quickshop operations manual 2016

2016

Copyright subsists in this material including inter alia in all designs, artwork, signage and/or other works contained herein and ownership thereof vests in Engen Petroleum Limited. Nothing contained herein shall either wholly or in part inter alia be modified, copied, reproduced, adapted, and/or altered by whatsoever means and for whatsoever purpose without the explicit prior written consent of Engen Petroleum Limited.

QuickShop Operations Manual

Introduction A Engen’s Purpose A1.1

Brand Positioning A1.2

Customer Service A1.3

Staffing and Administration B Staffing B1.1

Job Descriptions B2.1

Merchandiser/Cleaner B2.1

Back Office Admin. Assistant B2.1.2

Cashier B2.1.3

Dress Code B3.1

Uniforms B4.1

Order Form B4.1

Uniforms Visuals and Accessories B4.1.2

Store Operations C Suppliers C1.1

Ordering C2.1

Day-to-day C2.1

Promotions and Price Increases C2.1.2

Receiving C3.1

Merchandise Management C4.1

Categories C4.1 - C4.1.2

Category Definition Example C4.1.3

Category Roles C4.1.4

Product Range and Planograms C4.1.5

Schematic Report C4.1.6

Paypoint Merchandising C4.1.7

Out of Stock C4.1.8

Price Labels C4.1.9

Stock Rotation and Pricing C4.1.10

Expired Stock and Merchandising C4.1.11 - C4.1.14

Sales Promotion C5.1

Gondola Ends C5.1.2

Promotions C5.1.3

Floor Walks C6.1

General C6.2

HSEQ D Temperatures D1.1

General Health D2.1

Food Hygiene D2.1.2

Personal Hygiene D2.1.3

Duties D2.1.4

Signage D2.1.5 - D2.1.6

Housekeeping D3.1 - D3.1.3

Stacking and Storage D3.1.4

Electrics D3.1.5

Food Labelling and the Law D4.1

Operations Escalation Process D4.2

Expired Stock Process D4.2.1

QuickShop Operations Manual Index 2016

A1.1

Introduction

Engen’s core business is defined as the exploration for and production of crude oil and gas, the refining of crude oil, the marketing of our primary refined petroleum products in Southern Africa, and the provision of convenience services through our retail network.

Engen is the current market leader in the provision of fuel and convenience-related products in South Africa. The maintenance of this leadership position relies on each brand ambassador playing their part in building the brand and thereby translating this strength into profit.

A major growth area for the Engen brand is the non-fuel convenience offering on our forecourts. The brand, Engen QuickShop, is crucial in the ultimate success of the Engen brand and also a large determinant of the fuel growth at site level.

The purpose of this manual is to document the operational issues related in the operation of the convenience side of our business. The maintenance of our leadership position and the success of the business requires strict adherence to standards to ensure consistency across the network. The standards detailed in this manual include:

• The treatment of customers to ensure that our vision in offering the customer experience “With us you are Number One” is evident in all our Convenience activities as we interact with our customers. • The role and duties of the QuickShop staff. • Good administration to ensure an efficiently run QuickShop. • Information regarding suppliers to ensure use of listed suppliers and adherence to planograms. • Both ordering and receiving procedures. • Merchandise management and stock control which is crucial to the success of the shop. • Sales promotional rules. • Health, Safety and Environment rules which ensure excellent housekeeping standards.

Both the Engen and the QuickShop brand operates as a network across South Africa and its strength lies within the high standards that are maintained by all dealers.

Engen’s Purpose 2016

A1.2

Introduction

In the convenience industry, a customer-driven approach can be segmented into two areas, namely the products and offering of the site and secondly, the way staff interact with and treat the customer.

The products and offerings of the QuickShop can be divided into a number of categories, each performing their role in ensuring overall success of the shop. These categories include:

a) Convenience categories (the traditional 5 Cs – confectionery, cigarettes, chips and snacks, coldrinks and cellular). b) Destination categories such as Woolworths, Fast Food APOs and bakery. c) Value-Add categories which serve to generate traffic i.e. cellular and electricity. d) Routine categories such as groceries, etc.

Customer service is more than being “nice” to customers. It involves meeting the customers’ perception of value. Customers will receive value and buy from a shop if it satisfies both their physical and psychological needs. To do this involves:

a) Having the right merchandise available at an acceptable price. b) Creating the right atmosphere with an uncluttered, clean and neatly merchandised store. c) Friendly, helpful and enthusiastic staff who are well informed and polite to all customers. Indifference from staff is as bad as bad service. d) An involved, polite dealer who sets a good example for his/her staff.

The convenience industry is constantly evolving and the Engen QuickShop is no exception. To meet changing customer needs, it is important that dealers evaluate these offerings in light of their customer profile and needs and adopt as many as possible to ensure that customer needs are not only met, but exceeded.

The position of the Engen brand has for many decades been driven by the customer promise “With us you are Number One”. This promise dictates a customer-driven approach to our business and a Service Excellence positioning that drives all we do.

Brand Positioning 2016

A1.3

Introduction

Engen has developed the Smile (Dynamic Service) programme to support its brand promise “With us you are Number One”. Smile (Dynamic Service) is more of an attitude than a behaviour and applies to all members of staff. The service levels at forecourts are measured on a monthly cycle by means of mystery shoppers. However, customer service is important as it directly determines the success of the service station.

Customer care involves looking after customers in a more personal way. Even bad tempered customers can be brought around by polite and friendly staff.

• Smile and greet customers with enthusiasm. • Talk to the customer (hello, good morning, etc.). • Let the customer talk. • Listen. • Be friendly. • Use the customer’s name (credit card), if possible. • Don’t be afraid to apologise if something went wrong. • Don’t keep the customer waiting any longer than is necessary. If there is a queue of people waiting to be served, make eye contact, smile and say “I’ll be with you as soon as I can”. • Allow customers to browse but provide assistance when needed. • Do not hold conversations with colleagues or talk on your cell phone while serving a customers. • Do not eat or chew gum whilst serving customers. • Thank the customer for calling.• Use this opportunity to up-sell current promotions or any other complementary product/s to the customer’s basket.

The RSD25 will evaluate your staff on the following factors: (contact your Area Manager for the latest version)

a) Clean, neat and presentable. b) Correct uniform and name badges. c) Courteous, friendly and responsive to customers. d) Knowledge of the products in the shop. e) Knowledge of the current promotions in the shop. f) Cashier’s attempt to up-sell. g) Appropriate number of staff on duty to ensure efficient service.

