack vegetables such as mushrooms, olives, pickles, cornichons, and onions into jars, pots and pouches. Their value chains are significant because the vegetables are procured not only in Brazil but are also imported from different countries such as China, Argentina, Spain and Chile. Their range of products are sold under their own brand, TING, and also as private label for Brazilian retailers. Their main customers include Makro, Assai Atacadista, Barcelona, Carrefour, Dia, Pão de Acúcar and Walmart. There are 160 full time and 20 seasonal employees. In February 2008, Walmart had written to all their suppliers in the US requiring that suppliers of their private label (including produce, meat, fish and ready to eat foods) achieve certification to a standard recognised by GFSI. In 2010, the owners of TING decided to start the process of achieving certification, anticipating that Brazilian retailers would make it a requirement, as was happening elsewhere in the world. I have been responsible for quality management at TING since the beginning of our efforts to achieve certification. We had actually started with a different standard, which was also recognised by GFSI. We switched to IFS Food quite early in the process once we realised that it suited our company much better. We found it to be less prescriptive. We can come up with our own solutions and build a system that is right for us. Looking back, the most important factor for this decision was that there s a professional working for IFS here in Brazil who has been very supportive. We have learnt a lot and it has helped us find some really great tools. IFS, together with the retailers, have provided us with training at low cost and helped us find the necessary information. Cristina Ramos Food Engineer, TING 4

5 Before change started, there was a food safety management system, characterised by a reliance on quality control, which did deliver both for the retailers and for Brazilian regulatory requirements. However, the factory environment was not adequate. There was no independent external auditing, just routine checking by government inspectors and customers. The record-keeping was minimal, though checks were certainly being made. From the beginning, TING recognised that achieving certification would be a technical challenge for which they had inadequate in-house experience. Their first step was to appoint a specialist food safety management systems consultant, who is still working with them now. They had originally chosen another of the GFSI recognised standards but after an IFS retailer workshop for Carrefour in 2013, they switched to IFS Food. They found it to be more objective and clear, with access to information, training and support in Brazil. They contacted all of the Brazilian Certification Bodies recognised by IFS Food so they could identify the best service provider. Not only were WQS able to provide an auditor that was qualified in their relevant food category, but their price was competitive. I am responsible for food safety and quality in the entire supply chain for Walmart, Brazil. For we retailers, these are themes that are not totally in our hands. Food safety is a shared responsibility. This is why trusting that our suppliers are doing the right thing is so important. A certification to a standard recognized by GFSI is the tool which our company has chosen to be confident in a supplier s capability. We started by involving our private label suppliers. Then, following a risk-based approach, we involved both national brands and even small and developing suppliers of high risk items. For all of them, at the very beginning, we have established GFSI Global Markets (see Page 13) as the tool which provides them with a step-by-step approach to achieve certification. Marcia Rossi de Sylvio Food Safety and Quality Senior Manager, Walmart, Brazil 5

6 What s available, in Portuguese, from IFS? IFS Food version 6 IFS auditxpress IFS Food Companion IFS Frequently Asked Questions IFS Scoring Brochure IFS Food Factsheet IFS Food Auditor Guideline The complete IFS Food 6 Standard The software used to create IFS audit reports, can also be used to simulate an audit and its scoring. A series of forms and explanations to help people understand and implement IFS Food requirements. It includes templates to build a document system. A comprehensive document that provides answers on many questions about IFS Standards. An explanation of the scoring system at the heart of IFS certification. A one page summary about IFS Food. Guidelines for auditors, including suggestions for questions during audits. IFS Food explanation video A short video that describes the IFS Food process, designed as a training support tool. IFS CB questionnaire for scope exclusion A questionnaire to help Certification Bodies define product exclusions from the audit scope. 6

