Product Quality & Safety 

 

Product Quality and Safety Management Strategy

 

Over the years, BJC has constantly been driven towards the mission to serve customers’ personal needs based on customer-centric and data-driven culture, accommodating to the needs of changing modern consumers, whom are demanding greater convenience, and are accustomed to greater alertness towards the importance of product safety and quality, demonstrated through increase desire for better product safety & quality, including taste, presentation, certifications, durability, freshness, nutrition, and varieties, paralleled with the provision of all appropriate product labelling as required by applicable laws. As such, the topic of product safety & quality has always been of great importance to BJC. This prioritization of the topic is further enforced as BJC is well-aware of the actual and potential, negatives and positive impacts on the economy, environment, and people, including impact on their human rights to quality of life and health, and adequate food, should BJC lack appropriate controls to product safety & quality, which may be presented in the form of increased health and safety risks for consumers, lower consumer trusts and interest in BJC’s products and services, increase safety violation cases amongst consumers, leading to increase legal costs and ultimately loss of revenue and reputations. On the other hand, a well-managed product safety and quality may lead to increased innovation, reduced environmental impacts from minimal utilization of hazardous chemicals, reduced waste generations and energy consumption, improving the overall health and quality of farmers and consumers.

Through BJC’s operation of the various supply chains, BJC is directly impacted by the forementioned negative impacts, which are in direct violations to BJC’s prioritization to product safety and quality goals, as BJC is committed to provide all customers and consumers with the highest quality of products and services beyond customer expectations. Through both own operations and relations with business partners, BJC can mitigate these issues through strict compliance with national and international product safety & quality standards applicable to each supply chains and beyond, to safeguard product safety & quality accordingly, protecting the safety of all consumers.

 

 

Product Quality and Safety Management Approach

 

On account of the diverse nature of each of the five core supply chains, all operations strictly adhere to a corporatewide Product Quality and Safety Policy, developed by the centralized Sustainability and Risk Management Department, which are customized to meet the requirements of each business units and oversee by the Quality Assurance Department at each facility. Compliance to the policy safeguards BJC’s operations from risk of violating legal requirements, and enforces operations to continuously identify, develop and initiate appropriate product safety and quality control mechanism to maintain BJC’s high safety and quality standards.

 

Product Quality and Safety Process

 

In order to offer products at their best quality and safety to customers, BJC develops the Product Quality and Safety Process, comprising four major phrases which are Quality and Safety Sourcing, Quality and Safety Production, Quality and Safety Control and Inspection Process and Grievance Mechanisms. The process is applicable to all of BJC’s five core supply chains.

 

 

Definition of Safety & Quality at BJC 

The Cumulative attribute of a products that contributes to its ability to meet the needs and demands of the specific customers, fulfilling what the end user wants and perceives as value, in addition to being reliable and able to perform all its functions seamlessly, while adhering to all applicable standards and being safe for all users when used for its intended purposes.

 

1. Sourcing Quality and Safety 

 

BJC uphold high quality and safety standards of its finished products and services through strict adherence with the product safety and quality culture, fostered through strict compliance with applicable laws, regulations and standards related to quality and safety. These includes Good Manufacturing Practices (GMP), Hazard Analysis and Critical Control Points (HACCP), Customs-Trade Partnership Against Terrorism (C-TPAT) and the International Organization of Standardization Quality Management System (ISO 9001) to name a few. 

In addition, to ensure safe and quality products, BJC emphasize sourcing of raw materials from suppliers whom are carefully screened through the sustainability supplier selection procedure, confirming that raw materials are produced with sustainability considerations. Beyond this, all critical tier-1 suppliers are annually trained on BJC’s safety and quality assurance standards, fostering a standardized product safety and quality throughout BJC.

Example of Sourcing Quality and Safety Practices

This approach is continued to be adopted by both Thai Glass Industries PLC (TGI), and Thai Malaya Glass Co., Ltd. (TMG), where beyond sourcing from selected suppliers whom has passed the supplier screening criteria, the raw materials are also subjected to component analysis to ensure compliance with the Glass and Raw Material Technology Department.

