Press Releases

Establishment of committee to examine measures for improving supply chain management of powdered formula

The Government announced today (July 3) the establishment of a committee to study and recommend a proposal on improving the supply chain management of powdered formula. The committee comprises 14 non-official members, including representatives of major suppliers and retailers of powdered formula, parents, and members from the logistics sector and relevant academic and consumer sectors.

A spokesman for the Food and Health Bureau said the Government has been promoting the merits of breastfeeding to encourage its adoption. However, the Government has noted that for various reasons, many local parents have not chosen breastfeeding. For the infants and young children of these parents, powdered formula is their sole or major source of food. Therefore, it is very important to ensure a sufficient and steady supply of powdered formula for these parents and their infants and young children.

"The Government has been closely monitoring the supply of formula products in the local market. The supply chain failure in relation to powdered formula had a major bearing on the serious shortage of powdered formula early this year. We therefore consider that suppliers of powdered formula must step up their efforts to improve the supply chain management," the spokesman said.

"In this regard, we have requested local suppliers of powdered formula to improve the supply chain in four areas: to increase the efficiency of stock replenishment from places outside Hong Kong by reducing the time required; to enhance the capacity for distribution and delivery of goods to improve the supply chain management at the retail and wholesale levels and replenish the stock at retail outlets expeditiously; to commit additional resources to boost the number of hotlines for taking purchase orders and establish a mechanism for promptly increasing the number of hotlines and staffing levels under exceptional circumstances to handle the purchase orders; and to examine and set up services for advance order of powdered formula at retail outlets in different regions throughout the territory."

The spokesman said that the committee will discuss and examine the effectiveness and sustainability of measures to improve the supply chain management of powdered formula proposed by the trade.

"We have pledged to conduct a review in October this year to examine and assess the effectiveness of the supply chain improvement measures. We consider that any proposed improvement measures have to be sustainable and are able to cope with the peak demand periods (for instance, the National Day Golden Week, and if necessary, in the run-up to the Chinese New Year). In this regard, the Government has to conduct stress tests on the improvement measures," the spokesman said.

The Government has engaged a consultancy firm to assist the Government in examining the improvement measures proposed by the trade, and to provide professional input and support. Representatives of the consultancy firm and the Government will also be in attendance at the committee meetings to exchange views with members on the improvement measures.

"If the measures are proven to be effective and sustainable, we will consider repealing the Import and Export (General)(Amendment) Regulation 2013," the spokesman added.

Membership of the committee is as follows:

Chairman
--------
Ms Caroline Mak
Chairman, Hong Kong Retail Management Association

Members
--------------------
Mr Clarence Chung
President, Hong Kong Infant and Young Child Nutrition Association

Ms Florence Wong
General Manager, Mead Johnson Nutrition (Hong Kong) Limited

Ms Bonnie Cheang
Sales Director, FrieslandCampina (Hong Kong) Limited

Mr Lau Oi-kwok
Chairman, Hong Kong General Chamber of Pharmacy Limited

Ms Malina Ngai
Director, Group Operations, Investments, International Buying & Communications, A.S. Watson Group (HK) Limited

Mr Taky Woo
Director, Sales & Merchandise, the Dairy Farm Company Ltd (Mannings)

Ms Gilly Wong
Chief Executive, Consumer Council

Ms Anna Lin
Chief Executive, GS1 Hong Kong

Dr Kelvin Leung
CEO, Asia Pacific, DHL Global Forwarding

Dr Stephen Ng Wai-kwan
Adjunct Professor, Department of Industrial and Systems Engineering, the Hong Kong Polytechnic University

Professor Leo Sin Yat-ming
Professor, Department of Marketing, the Chinese University of Hong Kong

Ms Lam Yuk-ping
A parent from Yuen Long District

Ms Siu Wing-yan
A parent from North District

Ends/Wednesday, July 3, 2013
Issued at HKT 16:53

NNNN