Novus International
Valuing Our Role
Part: 01
Valuing Partnerships
Part: 02
Valuing People, Passion & Purpose
Part: 03
Valuing Governance & Transparency
Part: 04

How Does Novus Maintain Supply Chain Quality and Efficiency?

Rationalizing the Supply Chain

Michael Gerrits Insights from Michael Gerrits Executive Manager, Pigments, Organic Acids and Essential Oils

“Starting in 2011 and continuing into 2012, we defined SKU (stock-keeping unit) rationalization programs for different products in our range, starting with organic acids and gut environment modifiers and then others. We significantly reduced the number of formulas we work with and this has led to manufacturing efficiencies and easier product management. This also reduces the amount of raw material stocks and finished product inventories we carry, and this has a beneficial effect on waste. An efficient, lean supply chain is a sustainable one and we already are seeing the benefits.

Another way we are rationalizing our supply chain is by changing the supply route for different products and reducing the amount of repacking we do in different countries. Instead of repacking product in the U.S. for markets abroad and then repacking once again to meet local requirements, we are moving to direct shipment, eliminating one repacking step. This is starting to save a significant amount of packaging materials, though we have not yet calculated exactly how much.”

Uncompromising Quality

Novus places the utmost emphasis on quality in all manufacturing and supply processes. Novus’s approach is encompassed in the Novus Quality System (NQS) which defines quality policies and procedures for all Novus operations, including procedures relating to manufacturing processes, control of impurities, traceability of raw materials, documentation and labeling. The NQS requires that all technical specifications are accurately prepared and enforced. In many cases, the standards that Novus sets for itself in the NQS are higher than local standards required in certain countries in which Novus operates. Novus sales specifications summarize the functionality of each product and provide customers with a Novus guarantee of quality and functionality. Technical specifications of Novus products can be downloaded from Novus’s website.

Novus’s plants adhere to nine different third party certification programs to ensure quality in all aspects of Novus’s operations in 24 separate certification programs across all plants. These include: ISO9000, ISO18000, ISO22000, OHSAS 18000, FAMI-QS, HACCP, GMP and Safe Feed/Safe Food certifications.

Quality Assurance (QA) is maintained through a global function with local QA officers at each production location. Novus customers are regularly welcomed at all Novus plants to inspect quality procedures, audit production, review product release processes and inspect quality assurance systems.

Sourcing from Qualified Suppliers

We engage with suppliers on the basis of “best fit” with Novus’s product and service requirements against a variety of parameters including quality, traceability, technical specification and service responsiveness. The Global Procurement Team at Novus utilizes a range of systems to qualify new suppliers. As a first stage, Novus visits major suppliers to review their supply processes and compliance with ethical standards of doing business. Thereafter, Novus evaluates suppliers against a comprehensive checklist covering quality, safety and overall capability to meet Novus’s technical specifications. A regular schedule of visits with suppliers is maintained in order to engage in dialog and performance review of all other aspects of our shared business.

Sustainability Commitments in the Supply Chain

Ryan Smith Insights from Ryan Smith Manager, Global Procurement

“Procurement has a big impact on business continuity, and of course, cost. Decisions made at the procurement level can have an equally significant impact on social and environmental sustainability. For example, we purchase locally wherever we can. It makes sense to do that financially and there is often a benefit for the local economy and for the environment. In some cases, we have no leverage as we are dealing with commodities. But in other cases, we can source differently and create a double win. For example, in 2012 we made a change to the sourcing of a high-volume raw material and saved over 20 percent of transportation requirements. We purchased this item in the U.S. at a rate of several thousand tons per year, shipped the total volume to our plant in Little Rock, AR, and then redistributed to our global factories. Following analysis of material supply flow, in 2012 we started sourcing the product in Spain and Mexico, cutting global transportation requirements by at least 20 percent, sometimes more. Big savings for the environment, fewer carbon emissions and a good economic decision for us.

Also in 2012, we got up to speed with informing all our suppliers of our Sustainability Policy, reminding them of our expectation that they will conform. Letters were issued to all suppliers in the last quarter of the year, asking suppliers to support our commitment to a sustainable supply chain by understanding issues that are important to stakeholders, upholding all laws and fighting against corruption, acting in line with international labor conventions and ensuring a safe working environment. I look forward to more dialogue with our suppliers on these issues.”

Managing with Responsible Care®

Novus is certified by the American Chemistry Council (ACC) as a Responsible Care Management System (RCMS) company for the Novus St. Charles headquarters, R&D campus and Chocolate Bayou, TX, facilities. Beginning in April, 2013, the Little Rock, AR facility will be included as well. Responsible Care is a voluntary initiative of the global chemical industry focused on improving performance, communication and accountability. Responsible Care commits companies, through their national or regional chemical associations, to work together to continuously improve the health, safety, environmental and security performance of their products and processes. It is a major contribution by the industry in achieving sustainable performance improvement. To maintain certification, we are audited every three years by an independent certified auditor.

Product Stewardship Program

We are accountable to ensure that all of our products are delivered to customers with adequate information relating to health and safety standards conformance and intended use of products. We ensure that all product marketing to customers is conducted with integrity and that all claims of product performance are verified thoroughly in accordance with Novus internal standards and science-based support.

Novus maintains The Product Stewardship Code supported by a Product Stewardship Program which is a detailed manual of all related procedures. This is one of the seven ACC Responsible Care Codes of Management Practice to which Novus adheres. The goal of Product Stewardship is to make environmental, health, safety and security (EHS&S) an important part of designing, manufacturing, selling, distributing, using, recycling and disposal of our products. Product Stewardship involves listening to customer concerns, enhancing Novus and customer EHS&S information and integrating EHS&S into all aspects of business activities and decisions. We estimate that 95 percent of products manufactured by Novus conform to the rigorous requirements of the Product Stewardship Code.

Product Safety Assessment

Prior to marketing, Novus products are assessed using a methodology called The Product Safety Assessment (PSA) and re-evaluated at least once every five years. The PSA ensures that Novus has a thorough understanding of product risk through the identification of hazards (e.g., toxicity, physical properties), exposure concerns, regulatory issues and ultimate product disposition. Re-evaluation of product safety is triggered by new toxicity or hazard data, process changes or customer concerns.

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