Please note that dealers should take customer complaints seriously and should exchange or refund goods without argument. This creates loyalty and good customer service.

All merchandise on shelf must have a price label. A price label is your silent salesman. The price on the shelf, as well as the one that scans at the paypoint, should be in synergy. If this is not the case due to error, the lower price needs to be honoured.

Service Excellence, Engen’s definition of Customer Service, demands more than just being “nice” to customers. The Smile (Dynamic Service) programme, as well as the RSD25 attempts to guide staff behaviour and ensures that the brand promise “With us you are Number One” is truly experienced by each QuickShop customer.

Customer Service 2016

B1.1

Staffing and Administration

Staff are an integral part of our operational existence, and therefore we need to provide every opportunity through training and development, resulting in overall effectiveness. The success of Engen QuickShop is through its focus on staff and not only strategies or programmes.

Basic staff requirements for an Engen QuickShop1. 1 x Full-time merchandiser 2. 1 x Full-time cleaner 3. Cashiers for each shift

All staff to be provided with the following:

• Job description • Uniforms

It is mandatory for the owner, manager and staff members to attend training. Additional training is also available through Engen’s E Learn programme.

Ongoing training is key to motivation and the retention of staff.

Area Managers can insist on retraining if the level of service is not up to standard. On the job coaching can be provided by the RCOM where necessary.

Staffing 2016

B2.1

Staffing and Administration Job Descriptions Merchandiser/Cleaner

Job title: Merchandiser/Cleaner

Job duties: • Take responsibility for the receiving of goods.

• Keep shelves full, neat, tidy and priced in compliance with the planogram. It is the dealers responsibility to ensure that the merchandiser is fully trained on how to read and interpret the planogram.

• Keep fridges stocked (coldrinks take 24 hours to chill, so keep sufficient backup stock).

• Housekeeping of the store is very important. Wipe down fridges/freezer doors, keep walk-in fridge door clean, record chiller temperatures, keep shelves clean, wash floors daily.

• Organise storerooms, keeping them clean and properly merchandised.

• Merchandise from storeroom daily and inform manager of low stock pressure.

• Control/Stock rotation (sell-by dates). Move old stock to the back and new stock to the front on an ongoing basis.

• Liaise with customers.

• Keep cigarette dispenser fully stocked with the aid of the cashier on duty.

• Check price labels and update prices daily.

• Build displays when required.

• Up-sell to customers on the shop floor.

• Advise and assist customers with queries.

• Enhance customers’ shopping experience e.g. by offering the customer a shopping basket, directing a customer to a product, etc.

Effectively carry out the following maintenance procedures:

• Remove and clean aircon filters every 14 days.

• Defrost fridges and freezers once a month.

• Remove fridge grilles and clean radiators.

• Take stock on a daily basis.

• Make recommendations to management.

• Abide by the security measures laid down.

• Be willing to take on tasks in line with the expansion of the business.

• Clean offices, toilets and the kitchen daily.

• Count empty bottle returns daily.

• Follow the housekeeping schedule daily. Important Tool To Use:

Planogram - it is the dealer’s responsibility to ensure that the merchandiser is fully trained on how to read a planogram.

2016

B2.1.2

Staffing and Administration Job Descriptions Back Office Admin. Assistant

Job title: Back Office Admin. Assistant

Job duties: • Perform daily cash-ups.

• Prepare daily information cash-up and banking sheet for dealer.

• Prepare the change box regularly and order change from

the bank.

• Prepare daily banking.

• Reconciliation of bank statements on a regular basis.

• Check the dealer extranet for updated information.

Handle administrative functions of back office such as: - Creditors - Creditor Review - Debtor Review - Reconcile all General Ledger Accounts

• Apply general accounting principles to the daily functioning of the business to ensure maximum profitability and accountability.

• Assist with RD cheques.

• Apply and maintain shrinkage control system.

• Prepare weekly/monthly wages.

• Capture invoices daily.

• Monitor product gross profit to ensure that no products are sold at a negative gross profit.

• Update prices daily – print price labels.

• Calculate any statutory payments such as MIBCO, Regional Service Levies, VAT etc.

• Clean the back office database regularly (slow moving stock, discontinued lines etc.)

• Answer the switchboard when required.

• Assist with stocktaking when necessary.

• Carry out filing on a regular basis.

• Prepare reports when required.

• Attend to any other projects that might be required from time to time.

• Run end-of-day report.

Important Tools To Use:

• Day End Report

• Negative GP Report

• Negative Stock On Hand Report

• Debtors Age Analysis

2016

B2.1.3

Staffing and Administration Job Descriptions Cashier

Job title: Cashier

Job duties: General • Arrive at work on time according to shift schedule. • Adhere to high standards of personal hygiene and attire, according to the dress code. • Sign the attendance register, or clock in and record the start time. • Take breaks outside of peak or busy periods. • Display a positive and enthusiastic approach to all assignments. • Clock out or sign the attendance register at the end of the shift. • Assist with receiving of stock. • Merchandise stock as and when needed.

Beginning of the shift procedures • Take over the shift from the previous shift cashiers. • Verify that the float is correct. • Confirm all speed points are working, with sufficient paper rolls. • Check cleaning cloths, pens and other items needed for the shift. • Inspect the paypoint and shop. • Notify management of problems, such as low stock.

Dealing with cash and takings • Ensure an accurate accounting of all transactions, collections and disbursements during the shift. • Ring all sales in the till and collect payment from customers. • Make change for cash transactions. • Use up-selling to maximise customer spend. • Make regular safe drops as per policy. • Cash up shift end and complete the cash control sheet for conciliation by the back office administrator.

Customer service • Greet customers as they enter and exit the store, and provide fast, efficient and friendly service. • Place customer purchases into plastic carrier bags as needed. • Make sure that petrol attendants are served quickly and minimise queues at the window. • Ideally a dedicated forecourt cashier should be scheduled during peak times. • Up-sell to customers at every transaction.

Cleaning and maintenance • Ensure that the store and paypoint is clean at the beginning of the shift, and that the cleanliness standards are maintained during the shift. • Wash all windows at least once a week or as the need arises. • Report faults immediately.

Safety and security • Deposit cash in the drop safe periodically throughout the shift so as not to exceed the cash floor limit, and ensure the bag/seal/tube number is correctly recorded. • Count cash discreetly and quickly when doing safe drops. • Monitor the customers in the store at all times and minimise theft. • If customer theft is suspected, call the manager or dealer immediately. • Prevent customers from entering the office, storeroom and other backup areas. • Clean spills immediately in the absence of assistance.

