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Keep up the GREAT work!We spend a lot of time working with vendors to help them raise their delivery standards andreduce any negative impacts on our DC network. So, when we see suppliers making a strongcommitment to resolving their issues, putting robust corrective actions in place, and beginning toshow real progress in their compliance figures, we’re always keen to recognise that great work.As we’ve done over the past few newsletters, we’ll continue to dedicate space ineach newsletter for this recognition, and this month we’re happy to highlightsome fantastic work (and impressive results) from Kraft Foods...What’s this vendor achieved?Kraft Foods was put onto our Intensive Care Program (ICP)twice in 2012 - in both cases because the number ofpallet-related complaints we were receiving from our DCteams (around pallet quality, pallet labelling and stretchwrappingissues) were in excess of our expectations,After initially addressing the problem with some additionalDC checks and audits of outbound loads, the Supply Chainteam - led by Shaun Onley and Michael Begg - soon foundthat these short-term fixes quickly lost their impact, andthat the early improvements were not sustained.Above: Kraft’s total VQC non-conformances are now half what theywere 5 months ago - and this has proven to be sustained & consistent.Kraft’s (Cadbury) plantin Claremont, TasmaniaThe team decided to take adifferent, more-rigorousapproach next: thorough rootcause analysis was conducted,a Continuous Improvementteam was directed at theproblems, and a Lean Six Sigmawas implemented to fix theissues at their source.We’ve seen tremendous,sustained improvementfrom Kraft and now - wherewe were sometimesreceiving 40+ pallet-relatedKraft complaints each weekfrom our DC’s - we’ll oftenreceive fewer than 10.How did/do they manage that?Kraft Foods’ approach was multi-faceted and included:✓ Conduct audits on multiple Kraft deliveries being unloaded at WW sites,.to understand nature of issues and provide feedback to Kraft DCs✓ Identify (from data) biggest drivers in terms of both issue type and source✓.Implement dedicated a resource from our Continuous ProcessImprovement team: work with plants on reducing non-conformance issues✓ Implement CI process at Sites covering issues within Kraft’s direct control:★ Implement printer maintenance program to address print quality issues★ Implement new pallet wrapping standards at Manufacturing & Distributionsites (including some capital equipment upgrades)★ visit sites that feature most prominently in the data - meet with Back OfFactory team, review SOPs and validate against expected standards✓ Audit pallet deliveries from CHEP into main manufacturing site; identifyissues and introduce new SOPs for pallet quality and pallet inspection✓ Support with short-term resource at Victorian DC for final quality checkAs the above pareto chart shows, 50% of all Kraft issues related toCHEP Pallet Quality - easily their #1 issue ahead of Pallet Label andStretchwrap issues - which led Kraft to implement new SOPs andchecks around inbound pallet quality, and engage a 3rd party to review.Kraft also tracks every complaint to it’s origin point, to quantify thescope of problems and allow the proper focus and corrective actions.. Kraft teams continue to meet weekly to review each site’s performance..Well done, Kraft Australia team, and keep up the great work!Shaun Onley, Kraft’sCustomer Supply ChainDevelopment Manager ANZ