Unilever reaps benefits of web-based supplier approvals system
Speaking at a webinar hosted by certification body SAI Global, Alex Gifford, quality advisor, SCM, at Unilever, said Unilever had decided to outsource supplier approvals and compliance management to SAI in 2008/9.
SAI’s web-based Synergy SCM system, which is also used by PepsiCo, enables food manufacturers to record and manage the audit status of their suppliers in a fully-searchable database.
Accessible via a web browser to authorised users anywhere in the world with a password, Synergy can also be used for complaint handling, specification reviews, managing allergen information, supplier approval management and a variety of other services.
For Unilever, being able to get a 'dashboard view' of its supplier base had proved particularly crucial in situations where relevant suppliers needed to be identified and contacted immediately, said Gifford.
“The real benefits come from the ease with which you can manipulate data and produce reports to see where the problem areas are. We now know immediately the approval status of all of our suppliers. If you have a product recall, for example, you can use this to see exactly which products and suppliers are affected.”
Some of the biggest headaches in SCM arose from suppliers’ failure to respond to requests for information, he said. Using SAI’s event management and tracking system, it was now very easy to identify gaps in the information supplied and to contact suppliers with follow-up requests, he claimed.
“The system helps us identify cases where suppliers are ignoring our requests for information and to see who might need additional support.”
Instant information
Increasing numbers of food manufacturers were now using web-based systems to handle relationships with suppliers, said SAI Global’s manager for supplier compliance management, Jackie Kerr.
“It’s definitely becoming more popular. One of the main problems with suppliers is that they don’t all supply you with the information you have requested immediately, and manufacturers waste hours of time chasing them by email, phone and even paper.
“If you have a large supplier base, it is very hard to keep track of what is going on if you are still relying on paper, spreadsheets and email for SCM.”
She added: “Having complete visibility of your supplier base, where they are and what they supply you with, is also critical in the event of a food scare, where you can instantly trigger a report and see exactly how and where your supply chain is affected.”
Product specifications
Leicestershire-based firm Qadex, which pioneered the use of online supplier assurance systems, has also reported a sharp rise in the number of its customers using its platform to manage raw materials specifications.
While electronic specifications for finished products were well-established, many food manufacturers still used paper-based specifications systems for raw materials, which were time-consuming, error-laden and slow to search in the event of an incident or request, said Qadex business development manager Stephen Whyte.
Given that more than 7,000 raw materials suppliers were already inputting data on hazard analysis critical control point procedures, process controls, allergen management, hygiene and traceability for manufacturers using Qadex's supply chain assurance service, it made sense for suppliers to input product specifications as well, he said.
“We went live with this service in August 2009 and it’s mushroomed since then.”
The Leicestershire-based firm has recently scooped a contract to train suppliers to comply with Tesco’s new manufacturing standard and to show them how to complete product specifications for the retailer’s own-label ranges, said Whyte.
Several food manufacturers were also asking to use Qadex’s systems to help them manage a far broader range of supply chain issues, from the use of sustainable palm oil to embedded water, he added.
“Retailers and manufacturers are increasingly being asked about these things from a corporate social responsibility viewpoint.”