7 3 Planning: First steps towards certification The key elements of a food safety management system are: 1. An organisation structure, with responsibility and authority allocated. 2. Documented procedures, with instructions for implementation. 3. Requirements and criteria for inspection and testing. 4. Actions for dealing with nonconformities. 5. Systematic investigation and correction of nonconformities. The team at TING, helped by their consultant, made a start to what would be a five-year process with the development of some simple procedures. The intention was to involve the people in this new way of working, building acceptance of the value and need for records. As Brazilian pioneers, in a country where medium sized companies have no experience with certification, TING had no opportunity to learn from others. From the beginning, the challenge that would define those early years of change became apparent. It was not only about keeping records; it was also about helping people to understand the context. New problems, such as factory layout and personal hygiene, began to emerge as the procedures started to generate nonconformities. A training programme was initiated to help the people to understand the need for change and to deal with its reality. The training would confirm that the responsibility for verification of safety and legality is with the government. It would also confirm that customers will demand compliance with their own specifications and codes of practice. However, it is the manufacturers that have a responsibility above and beyond both regulators and retailers. They must make their business successful. They must strive to prevent failure and improve efficiency, starting with food safety. 7

8 I am responsible for the auditing department at WQS. We are the biggest certifiers for GFSI recognised standards here in Brazil and so far, we have done 35 IFS Food certifications. I am also an auditor and did the IFS audit for TING. In Brazil we have a national characteristic in faith! Things get done because we believe that it will happen. I believe that most of the procedures are done but the companies cannot prove it. This means that the first big change is in keeping records, not the building, the hygiene, or the maintenance. That is still just the start, because the difficulty is not to create the record, it s about changing the actual behaviour and creating a food safety culture. Liliana Soares Batista WQS Quality Director IFS Food Training at TING Alimentos 8

9 4 Delivering the change: a new approach As the steady development of procedures progressed, the need to change the culture throughout the organisation became evident. Both employees and owners needed to learn to accept criticism as a stream of nonconformities steadily built evidence about failure. For the quality team, this effort required constant focus. They had to demonstrate persistence, patience and confidence. The chosen approach was to get the employees to help build the system. Not only did this motivate them, it also helped them to understand the importance of standardisation. To support this process, training was continuous. Members of the quality team were sent externally to achieve qualifications on university courses. Quite apart from building their own confidence, these experts became more credible to their own colleagues. The existing management system needed to be adapted and changed to match the requirements of IFS Food. The change project was tackled in phases that were separately planned and executed. People would always know what the required change was and why it was needed. Of fundamental importance, the HACCP (Hazard Analysis Critical Control Points) system needed to be improved. This management tool is unique to both product and process and is a subject which many companies aspiring to certification can find challenging. Both legally and technically, HACCP is the most important part of the management system and is a central pillar of IFS Food. It became clear to TING that HACCP is both a well-structured and logical tool. Using a consistent risk assessment methodology, the prerequisite programme was strengthened to provide a strong foundation and to reduce the likelihood of certain hazards. For example, sweets were being sold to employees at the factory entrance. These could cause contamination in the factory environment so the practice was stopped. It was a small but an important change that had not previously been considered which would become a part of building a new food safety culture at TING. As progress continued, the evidence to support investment in the industrial infrastructure was building. Modernisation may have happened without certification but for TING the steady implementation of new procedures identified investment priorities. There was more automation and an improved environment. There was a new building. Floors, walls and roofs were refurbished. Process lines were automated. A sample retention room was built. Unnecessary openings were closed. 9

10 Over the five years of transformation, the TING owners made many significant investments to improve their business: > Machinery: US$ 550,000 > Infrastructure, such as buildings: US$ 450,000 > Specific to building a food safety culture, training and consultancy: US$ 70,000 When I first started working with TING, they considered auditors to be a threat and they worked in an environment that was both disorganised and not clean enough. We started with some very simple first procedures and five years later their manufacturing is transformed. They have clear procedures and a coherent approach to quality control. They understand their food safety indicators such as nonconformities and customer complaints. My personal favourite moment though was one day, a couple of years into the process, when I saw the owner of TING in the factory. For the first time, he was correctly instructing an employee on process safety. From that day forward, he became our greatest ambassador and it made me so happy. Angela Missaglia Food Safety Consultant 10

