SAFE FOOD CHAIN STARTING FROM 1 ST MILE - MCC CN FOOD SAFETY

Transcription

1 SAFE FOOD CHAIN STARTING FROM 1 ST MILE - MCC CN FOOD SAFETY MCC CN Supply Chain & Logistics Thomas Lau Shanghai September, 2015

2 Agenda 1 The Food Safety Challenge in China 2 First Mile in Food Supply Chain 3 Food Safety is Core 4 Customers, Customers and Customers! Page 2

3 Unparalleled Urban China--Tremendous opportunity and great risks coexist By 2025, China s urban population is projected to grow by 250 million, 202 cities over 1 million residents, Triple GDP between , Source: McKinsey Urban China initiative report Page 3

4 During the past decade, agricultural area has decreased 22.5 million ha but population increased 773 million globally. World Agricultural Area [billion ha] World Population [billion] % +13% % world s farmland 6% world s water % world s population Source: FAOSTAT Page 4

5 FOOD SAFETY IN CHINA For more than 80% food safety is #1 concern 92 million people fall ill each year on foodborne illnesses 2,124 food safety recalls in 2013 Satisfied Uneasy Scared 32.1% 52.3% 15.6% Consumer CN are proud of China, But lost confidence in products made in China, preference for imported products. Sources: Consumer report for food safety and quality , by Seeking Truth magazine Xiaokang magazine Chinese Journal of Food Hygiene US Consumer Product Safety Commission Page 5

6 READY FOR THE FUTURE: GFSI CERTIFICATION OF OUR STORES Page 6

7 Agenda 1 The Food Challenge in China 2 First Mile in Food Supply Chain 3 Food Safety is Core 4 Customers, Customers and Customers! Page 7

8 Our main risk of food safety comes from the upstream value chain..! Water/ soil / air polution Risk pressure!! Lack of confidence Environment Farm base Supplier Middle man. Retailer Consumer Trader Farmer! Sales pressure Risk of fakes! Lack of organization Lack of education Aging Page 8

9 APPROACH: GOODS FLOW Integrated Sourcing Goods Flow Farm Supplier Metro DC/HUB Store Customer METRO Cash & Carry, China Member of METRO GROUP 9

10 THE ENTIRE TRACABLE SUPPLY CHAIN Farm Processing Packaging Logistics Store Consumer Star Farm Control product quality directly from the source Supply Chain Management HACCP Regulation SFCC Traceability system Assess and consult on site, combine traceability, quality, technique, sustainability, waste management together, then using the IT and DB to implement it. Page 10

11 Value proposition --Integrated sourcing Pilot in Ning Xiang SF Service Pool 1S 2S 4S NF SF Data Base IT/ E-C SCM/QA/OM/UFO/SF Business impact C&C HORECA F&V HUB DC Trader Meat Aquatic E-C Dairy General Farmer Supplier Middle man Trader Market Data Flow Product Flow Traditional approach

12 Agenda 1 The Food Challenge in China 2 First Mile in Food Supply Chain 3 Food Safety is Core 4 Customers, Customers and Customers! Page 12

13 SOURCING Farm Processing Packaging Star Farm Control food quality directly from the source Sourcing QA Equipment Logistics Store METRO Cash & Carry, China Member of METRO GROUP 13

14 QUALITY ASSURANCE Store QA Quality Assurance DC Food Inspection Quality Check QA Sourcing QA Equipment Logistics Store METRO Cash & Carry, China Member of METRO GROUP 14

15 EQUIPMENT Delivery Condition TDC Condition Container and Equipment Deliver condition is a contractual requirement for our suppliers to insure compliance of food safety Our current cold chain DC is HCCCP certified All the container and equipment usage are certified and inspected by our QA before put into the operation for usage Sourcing QA Equipment Logistics Store METRO Cash & Carry, China Member of METRO GROUP 15

16 LOGISTICS Supplier TDC (LSP) Multi-Temperature WH Store Equipped: GPS Temperature Tracking Device QA Temperature Measurement QA Temperature Measurement Sourcing QA Equipment Logistics Store METRO Cash & Carry, China Member of METRO GROUP 16

17 STORE Temperature Dispatch Area (in Delivery Platform) Temperature Storage Area (in Delivery Platform) Temperature Display Area (in Delivery Platform) DC to Store Temperature Van DC to Store Temperature Van Temperature After Check-out Area (in Delivery Platform) Sourcing QA Equipment Logistics Store METRO Cash & Carry, China Member of METRO GROUP 17

18 STAR FARM TRACEABILITY SYSTEM: ALREADY 2526 PRODUCTS IN MCC STORE Supplier Store/DC Reception Store/ Consumer Super Fresh OB Supplier check Store good receiving check DC receiving check Store: WIFI, terminal machine Page 18

19 Agenda 1 The Food Challenge in China 2 First Mile in Food Supply Chain 3 Food Safety is Core 4 Customers, Customers and Customers! Page 19

20 6KEY FACTORS TO SURPASS CUSTOMERS EXPECTATIONS I Lorem ipsum Dolor sit 1. Information management and data integrity Lorem ipsum Dolor sit 2. Constantly optimizing the supply chain Lorem ipsum Dolor sit 3. Quality assurance Ensure international standards (e.g. EDI) and drive new technologies (e.g. RFID) Ensure data Integrity Direct sourcing from producers eliminating middlemen Locally sourcing majority of goods Optimise logistics flow with modern distribution platforms Using modern technologies for improved transparency Quality assurance managers and inspectors responsible for quality HACCP: food hygiene standards for highest quality demands in all DCs Temperature controlled trans- port and storage in DCs and stores Safety throughout the supply chain Page 20

21 6KEY FACTORS TO SURPASS CUSTOMERS EXPECTATIONS II 4. Sustainability Lorem ipsum Dolor sit Lorem ipsum Dolor sit 5. Training Support 6. Traceability systems Trust through sustainability Minimisation of energy costs Waste reduction Supply of products that sustain resources and environment Training of local farmers e.g. in standard processing and transparent management, modern production and processing methods Implementation of a traceability system from Farm to Fork (developed in cooperation with the Chinese Ministry of Commerce and local authorities) Page 21

22 Mr. Danny JC Yeo General Manager of Hilton Hefei, International Buyer As the world s leading hotel, Hilton insists to provide high quality food and better experience to our customer in our restaurant and buffet canteen. We need traceable products. It brings trust and transparency to consumer Supplier More Market Government Reputation Economy Environment Society Market Sustainable Development Mrs. Jingjing Zhang End-consumer; Pregnant I m an ordinary mom. I want to buy traceable food to my baby and family. I can easily enquire the whole information from the original farm through checking the barcode with my smart hand-phone. It trusts me and makes my whole family comfortable. Page 22

23 We Create a Transparent & Sustainable World from the 1 st Mile!

24 CONTACT Name: Thomas Lau Title: Head of Supply Chain Management & Logistics Department: Supply Chain Management & Logistics METRO Cash & Carry Co., Ltd. 1425, Zhenbei Road Shanghai China Phone: +86 (21) Fax: +86 (21) Mail: METRO Cash & Carry, China Member of METRO GROUP 24