Worldpay – Why We Had to Cancel Our Contract With Them.

I keep getting this e-mail form Worldpay about compliance:

Our records show you are registered as non-compliant with the Payment Card Industry Security Standard (PCI DSS) as at < 16/12/2018 >.
 
Any business that accepts credit and debit cards in person, over the phone or online must comply with the PCI DSS. It’s a mandatory requirement set by the card schemes, so it’s really important for your business – even if you only take a few card payments, or if you outsource all your payment handling.

This is for an account which no longer exists so we cannot stop it as the account does not exist to click stop against.  Personally, I think it has to be against Data Protection – as they hold records against us that they have no right too.  I am not sure any regulators are going to do anything about it. 

Moan finished!

2014 Update

As I write this, we are coming to the end of further investment.

In October 2013 the last unit in our block came available and the opportunity to own and control the whole unit was too great so we took this on. It includes more offices and warehouse space. We have been incredibly lucky as the other units we have taken over have not been used that much so little was needed to be done to integrate them into the plant. This has been racked out recently to integrate it into the goods-in warehouse.

We have further upgraded the line installed in 2012 to increase throughput.

We launched some 50 products last month. To achieve this we are streamlining NPD – although are still catching up with some products.

We are now focussing on further streamlining production and staff development. We are coming up to our triennial ISO 9001 and 22000 review which will make July busy with 5 days of Audits alone.

Product Quality – Sports Supplement Manufacturing

A lot is being written about “Product Quality” and “Manufacturing Quality” and I am not sure if many of the article writers know what they are talking about – of if they are just trying to put marketing spin to cover up a lack of substance.

 

We work to the highest standards – but we are not just saying so, we can prove it – and we have been doing so for longer than most. We drive standards and are driven to implement improvements. We can prove this as we are externally audited to ISO 9001 and ISO 22000 (Food Safety). What this means is people with extensive industry knowledge check what we are doing and how we are doing it to make sure and sign off that we are achieving high standards – and on a daily basis.

We are then audited by Customers who place their own demands on us – to improve quality.

We undertake regular reviews of how we work and how we can improve this.

We employ external consultants to audit us every fortnight and advise us on what to focus on next. This involves the management team as well as factory staff. Food safety is regularly reviewed by all key staff in the factory.

We have validated procedures for all processes.

We provide a Professional dedicated blending service for companies who value the control and assurance our facility and processes give them in making Professionally produced, high quality products every time.

2013 Update

In August 2012 we installed a new, high speed, blender to improve production efficiency – this allows us to blend 750kg in 90 seconds.

This sounds impressive, but the main benefit is to improve product quality.  We cannot pack product in 90 seconds, so it gives us plenty of time to QC product and to keep the blender ahead of production.  It keeps our blending efficiencies to where they need to be.

For the last 2 months we have been extraordinarily busy and the new blender has made the process of meeting customers’ requirements much easier.

In installing this we were running short on factory space, so expanded into the next unit.  This increased our space by another third.  Another unit became available later in the year, and having been short of space for too long, took this on also.

The industry continues to be exciting but driven by innovation and quality – where we excel.

Update 2012

I feel guilty at not writing more on the blog recently.  But other needs have been more pressing.

Obtaining ISO 9001 and ISO 22000 in August last year took a lot of time.  Most procedures were in place and we did not alter much paperwork but some of the reporting systems – minuting all meetings and showing we had Verified and Validated all processes took a lot of concentration.  For me, this was an essential tool for us to move forward and grow.  Now everything we do is clearly documented – using a computer based system – so if anyone is not sure what to do, all they need to do is look.  This releases my time to looking at new ideas.

We also built some new offices in August 2011 which we moved into in February 2012.  Although this was meant to be a turn key operation, it took a lot of management time to get it right.  The old offices were really a single room which we had outgrown.  We needed to allow room for growth and we had a space in unit 3a to build them.  We  are finding them much easier to work in and now have a dedicated development area for out New Product Development and innovation.  This is now nearly fully manned.

Our final, for now, investment in the offices in an upgraded computer software system to cope with manufacturing and production planning.  This is nearly ready to go live.

The old office is now a good staff canteen – which has improved staff morale – and the old canteen is a wash-room for the factory – taking all water out of the factory.

Our focus is now on improvements to the manufacturing plant which I hope to report when I next write.

The market continues to grow while at the same time changing.  A vast amount of production is now in bags – obviously for saving the environment while also saving costs.  But demand for tubs is also strong.  We worked with Bob at Taylor Davis on a PET tub range, which is going well.  As the market grows in the UK so does opportunities for innovative manufacturing.  We still believe we lead the industry in innovation in products and manufacturing efficiency which enables is to keep our costs down.

Whey supply seems to be easing but the price is still strong.  We do make some straight whey, but also a lot of blends.  With new sources of Whey Protein Concentrate 80 from WheyCo,  Arla and First Milk, this may help.  We maintain good relations with key suppliers.  But innovation is still key for the industry.  We look forward to cautious growth going forward.

 

First 5 months of 2011

The year seems to have got off to a really busy start.  We are continuing to grow with intrinsic growth of existing products, new products from existing customers and new enquiries.  The main challenge for us is getting sufficient ingredients to meet our customers’ demands and this is slowing New Product Development as we are refusing to take on new projects if we cannot secure enough ingredients to meet future foreseeable demand.

