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Best Practice part B: Ingredient, recipe, and labeling
management
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Core of Food Industry – Raw Materials and Formula Management of Supplier’s Specifications of Raw Materials Management of Formula and Process labeling Management
Outline
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Core of Food Industry – Raw Materials and Formula
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Challenges against food industry
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Time Quality
Cost
Market competition
• Differentiation • Difficulties in price rise • Core competence
Product complexity
• Management of Laws & regulations and compliance
• Management of raw materials/packaging materials
• Customized product
Price pressure
• Bulk raw material purchasing
• Bargaining power for special raw material
• Gross profit policy
Globalization
• Global R&D • Global manufacture • Global marketing
and sales
Product & process innovation
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Source of pressure to improve product R&D ability
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0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Consumer demandfor distinctive or
innovative products
Competitive orconsumer price
pressures, privatelabels
Retail mandates forspecific products or
packaging
Product-centricregulatory mandates
(restrictions, labellingrequirements, etc.)
Changes in thepricing of raw
materials, substancesor ingredients
Source: Aberdeen
New product Product price Channel Laws & regulations
Supply of raw materials
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Solutions of top enterprises
- 6 - Source: Aberdeen
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Srinking developmentbudget
Keeping formula andmaterial specifications
up to date
Scaling productvolumes at consistent
cost and quality
Shorteningdevelopment project
schedules
Reuse of formulas ormaterials across
products
Control R&D cost
Timely update formula and raw material specifications
Expand production
Reduce R&D cycle
Recycle formula and raw materials
Management of Raw Materials
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Enter the name of raw material.
Management of raw materials (1/7)
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Enter the general information, and it is suggested to enter the prefix for the purpose of search.
Management of raw materials (2/7)
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Enter the name (alias) for the purpose of ingredient list on the label or other purposes.
Management of raw materials (3/7)
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Enter the cost data.
Management of raw materials (4/7)
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Enter the nutrition data.
Management of raw materials (5/7)
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For additives, one type of formula shall be added.
Management of raw materials (6/7)
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Edit the substance contained in the raw material by the formula editor.
Management of raw materials (7/7)
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Management of Supplier’s Specifications of Raw Materials
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Add the raw material specifications on the 「Specifications」 tab.
Management of raw material specifications (1/16)
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Select the type of specifications and enter its name.
Management of raw material specifications (2/16)
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Important specifications information is stored in the「Section」.
Management of raw material specifications (3/16)
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The format of specifications can be exported to an Excel for filling in by the suppliers.
Management of raw material specifications (4/16)
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Picture of Excel template.
Management of raw material specifications (5/16)
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Import the Excel filled in by the suppliers.
Management of raw material specifications (6/16)
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Submit the specifications to the director for approval after confirmation.
Management of raw material specifications (7/16)
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The director accept the specifications and give comments.
Management of raw material specifications (8/16)
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After the specifications is approved, 「Apply」it as the current version.
Management of raw material specifications (9/16)
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The progress can be viewed readily during the approval procedures.
Management of raw material specifications (10/16)
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In case of change of specifications, a new version of specifications can be created by the「New Version」.
Management of raw material specifications (11/16)
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Modify the specifications by the Section editing function.
Management of raw material specifications (12/16)
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The modified specifications can be applied as the current version after submission and approval.
Management of raw material specifications (13/16)
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The old version of specifications become a historical one.
Management of raw material specifications (14/16)
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Comparison can be made between different versions of specifications.
Management of raw material specifications (15/16)
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Generate the specifications of raw materials by the report function.
Management of raw material specifications (16/16)
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Management of Formula and Process
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Typical formula and process
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R&D Department
Start New raw
material？
Ensure the raw material can be used (cost and nutrition)
Lab small-scale Trial
Internal sensory test of small-scale
Trial
Medium-scale Trial Large-scale Trial Generate the large-
scale trial report
Generate the formula table and process standard
Prepare the specifications of raw
materials
No Yes Draft the formula
and process
End Approval of
ingredients and process standard
Generate and approve the
product standard
Obtain the latest cost data of raw materials from the purchasing system
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Record the process, ingredients and proportion by the formula editor.
Creation of formula (1/9)
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The system generates the cost data of raw materials automatically.
Creation of formula (2/9)
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The system generates the nutrition data and plot the process flow chart.
Creation of formula (3/9)
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Set the loss factor of raw materials under specific process, take mixing as an example.
Creation of formula (4/9)
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Set the loss factor of raw materials under specific process, take fermentation as an example.
Creation of formula (5/9)
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Set the type of production in the process, take mixing as an example.
Creation of formula (6/9)
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Set the type of production in the process, take fermentation as an example.
Creation of formula (7/9)
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Check and view the formula based on ingredients inputted.
Creation of formula (8/9)
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Check and view the formula from the perspective of output to find out the effect of loss factors.
Creation of formula (9/9)
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Complicated process flow chart
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Labeling Management
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Typical labeling process flow
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Production Department Q&A Department Marketing Department R&D Department
Prepare label information like
product name Prepare production license number, etc.
Approval of labeling documents (manager
level)
Approval of labeling documents (manager
level)
Generate the ingredient list and nutrition facts
Prepare the function claim suggestion
Prepare the governing standards, etc.
Provide documents to the artwork designer and get back
the color draft
Approval of color draft of label
Approval of color draft of label
Approval of color draft of label
Legal Department
Approval of labeling documents (manager
level)
Approval of color draft of label
Approval of labeling documents (manager level)
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Add formula specifications by the 「Specifications」.
Creation of label specifications (1/3)
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Select the type of specifications for 「Recipe Label」, and enter its name
Creation of label specifications (2/3)
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The most important element in the specifications is 「Section」, and the ingredients can be viewed first.
Creation of label specifications (3/3)
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Select the appropriate laws & regulations to create ingredients and relevant description.
Generation of ingredients (1/4)
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Check and view the ingredients and their names.
Generation of ingredients (2/4)
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Check and view the proportion of ingredients.
Generation of ingredients (3/4)
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The system generates the ingredient list automatically, and other label information can be entered.
Generation of ingredients (4/4)
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The Group function can be applied to the grain group, additives, etc. in the ingredients.
Ingredient group (1/4)
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• QUID = Quantitative Ingredient Declaration = Component content.
• Can be used to declare the proportion of raw materials.
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The system descends the order according to the grouped dosage again.
Ingredient group (2/4)
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The system presents the arrangement of ingredients, and allow manual modification.
Ingredient group (3/4)
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Can be adjusted manually
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The finally generated ingredient list can be used continuously in the approval procedures.
Ingredient group (4/4)
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Select the appropriate laws & regulations to create the nutrition facts label.
Generation of nutrition facts label (1/4)
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The serving size shall be entered to make it complete automatically.
Generation of nutrition facts label (2/4)
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The system creates the Nutritional Information subsection to check and view the nutrition details.
Generation of nutrition facts label (3/4)
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Check and view the nutrition facts label.
Generation of nutrition facts label (4/4)
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Add the 「Label Information」area to fill in or select appropriate label information.
Generation of other label information (1/2)
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The generated label information can be used continuously in the approval procedures.
Generation of other label information (2/2)
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Execute the approval of label by the 「submission」.
Approval of label (1/4)
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It become the current version after 「Approve」and 「Apply」.
Approval of label (2/4)
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The label statement can be exported.
Approval of label (3/4)
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Picture of label statement.
Approval of label (4/4)
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Diagram of management of complete label information
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Marketing
Customers
QA
Manufacturing
Suppliers
R&D
More integrated collaborated R&D environment
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Platform
Cross-department sharing of knowledge base
Q&A
Thank you!
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