Good milling starts with high-quality ingredients

How do you monitor suppliers over time to ensure consistent quality?

Carl: “Once a supplier is on board, we recommend an appropriate audit schedule based on ingredient properties and any potential issues. Together with Global Formulations, Global QA sets worldwide standards related to nutritional value and undesirable substances amongst many other parameters. Then it’s up to the QA managers at our business units to implement these standards as a minimum along with any standards based on local legislation and customer requirements. Local QA has a lot of independence. Global QA provides support with standards and tools, but local QA makes the final decision in collaboration with local management. It’s not a top-down process. That’s what’s unique about De Heus.”

How do you encourage suppliers to deliver the best possible quality?

Carl: “We roll out global and local standards and then regularly measure and test to reduce any deviations. If a business unit is not fully satisfied with the quality of a certain ingredient, the supplier is informed, so they can take corrective action. Global QA continually challenges the business units to stay on top of the market so we can be better than our competitors. That’s what we mean by powering progress.”

“We’re currently developing a supplier performance dashboard which will form the basis for discussions with suppliers. How can they improve? How can we develop our relationship with good suppliers, through larger volumes for example? If a supplier improves, we don’t have to audit them as often, there’s less rework and it reduces risks for both De Heus and our customers.”

Mark: “There’s a lot Global Purchasing does in relation to supplier management. We are willing to invest our time in providing feedback, sharing our expertise and working with suppliers to improve the quality of our products together. To foster strategic partnerships, we encourage suppliers to improve on all criteria: price, quality, service and delivery. But of course, some suppliers are better on particular criteria than others. That’s why we have several suppliers for each ingredient so we’re not dependent on one source. It guarantees security of supply for our customers.”

Are there any specific examples of improvements that have been made?

Mark: “Recently, our premix animal feed factory in Veghel, the Netherlands, had problems with a supply of Copper Sulphate. The product was in line with specifications and documentation, but it was lumpy and therefore wasn’t flowing properly in production. We contacted the supplier who suggested increasing the amount of anti-caking agent. Local QA approved the change and the information was added to the supplier data. This corrective action will be monitored over time.”

“In another example, a phosphate supplier in Spain was providing a product with a standard particle size. But several local business units noticed that some particles were too fine resulting in a dusty ingredient. This was a problem, so the local QA manager conducted an audit and recommended that the supplier implement another screening step to filter out the dust. Suppliers tend to appreciate this type of feedback. De Heus represents the market so we hold up a mirror. It almost like free consultancy. What’s more, if we do an audit it’s a sign that you’re a valued supplier.”

How does this close working relationship with suppliers benefit both De Heus customers and the suppliers themselves?

Mark: “De Heus has grown enormously in recent years and our potential for future growth is unique. In that sense, we’re an interesting customer for suppliers since they can benefit from our growth and expand with us.”

Carl: “Your output is only as good as your input, so when you have high quality in, you’ve made the first step to high quality out. If we execute our QA programme correctly, customers get premix animal feed of a consistent high quality for their production with no hassle and great peace of mind.”