2016

B3.1


Dress Code for Engen QuickShop PersonnelThere are many reasons behind a dress code

• Engen would like to maintain the same image throughout the network of Engen QuickShop.

• Uniforms assist customers in identifying staff members.

• Physical appearances represent the freshness, cleanliness and general professional standard of the business

• Engen QuickShop personnel whether cashier, merchandiser or cleaner, have a professional image to maintain at all times.

To provide a professional appearance, the following uniformity and standards of dress code needs to be adhered to at all times:

• No other (unbranded) clothing will be allowed.

• Full Engen uniforms are to be worn at all times.

• Management will enforce the dress code.

• Name badges are to be worn.

Dress Code

Uniforms may be ordered via the Dealer Extranet or via the following contact details.

New company is: Name: Team Clothing Email: [email protected] Tel: 031 003 1900 Fax: 086 561 6001

2016

B4.1


Select your site: Standard Site QuickShop Site 1-Plus Site 1-Stop Site

Uniforms Order Form 2016

STOCK

CODESDESCRIPTION SIZE

TOTAL

QTY

UNIT PRICE

(excl. VAT.)

TOTAL

AMOUNT

ENG23 4940 S/S ATTENDANT SHIRT (ROYAL/RED) 0

ENG27 4936 FLEECE TOP ROYAL/RED FORECOURT 0

ENG26 4938 DRY MAC/ROYAL/RED FORECOURT 0

ENG09 5064 ATTENDANT CAP ONE SIZE

ENG31 5084 ATTENDANT BEANIE ONE SIZE

ENG23A 4941 S/S QUICKSHOP SHIRT (ROYAL/GREEN) 0

ENG27A 4937 FLEECE TOP ROYAL/GREEN QUICKSHOP 0

ENG26A 4939 DRYMAC/ROYAL/GREEN QUICKSHOP 0

ENG001 5115 T-SHIRT ROYAL 0

ENG022 5206 SUPERVISOR WAISTCOAT ONE SIZE

ENG004 5446 SUPERVISOR CAP ONE SIZE

6683 6683 TRAINEE BIB ONE SIZE

ENG25 5114 RAINSUIT 0

6487 13362 SHOES 0

ENG35 5103 BLACK SOCKS ONE SIZE

ENG28 4950 TROUSER FORECOURT & QUICKSHOP 0

ENG24 5132 SKIRT 0

STOCK

CODESDESCRIPTION SIZE

TOTAL

QTY

UNIT PRICE

(excl. VAT.)

TOTAL

AMOUNT

ENG30 5229 BELT 0

16096 FUR PILE PARKA JACKET 0

16902 MAGNETIC NAME BADGE ONE SIZE

16902 MAGNETIC NAME BADGE ONE SIZE

16902 MAGNETIC NAME BADGE ONE SIZE 0

ENG33 5062 PIN NAME BADGE ONE SIZE 0

ENG34 5102 PIN NAME BADGE ONE SIZE 0

SUB TOTAL R 0,00

VAT 14% R 0,00

TOTAL R 0,00

S M L XL 2XL 3XL S M L XL 2XL 3XL

28 - 30 - 32 34 - 36 38 - 40 42 - 44 46 - 48 50 - 52

S M L XL 2XL 3XL 4XL

ATTENDANTL

SUPERVISORL

MANAGERL

S M L XL 2XL 3XL

S M L XL 2XL 3XL

S M L XL 2XL 3XL

3 4 5 6 7 8 9 10 11 12

28 30 32 34 36 38 40 42 44 46 48 50

ATTENDANTL

SUPERVISORL

BANK DETAILS:

Acc. Name: Team Clothing & Gifts

Bank: Standard Bank

Branch: Gale Place

Branch Code: 042526

Acc. No. : 051 844 885

1. Orders to be faxed to: 086 561 6001

086 561 6155

086 591 7703

or email to: [email protected]

2. All Engen Dealers will be granted 30 days from date of invoice to pay for an order. Should dealers default, the account will immediately revert to COD. Legal action may be taken to recover outstanding amounts. Please confirm payment by faxing deposit slip to Team Clothing accounts Department (086 694 7594) with your relevant Account as reference.

3. Please note that a Transport Surcharge of R75.00 is applicable for orders less than R500.00.

4. For Queries and Assistance please contact the call centre 031 003 1900.

5. You have 7 days from receiving your order to make a query regarding your order.

6. Distribution will take place from a centralised warehouse from Team Clothing based in Kwa-Zulu Natal.

7. All prices quoted are exclusive of VAT.

8. Safety shoes that have sustained water damage are not covered under the guarantee and therefore can not be replaced

9. All overborder orders collected at Team Clothing will include VAT at 14%.

NETWORK MANAGER’S NAME:

B4.1.2


SUPERVISOR

Royal T-Shirt

Forecourt Fleece

Supervisor’s Cap

Engen Forecourt Shirt

QuickShop Windbreaker

Forecourt Cap Beanie Shoes Attendant’s Name BadgeSupervisor’s Name Badge

Engen Forecourt Shirt 1-Stop

QuickShop Fleece

Engen Forecourt Shirt 1-Plus

Cargo Trousers

QuickShop Shirt

Skirt Supervisor’s Waistcoat

SUPERVISOR

SUPERVISOR

Uniforms Visuals and Accessories 2016

Suppliers

C1.1

Store Operations

Manufacturers and distributors are partners in our business. Their role is to provide agreed products and ranges that enhance our offering to our consumers.

Refer to Extranet www.engen.co.zaDealers can access supplier details by accessing the DealerZone

Please refer to Engen Schedule (Schedule of the Agreement of Lease and Operation of Service Station – Page 3 of 6 Clause 5.1)

(c) use only suppliers and distributors nominated or approved by the Company, in consultation with the Dealers National Advisory Council (or other body established by them in consultation with the Company, such as, for example, the Joint Buying Panel), for the supply of all core merchandise prescribed by the company in terms of paragraph 5.1 (c) of the QuickShop Schedule, and agree to be bound by the terms and conditions of any agreement entered into by the Company with such suppliers and distributors. Should such nominated or approved suppliers or distributors be unable to deliver the required products or service, the Dealer shall be permitted to purchase such supplies from other sources, provided the consent of the Company has been obtained, which consent shall not unreasonably be withheld. Should the Dealer be able to acquire any such required services or products from someone else at a cheaper price, or on terms better than that on which it would be able to acquire any of the foregoing from the Company’s nominated or approved suppliers or distributors, the Dealer shall be permitted to purchase such products and/or services

(as the case may be) from such other available sources, provided that the Dealer shall advise the Company thereof within five days of purchase thereof.

