Profile for Dry Food Supply Company - PDF

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					Food Safety in the Supply
         Chain:
   From Field to Fork
                   Roger Lawrence
   Corporate Vice President, Worldwide Quality Assurance
                McCormick & Company, Inc.
                                 Company Profile

•   McCormick & Company, Inc. is the world leader in the manufacture,
    marketing and distribution of spices, seasonings, flavorings and
    other food products to all segments of the food industry - retail, food
    service and food processors.
•   Founded in 1889.
•   Headquartered in Maryland
•   Sell products in over 100 countries.
•   $2.4 billion in sales.
•   Approximately 7,500 employees.
•   Manufacture products in over 20 counties, operating over 47 plants
    and laboratories.
•   Brands with established reputation for consistent, high-quality, safe,
    and wholesome food products.
      Our Global Product Portfolio

•   Spices and Herbs
•   Seasoning Mixes
•   Condiments (mustard, mayonnaise)
•   Pour-over sauces
•   Marinades, Glazes and Rubs
•   Salad Dressings
•   Gravy Mixes
•   Cooking Sauces
•   Jams
•   Teas
•   Batters and Breading
•   Dessert Mixes and Baking Aids
Global Brands
                            Introduction


McCormick has been in the business of sourcing ingredients
globally since our founding in 1889. Few companies have our
know-how and experience in sourcing pure, wholesome and
safe food products from so many countries around the world.


McCormick has a long history of sourcing from China, India,
Indonesia and other developing nations that are
characteristically more challenging for GAP’s, GMP’s and
adulteration-free product.
              Global Suppliers & Materials

McCormick has hundreds of suppliers and thousands of raw
materials, ingredients and packaging materials.
The quality management of the supply chain includes:
 – Core spices, herbs & related materials.
 – Processed ingredients.
McCormick has a Global Sourcing group dedicated to the
core herb and spice line. Processed ingredients and
packaging materials are managed by the Corporate Supplier
Quality Management Group (SQM).
                             Raw Material Categories

   •   Color                  •   Fruit/Vegetables      •   Rice
   •   Concentrate - Juice    •   Garlic                •   Salt
   •   Corn - Dry             •   HVP                   •   Soy Sauce
   •   Capsicum*              •   Kola                  •   Spice &
                                                            Herbs*
   •   Dairy                  •   Meat Powders
                                                        •   Starch
   •   Dry Soy                •   Non-Dairy Creamers-
                                                        •   Sweetener
   •   Eggs                       Shortening Powder
                                                        •   Tomato Powder
   •   Essential Oil          •   Nuts
                                                        •   Tomato Paste
   •   Extracts               •   Oleoresins*           •   TVP
   •   Flavor
                              •   Onion                 •   Vanilla
   •   Flavor Enhancer                                      Beans*
                              •   Pasta
   •   Flour                                            •   Wheat
   •   Flow Agents            •   Relish
                                                        •   Yeast

* Core Spices, Herbs & related materials
Core Spices, Herbs &
  Related Materials
                           Global Sourcing


