Partnering for Quality

1
Partnering for Quality

• The Yum! Approach to Managing Supply Chain
• Meghann McLeod
• Quality Assurance Specialist
• Yum! Restaurants International (Canada) LP
• September 22nd, 2005

2
Who is ?

• Spun-off from Pepsi in 1997
• Worlds largest restaurant chain in number of
  units
• Nearly 34 000 restaurants in over 100 countries
• Includes brands KFC, Pizza Hut, Taco Bell, Long
  John Silvers AW (excluding Canada)

3
Importance of Canadian QA

• 1375 restaurants across the country
• 170 000 transactions per day across country
• Over 100 food suppliers, packaging suppliers and
  distributors
• Our Mission Statement
• Ensure the safety, wholesomeness and integrity
  of ingredients, products and packaging throughout
  the supply chain for all Yum! Canada Brands

4
How does Yum! ensure quality?

• Partner with suppliers distributors
• Facility audits (STAR Program)
• Product cuttings
• KPI reports lab analysis
• Restaurant evaluations (focus on Food Safety
  criticals)
• Crisis Management Program

5
STAR Program

• Supplier Tracking, Assessment Recognition
• International implementation
• Includes
• facility audits
• transportation audits
• product reviews

6
Audit Program

• Partnership with Guelph Food Technology Centre
  (GFTC)
• 150 supplier and distributor audits/year
• Must participate in program to supply to any of
  Yum!s concepts
• Visit frequency based on product risk volume
  supplied
• Focuses on products being produced for Yum!

7
Food Supplier Audit

• Review of Food Safety Quality Systems
  including
• HACCP
• Traceability
• Food Security
• Product Protection
• Most suppliers scheduled for 2/year

8
Food Supplier Audit

• Action plan developed day of audit
• Pass is minimum 85 w/no automatic failures
• Failures immediately communicated to Yum! QA
• 30 d period of cure (Yum! works w/supplier)
• Re-audit if necessary

9
Distribution Audit

• Focus on temperature controls food security
• Ensure approved products are being shipped to our
  restaurants
• Transportation audit meet truck at restaurant
• All receive 2/year pass is minimum of 85

10
Packaging Audit

• Focus on GMPs, product protection and product
  security
• Each facility receives one audit/year
• Canada is only market outside US to implement
  packaging audits
• Pass is minimum of 80

11
Approval Audits

• Conducted by Yum! QA if possible or GFTC
  calibrated auditor
• Food Safety portion of audit only
• Minimum score of 80 required
• If fail consider 30 d cure period
• If pass can begin supplying system, put onto
  regular audit schedule

12
Animal Welfare Audits

• New for 2005
• Unannounced visits
• Required at each KFC fresh poultry supplier
• Focus on live-bird receiving
• Bird handling
• Foot lesions
• Effective stunning
• Kill is 100 (automatic back up knife)

13
Recognition

• Important piece of STAR Program
• Annual Canadian awards dinner
• Top suppliers distributors in various
  categories
• Time to celebrate successes
• Supplier of the Year attends Yum! International
  awards dinner

14
Product Cuttings

• Monthly reviews of core products
• Based on physical parameters set in specification
• Focus on finished product attributes (what
  affects our customers)
• Use of photo standards, colour guides
• Calibrated at annual international meetings

15
Product Cuttings

• Share photo standards tools with suppliers
• Train key suppliers to process of conducting
  evaluations
• Vendor visits to review product together
  calibrate

16
Sample Cutting Sheet
17
KPI Reports Lab Analysis

• Monthly reporting on high risk, high spend
  commodities
• Sampling program to verify KPI attributes such
  as
• Fat
• Moisture
• Protein

18
Restaurant Evaluations

• Team of specialists
• All employees of Yum!
• Must have operations background
• Food Safety Critical Focus
• Products from approved supply source
• Cross-contamination
• Holding Temperatures
• Proper handwashing procedures

19
Crisis Management

• Global Program
• Canadian Implementation over 2005
• Core Crisis Team leads
• Colour code system
• Post crisis review very important
• Restaurant is aware of basic chain of
  communication
• Who to call
• What to say / not say

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Crisis Management

• Program addresses
• Product recalls / withdrawals
• Communicable disease risks
• Suspicious substances
• Foreign Objects
• Allows cross-functional group to speak same
  language come to quick resolution

21

• Partnerships throughout the supply chain are the
  keys to completely understanding your product
  ensuring safe, quality food for the consumer.
• Thank you!