Management Approach
The Company is steadfast in responsible operations towards all stakeholders. Under the policies spanning from sustainable procurement to ethics and business supplier guidelines. The criteria for supplier selection include supplier capacity and compliance with the relevant law and regulations. The Company promotes and supports its suppliers and develops supplier capability through procurement and responsible supply chain management in order to fulfill the constantly changing needs and expectation of customers, communities and society. Additionally, there have been support for additional agricultural product and organic product sales channels while taking into account the appropriate distance from farms to point of sales to preserve product freshness and development of work processes to reduce environmental impact. Furthermore, the Company realizes the importance of product traceability in order to promote sustainable raw material usage throughout the various projects.
Supplier’s Sustainability Management Processes
In 2022, the Agricultural products and animal products certified by external organizations were as follows:
International Standards Certification for Sustainable Production, Quality, and Food Safety | |||
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Agricultural crop | Certification or accreditation | The coverage of products certified | Purchasing volume vs. total raw material procurement |
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RSPO | 30.65% | 15.25% |
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RTRS | 45.28% | 3.94% |
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BONSUCRO | 36.54% | 23.97% |
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Utz Certified Core Code of Conduct, Fairtrade Standard for Cocoa, Rainforest Alliance, FSS C22000, ISO2451: 2017, GAP | 4.81% | 3.00% |
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Utz Certified Core Code of Conduct, Rainforest Alliance, GAP | 33.83% | 7.91% |
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GAP, HACCP | 0.76% | 29.65% |
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GAP, Q Organic | 18.09% | 16.27% |
Animal Welfare Management
The Company places importance on selecting raw materials from suppliers who care about animal welfare, as well as developing sustainable food quality and safety by supporting Charoen Pokphand Foods Public Company Limited, which is the main trading partner in setting policies and management guidelines that aim for excellence in animal welfare management. For products derived from animals, the Company would request certification from leading international institutes and organizations such as the Business Benchmark on Farm Animal Welfare (BBFAW). This represents the Company's commitment to delivering products responsibly and building consumer trust.
Certification of Animals Products Adhering to Animal Welfare Standards | |||
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Animal products | Certification or accreditation | The coverage of products certified | Purchasing volume vs. total raw material procurement |
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ASC, BAP, BRC, GAP | 39.42% | 12.98% |
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BBFAW, GAP | 27.71% | 1.85% |
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GAP, GHP | 42.95% | 12.54% |
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BBFAW, Livestock OK, GAP | 84.94% | 36.98% |
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BBFAW, Livestock OK, BRC, GAP | 97.62% | 27.79% |
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MSC, BRC, GAP | 63.38% | 7.87% |
Product quality and safety: the process from the source of raw materials until the product reaches the hands of consumers
CP ALL ensures product quality and safety throughout the supply chain
To ensure that the products delivered to customers are of high quality, hygienic and safe. The Company has set standards for quality control in every step, from planting, producing, receiving products, organizing, and distributing products, including distribution and service at 7-Eleven stores. The details are as follows:
1. Inspection for food safety since cultivation | Product Development and Quality Assurance Divison in CP ALL provides knowledge and management methods to reduce contaminants problems for SMEs in quality control contamination management and how to reduce contaminants in raw materials before being used in the production process and then to be sold in 7-Eleven stores. In the year 2022, the Company was in collaboration with the manufacturer of Baked Spinach and Cheese products and determined measures to separate contaminants from raw materials before going through the production process and initiated seeking more areas to grow spinach in the country. The Company also promotes the cultivation of selected spinach varieties, specifically to produce good-tasting and good-quality baked spinach, as well as providing advice on every step of cultivation and harvesting spinach and the production process with quality and safety |
2. Quality Control and food safety inspection throughout the delivery and distribution process | Quality inspection agency in the distribution center Quality inspection staff inspect the quality and arrangement of the goods during the delivery of goods. In the case of temperature-controlled products, the temperature inside the cold storage will be checked, including controlling the quality and temperature of the transport vehicle to meet the standards. If the specified standards are not met, the products are reassessed on the delivery status of whether to deliver to 7-Eleven stores. In 2022, there is 0.02% of products damaged during the receiving process, arranging, and distributing process |
3. Quality Control Create safety and confidence in every service |
Quality Systems Solutions & Initiatives (QSSI) for stores Inspection for the service management and product quality, which is scheduled to be inspected monthly. In 2022, the Company upgraded its auditing standards. Quality Systems Solutions & Initiatives (QSSI) for stores according to the SAVEQC policy and adjust the points system by giving more importance to parts that affect customers. The objective is to raise awareness for the Stores to maintain the standards of stores and for them to provide customer service to the point of satisfaction. The store's standard score is 93.94% Quality Assurance Unit (QA) The Company set standards for improving product quality and service quality management by randomly inspecting standards and assessing complaints issues in the past, including random inspection of product quality, cases of non-compliance with the law, proactive product regulation, or labeling. If a non-standard product is found, it will be recalled. In 2022, there was a total of 113 cases, accounted for 164 SKUs of recall of products that did not meet standards or did not comply with the law and regulations, and a total of 65 cases product recalls from customer complaints, accounted for 86 SKUs |
Makro implemented product quality and safety throughout the supply chain