2016

Store Operations

• An accurate stock count is pivotal to the ordering process and to the cash flow of your business.

• Counting stock is made easier if the storeroom is kept tidy.

• Orders should be placed according to rate of sale and supplier callage.

• Dealers must take public holidays into consideration when placing orders.

• Also consider the impact of “out of stocks”.

• You must aim at having sufficient stock to last you from the time your delivery arrives, to the time of your next delivery.

• Never place an order without checking quantity required. If a supplier phones you for an order and you are not sure, rather phone them back once you have taken stock.

• Be careful of ordering large quantities based on ‘free stock’ deals, these can very easily result in long-term overstocks.

• Correct ordering of stock will minimise your returns and waste.

• Remember, it is a privilege when suppliers take back stock, and should therefore not be abused. Develop a full understanding of every supplier’s return policy as it is not applicable across the board.

Tools To Use - Branch Reports:

• Stock on hand report

• Top sellers by category

Ordering

As stock is one of your biggest assets, correct ordering and an analysis of your rate of sale will not only impact on your cash flow, but also on the customer experience. Therefore, strict adherence to the planograms will assist in the ordering process.

Day-to-day

C2.1

2016

C2.1.2

Store Operations

Promotions• When a product is going on promotion, dealers need to increase their order quantity for this period. Use previous promotions’ sales data (if similar) to inform your order quantities for your opening order and adjust subsequent orders according to rate of sale.

• Review your best sellers within the range and order more fast-selling SKU’s vs the slow sellers.

• Dealers should also buy in sufficient stock during the deal period, so that profit is maximised. Also consider buying in additional stock towards the end of the promotion period to sell at the normal price and benefit from the additional gross profit.

• When a product is on promotion, ensure that the price label is also updated with the new selling price for the promotional period.

• Ensure that POS and FSU are up at the start of the promotion and then to be removed at the end.

Price increases• When a dealer is made aware of a price increase, they should also increase their order on that product at the old cost price, in order to maximise profit.

• Rate of sale to be considered when ordering, so as not to impact cash flow negatively.

Ordering Promotions and Price Increases 2016

Store Operations Receiving

Administration of Receiving• Orders need to be thoroughly checked to avoid shortages and incorrect stock being received.

• A basic six-tick system should be in place, i.e.:

1. Description 2. Packaging 3. Size 4. Quantity 5. Cost Price 6. Expiry date on delivered product

• Orders received should be checked against stock ordered.

• Before receiving stock, ensure returns are uplifted and necessary credit notes/upliftment notes are actioned.

• Once stock is received, it should immediately be packed onto shelves, or into the storeroom.

• Strict adherence to cold-chain principles to avoid wastage on perishable products must be followed.

• Where possible, check expiry dates upon receiving – especially short shelf-life merchandise.

• The dealer should check on accuracy of delivered cost price against current price lists published on the Dealer Zone at http://dealerzone.engenoil.com/

• A strict rule is to check from invoice to stock, and not vice versa.

• All shortages or non-delivery should be altered on the invoice, and the driver should countersign changes made to the invoice.

• Open cartons and check quantity inside, especially chips and confectionery.

• Management should do spot checks when receiving.

• Careful attention should be given to problematic suppliers:

1. Before taking delivery, ensure empties are set apart and recorded. 2. Only check invoice once all stock is offloaded from truck. 3. Ensure delivered stock is kept apart from existing stock. 4. Check each case to ensure the correct quantity.

Stock should be received on an original invoice/delivery note, and not on photostat copies.

The receipt of stock is a key component in the business value chain; therefore, accuracy in receiving orders will minimise shrinkage and maximise profit.

C3.1

2016

Store Operations Merchandise Management Categories

A well presented category with correctly implemented planograms will be an attraction to the consumer, which will allow the customer to shop the category and sub-category with relative ease.

What is a Category?A category is a distinct measurable and manageable grouping of products that will allow the retailer and supplier to optimize business results by better understanding and meeting consumer needs.

Determining the Category Definition

Define consumer need Thirst quenchers

What delivers a similar solution to 340ml and 500ml carbonated colas deliver consumer need? and flavoured sodas

What does the consumer see as substitutable? Orange juice and waters

What does the consumer see as interrelated? Carbonated colas and flavoured sodas, sparkling waters, “New Age” beverages, still/mineral waters, sport beverages, iced teas and non-alcoholic beers

What does the consumer see as interrelated? All sizes and whole range of “soft drinks”

C4.1

2016

Store Operations Merchandise Management Categories

The following main categories can be found within Engen QuickShops:

• Bakery

• Beverages

• Chips & Snacks

• Confectionery

• Edible Groceries

• General Merchandise

• Health & Beauty Aids

• Miscellaneous

• Non-edible Groceries

• Perishables

• Print Media

• Tobacco

• Virtual voucher

The approved Engen Categories are available on the DealerZone

C4.1.2

2016

Store Operations Merchandise Management Category Definition Example

C4.1.3

DescriptionThe Category consists of sub categories of interrelated vegetable, meat and fruit products that are mostly processed to form a snack or tummy filler. These sub-categories are chips and pretzels, extruded products, biltong, dried fruit, nuts, popcorn and other snacking products.

Components Category Sub-Category

Chips & Snacks Biltong Bar

Biltong Products

Chips & Pretzels

Dried Fruit

Extruded Products

Nuts

Popcorn

Snacks

2016

Store Operations

Category Roles: Examples

Destination - Define the positioning of the retailer with target shoppers. - The retailer is the store of choice for this category. - Very high importance to target shoppers with high levels of basket penetration.

Preferred - Goods that are purchased frequently. - Products that are core to retailer performance. - High price competition and strong promotional activity.

Convenience - Products that are of low importance to the shopper. - Ensures that target shoppers can do all their daily shopping with the retailer without having to go to another retailer.

Seasonal - Categories that are important to shoppers only at specific times of the year. - Seasonal Destination categories reinforce the core positioning of the retailer. - Seasonal Convenience categories are offered to provide one-stop-shopping while the category is “in”.

Merchandise Management

C4.1.4

Category Roles 2016

Store Operations

Product Range

• The product range is decided through market research, and is purchased from nationally listed suppliers.

• The sites must have 100% compliance to this product range.

• The product range can be viewed on the planograms.

• Dealers are not allowed to replace what is on the planogram with the 20%. It has to be over and above.

