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Supply Chain Energy Reduction Exceeds Targets in 2022 Supply Chain Energy Reduction Exceeds Targets in 2022

Supply Chain Energy Reduction Exceeds Targets in 2022

JFC’s Corporate Supply Chain (CSC) provides manufacturing and logistics services to the various brands of FC in the Philippines through Zenith Foods Corporation and JWS Logistics.

Guided by the Sustainability Agenda of JFC, CSC recognizes its responsibility on the planet’s sustainability; in particular those that relate to the environment. For this reason, we monitor the impact of supply chain operation on energy, water, and waste.

At the end of 2022, we delivered a 21.5% reduction in energy use ratio versus a 2020 baseline, indicative of the efficacy of the initiatives on fuel and electricity reduction. A total of 5,589 metric tons of greenhouse gas emission has been avoided for release to the atmosphere due to more efficient energy use.

In the Philippines, we introduced various initiatives under the Corporate Supply Chain’s (CSC) Sustainability Program, particularly on energy and water efficiencies. We identified four focus areas for continuous improvement. First, we started with educational campaigns to influence employee mindset and behavior through toolbox meetings, leaders’ walkthroughs, and training. Second, we put in place process optimizations to improve Overall Equipment Effectiveness (OEE) in manufacturing. Third, we applied best practices to ensure timely and proper maintenance of critical equipment like the servicing of ovens, boilers, and other burners. The essential monitoring of equipment is also captured in our restaurants’ daily monitoring sheet, which includes temperature, pressure, and visual conditions. Fourth, we used appropriate engineering technology, such as variable frequency drives, process automation, and machine interlocks, to optimize operations further. Each site uses the SC Energy Management Assessment Checklist to assess its Energy Management program. By listing opportunities, gaps, and action plans, we arrive at relevant site energy reduction plans and initiatives.

We made measurable progress in the process optimization of operations and energy. To improve operational efficiency, we implemented the Overall Equipment Effectiveness (OEE) Digitalization, which measures the overall equipment effectiveness of our processing lines. This system enables us to address downtime, improve production planning and line efficiency, and increase our throughput output. This helps us maximize our baseload and control of utilities during non production schedules. We currently have programs to replicate this in other sites. “Enercon 2.0” has been implemented in most sites to improve Energy Efficiency with various initiatives focusing on Utility Systems, particularly Refrigeration, Ammonia Compressors, Steam Systems, and lighting.

This is just the beginning as we embark on taking further steps in accelerating technological initiatives to reach longer-term goals, towards treating the planet responsibly.