Similarly, to ensure the quality and safety of its raw material sourcing, Berli Jucker Food Ltd. (BJF) continue to actively support Thai farmers to integrate and conduct sustainable agriculture practices, elevating their respective capabilities and status as a quality supplier. An example of this support is conducted to potato farmers in the North of Thailand, where BJF introduced and encourages the farmers to adopt Good Agricultural Practices (GAP), which includes the criteria to, water safety, site safety and sanitation, limit use of agrochemicals, data records, biocontrol practice quality management and harvesting and post harvesting handling. GAP aims to ensure that raw materials meet the safety standards while minimizing negative environmental impacts. Approved raw materials then undergo further process to test negative for assurance, after which they are used in production process per the international standards mentioned. Once complete, finished goods enter quality assurance and quality control procedures. The procedures and frequency are customized according to the product’s nature.

 

2. Producing Quality and Safety 

 

Following the acquisition of safe and quality raw materials, each respective supply chains process the raw materials in compliance with the product safety and quality process requirements applicable to each supply chains.

Example of Producing Quality and Safety Products

Throughout the reporting years, both TGI and TMG continue to utilize the 5S Management Philosophy, which consists of Sort, Set in Order, Shine, Standardize and Sustain, into their factory, shop, and offices, increasing food safety by removing unnecessary items at workplace, developing better procedures, and avoiding any contaminant during production that may be harmful to consumers’ health. Beyond this, TMG and TGI also utilizes annual external audits to provide assurance of product safety and quality. The audits are conducted in compliance with international standards such as the International Organization for Standardization (ISO 9001:2015), and the Food Safety system certification (FSSC 22000:5.1). The internal quality assurance & quality control department is accountable for conducting the internal audits, while SGS were employed as an independent external auditor.

 

3. Controlling and Inspecting Quality and Safety 

 

Succeeding to the manufacturing process, finished goods are required to go through careful safety and quality inspections, to affirm all consumers to the high safety and quality standards.

Example of Quality and Safety Controlling and Inspections

Big C Supercenter PLC product quality and safety are subjected to, the quality and safety of products are inspected at a laboratory, certified by the Department of Medical Sciences, Ministry of Public Health. All products must be inspected at the laboratory before putting on shelves (1st production lot testing). Moreover, all products on shelves are also inspected 1 - 4 times annually depending on product category (Product Monitoring Plan). Moreover, to confirm that customers are satisfied with product quality and safety, Sensory Evaluation is conducted constantly for Big C’s house brand food products. Each brand’s products are tested their colors, smell, taste, and texture by a sample of target customers. Hedonic 9 point and Ranking Scale methodology are used for the evaluation. As a final point, to confirm the accuracy of labelling, conformity and packaging, the products will be inspected once more. Shipment labels are also put in place, for transportation standards to be traceable and controllable. Constantly carried out from 2019, Big C has continuously practiced the Agricultural Hazardous Substances Control Measure to control the use of chemical substances in fresh food products. In 2020, Big C has also developed chemical inspection criteria at the packaging house to cover residues from pesticides and fungicides.

 

4. Corrective Action Plans & Grievance Mechanism

 

Beyond the sourcing, producing, and controlling of product safety and quality, BJC also remains devoted to amend all identified negative impacts and violations, subsequent to relevant onsite inspections and assessments, conducted by both internal and external auditors.

Audit results are used to identify suppliers whom have not met and/or are in violation of the agreed safety and quality standards, to manage according to the company policy as follow.

• BJC evaluates the severity of the violations and determine the length of corrective period and collaborate with the supplier, provide consultation assistance to improve process.
• BJC integrates the view, and opinions from relevant stakeholders consolidated through various channels, such as grievance customers channels in the improvement process.
• Customer feedback integration enable prevention of future occurrence of the same/similar issues. Effectiveness of implemented remediated initiatives are regularly monitored through customer feedback. 

