Product development and supplier selection We dedicate ourselves daily to the mission of providing our customers with superior quality products at affordable prices. For us, quality is a commitment based on firm principles and constant improvement. To ensure the safety and quality of the private label products we offer, we have implemented a rigorous quality control system. It starts with the product design and supplier selection phase and continues with product verification and monitoring, complaint handling and management, product recalls, as well as ensuring compliance with hygiene and food safety standards in all our points of sale. We value our partnerships with suppliers and strive to maintain mutual benefits by regularly reviewing the terms of collaboration. To ensure the trust and transparency of suppliers, we implement internal procedures and audits and require suppliers to submit documentary information. We also take measures to mitigate risks in the cooperation, such as updating contracts, providing training, and monitoring financial and market information. In 2023, we offered special training on compliance topics to vegetable and fruit suppliers. Suppliers are selected based on their quality standards, location, and product quality assessment. We have internal procedures in place and conduct audits to assess the reliability and transparency of our suppliers. Before starting a partnership, a supplier must provide documents which we use to verify their financial stability, credibility, and compliance with tax obligations. This is a first step in identifying potential risks. To mitigate the potential risks identified, we take measures such as updating contracts, training managers and employees on supplier-related risks, and implementing special procedures for each commodity category. Throughout the partnership, we keep track of the supplier's market information and public financial obligations. Also this year we continued the comparative evaluations of national private label products, carrying out benchmark tests through which we evaluated 206 national private label products compared to another similar product and other comparative tastings. The process allows us to further develop our private label products. This development involves a close collaboration between the Purchasing, Marketing and Quality Management departments, to establish criteria that meet our customers' expectations. In this process, data obtained from market studies are considered, comparative analyses of the composition of related products available on the market are carried out, sensory characteristics of the products (such as appearance, consistency, smell and taste) are assessed, and packaging options are examined. To ensure the highest level of product quality and safety, all production facilities where our private label items are manufactured must meet the certification requirements defined by REWE. Thus, we pay special attention to establishments certified according to IFS (International Featured Standard) standards. In view of the supplier selection process, the composition of the products is evaluated for the purpose of verifying compliance with REWE requirements, and the product samples are evaluated sensorily, through blind tastings. To maintain the same portfolio of suppliers who take an uncompromising approach to product quality and safety, in addition to meeting certification requirements, all our selected suppliers undergo unannounced audits to verify compliance with hygiene standards, food safety, good production practices, as well as REWE-specific standards. Compliance with the certification requirements of the production facilities and with the standards on the composition and quality of the products are fundamental criteria for the initiation of any new collaboration with suppliers of private label items. The suppliers who produce our private labels are regularly assessed through unannounced audits, with the aim of detecting potential risks related to food safety and product quality. Customer complaints are treated with the utmost seriousness and analyzed in the shortest possible time. SUSTAINABILITY REPORT PENNY ROMANIA 2023 120/256 MESSAGE FROM THE GENERAL DIRECTORS SUSTAINABILITY STRATEGY AND GOVERNANCE ABOUT US AND OUR VALUE CHAIN ABOUT THE REPORT THE FUTURE IS MADE TODAY SUSTAINABILITY MILESTONES CONTENTS
RkJQdWJsaXNoZXIy MjUyMDg2Nw==