Danone Fruit Supply Chain Mapping via Transparency-One Platform
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Consumers increasingly demand transparency in food supply chains. Danone is launching a 2021 Fruit Transparency Campaign with SGS and Transparency-One to provide supply chain transparency for fruits used in Danonino products. The objectives are to map the full fruit supply chain from farm to factory, establish fruit farm profiles, conduct compliance and risk analyses, and address issues like water scarcity risk. Supplier engagement is critical to the success of the project and took over 70% of project time. The campaign aims to enable communication across the supply chain, initiate transparency projects with brands, verify certifications and origins, and identify social, environmental and safety risks. Suppliers are requested to create accounts, disclose information, and pay an annual subscription
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“Increasingly, consumers are seeking information around how their food is produced, proof of where it
comes from and assurance that it is safe. […] Consumer demand for traceability across the supply chain
offers opportunities to differentiate products, improve transparency and freshness, and safeguard brand
provenance. […] it is being driven by increased consumer demand, regulatory changes and the increasing
complexity and globalization of food supply chains.”
Food traceability, transparency and trust – KPMG March 6th, 2020](https://image.slidesharecdn.com/dantradefruitupstreamtransparency2021campaign-210827142716/85/Danone-Fruit-Supply-Chain-Mapping-via-Transparency-One-Platform-4-320.jpg)
Danone Fruit Supply Chain Mapping via Transparency-One Platform
- 1. 2021 FRUIT TRANSPARENCY CAMPAIGN MARCH 2021 DANTRADE WITH SGS & TRANSPARENCY-ONE
- 2. Mute yourself Turn off your camera Please follow the below rules to help us ensuring the quality of the meeting 2 Please ask your questions and we will answer them all at the end of the session Go to www.pigeonhole.at Enter passcode DANONE2021
- 3. 3 About demand for Transparency, Traceability & Trust A great opportunity to co-create value Objectives of the 2021 Fruit Transparency Campaign Your KEY ROLE in this campaign Campaign agenda and next steps
- 4. 4 4 “Increasingly, consumers are seeking information around how their food is produced, proof of where it comes from and assurance that it is safe. […] Consumer demand for traceability across the supply chain offers opportunities to differentiate products, improve transparency and freshness, and safeguard brand provenance. […] it is being driven by increased consumer demand, regulatory changes and the increasing complexity and globalization of food supply chains.” Food traceability, transparency and trust – KPMG March 6th, 2020
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- 6. 6 19 March, 2021 IMPORTANCE OF TRANSPARENCY TO CONSUMER*: Demographics*: Those who place a greater importance on transparency ✓ Aged 22-36: 85% ✓ Aged 37-51: 84% ✓ Higher grocery spenders ($125/w): 86% ✓ Have children: 87% Demand behind transparency*: ✓ Complete list of ingredients: 62% ✓ Certification: 48% ✓ How products are produced: 39% ✓ How ingredients are sourced: 39% ✓ Labor practices & fair trade: 35% ✓ Sustainable practices: 29% 81% - 96% *Data and insights from a survey conducted in March 2020 Transparency Trends, Omnichannel Grocery Shopping From The Consumer Perspective FMI (Food Industry Association) and Label Insight, July 30th, 2020 About demand for Transparency, Traceability & Trust CONSUMERS ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021
- 7. About demand for Transparency, Traceability & Trust GOVERNMENTS 7 EU’s General Food Law Regulation defines traceability as the ability to trace and follow food, feed, and ingredients through all stages of production, processing and distribution in order to manage risks that can arise in food and rapidly provide this information to the competent authorities State of California’s Transparency in Supply Chains Act ensure that large retailers and manufacturers provide consumers with information regarding their efforts to eradicate slavery and human trafficking from their supply chains, educate consumers on how to purchase goods produced by companies that responsibly manage their supply chains France’s Law on the Corporate Duty of Vigilance applies to the largest French companies and addresses the adverse impacts of their activities on people and the planet, by having them publish annual, public vigilance plans. This includes impacts linked to their own activities, those of companies under their control, and those of suppliers and subcontractors, with whom they have an established commercial relationship. Germany’s Due Diligence Law requires companies to assess and respond to human rights risks in their own operations and among their direct suppliers. Suppliers further down the supply chain must conduct “incident-related” human rights due diligence when they have “substantiated knowledge” of potential abuses The FDA introduced to lead a New Era of Smarter Food Safety. The agency proposes achievable goals to enhance traceability, improve predictive analytics, respond more rapidly to outbreaks, address new business models, reduce contamination of food, and foster the development of stronger food safety cultures. ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021
- 8. About demand for Transparency, Traceability & Trust SOCIETY 8 OXFAM, Behind the Brands, Company-scorecard | Behind the brands Campaigned until 2016 to provide consumers with information and held the Big 10 accountable for what happens in their supply chains. A scorecard was based entirely on publicly available information about company policies and commitments throughout on the below issues: NGO composed of 20 independent charitable organizations focusing on the alleviation of global poverty ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021
- 9. About demand for Transparency, Traceability & Trust 9 19 March, 2021 “This powerful idea is at the heart of the ongoing Food Revolution, a movement inspired by people who care about where their food comes from, how it was grown, how it arrived on their plates and how it impacts their health and the health of the planet.” We stand for sustainably sourced ingredients; for naturality and transparency; and for simple recipes and clean labels. We commit to sustainable sourcing (…) We will protect soil health through regenerative agricultural practices co- developed with partner. A food revolution is happening, and we choose to serve it. However, we cannot do it alone: to change the way food is grown, produced, marketed, distributed, sold and consumed, we need to co-create solutions with others… ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021
