MAXIM’S SUPPLIER HANDBOOK

HOW TO BE MAXIM’S SUPPLIERS

CONTENTS 1. Food Safety and Quality Assurance Message

2. Introduction of Handbook for Suppliers

3. “How to be Maxim’s Supplier” overall process

4. Requirements of Maxim’s from Suppliers

5. Maxim’s Standards

6. Material Registration Procedures

7. Supplier Audit program

8. Verification

Food Safety and Quality Assurance Message Maxim’s Caterers Limited believes that providing high standard and delicious cuisines that meet or exceed customers’ expectation is one of the key successful factors for the company. Food safety is the responsibility of all employees that have direct influence on raw material management, manufacturing and cooking processes, storage and the transport of products and finally delivering products and services to customers.

In Maxim, we embrace the Quality Management System that applies a proactive and systematic approach through the establishment of preventive control measures. The key elements of our Food Safety and Quality System are: -

Risk Assessment and Management

▪ Reinforces food safety and quality capability through structured programs that assess the potential risk level and then implement measures to mitigate the damage

Material Qualification and Management

▪ Ensures raw materials comply with all statutory and regulatory requirements ▪ Maxim’s factories and Restaurants implement effective quality management

system to deliver products that meet the highest food safety and quality standards such as ISO22000 and HACCP

Audit Management for Supplier and Restaurant Outlets

▪ Validates the effectiveness of the food safety and quality system through internal and external audit processes

Complaint Management

▪ Ensures customer complaints are investigated and corrective actions are taken place for system improvement

Traceability and Recall Program

▪ Ensures traceable supply chain to prevent any questionable products from serving our customers

Quality System Review

▪ Reviews regularly on food safety policies, standards and procedures to manage food safety risks associated with changes in products, processes, technologies and consumer needs

Supplier Community is always the backbone to support Maxim’s to deliver the required food safety and quality system. We look forward to our mutual commitment and joint effort to protect the consumers’ best interest of tasty food and assured safety.

Thank you for your continual partnership with Maxim’s.

HOW TO BE MAXIM’S SUPPLIERS – PROFILE ONE TIME ACTION Communication Channel –Procurement

REGULAR – ANNUAL SUPPLIER Management & Assessment Program

New Supplier

Supplier Registration

Material Registration 1) Submit Product

Specification Form 2) Submit documentations 3) Maxim’s conduct site Audit 4) Maxim’s provide verification

1) Submit Supplier Registration Form*

2) Submit documentations

Registration finished

Registered

Supplier

Supply Chain Measurement 1) Delivery Reliability 2) Contract Fulfillment 3) Innovation Development 4) Services Excellence

Quality Assurance Measurement 5) Quality Excellence

1.1 Quality compliance

1.2 Verification results

1.3 Legal compliance

6) Food Safety and Quality site audit

STRATEGIC SUPPLIER

QUALIFIED SUPPLIER

UNCOMMITTED SUPPLIER

Supplier Score Card Scheme

Registered Supplier

Qualified Supplier

Introduction Partnerships build growth, especially in business relationships. The efforts of two companies working in partnership is more than the sum of their efforts, so we in Maxim’s want our suppliers to be our Strategic Partners so that our organisations can face the challenges of the future together. This booklet is to help you understand how to become a Strategic Partner, with respect to the Food and Quality Assurance Department, so that when we make our growth strategies, your company would be one of the organisations that we would consider as a Supplier for the new materials that we need. Supplier Management & Assessment Program

Strategic Partner

Registration The process of becoming a Registered Supplier is currently as follows:

1) Commercial Registration: In order to get payment for your supplies, your company needs to be registered with the Finance Department. This process has already been completed for all of you here, but it a must for all new suppliers. Terms of business are discussed and finalised.

2) Material Registration: This consists of three processes a) Technical Review: Your company supplies the

Products Specification to the Quality Assurance department.

b) Specification Audit: The Quality Assurance Department confirms that the declared specification meets the Regulatory and Maxim’s requirement.

c) Verification of Specifications: The Material supplied is sent to an independent laboratory for testing.

This completes the Registration process.