• Please make sure all products have expiry dates as well as allergen content on packaging.

Merchandise Management Product Range & Planograms

Countlines and Slabs 3 Drop Aug 2016

C4.1.5

2015/10/30

Shelf 5

Shelf 4

Shelf 3

Shelf 2

Shelf 1

Shelf 10

Shelf 9

Shelf 8

Shelf 7

Shelf 6

Shelf 15

Shelf 14

Shelf 13

Shelf 12

Shelf 11

Planograms

• Are done through space management, and give you the correct product flow in-store. • Are laid out according to floor space. • Should not be changed, unless agreed to by the Regional Convenience Operations Manager and Area Managers.

Dealers must maintain the layout by referring to their planogram, which must be filed in the front of this manual.

Please note that your Area Manager and RCOM are there to guide you and show you how to implement planograms. It is the dealer’s responsibility to ensure that planograms are correctly implemented by your staff.

Miscellaneous• A miscellaneous management levy of 1.75% will be levied on items not listed in the Engen masterfile. • Dealers may request to list products that are selling better than the slowest selling product within that sub-category. This is to be measured over a three-month period. • Product to be merchandised at the end of the respective sub-category.

House Brands• Dealers should ensure that when purchasing stock from Makro, Metro or Trade Centre etc., they avoid purchasing that particular store’s house brand, i.e. Ortem, Astor or Family Favorite etc. • To prevent this from happening, dealers should refer to the planogram for an indication of the recommended supplier branded products.

2016

Slabs and Countlines 3 Drop Aug 2016

2016/08/19

Shelf 5

Shelf 4

Shelf 3

Shelf 2

Shelf 1

Shelf 10

Shelf 9

Shelf 8

Shelf 7

Shelf 6

Shelf 15

Shelf 14

Shelf 13

Shelf 12

Shelf 11

ALL FLAKE TO BEMERCHANDISED IN

OUTERCASE ON SHELVE

SWEETIE PIE TO BEMERCHANDISED IN OUTERCASE

Store Operations

Consists of: Barcode, Product Description, Manufacturer, Size of Product.

• Facing wide – how many of those products are placed next to each other on the shelf?

• Facing high – how many of those products are merchandised on top of each other?

• Facing deep – how many of those products are merchandised behind each other?

• Shelf capacity – total amount of items that fit on the shelf.

• Unit movement – data obtained from sales history of that specific product in that geographic region.

Merchandise Management Schematic Report

This is a detailed description of products on the planogram.

C4.1.6

Page: 2 of 4

Shelf Schematic Report

Name: CAPE WEST - Countlines & Slabs 3 Drop.psa h: 1 m 43.00 cm w: 2 m 73.00 cm d: 0 m 36.00 cm No. of segments: 3

Shelf : 1 w: 91.00 cm d: 26.00 cmUPC Name CORE/SECONDRY Size UOM F/W F/H F/D Capacity Regional Movement

#16001065601281 CADBURY 87GM BUBBLY TOP DECK CORE 87.00 GR 6 1 26 156 40 418#26001065600390 CADBURY 87GM BUBBLY MINT CORE 0.00 GR 4 1 26 104 12 990#36001065600253 CADBURY 87GM BUBBLY SLAB CORE 0.00 GR 5 1 26 130 37 458


#16001065601496 CADBURY 160G D/MILK CHOC TB JELLY CORE 160.00 GM 3 1 20 60 2 120#26001065601519 CADBURY 160G D/MILK CHOC TB COOKIE CRUNC CORE 160.00 GM 2 1 20 40 1 272#36001065601373 CADBURY 120GM DAIRY MILK OREO CORE 120.00 GM 4 1 21 84 25 622#46001065601724 CADBURY 105G CHOCOLATE SILK CORE 105.00 GM 2 1 26 52 176


#16001065600871 CADBURY 90GM CARAMEL CHOC CORE 88.00 GM 3 1 17 51 24 637#26001065601007 CADBURY 80GM WHOLE NUT CORE 0.00 4 1 17 68 44 651#36001065601090 CADBURY 80GM TOP DECK CORE 0.00 4 1 17 68 30 915#46001065601014 CADBURY 80GM FRUIT AND NUT CORE 0.00 4 1 17 68 19 283


#16001065601083 CADBURY 80GM BISCUIT CHOCOLATE CORE 0.00 3 1 17 51 19 028#26001065601069 CADBURY 80GM DAIRY MILK CORE 0.00 3 1 17 51 18 032#36001065601076 CADBURY 80GM MINT CRISP CORE 0.00 2 1 17 34 12 979#46001065601106 CADBURY 80GM RUM & RAISIN CORE 0.00 2 1 17 34 12 117#56001065601021 CADBURY 80GM CASHEW & COCONUT CORE 0.00 2 1 17 34 12 129#66001065601113 CADBURY 80GM TOP DECK MINT CORE 0.00 2 1 17 34 10 688#76001065601038 CADBURY 80GM DREAM CHOCOLATE CORE 0.00 1 1 17 17 2 648


#16009188000080 NESTLE 85GM AERO MILK CORE 1.00 G 2 1 17 34 2 568#26009188000097 NESTLE 85GM PEPPERMINT CORE 1.00 G 2 1 17 34 2 306#36009188000103 NESTLE 85GM AERO DUET CORE 1.00 G 1 1 17 17 621#46009188000110 NESTLE 85GM AERO DARK CORE 1.00 G 1 1 17 17 84#56001068642601 NESTLE 80GM MILO CORE 80.00 GM 2 1 17 34 10 612#66001068642908 NESTLE 80GM MILKYBAR CORE 0.00 3 1 17 51 11 483#76001068643707 NESTLE 80GM MILKYBAR SMARTIES CORE 80.00 GM 2 1 17 34 7 714#86001068642700 NESTLE 80GM MILKYBAR KRACKLE CORE 80.00 GM 1 1 17 17 5 764


#16009704400325 BEYERS 1EA SWEETIE PIE CORE 1.00 EA 4 2 5 40 60 851

Page: 3 of 4

Shelf Schematic Report#26009704400301 BEYERS 20GM CARAMEL DREAM BAR CORE 20.00 G 2 1 3 6 12 984#36001068595808 NESTLE 55GM BAR ONE CORE 55.00 GR 3 3 9 81 86 468#46001025110006 NESTLE 100GM BAR ONE CORE 0.00 EA 2 3 11 66 61 818


#16001025177207 NESTLE 40GM TEX LARGE CORE 0.00 EA 3 3 13 117 81 989#26001025214506 NESTLE 62GM TEX GIANT CORE 0.00 EA 3 3 7 63 52 171