The enigma is whey protein which is the least of our supply problems but the price keeps going up.  The price is expected to fall going forward but it was not expected to get this high either.  It seems a great deal is being used in China in infant formula and if this continues we can expect supply to become shorter.  I think the industry need to recognise that there are some good vegetable proteins which work as well as whey at a much lower cost and higher health benefits.  Time will tell.

The Earthquake in Japan has affected Amino Acid supplies.  Cocoa has also been scarce.  I seem to spend a lot of my time buying forward these days to get the contracts in place.

Most R&D is now done in house – we built a small lab at Christmas.  This is more for time saving as the run to the lab was a 2 day job before.

Demand from new start-ups is increasing but we are having to conclude we are not always best placed to deal with these.  We make bespoke product with bespoke flavours and deliver in 3 days from order.  To make this worthwhile we really need weekly demand and are selecting new projects which are likely to grow to reasonable volumes so they will benefit from our service.

Work on our ISO Quality Management System is largely completed and we are just waiting for the auditors.  This has been a major investment for us although all the systems were in place – we can now prove the systems are in place too.

We are also pursuing technical innovations going forward to continue to support our customers in this rapidly changing market.

Where has 2010 gone

2010 has been quite a year.

Some larger new customers joined us throughout the year and the market remains buoyant.  We have used the experience to improve our processes and disciplines.  We believe our quality and service is second to none.

Protein prices remain challenging with increases in January and March.  2010 was looking better but some suppliers are looking for further increases in 2011.  I personally do not think the market will stand it and with the consumers having less money to spend the market could well contract, effectively being hit at both ends.  So we are driving for further production efficiencies to continue to keep us competitive.

We continue to strive to give better service.  We hit a record this year – getting an urgent order at 5:45pm on a Friday night and it was delivered to third party warehousing at 7:00pm that night.  We do not offer this as standard!!!

The number of enquiries keep increasing but we are not really set up for smaller start ups so we have focussed on building bespoke products for established or rapidly growing brands.  This is where we excel.

2011 is looking challenging but we are looking forward to it.  We have a lot of plans afoot but will report on them as they come to fruition.  We have moved most of our computers to Linux now (Ubuntu) with only one left running Windows.  We now run windows as virtual machines to run this web site software and our accounts package only.  As we get used to it we find more benefits than drawbacks.  The main ones being security, effective spam filtering and cost saving.

Manufacturing Update – January 2010

We have started 2010 with a number of New Products to launch for customers.  Staff morale is very high.  We are keeping on top of existing production and meeting deadlines for the new products.  Re-orders are the biggest challenge as we try to keep enough in stock to meet our customers expectations – we have had some issues with the supply of tubs which have been delayed with the snow and production difficulties – but the knock on has been delays supplying our customers – but they have yet to run out, which is good.

We see our role as to help brands grow through innovation in products and pricing in 2010.  We are well positioned to buy competitively in a market of rising whey protein prices.

We continue to invest in the company – we have four new machines arriving shortly.  We also try to manage our spend on technology, using Open Source products where possible.  Our positioning in the market means we have to keep our overheads low and manufacturing efficiencies high to remain competitive.

General Manufacturing Update

I have not written since about a year ago and though an update was in order.  2009 has been unexpectedly busy although times now are probably as uncertain as they were last year.  So far, through the recession, we have seen protein prices fall.  This is expected to change dramatically.  We have had increases in the last month which I expect may continue into 2009 if the £ does not recover.  I suspect that January will see the political interfering in the economy come to an abrupt end, now that the December 2009 figures have been massaged to make the economy look good for the General Election.

We are still putting in long hours to launch new projects and keep the factory running smoothly.  Keeping the factory ahead of what is required in the food industry is a challenge.  We have bought a new blender this year, a new metal detector, sifters and powder transfer equipment.  We have updated our working practices at least twice, revisited staff training and completely re-audited the health and safety aspects of the factory.  We decided that keeping ahead is better than trying to keep up!  This trouble is keeping ahead of moving goal-posts.

New Product Development is still a challenge as we try to meet our customer’s needs while running the factory.

Business Trends

The main driving factors at the moment seem to be;

Exchange Rates: The market is just coming to terms with the weaker £ which is making UK Manufacturing increasingly attractive – especially against the $.  However, it also means that Whey Proteins are still incredibly high against a year ago and the decrease in euro cost is not being passed on in the UK.  I believe that Whey is rapidly losing its status as the leading protein in Sports Nutrition.

The Credit Crunch:  Concerns about the credit crunch are driving prices down.  Visits to the Gyms are reported to be down but sales of quality and value products seem to be holding.

Internet Stores – the increase in popularity in internet stores is having an impact on the market.  As the stores hit larger volumes, the larger stores are discounting the brands and are looking at their own in-house brands.  Their perception is that Brands make more margin than they really do and they overlook the cost of R&D and athlete support that many brands have got themselves into.

The result is that products are being driven away from quality towards manufacturing to a price – usually massively compromising quality.  While this has always happened to some extent, this is becoming a widespread problem.  Too much product is also being judged on taste and it is easy to make a product taste good – this issue is making it fit a nutritional need and still taste good.  In simple terms, taste issues are supporting the cheap products.

We are responding by improving production efficiencies (we have an excellent Team who work hard to get more production out every day), offering products engineered for quality or cost, buying well and continuing to offer excellent customer service with prompt delivery.  New Product Development is still the slowest part of the process.