THE SPICE SOURCING UNIVERSE – The following slide
illustrates all major sources of spices throughout the world.
McCormick’s history of successfully sourcing from this entire
universe over the life of the company has enabled us to
achieve the optimum quality from year to year given localized
variations due to weather and economic / political instabilities.
Successfully sourcing from multiple locations facilitates
securing the quantity and quality of material at the optimum
price.
Canada                                    Netherlands   Albania                                                               Pakistan      China
                                                                                                 Romania      Turkey
 Caraway         Spain        France       Caraway Seed    Oregano                                                             Cumin Seed    Celery Seed
 Coriander                      Basil      Chervil
                                                                           Poland         Coriander             Anise                        Chives
                  Anise                                    Rosemary                                                            Dill Seed
                                                                            Poppy Seed                          Bay Leaves                   Cinnamon/Cassia
 Mustard          Paprika       Chervil    Poppy Seed      Sage                                                                Red Pepper    Coriander
                                                                            Thyme                               Cumin Seed
                  Rosemary      Fennel Seed                                                                                                  Cumin Seed
U.S.A                                                      Savory Hungary                                       Fennel Seed                  Fennel Seed
                  Saffron       Rosemary
 Basil                                                                                                          Oregano                      Garlic
                  Thyme         Savory                             Paprika       Greece
 Cilantro                                             Croatia                                                   Poppy Seed                   Ginger
 Dill weed                      Tarragon                           Poppy Seed     Oregano                                                    Onion
                                                        Sage                                                    Sage                         Oregano
 Marjoram                       Thyme                                                           Syria                                        Parsley
 Mint
 Onion
                                                                                                           Cumin Seed                        Red Pepper
                                                                                                                                             Shallots
 Parsley                                                                                                                                     Star Anise
 Paprika                                                                                                                                     Szechwan Pepper
 Red Pepper                                                                                                                                  Turmeric
 Tarragon                                                                                                                                    White Pepper
 Garlic
                                                                                                                                            Vietnam
Mexico
                                                                                                                                             Black Pepper
 Allspice
                                                                                                                                             White Pepper
 Ancho Chile
                                                                                                                                             Cinnamon
 Oregano
 Vanilla beans                                                                                                                              Thailand
Guatemala/                                                                                                                                   Lemongrass
Honduras                                                                                                                                     Turmeric
 Allspice                                                                                                                                   Malaysia
Jamaica                                                                                                                                      Cloves (Pedang)
 Allspice                                                                                            *                                       Black Pepper
 Kola Nuts                                                                                                                                   (Sarawak)
 West Indies                                                                                                                                 White Pepper
 (Granada)                                                                                                                                    (Sarawak)
  Mace                                                                                                                                       Tonga
  Nutmeg                                                                                                                                      Vanilla
Tahiti                                                                                                                                        beans
  Vanilla
  beans
                                                                                                                                             Indonesia
Peru
                                                                                                                   Sri Lanka                   Cinnamon
 Paprika                                                          Uganda                        Iran                 Cinnamon                  Cloves
 Turmeric                Morocco         Ivory Coast                Vanilla                       Cumin
                                                                                                                   India                       Mace
                           Coriander     & Cameroon     Egypt       beans
 Brazil                                                                                                             Cardamom                   Nutmeg
                           Fenugreek       Kola Nuts      Anise                                *Malabar
                                                                      Comoros                                                                  Vanilla Beans
  Arrowroot                Oregano                        Basil                                (S. India)
                                                                                                                    Celery Seed
                                                                       Vanilla Beans                                Cumin Seed                  (Bali, Java)
  Cloves                   Parsley                        Caraway                                Black Pepper                                  Black pepper
                                                                       Cloves                                       Dill Seed
  Black Pepper             Rosemary           Nigeria     Coriander                              Turmeric
                                                                                                                    Fennel Seed                (Lampong)
  White Pepper             Saffron             Ginger     Dill weed    Madagascar Seychelles Cumin                  Fenugreek                  White Pepper
  Paprika                  Thyme                          Fennel seed Cloves                     Ginger                                        (Muntok)
                                                          Marjoram                     Cinnamon Celery Seed         Mace            Australia
                                                                         Vanilla Beans                              Nutmeg           Poppy
                                                          Mint flakes                            White pepper
   Spice Map 08-08-07.ppt All Possible
                                                          Confidential & Proprietary – McCormick &                  Red Pepper      Seed
   Sources                                                                                                          Vanilla
                                                          Company
                                                                                                                   Beans
                        Global Sourcing


Throughout our company’s history we have had in-depth
involvement at source countries with growers and
processors.

Over time we have refined our programs to further
guarantee the quality and safety of our products. This is
accomplished through the Global Sourcing group.
             Supply Chain Control Principles


McCormick has deployed a long-standing, positive
control based, Quality Assurance approach to prevent
adulteration on our agricultural raw material base.

The most effective and efficient method to assure the
absence of economic adulterants and contaminants is
through control of the supply chain back to source.
            Supply Chain Control Principles

Our strategic control of the supply chain is based on a
three-pronged approach:

    A. Strategic vendor alliances
    B. Control of source material
    C. Control of manufacturing process


These in combination form the cornerstone of the
management of the supply chain from field to plant and
assure adulterant-free material.
              Supply Chain Control Principles


A. Strategic vendor alliance

McCormick has selected vendors for key commodities.
These relationships are with companies who value and
respect the business partnership, understand and adhere to
GAP’s and GMP’s, manage their operations with rigorous
quality programs and comply with regulatory requirements.
             Supply Chain Control Principles


B. Control of source material

Our strategic suppliers process spices and herbs from
the whole form. Since their source materials are in whole
form and given the internal controls and quality programs,
there is minimal possibility of intentional or inadvertent
contamination.
              Supply Chain Control Principles


C. Control of manufacturing process

Our strategic partners build on the working relationships
with growers with robust incoming inspection, testing and
process controls. Additionally, the materials are
processed in state-of-the-art facilities utilizing the same
quality standards and expectations required by
McCormick facilities worldwide. Each of these facilities
has a well defined Quality Assurance Program and
undergoes an audit on an annual basis.
                Global Sourcing Mission

• Understand and manage all aspects of the supply
chain from the farmer to McCormick facilities
worldwide.

• Procure, process and supply raw materials and
pre-cleaned core spices and herbs to meet the
expectation of McCormick units worldwide in quality,
service and price.

• Leverage McCormick’s total worldwide spice and
herb volume to obtain the optimum value chain for
McCormick.
•
         Traditional Supply Chain

                Farm
EXPORT




              Collector

              Processor

           Shipper/Exporter

                Agent
IMPORT




                              Customer
           Importer/Dealer

                Broker

               Grinder
         MGIL Supply Chain

              Farm
EXPORT




            Collector

            Processor

         Shipper/Exporter

              Agent
IMPORT




                            Customer
         Importer/Dealer

             Broker

             Grinder
                  Supply Chain Management

Chinese Dehydrated Garlic – An Example
– We have several strategic suppliers in China who source whole
  garlic bulbs and process them into various forms and sizes of
  dehydrated garlic for McCormick.

– Each supplier’s facility, equipment and laboratory meets global
  standards.