#16001068623709 NESTLE 45GM KIT KAT 4 FINGER CORE 0.00 GM 3 1 21 63 52 807#26001068658008 NESTLE 45GM KIT KAT 4 FINGER WHI CORE 0.00 EA 1 1 21 21 19 659#36001068627509 NESTLE 45GM KIT KAT 4 FINGER DAR CORE 0.00 EA 1 1 21 21 15 957#46001025231800 NESTLE 45GM KIT KAT CHUNKY CORE 0.00 EA 3 3 8 72 36 428


#16001068592708 NESTLE 46GM CHOCOLATE LOG CORE 0.00 2 3 13 78 30 921#26001068592500 NESTLE 50GM ROLO CORE 0.00 2 3 13 78 16 963#36001120609955 BEACON 56GM NOSH CORE 0.00 EA 2 2 7 28 19 800#46001120000363 BEACON 81GM DAMASCUS NOUGAT BAR CORE 0.00 GR 1 2 5 10 20 521


#15000159461122 SNICKERS 50GM CHOCOLATE BAR CORE 0.00 GR 3 2 8 48 32 372#25000159407410 MARS 80GM SNICKERS 2 PACK CORE 0.00 GR 1 2 8 16 16 558#35000159459228 TWIX 50GM CHOCOLATE BAR CORE 50.00 gm 1 2 6 12 17 583#440111216 MARS 57GM BOUNTY CORE 0.00 GR 1 3 9 27 12 060#540111445 MARS 45GM M&M PEANUTS CORE 0.00 GR 1 1 4 4 0


#16001065034027 CADBURY 48GM LUNCH BAR CORE 0.00 GR 4 3 11 132 55 542#26001065033891 CADBURY 62GM LUNCH BAR MAN SIZE CORE 0.00 GR 2 2 6 24 53 098


#16001065034188 CADBURY 53GM TEMPO CORE 0.00 GR 3 3 15 135 40 274#26001065036427 CADBURY 40GM CRUNCHIE CORE 40.00 GM 3 4 26 312 40 185#36001065034089 CADBURY 48GM PS CARAMILK CORE 0.00 GR 1 3 14 42 16 740


#16001065600406 CADBURY 40GM BUBBLY CORE 40.00 GR 1 2 6 12 31 507#26001065601502 CADBURY 38G DAIRY MILK CHOC TBT CORE 38.00 GR 1 2 18 36 2 845#36001065601731 CADBURY 40G CHOCOLATE SILK CORE 40.00 GR 1 2 23 46 197

Page: 3 of 4

Shelf Schematic Report#26009704400301 BEYERS 20GM CARAMEL DREAM BAR CORE 20.00 G 2 1 3 6 12 984#36001068595808 NESTLE 55GM BAR ONE CORE 55.00 GR 3 3 9 81 86 468#46001025110006 NESTLE 100GM BAR ONE CORE 0.00 EA 2 3 11 66 61 818


#16001025177207 NESTLE 40GM TEX LARGE CORE 0.00 EA 3 3 13 117 81 989#26001025214506 NESTLE 62GM TEX GIANT CORE 0.00 EA 3 3 7 63 52 171


#16001068623709 NESTLE 45GM KIT KAT 4 FINGER CORE 0.00 GM 3 1 21 63 52 807#26001068658008 NESTLE 45GM KIT KAT 4 FINGER WHI CORE 0.00 EA 1 1 21 21 19 659#36001068627509 NESTLE 45GM KIT KAT 4 FINGER DAR CORE 0.00 EA 1 1 21 21 15 957#46001025231800 NESTLE 45GM KIT KAT CHUNKY CORE 0.00 EA 3 3 8 72 36 428


#16001068592708 NESTLE 46GM CHOCOLATE LOG CORE 0.00 2 3 13 78 30 921#26001068592500 NESTLE 50GM ROLO CORE 0.00 2 3 13 78 16 963#36001120609955 BEACON 56GM NOSH CORE 0.00 EA 2 2 7 28 19 800#46001120000363 BEACON 81GM DAMASCUS NOUGAT BAR CORE 0.00 GR 1 2 5 10 20 521


#15000159461122 SNICKERS 50GM CHOCOLATE BAR CORE 0.00 GR 3 2 8 48 32 372#25000159407410 MARS 80GM SNICKERS 2 PACK CORE 0.00 GR 1 2 8 16 16 558#35000159459228 TWIX 50GM CHOCOLATE BAR CORE 50.00 gm 1 2 6 12 17 583#440111216 MARS 57GM BOUNTY CORE 0.00 GR 1 3 9 27 12 060#540111445 MARS 45GM M&M PEANUTS CORE 0.00 GR 1 1 4 4 0


#16001065034027 CADBURY 48GM LUNCH BAR CORE 0.00 GR 4 3 11 132 55 542#26001065033891 CADBURY 62GM LUNCH BAR MAN SIZE CORE 0.00 GR 2 2 6 24 53 098


#16001065034188 CADBURY 53GM TEMPO CORE 0.00 GR 3 3 15 135 40 274#26001065036427 CADBURY 40GM CRUNCHIE CORE 40.00 GM 3 4 26 312 40 185#36001065034089 CADBURY 48GM PS CARAMILK CORE 0.00 GR 1 3 14 42 16 740


#16001065600406 CADBURY 40GM BUBBLY CORE 40.00 GR 1 2 6 12 31 507#26001065601502 CADBURY 38G DAIRY MILK CHOC TBT CORE 38.00 GR 1 2 18 36 2 845#36001065601731 CADBURY 40G CHOCOLATE SILK CORE 40.00 GR 1 2 23 46 197

Page: 4 of 4

Shelf Schematic Report#46001065601304 CADBURY 37GM DAIRY MILK CHOC CORE 0.00 GR 1 2 20 40 9 291#56001065601311 CADBURY 37GM TOP DECK CHOC CORE 0.00 GR 1 2 20 40 12 079#66001065601328 CADBURY 37GM MINT CRISP CORE 0.00 1 2 20 40 4 363#76001065600888 CADBURY 40GM CARAMEL CHOC CORE 0.00 GR 1 2 20 40 20 423


#16001065034140 CADBURY 34GM DIPPED FLAKE CORE 0.00 GR 2 3 17 102 26 552#26001065034126 CADBURY 34GM FLAKE CORE 0.00 GR 1 3 14 42 16 789#36001065421902 CADBURY 22.7GM CHOMP LARGE CORE 0.00 EA 3 4 13 156 33 926


#16001068592401 NESTLE 40GM SMARTIES CORE 40.00 G 2 2 17 68 18 690#26001068691500 NESTLE 70GM SMARTIES 70G CORE 70.00 GM 2 2 14 56 18 131#36001025814904 NESTLE 150GM SMARTIES CORE 0.00 GR 1 2 5 10 3 285#46001065034324 CADBURY 40GM ASTROS CORE 0.00 4 1 11 44 20 988#56001065463407 CADBURY 150GM ASTROS CORE 0.00 2 1 7 14 9 716

2016

Store Operations

• Paypoints should always remain clean and free of clutter - except when advised by Engen.