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- 11. A great opportunity to co-create value Successful case studies 11 19 March, 2021 “Consumers have the supply chain in their hand” with the origin of the eggs, packing center,.... An interface with information and videos drives consumer trust over the production condition Consumers can see where the ingredients specific to bottle come from, by which farmer it is harvested and processed, practically from the tree to the bottle Consumers can trace the full supply chain up to farmer, get details on the wheat origin, parcel location, processing date, … Consumers have precise visibility over production conditions, certification and information of the milk they choose to drink “Our objective is to brings more transparency to consumers and therefore more responsibility to all the actors of the chain involved in the production. Fully transparent bean-to-bar traceability (origin, flow, quantities) to create a fairer supply chain based on a direct connection, that creates accountability and the ability to take responsibility. (…) data collection from cooperative to chocolate production and includes a monitoring tool for all actors in the supply chain to see where the beans are at any moment in time. Customers can see product details, origin and steps in the supply chain. Objective: ensure proper production conditions, food security, environmental and social conditions, identification of supply chain risks, communications with customers to help build their loyalty and trust ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021
- 12. 12 12 A great opportunity to co-create value WIN-WIN OPPORTUNITY ✓ Enhance consumer trust ✓ Pioneer the food revolution by providing customers with the information they need to make a choice ✓ Differentiate brands and products ✓ Identify and address supply chain risks: Food Safety, Social and Environmental ✓ Gain visibility into our supply chain ✓ Enhance communication with our end-to-end Supply Chain to co-create value and projects ✓ Enhance your visibility: Promote to your direct and indirect clients all the steps you have taken to improve value and quality, food safety, … ✓ Enable trust: Be transparent with your partners about the production conditions of your supply chain ✓ Gain visibility: Get information and insights into your own supply chain and suppliers ✓ Manage risk: Access the expertise of SGS Transparency-One to understand the main risks within your supply chain, your resilience and exposure (Social, Environmental, Food Safety) ✓ Secure your data: Store all data verified by independent group SGS in your own secured personal space ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021
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- 14. 14 19 March, 2021 Ambition: Regain the confidence of mothers in the fruits used into Danonino products that faced low trust. It was the opportunity to launch a Transparency campaign pilot to make our fruit sourcing transparent, describe where, how and with who it’s produced. ✓ Map the full Supply Chain: from Farm to Factory ✓ Establish Fruit Farm Profiles ✓ Compliance and Risk Analysis: Food Safety, Social and Environmental ✓ Water Scarcity risk management YOUR ENGAGEMENT WAS CRITICAL • Biggest barrier for project success • Took more than 70% of the project time +85% FULLY TRANSPARENT Objectives of the 2021 Fruit Transparency Campaign WHERE WE STARTED ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021
- 15. 15 19 March, 2021 1) Map our entire fruit Supply Chain: from farm to factory 2) Enable effective communication with stakeholders of our end-to-end Supply Chain 3) Initiate transparency projects with our brands 4) Measure the level of compliancy of suppliers at facility level against Danone’s policies, standards and requirements ✓ Inquire and verify certifications ✓ Confirm fruit’s country and region of origin 5) Identify and address Product Safety and Supply Risks: social and environmental compliance, resilience and exposure, … Objectives of the 2021 Fruit Transparency Campaign WHERE WE ARE GOING ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021
- 16. 16 19 March, 2021 ₓ Create threats for you ₓ Bypass you ₓ Share your information with competitors ₓ Be unfair with you Objectives of the 2021 Fruit Transparency Campaign ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021
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- 18. 18 19 March, 2021 Create your account on the platform Answer the visibility request WITHIN 7 DAYS Invite your suppliers through platform + answer on- line survey Provide info on your components and suppliers + pay your subscription Update your certificates + Supply Chain information All suppliers are requested to participate whatever their tier distance with Danone, except farmers. Information on farmers will be provided by their direct customers Your annual subscription will amount to €365 ($430) per facility involved. You will be invited to pay it directly through Transparency-One platform. Your subscription will be valid for any of your others clients' requests without additional costs. If you already have a valid subscription, no additional fee will apply. Your key role as a Supplier in this campaign MAIN STEPS TO COMPLETE ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021
- 19. 19 19 March, 2021 Data added to Transparency-One is confidential and protected from unauthorized access. - Access to sensitive data is granted only to you, Danone, and SGS Transparency-One team. - No data is shared with competitors ✓ Our partners guarantee the security of your data. ✓ Access to sensitive data is granted only to you, Danone, and SGS Transparency-One team. ✓ Your Data is not accessible to other suppliers. ✓ You can setup the level of information that your customers have access to. Your key role as a Supplier in this campaign DATA SECURITY ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021
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- 21. 21 19 March, 2021 Campaign agenda and next steps Your onboarding on the platform ✓ SGS teams will set up individual calls with every supplier to guide them ✓ Please wait for the introduction email sent by SGS with a link to plan the call ✓ Tier 1 suppliers will be contacted first… then Tier 2 will receive the email once Tier 1 suppliers are onboarded (in 3 to 4 weeks)… then Tier 3 and Tier 4 will be onboarded once Tier 2 are onboarded Complete your account ✓ SGS teams will guide you through the different steps of onboarding ✓ Verification by SGS of the validity of certifications provided on the platform Our teams will connect again soon ✓ We especially plan to hold another supplier webcast before the summer with Tier 3 and Tier 4 suppliers ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021
- 22. 22 19 March, 2021 Instant messaging service available when connected to the platform (chat) to require assistance if needed Tools at your disposal On-line help available when connected to the platform Full support and follow-up by SGS teams Your contact at SGS: Mr. Guillaume PENET Phone: +33 682 901 903 E-Mail: guillaume.penet@sgs.com ASK ALL YOUR QUESTIONS www.pigeonhole.at DANONE2021