EXECUTIVE SUMMARY

This paper shows the background history of Foodstore Inc, or as we all know the CDO. It
will also show the organizational structure of the company, which is most of the members are the
Ong Family. CDO or Foodstore Inc. offer products that are already processed the raw materials
into a new product that will have a long shelf life, like canned goods, cheese and etc. which is
called Food Processing and Preservatives. This paper also shows the current problems that the
company is facing right now. And the researchers will give some recommendations on how to
cope up with the company’s problem.

INTRODUCTION

FOODSPHERE, INC. (more commonly known as CDO)

        CDO-Foodsphere Inc. is a Philippine meat processing company based in Valenzuela ,

Metro Manila. The company was founded by Corazon Dayro Ong on June 25, 1975. Dietician
Corazon Dayro-Ong simple dream is to providing delicious food for her family, the story of
CDO has turned into an endless commitment of providing Filipinos with high quality food
products, at the most affordable prices.

In their family home, she started to produce homemade meat products to sell to her
friends and neighbors. Orders began pouring in as her products gained popularity through word
of mouth. Before long, her family’s residential lot in Marulas, Valenzuela became the site of a
small meat processing plant. One woman’s dream slowly became a reality to benefit millions of
Filipinos. In 1981, Foodsphere, Inc. was established as the producer of CDO brand of processed
meat, with the inclusion of many new product lines. Empowering her family to reach goals
beyond what she had imagined, the company flourished with the Ong family as its key officers.

Eight years later, Foodsphere, Inc. would acquire a 5,000 square meter plot of land in
Canumay, Valenzuela. This would make way for a new plant capable of producing up to 30,000
kgs of assorted meat products daily.

In 1997, an impressive techno plant on a sprawling 2.5-hectare property in Paso de Blas,

Valenzuela was established. With the rise of a new plant came a major increase in production.
The company was capable of producing up to 100 metric tons of assorted meat products and
7,000 canned products per day. About a decade later, Foodsphere Inc. made a major leap with
the creation of its mega plant in Malvar, Batangas. The quick expansion of the company became
a testimony of its solidity as arising establishment.

All that Foodsphere has accomplished through the years are translated into direct, as well
as indirect benefits to its business partners and target customers. And because Foodsphere owes
much of its success to its stakeholders, the company is deeply committed to building more
entrepreneurs, and ultimately, to helping uplift the Philippine economy.
Foodsphere is a proud awardee of the Certificate of Accreditation by the National Meat
Inspection Commission for passing the standards of the International and Domestic Meat Trade

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with an “AAA” mark. And in 2012, Foodsphere achieved yet another milestone with its ISO
certification. These, along with other awards and citations, speak of the company’s commitment
to the highest level of quality and excellence.

A. Description of Products of the Company

Foodstore Inc. products are food products ranging from processed meat (sausages,
hams, hotdogs, bacons, patties, native delicacies, breaded meats, corned beefs, cold cuts,
Chinese delicacies), Canned meat (Canned corned meat, canned loaves, canned spreads,
canned ulam lines, packed corned meat, Vienna sausage), Fish (Corned Tuna, Mackerel,
Fish, Canned Rice), Dairy (Danes Cheese), Sweet preserves (Sweet Sugar Palm, Sweet
Coconut Gel) and bottled water, in general, most of their products are grocery items.

Foodsphere Inc. CDO have more than 10 different hotdogs with different
characteristics. They have chicken hotdogs, cheesedog, premium hotdog, sesame hotdog
and franks. It is in demand everyday because the customers tend to stock some food at
home for “baon” of their kids.

The company’s ham, bacon and even sweet preserves are foods that is in demand
for the Christmas and New Year.

CDO canned meat and fish are usually in demand everyday because of the needs
of every customer. Customers stack some canned goods at home for them to have food in
case of emergency.

B. Organizational Chart

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 Foodsphere, Inc. is a family corporation registered under the Ong Family. The board
of directors are the founders of the Foodsphere Inc., which is Corazon Ong and his husband
Jose Ong. The current president in the company is Jerome Ong which is son of Corazon and
Jose Ong. He is currently manages the business to make it more successful in the future.

And mostly on the higher position are the children of Mrs. Corazon Ong and Mr. Jose
Ong.

