Case Study: Supplier

Supplier Name: Creed

Description: One of the UK’s leading independently owned Foodservice Wholesalers specialising in providing Artizian with a comprehensive range of multi temperature products and services with a business wide focus on delivering great customer service. Their service levels are amongst the very best in the industry and they are proud winners of the highly prestigious Federation of Wholesale Distributors (FWD) Industry Gold Medals for the last 3 years.

We were delighted to award this contract earlier in 2013, to a like-minded company, with the same vision and values as Artizian, in supporting Artizian in providing a comprehensive range of catering services. This was our approach to the appointment:

Question no.1: How does Artizian check suppliers for Due diligence?

Creed Foodservice was new to both Artizian and NJW, having been industry recommended. Creed Foodservice joined our tender process, with 5 other companies; two of which had turnovers over £2 billion, four of them had a turnover of between £50–100 million. All were asked questions addressing key areas (below) and measured against criteria addressing (i) commerciality and (ii) if the company was fit for purpose for supplying Artizian and our clients:
1. Product ranges – develop product ranges, rationalise products and allow Artizian to work in conjunction with suppliers and linked manufacturers
2. Management of product range – ensure the product range is managed well
3. Nutrition – advise on all product innovation that will illustrate best practice
4. Salt reduction – highlight “high salt” or over .05mg per 100g products, avoid high salt items
5. Fat reduction – highlight products which include Trans fats but avoid them where possible
6. Sustainability – outline your sustainability process

Question no.2: How does Artizian monitor the manufacturers and supply chain?

Artizian has a number of suppliers; the supply chain is reputable and supplies a great number of food service businesses. The products supplied are on a governed list which allows the procurement team and the suppliers focus on an agreed product range. This means the right time is given, when a product is being introduced, to evaluate if it is right for the business. The onus is for the supply chain to manage its own supply chain. This is monitored by the external food safety team in visits and a self certification process which is common in the food service sector. If a product is to be recalled, which can happen for a variety of reasons, the suppliers must inform Artizian, in the first instance, even if the product is not within the Artizian restricted list. NB. This happened recently with the ingredients for a sausage that was in a supplier’s supply chain. One of their clients had nominated and sourced the product for their own operations. There was no impact on Artizian but the supplier was obliged to inform Artizian before it was made public.

Question no. 3: Does Artizian have an agreement with suppliers covering certain checks that we make to guarantee products?

All goods are checked when they arrive at the back door: (a) Temperature probed if chilled or frozen upon arrival and rejected if they do not fit the Artizian criteria. (b) Checked for foul smell, foreign objects and anything out of the ordinary. (c) Photographs are taken of the product if substandard upon delivery, with photographs sent to the supplier. The product remains on site in a sealed container to avoid contamination and if suitable placed in a deep freeze to ensure it does not deteriorate further. Dependent of the severity of the situation identifies which action is taken between the operation and the supplier or the reporting to a third party. (d) Vehicle temperature tapes can be reviewed and given to Artizian for its records. If the temperature span is out of line, the products are returned and its findings are reported. (e) Goods are spot weighed to ensure they hit the agreed weight. (f) By using a small number of nominated trusted suppliers, if a problem arises it will quickly identify if the problem is isolated or across the whole business. (g) All suppliers are very quick to react to any situation which shows their business in a bad light. (h) The supply chain manages its supply chain as part of the trading relationship, that responsibility sits with the supply chain to inform Artizian in a timely manner of any situation which be harmful or cause other consequences that harm Artizian’s own business or its clients.

Question no.4: Is there a caveat for our suppliers with regards to their due diligence and what would happen should this fail?

It would be dependent on the severity and the impact on all stakeholders involved in the process, including the clients’ own team member who, in this case, would be the consumer. If the supplier’s due diligence fails irretrievably then the supplier will either be given an agreed to time to put right or given notice. It is usually when a company is in financial difficulties short cuts are taken. We make a point of being aware of business in the market and have alternative suppliers available to replace any supplier within 24-48 hours’ notice.

Question no. 5: How does Artizian carry out due diligence on suppliers?

We have laid out the Artizian methodology that is carried out by the Artizian management, NJW Procurement Solutions, the external food safety business that Artizian use and what is expected from the nominated supply chain. NB. AFCC have illustrated in more detail from technical and legislative perspectives and we can supply on request.