to Cart Securing Safety Across the Supply Chain From Cow

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1 Securing Safety Across the Supply Chain From Cow to Cart Nick Alfano, EVP and GM Global Food and Beverage, Ecolab John Carter, Vice President Quality, EDP and Resources Efficiency, Danone Ruth Petran, VP Food Safety and Public Health, Ecolab Zhinong Yan, Executive Director Food Safety Collaboration Center, Walmart 2018 Ecolab USA Inc. All rights reserved.

2 Every Year, Ecolab Sees and Supports: Food and beverage plants 500+ Beverage plants and breweries 42% of the processed milk supply 31 billion Clean hands 200,000 Quick Serve Restaurants 45 billion Restaurant meals 2 27% of the world s processed food 2018 Ecolab USA Inc. All rights reserved.

3 Better Quality Greater operational efficiency Reduced food safety risk DATA INSIGHTS ACTION Ecolab USA Inc. All rights reserved.

4 Supply Chain Dynamics COW Transport and Storage Processing DC s and Transport CART Ecolab USA Inc. All rights reserved.

5 Dr. Ruth Petran Vice President Food Safety and Public Health, Ecolab 2018 Ecolab USA Inc. All rights reserved.

6 Identify Relevant Hazards Ensure Control Utilize New Tools SAFETY QUALITY GROWTH Ecolab USA Inc. All rights reserved.

7 Supply Chain Dynamics COW Transport and Storage Processing DC s and Transport CART Ecolab USA Inc. All rights reserved.

8 Identification of the Risk-Based Target(s) in Dairy TOP CONCERNS Spoilage Pathogens Regulations Compliance How to Start? Inspection Findings Ecolab USA Inc. All rights reserved.

9 Methods of control INCOMING POST-PROCESSING STORAGE & DISTRIBUTION High quality ingredients Proper Storage Decontamination Wash and Sanitize Prevent cross contamination Proper temperature control 2018 Ecolab USA Inc. All rights reserved.

10 We collect lots of data. We need actionable insights! Ecolab USA Inc. All rights reserved.

11 Improved Consistency on Farm with Enhanced Sanitation Lab Pasteurized Counts (LPC) Improved Consistency /01/14 00:00 07/01/14 00:00 LPC - BEFORE 08/01/14 00:00 09/01/14 00:00 10/01/14 00:00 11/01/14 00: /01/14 00:00 07/01/14 00:00 LPC - AFTER 08/01/14 00:00 09/01/14 00:00 10/01/14 00:00 11/01/14 00:00 LPC LPC Large rotary milking system Ecolab USA Inc. All rights reserved.

12 % passing (Organoleptic, APC) Fluid Milk Producer Improves Shelf-life Consistency % % of Chocolate Milk Passing Organoleptic Testing at Code by Week (Last 9 months) 90.00% 80.00% 70.00% 60.00% = Sanitation improvements 50.00% Week of year Ecolab USA Inc. All rights reserved.

13 Moving to Digital Solutions on the Farm Low/no detergent use Skipped washes Low temperature washes Ecolab USA Inc. All rights reserved.

14 Moving to Digital Solutions at the Plant 10 lines per plant 15 washes per line 10,000 data points per wash! 1,000,000+ CIP data points per plant per day Quality REAL TIME VISIBILITY REAL TIME RESOLUTION REAL TIME RESULTS Productivity Cost Sustainability Ecolab USA Inc. All rights reserved.

15 Fluid Milk Producer Improves Shelf-life Consistency % PASSING AT END OF CODE With 3D TRASAR CIP CHALLENGE 100% 95% 90% 85% WHAT WE DID Driving consistent execution of SSOPs Identified compelling events, such as missed steps, missed chemistry, partial washes RESULTS Average PASSING at end of code INCREASED 2 Percentage points Ecolab USA Inc. All rights reserved.

16 The Next Wave of the Digital Evolution 2018 Ecolab USA Inc. All rights reserved.

17 GFSI Tokyo Breakfast Session John Carter, VP Quality, Danone

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21 Supply Chain Dynamics COW Transport and Storage Processing DC s and Transport CART Ecolab USA Inc. All rights reserved.

22 Indirect sourcing Direct sourcing Danone Goal: 100 % traceability to farms Danone Farm Family to Mega farms Transport Danone or subcontractors Subsistence Farms «Danone» Collection centres Supplier farms Supplier plant Transport Industrials Farms Milk Centres Traders Raw Milk Cream SMC

23 Danone Quality Fundamentals Feed Farm Transport Plant before process Finished Product Plant reception Food Safety Risk Review

24 MILK Q&FS VALUE CHAIN MANAGEMENT SYSTEM

25 Digital Strategies in a Retail Environment Zhinong Yan Copyright of Walmart

26 Our Culture Copyright of Walmart

27 Walmart s Global Presence OVER 11,500 UNITS Copyright of Walmart

28 Copyright of Walmart

29 Copyright of Walmart

30 Supply Chain Dynamics COW Transport and Storage Processing DC s and Transport CART 30 Copyright of Walmart

31 Distribution Center Operations Copyright of Walmart

32 Logistics Food Safety High Five Top 5 Food Safety elements impacting Distribution Centers Be Clean, Be Healthy Keep it Cold, Keep it Safe Don t Cross Contaminate Clean as You Go Wrap It, Tag It (Recalled Items) Copyright of Walmart

33 Food Safety Cold Chain Compliance FOOD SAFETY F S Policy, procedure, regulatory compliance programs Q C Quality Control Receiving processes, temperature verification, quality checks, Dairy HACCP, Preventive Controls Q A Quality Assurance Storage processes, storage temperature control, crosscontamination prevention, palletizing, loading CS AP Compliance Safety Asset Protection Policy, procedure, regulatory compliance verification. Food safety one of many compliance programs verified. Copyright of Walmart

34 Store Operations Copyright of Walmart

35 Five basic principles of safe food handling Created in 2010 Most important practices or behaviors Risk-based approach CDC s most common contributing factors FDA Retail Risk Factors Copyright of Walmart

36 Food Safety High Five Be Clean Be Healthy Keep it Cold Keep it Hot Don t Cross Contaminate Wash, Rinse and Sanitize Cook it and Chill it Copyright of Walmart

37 SPARK Sustainable Paperless Auditing and Recordkeeping System Web based automated system Preset Food Safety Tasks Bluetooth Technology TMD & PDA Website 14 Copyright of Walmart

38 30,000 Foot View with Clarity & Granularity Manager Checklist 02/14/18 Time Temp userid Dairy- Milk 09: F Dsrogers Dairy- Cheese 13: F Dsrogers Dairy- Cottage Cheese 16: F Dsrogers FYE 14 Year Beginning Meeting Copyright of Walmart

39 Cold Chain Management- Stores Temperatures Recorded for Every Delivery to Store Issues are Reported to the Distribution Center and/or Food Safety Team Products moved immediately into walk-in coolers Copyright of Walmart

40 Cold Case Management- Stores 24-hour Home Office Monitoring In-Store process design o Rear Loading Coolers, o 20 minute stocking rule for sales floor Management SPARK Checks Copyright of Walmart

41 BlockChain Technology for Transparency Food Safety & Health 21 Copyright of Walmart

42 Driving Food Safety Enhancements with Digital Tools Compliance Predictability Optimal Outcomes Ecolab USA Inc. All rights reserved.