– Each employs quality programs and manufacturing / processing
  controls that are practiced in developed source countries.

– Each operation is audited at least annually (Food Safety &
  Hygiene and Quality Systems) by our in-country McCormick
  personnel.
                   Supply Chain Management

Chinese Dehydrated Garlic – An Example (cont.)
– The material specification indicate standards for microbiological,
  physical, chemical and sensory properties.

– Incoming raw material is tested for a full microbiological screen,
  heavy metals, pesticide residues and all other organoleptic
  relevant characteristics.

– Traceablity on contents of each truck load to the growing region.

– The finished product is subjected to random proprietary testing for
  economic adulteration.
Processed Ingredients
                Supplier Risk Assessment


Due to the vast number of suppliers, McCormick operates
a risk management program to allocate its auditing
resources and insure McCormick’s expectations are met.
                       Supplier Quality
                    Management Highlights

The McCormick Supplier Quality Management program includes:
• Material Risk Assessment
• Supplier Risk Assessment
• Food Safety & Hygiene Audit Program
• Specifications Control
• Regulatory, Storage & Shipping and Handling Control
• Prevention-based Microbiological Program
• Supplier Quality Expectations Manual
• Supply Chain Integrity Program
Material Risk Assessment
Supplier Risk Assessment
                   Food Safety & Hygiene
                      Audit Program


Suppliers are required to have a McCormick or 3rd party
audit unless the risk assessment matrix deems otherwise.
McCormick’s Food Safety & Hygiene and Quality Systems
Audit is a comprehensive, globally administered
evaluation.
                         Specifications


Each material purchased by McCormick is defined by a
detailed specification.

Suppliers are required to acknowledge their ability and
intent to comply with all aspects of the specification.
                Regulatory, Storage, Shipping &
                     Handling Document


This document is a contractual agreement that
communicates McCormick’s quality parameters beyond
the specification. It is designed to insure conformance to
handling, storage and shipping of materials in
accordance with GMP’s and regulatory requirements.
This document is provided to all suppliers and is
referenced on each purchase order.
                    Prevention Based
                 Microbiological Program


Suppliers providing products known to be susceptible
to harmful microbiological contamination are required
to:
 – Pasteurize material using an approved method; or
 – Verify through testing, that materials are safe for
   human consumption.
                       Supplier Quality
                     Expectations Manual


McCormick’s quality standards and expectations are
formalized in a document and distributed to suppliers.

Suppliers are required to commit to meet or exceed the
standards set forth in the manual.
                              CONTENTS
FACILITY AND EQUIPMENT. . . . . . . . . . . . . . . . . .2

QUALITY SYSTEMS/PROGRAMS. . . . . . . . . . . . . .3

AUDITING. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .4

SANITATION AND PEST CONTROL. . . . . . . . . . . 5

HAZARD ANALYSIS CRITICAL CONTROL. . . . . 6
POINT (HACCP)

FOREIGN MATERIAL/. . . . . . . . . . . . . . . . . . . . . . . .7
EXTRANEOUS MATTER CONTROL

PURCHASED RAW AND . . . . . . . . . . . . . . . . . . . . . 8
PACKAGING MATERIAL CONTROL
                                                                                 1
HANDLING/STORAGE/TRANSPORTATION. . . . . 9                                     SUPPLIER
                                                                               QUALITY
ALLERGEN CONTROL. . . . . . . . . . . . . . . . . . . . . . .10                EXPECTATIONS
TRACEABILITY/RECALL. . . . . . . . . . . . . . . . . . . . .11

LABORATORY INTEGRITY. . . . . . . . . . . . . . . . . . .12

REGULATORY/RELIGIOUS COMPLIANCE. . . . . .13

            McCormick & Company, Incorporated
               Supply Chain Integrity Program


• Raw materials from various source countries are
  randomly sampled and examined for economic
  adulteration using proprietary in-house testing
  methodology.
• Screen for known adulterants, and early identification
  of new / emerging adulterants.
• Audit program covering key global ingredients.
• Includes McCormick Units in all countries.
• Covers most growing regions in the world.
Lessons Learned /
   Effective
   Strategies
                          Lessons Learned /
                          Effective Strategies

• Realize the cultural biases.
• Different perspective on purchasing.
• Alignment of company ethics.
• Greater investment in supplier development and collaboration.
• Importance of educating in “developed country” standards of
  quality and food safety.
• Understand trade-offs between the economies realized and the
  risks and costs associated with offshore sourcing.
• In country Purchasing and Quality Assurance staff.
• Take nothing for granted, leave nothing to chance.
                            Lessons Learned /
                            Effective Strategies

• Insure that management and oversight extends beyond first tier
  suppliers.
• Companies can have good equipment / facilities, but lack process
  control and management practices to operate properly.
• Guard against changes to product, process, facility.
• Understand the use and misuse of documents.
• Staff placed at supplier’s facility.
• Use only after on-site audit by you or a reliable 3rd party.
• Spot checks / screening for known and unknown adulterants.
 THE END


Roger Lawrence, Corporate Vice President, Worldwide Quality Assurance
                                          McCormick & Company, Inc.

				
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