Qualification Maxim’s have a policy of continuous measurement of various aspects of a Suppliers performance. Some of the factors that we consider are:

1) Business Supply Chain measurement: This consists of various factors like

a. On- time delivery certainty b. Full and Accurate delivery c. Completed Fulfilment rate d. Value Contribution e. Supply Chain Services Support f. Products Complaint /Defect rate

2) Food Safety & QA Audit: This is a continuous

measurement of factors like a. Food Safety & Quality Management systems b. Purchasing & Raw Material control c. Premises and Processing Equipment d. Health & Personal Hygiene e. Process Control f. Inspection and Laboratory tests g. Finished goods storage and transport (e.g. Cold

Chain) All these will be based on ISO 22000 Global Food Safety Management principles including HACCP and GMP elements. The result of this monitoring by the Procurement Department and the Quality Assurance department will be compiled into a scorecard for each supplier and placed into 3 tiers: 1) Those who comply consistently (greater than 80 %

of the time) will become our Strategic Partners.

They are the building blocks for Maxim’s and will be invited to all opportunities to support Maxim’s growth.

2) Those who comply most of the time (greater than 50% of the time) who will be encouraged to do better and become Strategic Partners.

3) Those who do not comply (less than 50% of the time) who are considered as not meeting Maxim’s standards. They may lose Maxim’s business if their practices do not improve, and will be replaced by the Strategic Partners.

We would like all our suppliers to be our Strategic Partners as soon as possible, and we will support you with all efforts to become Maxim’s Strategic Partners.

Maxim’s Standards The Standards for Suppliers (“standards”) are Maxim’s fundamental expectations from Suppliers. Suppliers shall include all manufacturing, subcontracting and packaging facilities, all of which will be held to these standards. 1. Compliance of Laws Suppliers and their designated manufacturing facilities must fully comply with all applicable national laws and regulations, including but not limited to those related labour, health and food safety. (These details are available on the following link to the HK Govt. website: http://www.cfs.gov.hk/english/food_leg/food_leg.html) 2. Information Suppliers must provide Maxim’s with all the information requested by the Procurement and the Quality Assurance Department. This is non-negotiable as Maxim’s reputation is directly affected by non-compliance in this regard. 3. Food Safety All material supplied to Maxim’s must comply with Hong Kong Government standards or The Codex, if there are no Government Standards. Maxim’s reserves the right to test any material supplied at any time and reject the material at the Supplier’s cost. The Global standard ISO 22000, GMP and HACCP will be the basis of the same as also any other standards that Maxim’s may deem suitable and necessary.

Material Registration Procedures Submission of the Product specification form There is a form with 2 parts that needs to be filled in every time: 1) a new material is to be registered or 2) when a change in the specification is made. An electronic copy can be submitted to Maxim’s, for the present, but in the future, this for will be available on the website and can be filled in there itself. The first part is shown below: (Insert Picture of the form here) The form requires an image of the food label and the inner packing. These are to be pasted in the space labelled ‘Product Photos’. These can be taken with a cell phone and attached along with the form. In the first part (Form 1), please note that there are sections marked alphabetically, A, B, C etc with sub sections marked A1, A2 etc. Some of these sub-sections are marked with asterisk and these are required for Maxim’s. It is important to submit the Test reports, along with the forms. Please also submit the percentage of the ingredients, and be assured that this information will be treated in the strictest confidence.

In the second part (Form 2), every Section and Subsection is necessary for the Quality Assurance. Every section needs to be filled in, but without these sections being filled in the Material Registration is NOT completed and the raw material is not granted to enter the supply system. Site Audit All audits conducted by Maxim’s and Maxim’s approved 3rd party audit firm include the following components: 1. Collection of Factory Details 2. Scheduling 3. Pre-Assessment Questionnaire 4. On-site Audit 5. Assessment Results and Follow Up Action 1. Collection of Factory Details The audit process begins with the declaration of the factories and subcontractors by the suppliers. Maxim’s will send out a request to collect the address of the manufacturing site, the contact details (name, telephone and email) of the suppliers. 2. Scheduling Audits are assigned to an approved 3rd party audit company for scheduling once the factory information and contact details have been provided by suppliers. For an audit date, all attempts will be made to agree on a date which is convenient for factory by the Auditors. If a factory would like to cancel or postpone an audit, factory should inform the Auditors and Maxim’s 2 weeks before the confirmed audit date. All re-audits should be conducted within 60 days of first audit.