 

BJC Business Units

At presents the business units offering quality products and services consist of 1) Packaging Business 2) Consumer Business 3) Modern Retail Business 4) Healthcare and Technical Business and 5) Other Business Units

 

1. Packaging Business

 

Packaging Supply Chain provides the design service, the production, the marketing, the distribution of merchandize and sale of packaging products to various industries from alcoholic beverages to non-alcoholic beverages and from foods products to pharmaceutical products. Packaging Supply Chain is divided into two business categories :

 

Glass Packaging Products

BJC’s Glass Packaging Division in Thailand is composed of BJC Packaging Company Limited, Thai Glass Industries Public Company Limited (TGI) and Thai Malaya Glass Company Limited (TMG). The glass business group is continuously working to enhance its efficiency and productivity to reduce production cost and improve quality of the products and services, as well as to develop the potential of its personnel via various standardization systems including the Lean Six Sigma. Moreover, there was the opening of the training institute to develop the knowledge in the aspect of the glass products; the technology of the production of glass packaging products and general management of glass products. These activities were carried out to compete both in domestic market and in abroad, and to becoming the leader of glass packaging industry in the region.

 

Aluminum Cans

BJC’s Aluminum Can Packaging Division in Thailand conducts its business of production and distribution of aluminum cans, through Thai Beverage Can Ltd. (TBC). TBC manufactures both aluminum cans and lids, and offers its customers customized printing on its products. TBC implements technology from Ball Corporation (Ball), a leading manufacturer of aluminum can packaging from USA. TBC and Ball have also jointly set up an aluminum can manufacturing factory in Vietnam under the name TBC-Ball Beverage Can Vietnam Limited ("TBC-Ball VN") in order to produce and distribute aluminum cans and lids. Currently the company has a total of four production lines to manufacture the cans of different sizes. The Company also has four lid production lines for Stay-on-Tab, and Large opening end lids, and one line for cutting and aluminum coating for lids. With the total manufacturing capacity of 4,800 million cans per year and the production capacity of 3,450 million lids per year in Thailand, the Company is one of the largest aluminum can manufacturers in Southeast Asia.

 

 

2. Consumer Business

 

Consumer Supply Chain of Berli Jucker Public Company Limited conduct business operation of almost in full scale service, from the upstream business, such as agriculture, manufacture, to downstream business, such as marketing, distribution for retailing business. Other than that, logistic service operation is under this group as well. Major products of consumer supply chain group being in operation are as follows: facial tissues, toilet papers, snacks, personal care products including consumer products distribution services, as well as its own recognized brand names, for example, Cellox facial tissues & toilet papers, Zilk toilet papers, Maxmo multi-purpose papers, Tasto potato chips, Dozo rice crackers, Party and Campus extruded snack, Parrot soap, and Dermapon baby soap.

 

 

3. Modern Retail Business

 

Big C Supercenter as Thailand’s leading modern trade retailer. Over time, Big C has strived to offer maximum satisfaction and value to our customers nationwide through a wide selection of quality products, outstanding service, one-stop shopping convenience and multiple store formats that fit the need of all customer segments. Since the beginning, Big C Supercenter has been renowned for our price leadership. At the same time, we have spared no efforts to offer “More Than Just Low Prices” to our customers. We have stressed the values of Thainess in all aspects of our service. Our dual retail-rental business model has enabled our shopping centers to answer to customers’ needs and preferences through a carefully selected tenant mix. 

 

 

4. Healthcare and Technical Business

 

BJC has distributed medical products for more than 40 years including pharmaceutical products, healthcare products, medical imaging, medical equipment and medical supplies.  We currently represent more than 40 well-known worldwide suppliers.  BJC provides full services including marketing, sales and distribution with countrywide coverage in government and private hospital as well as clinic.  Healthcare Supply Chain comprises more than 350 skilled employees.  With our long experiences in medical business and varieties of medical products represented, we are keen in many medical fields including Endocrinology, Nephrology, Orthopedic, Cardiology, Hematology, Neurology, Surgery and etc.  Major strengths of our group in local know-how and marketing, superior logistics, as well as efficient regulatory registration and other extra value services have successfully strengthened our partners’ platform.

 

5. Other Business Units

 

Under the mission of new business development in the region, we worked through merger and acquisition and partnering with strategic alliances to combine the new businesses with our current business. Under our supporting role for BJC Business Units, we also strived to seek for new market opportunities for business units in the overseas. In addition, we played active role as a distribution center for non-BCJ products in the region. Currently, our International Business Division head quarter is based in Thailand, while we have employees stationed in our regional operation office in Vietnam, Myanmar and Cambodia.