1. Up-stream: Food safety from farm | To raise the level of agricultural products in line with the brand standards of MQP (Makro Quality Pro) and Selected, which are standards for the Company's food safety management system. The products under the said brand will be selected from orchards or farms that have received Good Agriculture Practice (GAP) standards, along with product inspection at every stage of production, including quality in various aspects, such as size and sweetness, among others. Therefore, the Company has prepared Makro Initiative Accreditation (MIA) or guidelines for producing agricultural products in accordance with Makro's standards and announced them to farmers' groups and suppliers. They can do self-assessments that can be conducted both online and offline, which enhances production knowledge and delivers standardized products to consumers. From the implementation of the project, at present, more than 350 of farmers and suppliers (100%) have received the MQP and Selected brand standards |
2. Mid-stream: Control food safety along the distribution process | Therefore, the MIA system was further developed to be used in the evaluation of the Company's distribution centers and distribution centers in order to prepare for standard certification application 1) Good Hygiene Practice (GHP) 2) International Food Standards (Codex) of the Food and Agriculture Organization and the World Health Organization 3) Hazard Analysis and Critical Control Point (HACCP) 4) Food Safety Management System Standards (ISO 22000:2018) |
3. Downstream: Product traceability | In addition to producing products that meet the standards of farmers and trade partners and offering quality products for consumers, the Company adopted a system that facilitates tracing the origin or raw materials and product nutrition information, namely the Makro i-Trace, which able to trace products in the fresh food category and bakery category, totaled 8,173 items, accounted for 100% of Under aro brand. In addition, the Company has also expanded the application of the Makro i-Trace system to Stores in the Republic of the Union of Myanmar |
The Company has processes on food security according to a sustainable sourcing policy. The projects and activities are implemented through the 3 main programs:
1. Access to safe and nutritious food
CPRAM "Alongside Thai People; Care Within Reach"
CPRAM Co., Ltd. stands firm in doing business alongside Thai society and being supportive in every crisis that arises. In a time of crisis, CPRAM has a mission to assist in the rescue area by establishing a central kitchen in disaster-affected areas with the objective of alleviating the suffering of victims, including those affected who faced difficulty in accessing clean and safe food and drinking water. The project delivers ready-to-eat food and drinking water, aiming to supply quality food to individuals affected as soon as possible. CPRAM "Alongside Thai People; Care Within Reach" Project ensured that the food provided is ensured to be delicious, safe, nutritious, and hygienic. The main target groups are 6 groups of those in need, those suffering from poverty, and vulnerable groups: children, the disabled, the elderly, those affected by the crisis, low-income individuals, and those who have difficulty or limited access to food. In addition, CPRAM also delivers safe food and water to local communities and society.
Impacts and Benefits
“Food for Those in Need” for the 5th consecutive year
One of Lotus's commitments is to promote good health for Thai people through eating good, safe, and high-quality food. The project supports lunch and the budget to purchase high-quality ingredients for cooking lunches for students in schools throughout 77 provinces across the country. The objective is for the schools to have access to good, nutritious, and safe food. The project also supports healthy growth and child development conducive to effective learning. In 2022, the project organized a special activity, “The Journey of Good Food for the Young,” to promote learning about nutrition by taking students from Wat Kai Tia Community School, Pathum Thani Province—the students visited the food process from upstream to downstream. The objective was for the students to learn the source of quality food through the process of purchasing produce directly from farmers. They also visited the working process at the sorting and packaging plant of Ban Na Khu Community Enterprise Group, along with studying fresh food management at Lotus's, Pathum Thani branch, and learning about selecting fresh food that is a good quality product and safe.
Impacts and Benefits
2. Sustainable Agriculture Program
1. Programs to reduce water consumption | |
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1.1 No-till/conservation agriculture in rained areas |
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1.2 Management and technology |
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2. Programs to reduce environmental pollution | |
2.1 Production of organic products |
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2.2 Use of "smart" pesticides |
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2.3 Enclosed production systems: aquaculture |
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3. Programs to protect soil health | |
3.1 Low frequency and intensity of tillage |
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4. Programs to prevent the destruction of ecosystems | |
4.1 Certifications that ensure deforestationfree production |
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4.2 MSC or ASC certifications which ensure sustainable production |
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5. Programs to reduce GHG emissions | |
5.1 Reduced transport distances through |
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5.2 Local products offerings in retail |
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3. Product quality and safety
The Company aims to raise the standards of delivering products and services in 7-Eleven stores that are hygienic and safe for consumers, as well as providing training courses on food safety for employees. The Company also enables employees to provide a positive and safe customer experience and facilitates a food safety management system for the organization.
Selection of raw materials according to international standards
Established guidelines for raw material selection with stringent controls over product manufacturing through the development of efficient manufacturing systems, which adheres to relevant laws and satisfies international production process safety certifications including BRC standards, HACCP standards and GMP standards, etc., to ensure safe and reliable products for consumers.
Implementing product quality and safety measures throughout the supply chain
The objective is to ensure that the products delivered to customers are of high quality, hygienic and safe. The Company has set standards for quality control in every step-from planting, producing, receiving products, organizing, and distributing products, including sales and service at 7-Eleven stores, Makro, and Lotus's distribution centers.