11 5 Looking back: Lessons learnt and outcomes The most important part of the change process at TING was the people. Their personal development would build the new food safety culture. Their engagement in the reorganisation of the working environment would contribute to the new operational efficiency. Their commitment would build a new and stronger image for the company. The move towards the implementation of IFS Food has provided the framework for organisational change from bottom to top. There are new disciplines being delivered continuously. They are able to demonstrate that their procedures are credible, their people are competent and that when things go wrong, they are recognised, analysed and corrected. The outcomes for the business of this comprehensive change programme, which has been accelerated by certification, are evident: > Sales have increased by 35% > Productivity has increased by 42% > There has been a 58% reduction in staff turnover Other indicators are positive too. Recalls and customer complaints are down. Time spent dealing with failure is down. There are less damaged products, less rejections of raw materials, less waste. On the negative side, the process took much longer than expected and did cost a lot of money. For the present, TING have not asked their own suppliers to start considering certification. However, it is something they expect to discuss in the future when the concepts of certification are better established in Brazil. 11

12 Most importantly though, TING now has a committed team of people. The leaders are qualified and the people are motivated. The final word goes to one of the owners: The people in the factory had to change and that was hard because they were uncomfortable with a new approach. Now they are happier and they feel they are a part of it. I have learnt that certification must be done with people not to them. We didn t have that team commitment before but we really do now and it has made a big difference to our working day. For the business, to have a team, well it changes everything. Edson Ting Wang Financial Director, TING Tíme da qualidade e lideranças com a diretoria TING Indústria 12

13 Note: For readers of this case study from Brazil, here is a summary of a development from IFS that was not available to TING in 2011 when they started. For any manufacturer that has decided to work towards certification, this represents a valid option that is recommended by many retailers, including Walmart. IFS Global Markets Food the proven steps towards compliance By 2010 the retailers in IFS realised there was an unintended consequence of their push for certification. Although IFS Food had undoubtedly been a great success, it was clear that for some suppliers, certification represented a significant barrier to market access. The root cause was often the capability of people. A second solution was needed, a proven roadmap towards achieving food safety compliance through certification. Using the reference work from GFSI as their template, IFS Global Markets- Food was published in What is it? > It is an unaccredited assessment system which provides a framework for mentoring and developing a food safety management system. > There is no certificate. However, participating suppliers, once they have achieved a satisfactory assessment, receive a letter of confirmation and can use the IFS logo in their business to business communication. > It offers a step-by-step approach that leads to the IFS Food certificate. Depending on capability, some suppliers start at Basic level while others move straight to Intermediate. > It is supported by the IFS Academy which provides training seminars across a range of relevant knowledge options, including detailed insight into key technical processes such as food hygiene and HACCP. > Assessment reports are filed in the IFS database. This simplifies follow up communication. The manufacturer s progress towards compliance can be tracked by the trading partner. > Scoring shows the degree of implementation of each requirement. It also helps the manufacturer track their progress as they work on continuous improvement. It allows comparison between assessments and is easy to understand. All of the IFS Global Markets documents can be downloaded at: 13

14 How is it used by retailers and their suppliers? > IFS does not make policy for any company. Therefore, every retailer will choose how to use the IFS Standards. However, for the most part, the retailers and brand manufacturers use IFS Global Markets as an introductory programme to help new suppliers work towards achieving certification to IFS Food. > The suppliers use it to develop their food safety management systems. They also can provide credible evidence to their customers of their credentials for delivering safe, good quality food. How do the service providers deliver? > IFS has a consultant program that helps suppliers around the world. They will speak your language, know your local legislation, be trained in the relevant IFS systems and have the appropriate level of professional experience. > The consultants help suppliers work through the phases until they can achieve their aim of full certification. > The qualified IFS training specialists can help with relevant training. The Certification Bodies that are accredited to work with IFS Food are all also able to work on IFS Global Markets. Written by Chris Anstey, Independent Consultant to the food business 14

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