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Product Safety and Quality

As a food manufacturing enterprise, Yihai Kerry has always given top priority to product quality and safety, actively fulfilled its social responsibility, and continued to provide consumers with nutritious, healthy, safe and delicious products.

 

Yihai Kerry values the quality and safety of its products, strictly complies with the food quality and safety laws and regulations in all places of its operations, and has established a sound quality control and review system in all places of its operations to strictly control each operation process and improve quality management level.

 

Management System Certification

Yihai Kerry implements multi-system quality and food safety certifications, including ISO 9001 quality management system, ISO 22000/FSSC 22000 food safety management system, ISO 17025 General Requirements for Testing and Calibration Laboratories, IP Certification (Non-GM IP), BRC (British Retail Consortium) Food Safety Standards and AIB (American Institute of Baking) Food Safety Standards, ensuring that quality and safety management measures are in place.

 

As of December 2021, the factory coverage of relevant system certification is as follows:

Name of System Certification

Certification Coverage

(excluding those newly built, under construction and out of service)

ISO 9001 Quality Management System Certification

83.3%

FSSC 22000 Food Safety System Certification

73.5%

ISO 14001 Environmental Management System Certification

62.7%

 

In addition, Yihai Kerry is proceeding with other certifications of its factories, including ISO 22000 Food Safety Management System Certification (28 factories), BRC Certification (3 factories), Certification of HACCP Hazard Analysis and Critical Control Points (12 factories), Green Food Certification (8 factories), Integration of Informatization and Industrialization Certification (CSAIII) (8 factories), Organic Certification (7 factories).

 

Quality and Safety Review

Yihai Kerry has established self-management and continuously improved quality and safety management system for the whole production line and supply chain to constantly look for improvement opportunities and continuously optimize the guarantee system through self-inspection, food safety group inspection, internal audit, cross inspection, AIB Unannounced Inspection, customer audit, external third-party system audit and other internal and external inspection and audit mechanisms, ensuring the suitability and effectiveness of standards.

 

--Self-inspection

Yihai Kerry discovers and corrects hidden food safety hazards, and improves food quality and safety management level through self-inspections of food safety at all levels of plants, factories, specialized production lines and the Group.

--Customer Audit

Yihai Kerry welcomes the audits from Mondelēz, McDonald's, Dicos, Kerry, Heinz, DSM and other international well-known enterprises to learn from their excellent management experience and improve its own management level, and the audits are with ideal results.

--AIB Unannounced Inspection

Yihai Kerry has introduced the AIB Unannounced Inspection, and 69.6% of its operating factories (excluding those newly built, rebuilt and out of service) have passed the AIB Unannounced Inspection. This has greatly promoted the normal management of food safety in each factory, boosted the progress of quality and food safety culture, and improved the food safety awareness of employees.

 

Satisfaction Survey

With the goal of improving customer satisfaction, Yihai Kerry has established a fast and efficient customer service system.

 

--Customer Complaint Handling Satisfaction

Through continuous improvement of service quality and customer experience throughout the process, the customer complaint handling satisfaction of Yihai Kerry has increased year by year from 2018 to 2020, all above 98%, according to the follow-up and evaluation of online and offline customer complaint handling.

Customer Complaint Handling Satisfaction

Indicator

2018

2019

2020

Customer Complaint Handling Satisfaction (%)

98.17

98.28

98.4

 

--Distributor Satisfaction

Yihai Kerry carries out satisfaction surveys on distributors every year, and conducts systematic screening and improvement on the problems reported by distributors. Distributor satisfaction continued to rise from 2018 to 2020, at above 95% in 2020.

Distributor Satisfaction Survey

Indicator

2018

2019

2020

Distributor Satisfaction (%)

94.08

95.28

95.49

 

Supplier Quality and Safety Risk Management

For suppliers' quality and safety risks, Yihai Kerry has developed the access system covering raw materials, ingredients, processing agents, packaging materials and other key materials, and each factory selects suppliers according to relevant management requirements in Group Supplier Approval and Audit to keep in place and practice the Access Policy.

--Admittance Risk Identification

Yihai Kerry draws a Risk Map for agricultural product raw material areas, establishes a management mode of supervision starting from seeds, guides farmers to standardize the planting, pesticides and fertilizers using, and product storage and delivery, reducing the source risks caused by non-standard operations.

--Compliance of Incoming Raw Materials

For other kinds of materials, based on risk assessment, Yihai Kerry guides and requires suppliers to manage their upstream suppliers, strictly control key indicators in each process, and truly realize source safety.

--Admittance Risk Assessment

For different materials, Yihai Kerry develops different types of assessment requirements based on national laws and regulations, relevant implementation standards and industry characteristics, and carry out multidimensional assessment by material qualification examination, on-site audit and other ways. Suppliers are required to take rectification actions and carry out closed-loop management for findings.

--Promoting Supplier Self-improvement

Based on standard management requirements of Yihai Kerry, suppliers continue to improve their system development standards, with the coverage of key material production suppliers certified with quality system certification (ISO9001) at 72.3%; those certified with food safety management system certification of HACCP/ISO22000/FSSC2200/BRC at 14.7%/38.2%/14.6%/6.1% respectively; and those certified with environmental management system certification (ISO14001) at 33.1%.

 

Quality and Safety Informatization Management

--Quality Management Informatization

Yihai Kerry monitors product quality indicators in real time through online testing equipment; its quality data management system (QDMS) realizes the informatization management of product standards, inspection data, quality reports and statements; its key document management system (KDMS) realizes electronic management of documents related to quality and food safety management, with a system coverage at 100% (excluding factories newly built, rebuilt and out of service); its work traceability platform (WTP) realizes forward and reverse electronic traceability of raw materials, intermediate products and finished products, with a coverage at 30%; its quality defects management system (QDMS) and external information monitoring platform monitor external compliance information and public opinion information in real time, with a coverage at 100%; its unqualified evaluation product management system (EPM) realizes the evaluation and management of factories with unqualified sourcing inspection, with a coverage at 100% (excluding factories newly built, rebuilt and out of service).

--Sourcing Management Informatization

Through Ariba sourcing platform, Yihai Kerry manages the qualification access, sourcing, contract and performance of suppliers of non-trade materials, with a coverage at 100% of the total number of factories (excluding factories newly built, rebuilt and out of service). In addition, the qualified supplier list platform has been piloted and will be extended to all factories.

--Production Management Informatization

Yihai Kerry fully activates production information management system (PIMS), with a coverage at 85% of the total number of factories, through which the key performance indicators (KPIs) can be automatically obtained and the comparison and analysis of the whole Group can be realized quickly.

 

In addition, the systems of collaborative production management (CPM) and packaging material content management (PCM) will be promoted in 2022 to realize information visualization of production execution process and standardization of packaging material management.

 

Project maintenance management (SAP PM+PMM) system can manage equipment maintenance and preventive maintenance, with a coverage at 90% of the total number of factories (excluding factories newly built, rebuilt and out of service).

 

--Warehouse Management Informatization

Yihai Kerry has established the TIMMS warehouse management system (TWMS, Automatic Storage & Retrieval System), realizing the informatization management of incoming and outgoing products. The system automatically warns the overdue inventory and effectively controls the inventory age, with functions of real-time delivery record and traceability.

 

Product Standard Development

Yihai Kerry has participated in the development or revision of 50 standards, including 1 international standard, 17 national food safety standards, 11 national standards, 6 industrial standards, 5 local standards, and 10 group standards.