• Refer to the weekly bulletin for updates on what should be at the paypoints.

• Paypoint impulse units and pigeon holes should remain fully packed, neat and tidy, and have price labels.

• Only Engen approved POS may be used at the paypoints.

Paypoint MerchandisingMerchandise Management

C4.1.7

2016

Store Operations

• A ‘gap’ should be left where a product has run out of stock.

• This is to remind the merchandiser to place the order, as well as indicate where the product is to be merchandised when it is back in stock.

• If a product is out of stock for a period of 2 weeks or longer, the dealer can fill the space with the product immediately to the left or right.

• Engen national office will advise of new lines and discontinued lines and where they need to be merchandised.

• The Out of Stock label is to be placed next to the price label of the product that is out of stock.

• Out of Stock labels will be used as a standard nationally.

• There should not be more than 5 line items out of stock in store at any one time.

Merchandise Management Out of Stock

C4.1.8

2016

Store Operations Price LabelsMerchandise Management

C4.1.9

2016

• Keeping the price label in place assists in maintaining the planogram.

• No product should be merchandised unless it has a price label.

• If you have a product with different variances and the same price, one price label may be used, i.e. Stimorol.

• Remember: A price on the shelf is the only way the customer will know the price of an item.

• It is ideal to have a label per variant to ensure that all planogrammed variants are in stock.

Dealer must ensure:

• That every product has a price label.

• That the price label is up to date with the correct pricing.

• That the correct Engen price label is used.

• A price label should be placed on the bottom left hand side of each product; this will indicate how many facings the product has as well as where the product is merchandised should it run out of stock.

Store Operations Merchandise Management Stock Rotation & Pricing

Stock Rotation• Stock rotation should be done on every product on delivery thereof.

• ‘Last In - First Out’ principle to be applied i.e. new stock that is received should be merchandised under or behind the product appearing on the shelf.

• Stock rotation should also take place in the storeroom.

• This will assist the dealer as expired stock needs to be removed from the shelf, and this becomes a cost to the dealer.

• Another reason for stock rotation is if a supplier changes the packaging of a product, this will ensure that the old packaging is sold out first.

• By implementing stock rotation disciplines, shrinkage/waste is kept to a minimum.

Pricing• The dealer determines the retail selling price in conjunction with the centrally negotiated cost prices as stored on the DealerZone.

• Dealer to ensure pricing is competitive in comparison with local competition.

• The dealer must ensure that he/she does regular price surveys with competitors within their geographical area, to ensure that they remain competitive.

• Prices should be rounded off to the nearest 10 cents.

• Price perception should be taken into consideration, i.e. a product at a selling price of R3,10 is perceived cheaper if sold at R3,00.

• Beware not to price yourself out of your market, and eventually out of your business.

• All products sold within the Engen QuickShop must go through the Branch paypoint system.

C4.1.10

2016

Store Operations

Expired Stock• Expired stock is a result of over-ordering, or poor stock rotation.

• Stock that has expired needs to be removed from the shelf immediately.

• Some suppliers may uplift the expired stock. If not, the stock needs to be destroyed.

• Dealer should ensure that expired stock is destroyed responsibly.

• At no point may the dealer be permitted to discount, or sell off expired stock.

Merchandising• As a dealer, you may find it helpful to utilise the services of supplier merchandisers when offered.

• When utilising such merchandisers, they should be controlled and handled correctly, ensuring they comply with your rules and regulations.

• Make sure the merchandiser does not over pack his product or steal facings from other suppliers.

• When merchandising, please ensure boxes are not left lying around on shop floor as customers may trip.

• It is recommended that each site employ a merchandiser dedicated to the store.

Important Tool To Use:

• Planogram

Expired Stock & MerchandisingMerchandise Management

C4.1.11

2016

Store Operations

The basics of merchandising are: • Clean shelves.

• Clean, undamaged stock.

• New stock packed at the back of existing stock (stock rotation).

• Colour breaks – ensure that products of a similar colour are not merchandised next to each other.

• Price labels are correctly positioned.

• Presentable gondola end displays.

• Product merchandised together as a range, i.e. chips with chips.

• Correct top product levels and gaps between the product and shelves.

Checklist for merchandising products: 1. Is the product merchandised according to the planogram?

2. Is the merchandise well laid out and inviting?

3. Are the price labels clear? Is every product labelled?

4. Are the shelf strips in good order?

5. Is the total range packed out? (i.e. Stimorol range etc.).

6. Are all the shelves clean?

7. Is there sufficient backup of fast-moving stock lines?

8. Is stock rotation being done?

9. Are the appropriate gaps left open for out-of-stock lines?

10. Are the shelves faced up correctly each day? (stock is moved forward on shelf).

11. Is damaged or expired stock removed from the shelf?

12. Has the dealer been informed of out-of-stock lines?

13. Do the gondola ends reflect products that are on promotion?

14. Are gondola ends being used for high volume lines as an alternative?

15. Is the paypoint merchandised correctly?

16. Is the paypoint clean and free of clutter?

17. Is the floor area under the gondola runs clean and clear of stock?

18. Are the floors clean?

19. Are the shelves full?

Merchandise Management

C4.1.12

Expired Stock & Merchandising 2016

Store Operations

Forecourt Merchandising• Podium merchandising units to be kept full.

• Price labels to be placed on the bottom left hand side.

Merchandise Management Expired Stock & Merchandising

C4.1.13

2016

Store Operations Merchandise Management

Stock ControlTo ensure effective stock control, the following procedures should be put into place:

• All stock should be captured timeously on the back-office system.

• Stock should be physically kept under lock and key, with only two parties responsible for locking or having a key.

• Physical stock must be counted at least every week, with key items counted daily.

• The quantities counted must be compared to the stock records in order to establish if there are any discrepancies.

• All stock received must be signed for, and stored in the required storage areas.

• Edible and non-edible items to be placed separately from each other.