3. Pre-Assessment Questionnaire Pre-Assessment Questionnaire is a set of questions sent out by the approved 3rd party Auditors, and it must be completed by factory in order to provide an overview of the factory and their internal control prior to the audit. 4. On-site Audit An on-site audit will be conducted by Maxim’s internal auditors or by Maxim’s approved 3rd party audit company. The audit scope covers 7 areas, they are:

i. Food Safety and Quality Management System ii. Purchasing and Raw Material Control iii. Premises and Processing Equipment iv. Health and Personal Hygiene v. Process Control vi. Inspection and Laboratory Test vii. Finished Goods, Storage and Transport

The audit process consists of following sections:

a. Opening meeting b. Factory inspection c. Document review d. Closing meeting and Signing of preliminary audit

result a. Opening meeting The Auditor will have a formal introduction to the factory management, QA representatives and production representatives in the opening meeting. b. Factory inspection After the opening meeting, the auditor will perform an on-site inspection with factory representatives; he/she might ask some operational questions to production staff. Canteens, changing room and toilets will also be inspected if needed.

c. Document review A list of documents will be reviewed during the audit, those documents should be up to date or within 2 years. Any supplier fails to provide or does not allow inspection of production facilities and related documents, it will be considered as a non-conformity. d. Closing meeting and Signing of preliminary audit result The Auditor will discuss and summarize all the audit findings in a closing meeting, and document the non-conformities in the preliminary audit report. Both the factory representative and the auditor should endorse the report. It ensures the factory representative has acknowledged all identified non-conformities. The Factory representative will be expected to address all identified non-conformities. 5. Assessment Results and Follow Up Action The Audit report with the rating will be sent to the supplier two weeks after the audit date. The Supplier should address all the identified non-conformities, and provide the corrective action and improvement plan (CAIP) & timeline to Maxim’s within 2 weeks after receiving the formal audit report. For Grade D to F, factory will be re-audited within 60 days from the last audit date, and the audit fee should be paid by supplier. The minimum grade expected for a new supplier is “D”.

Verification Product testing The material is sent to a third-party laboratory for testing, against the specifications defined by you. It is hoped that all the material supplied will meet the specifications defined by your company. If the product does not comply with the Specifications defined by your company, the company will not use the product and your company will bear the liability of the material, and your company has to make arrangements to return the material to your premises. The costs of re-testing the materials will be borne by your company. Logistical testing This process tests the material during the delivery to our company, from your premises against the products specifications defined by you. An example of this is the Cold Chain Project in which suppliers who supply good at a low temperature are required to follow the company procedures of monitoring the temperature of the product from the time it is packed in your factory/ warehouse, till it reaches our warehouse and/or business units. This involves packing the temperature logging devices, close to the product as also on the outer surface of the carton, marking and placing them on pallets. The specifications of the temperature logging device are given later on in this booklet. Receiving inspection This process involves the receipt of the material at Maxim’s or their designated warehouses, where the material will be checked against their product specifications defined by you. Once all these tests are done and the material passes, we will confirm the verification annually. Customer complaints are recorded as well as records of complaint resolution are maintained by Maxim’s.

Figures: A) Cold Chain Monitoring Project Portfolio

B) TOOL used for monitoring food and air temperature 1. Temperature Logger (continuous type)

Sensor Type Thermistor Measurement Range (。

C)

-40。C to + 65。C or above

Claimed Accuracy

(+/-。C) +/- 0.5。C

Capacity(Memory) At least 2000 - 8000 memory Sampling Frequency 1 sec – 60 secs

Resolution 0.1 。C

Brand for reference ESCORT, HOBO, NOMAD, LOGTAG, TESTO, 3M, COLE-PALMER, VERITEC. LOGIC etc. **Single use type is recommended

Thank you for attending our Supplier Forum and

look forward to your strategic partnership.