Peloris has developed a successful integrated supply chain management solution that enables food producers to access and develop China export market opportunities for their produce.
This solution incorporates protocols that ensure fast, consistent and compliant China market access, thus opening up new China market opportunities for fresh and perishable food and beverage items.
In May 2014 Peloris launched its ‘Fresh Express’ import channel in response to an industry request for a commercially viable and sustainable China market access solution for Australian pasteurised fresh milk. With a product shelf life of 20 days and temperature parameters of 0 – 4 Celsius for storage and handling, this was a challenging assignment.
On top of this, dairy products are classified by China authorities as a ‘high risk’ food category and subject to onerous food safety testing and inspection resulting in typical border clearance lead times of 14 – 21 days at the time.
Over a period of 18 months we worked hard to identify and understand China’s food import regulations and, working in collaboration with China Inspection & Quarantine Bureau (CIQ) we developed a set of protocols that guaranteed the safety and quality of fresh milk imports from production through to China customer delivery.
Today, we are the single largest importer of pasteurised fresh milk into China (with a 30% by volume share of total China fresh milk imports) and a border clearance lead time of just 36 hours.
We continue to manage weekly imports of high risk food categories (including yoghurts, cheeses, chilled beef, fresh juices and seafood) with a record of 100% import compliance and on time customer delivery.
In addition, our ‘Fresh Express’ import channel provides a faster, more reliable market access solution for a range of other food categories including milk powder, infant milk formula, fruit, vegetables, bottled water, molasses, wines and even muesli bars!
For the food producer seeking to develop China export markets, Peloris brings a wealth of knowledge, expertise and practical experience to the table, assisting them in their awareness and understanding of China’s complex regulatory environment, their obligations as a producer and the obligations of their distribution partners in China.
We also explain how to successfully manage the trade barriers they must overcome and highlight the export risks (political, legal, financial and operational) they will need to mitigate.
If all this seems a little daunting, the producer can simply avail themselves of our tried and proven ‘Fresh Express’ import channel which already incorporates all the protocols needed to ensure a fast, consistent and fully compliant food export experience.
Peloris recognises the producer is not the only stakeholder in the China food export process and so a successful China export solution must align the expectations of all parties to achieve a successful outcome.
While the producer seeks to protect its reputation and brand in the market by ensuring the integrity and quality of the produce is not compromised, the customer likewise wants assurance that the produce they are purchasing is in fact genuine and of the highest quality and the China import authorities require the produce to be fully compliant with the import regulations which have been implemented to safeguard food health and safety.
The Peloris ‘Fresh Express’ import channel successfully manages this stakeholder alignment through its validation of product integrity, process transparency and regulatory compliance. Ironically, the majority of food import issues arise when the China importer and/or distributor focusses primarily on its own expectations at the expense of the other stakeholders.
Due to the perishable nature and short shelf life of many food categories, rapid and consistent border clearance is critical in developing China export markets, meet ongoing customer commitments and increasing market sales.
The Peloris ‘Fresh Express’ solution provides producers with the fastest and most reliable China border clearance solution available and our cold chain management expertise ensures product quality is maintained from paddock to plate.
Our streamlined ‘Fresh Express’ import channel minimises storage and handling costs during transit and generates economies of scale that enable us to offer the most efficient and cost effective China market access solution available.
Brand & Product Integrity
A business’s most valuable asset is its good name, its brand and reputation. That value is the organisation’s ‘brand reputational value’ and strong brand reputational value equals greater profits. In today’s business environment there are two main avenues by which a company can quickly lose brand reputational value: the internet and social media.
Any ethical or compliance failure can be instantly broadcast all over the world. Out sourcing and third parties- while an importer or distributor may be responsible for the ethical or compliance failure, China import law still holds the producer responsible.
As ignorance is not a defence, the producer must take every measure to protect their brand reputational value and the best way to manage this is to ensure full transparency and traceability of every export product from farm gate to final consumer.
Transparency and traceability are the foundation stones of the Peloris ‘Fresh Express’ import channel. By utilising the ‘Internet of Things’ technology, Peloris tracks the provenance, location and temperature of products along the entire supply chain.
This level of transparency provides assurance to all stakeholders; the producer has full visibility of the product condition and location of the product all the way to their export customer, China food regulatory authorities can easily confirm shipment compliance and customers can scan the product bar code to check the provenance of the product before purchase.
When food producers sell through the traditional distributor network, they may have ‘won’ the sale but they have lost the opportunity to build a relationship with the consumer. The producer is at the mercy of their distributor to ensure that the customer leaves the store (or the website) happy and satisfied. By engaging directly to consumers, producers can control their brand story and relay their messaging directly to end consumers.
So, the challenge is, how can producers achieve this in the China market where distributors typically perceive themselves to be the ‘customer’ and are reluctant to share information on the end consumer? The answer is, again, product traceability. By tracking the product through the distributor network to the end consumer and then enabling a direct communication link to relay brand messaging and receive direct consumer feedback, the producer
The Peloris ‘Fresh Express’ import channel addresses this communication gap by incorporating a unique product serialisation technology within the product bar code. By simply scanning the product bar code, the consumer can access a range of information from details and videos of the farm the product came from through to information on the full product range available and outlets where these can be purchased.
Aside from the obvious security benefits this provides, the producer can implement brand loyalty programmes, promote new product releases, provide alerts for seasonally available produce and most importantly, capture consumer feedback. In the process, the producer can build up a profile of their customer demographics (e.g. location, age, gender, social status) and tap in to social media marketing opportunities.
Responsibility & Accountability
Peloris core business is to connect producers to China market demand. We specialise in developing and implementing market entry solutions that focus on optimising export shipment time, quality and cost.
By providing a fully integrated supply chain management solution, we are responsible for every step of the export process and therefore we take accountability for the core outcomes of China import compliance, product quality and on time delivery.
In addition, thanks to our fully transparent supply chain approach, the producer has full visibility of every export shipment, from farm gate to customer delivery.
By assuming single point accountability, export risk for the producer is eliminated; the producer receives payment for the shipment before it leaves the country, the opportunity for product counterfeiting and tampering between production and consumption is eliminated, border compliance is assured, product quality is managed throughout and customer deliveries are received on the due date.
Peloris has partnered with several key suppliers to ensure consistent, high quality support service delivery. This has also enabled us to consolidate and leverage our export volumes so as to ensure lowest industry rates for every element of the export supply chain process including packing materials, documentation requirements, logistics, storage and handling services.
The Peloris ‘single point accountability’ model also eliminates the hidden export costs associated with operational delays and failures, payment issues, product quality deterioration and damage to brand reputational value. These costs can far exceed any short-term savings achieved through engaging with third parties with insufficient understanding or experience in managing China food imports and opaque processes and practices.