C. Industry of the Products

Food Processing is the industry of the product of the Foodsphere Inc. also known
as CDO. Food processing is the transformation of agricultural products into food, or of
one form of food into other forms. Since Foodsphere Inc. is processing raw materials
(fresh meat, fresh fish and etc.), their industry is food processing. They are under Food
Processing because they process of producing raw food ingredients into marketable food
products which can be easily prepared and used by the consumers. Foodstore Inc. ensures
that their product won’t be spoiled or lose its quality by adding preservatives or which is
called Food preservatives. This can prevent the growth of bacteria, fungi or other micro-
organisms as well as retarding the oxidation of fats that cause rancidity thus promoting
longer shelf life and reduced hazard form eating the food. Also to stop or slow doen the
spoilage of food, loss of quality and edibility of food for longer time.

SUPPLY CHAIN OF THE COMPANY

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The Research and Development (R&D) is in-charge of product development, which includes
listing down specifications of raw materials to produce new developments/improvements of
products.

The Purchasing Department is in-charge of procurement of raw materials and packaging

materials. Process includes opening bids to possible suppliers and selecting appropriate supplier
that meets quality standards and specifications set by R&D. Settling of terms with supplier
regarding payment and logistics

The Production Department includes both manual labor and machinery. They are in-charge of
the production process inside the manufacturing plant.

The Packaging differs for every product line. Some products are canned, some are bottled, some
are vacuum sealed.

The Storage is that Foodsphere, Inc. has specialized storage facilities particularly for frozen
products that serve as temporary holding places before dispatch.

QUALITY PROBLEMS OR ISSUES REGARDING THE FOLLOWING:

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 a.    Inventory Management
The major problem in the Inventory Management of the Foodstore, Inc. is
the product returns and/or outright rejections by their customers. Most inventory
becomes unaccounted for, when customers return items due to various reasons
(i.e. spoilage, dented cans, near expiry). These returns are sometimes deducted
from the customer’s accounts receivable incorrectly and therefore affects the
companies inventory in the books (Debit inventory, credit A/R). Oftentimes, the
A/R deductions made are not of different amounts and different quantities than
items that are actually returned.

b.   Procurement or Purchasing
There is only one problem when it comes to procurement that is when
their supplier provided Foodsphere, Inc. with expired raw materials.

c.    Manufacturing Operations
Manufacturing is heavily reliant on manual labor and therefore affects the
overall efficiency of the process. Another downside to being reliant on manual
labor is that the production process becomes hazardous and is often seen as a
process that involves extra effort when it comes to employee safety.

d.   Quality Control
Despite being ISO certified, Foodsphere still has rare encounters with
alleged quality issues like contamination in social media, which later on prove to
be contamination during transport or in-shelf. In Foodsphere’s defense,
Foodsphere is not liable in such situations as the products were guaranteed with
quality assurance upon leaving the plant. However, Foodsphere still ensures to
investigate each claim without bias.

e.    Human Resource/Workforce Management

Foodsphere, Inc. is in heavy need of succession planning for its
employees. Some employees have been working in the company for so long and
are still under the rank and file class.

RECOMMENDED SOLUTIONS TO PROBLEMS RAISED

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 For the Inventory Management, our recommended solution is to have a heavy
coordination between audit checkers and dispatching. Audit checkers are responsible in
checking whether each item returned is properly accounted for when dispatching returns
from delivery. However, we propose that there should be at least 2 audit checkers during
delivery to ensure that any problem encountered will be immediately addressed with the
customer, instead having a late discovery when products are being returned to the
servicing plant. Some customers take 2 days to deliver to, and 2 days to return to the
plant. Our proposal is more of a preventive measure, as compared to the current practice.

Second, for the solution we suggest in procurement or purchasing is to have a

proper screening of prospective suppliers so that finished products will not be
compromised.

To lessen the frequency of accidents and the efficiency of the equipment that they
use, we suggest that the company should at least invest on equipment and machinery. The
company should check the lifetime performance of the equipment and should be checked
regularly before the employees use it.

Since the company is certified by the ISO 9001, Foodsphere Inc. should maintain
their current practices because ISO 9001 one of the highest basis of quality assurance
among manufacturing products.

In terms of the company’s Human Resource Manage, the Foodsphere is really in

need of a good succession plan for its employees, to address career growth and career
development among its employees. This improvement would also decrease the turnover
rate among employees as this initiative increase employee morale and motivation to
perform better in the hopes of being promoted for their efforts.

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