• High shrinkage items e.g. cigarettes, batteries, etc. to be safely locked in the cage.

C4.1.14

Expired Stock & Merchandising 2016

Store Operations Sales Promotions

Sales Promotions• Sales promotions are one of the more creative elements of your shop.

• Dynamic sales promotions can result in a greatly enhanced turnover, and the competitive edge in your market.

• Products on promotion may sell at a reduced price, but the sheer volumes moved should make up the loss in gross margins.

• Combos - single sales at higher margins from combo deals improve the reduced margin of the promotional items.

POS StandardsNational Promotions:

• Only Engen approved point of sale may be used.

• During promotions, dealers will be provided with relevant POS.

• Dealers are to utilise their gondola ends for displaying the promotional products.

• No POS is to be hung from the ceiling.

• No signwriting to be done on the windows i.e. Valentine’s Day unless Engen approved.

Site Specific Promotions:

• Dealers must make reference to the graphics manual when doing their own printing or advertising.

• Dealers must request a sign-off on promotions and point of sale from their Regional Promotion Executive through their Regional Convenience Operations Manager.

• No POS is to be hung from the ceiling.

• No signwriting to be done on the windows i.e. Valentine’s Day unless Engen approved.

Sales promotions are one of the key tools in growing and sustaining your business. Dynamic sales promotions will result in greatly enhanced turnover and an increased customer base, giving us a competitive edge within the convenience market.

C5.1

2016

Store Operations

Supplier POS• Please note that only Engen approved supplier POS may be erected in QuickShop.

• Please obtain approval for any supplier POS from the Regional Convenience Operations Manager.

• Gondola end displays set the tone for the shopping experience.

• Creative displays attract more attention.

• Gondola ends are used specifically for promotions and specials or alternatively for high volume lines.

• A gondola end is not an extension of the shop and therefore all products that appear on the end should have a “home” on the shelf.

• The front gondola end closest to the paypoint will always be used for biltong, and may never be changed unless otherwise advised.

• Preference must be given to national promotions over site-specific promotions.

• No more than two products per gondola end. Products should complement each other.

• The only time more than two products may appear on an end simultaneously, is when they are allocated as a supplier end i.e. Cadbury’s range.

• Competitor products should not be displayed together, i.e. Powerade and Energade.

• No supplier stands are permitted unless negotiated as a national promotion.

Sales Promotion Gondola Ends

C5.1.2

2016

Store Operations PromotionsSales Promotion

Site Specific Promotions• Dealers may speak directly to suppliers for their own promotions which must be signed off by the RPE prior to implementation.

• These promotions must in no way compete against the national promotions arranged through Engen. For example, Red Bull on a national promotion, and a dealer doing a Play drink promotion.

• The Regional Promotions Executive, or alternatively the Regional Convenience Operations Manager must approve any POS required for this purpose.

National Promotions and Programmes• It is mandatory that all dealers participate in national promotions. • Refer to the Agreement of Lease and Operations of Service Station – Page 5 - 6 [Schedule 2]

5.1(m) participate and co-operate to the fullest extent in all promotions which the Company may from time to time arrange with respect to the Quickshop in consultation with the NAC in the case of National promotions or the relevant Dealers Regional Advisory Council in the case of Regional promotions (or other body established by either of them in consultation with the Company,

such as, for example the Joint Buying Panel). The Dealer acknowledges that such promotions are compulsory and that promotions by their nature will incur expenses and costs for the Dealer.

C5.1.3

2016

C6.1

Store Operations

Floor WalksDaily floor walks are one of the most effective ways of maintaining and improving performance standards in your shop. The floor walk is essentially undertaken by the manager to:

• Objectively assess the actual standards against the required standards

• To train your staff by making them aware of the required standards

• To note any points requiring attention, and to take action in order of priority

• To improve overall standards through constant follow-up

• Out-of-stocks

• Adherence to planograms

• Expired stock and returns

• Operational issues

• Stock intensity

• Temperature checks of fridges

• Stock rotation

• Merchandising of paypoint

• Action to be taken on fast/slow sellers

• Administration issues

• Storeroom administration

• Baskets clean and available to customers

Floor Walks 2016

Store Operations General

Monitors• Installation of such devices must be done with consent from Engen by Engen approved electricians.

PPA Licences• Two silver-coloured snaplock frames are used to house the certified copies of the Site and Retail Licences.

• The frames are to be displayed on the door to the administration offices (door adjacent to paypoint at most sites).

• The two signs must be centred on the door next to each other so that the bottom of the frames are at a height of 1.5 metres from the floor.

• Frames are available from Forecourt Equipment & Services (FE&S) on 0800 221 617 at the Dealer’s cost.

C6.2

2016

D1.1

TemperaturesHSEQ

The safety of our customers and staff is of paramount importance, and as such, strict adherence to Engen’s HSEQ policies and procedures together with compliance to the HSE act is mandatory. This document serves as a guide only. Refer to the Food Safety Manual and Food Health and Safety Act for more information and legal compliance.

TemperaturesFrozen Foods

• Frozen ice cream and sorbet (excluding sorbet used for soft serve purposes) -18ºC

• Any other food which is marketed as a frozen product -12ºC

Chilled Foods (+-4 to 7ºC)

• Raw unpreserved fish, molluscs, crustaceans, edible offal, poultry, meat and milk -1 to +4ºC

• Any other perishable food that must be kept chilled to prevent spoilage -1 to +7ºC

Heated Products

• Any perishable food not kept frozen or chilled +64ºC to +65ºC

Minimum HSEQ Requirements• All approved suppliers of foodstuffs to an Engen QuickShop (sandwiches, etc.) must also be in possession of a Certificate of Acceptability.

2016

High-risk foods such as milk, butter, yoghurt, eggs, meat, poultry and fish products must be kept outside the 10 - 65°C temperature ranges. Always follow the manufacturer recommendations for best temperatures at which to display foods to ensure their quality.

Food should be handled on a First-In-First-Out (FIFO) system, in other words new stock should be packed behind the current so that older stock is used first. Different food types such as meat, vegetables, fruit, dairy, cooked or uncooked food etc., should be stored in designate areas within the same coldroom to prevent cross-contamination and tainting of odours. Food should be stored off floors and away from walls to ease cleaning, ensure limited pest damage and improve air circulation. Food stores should also be kept secure against pests by screening any openings such as windows or air bricks and also kept locked so that unauthorised persons cannot enter and bring bacteria into the storage area.

D2.1

General HealthHSEQ

• Only via a properly ventilated lobby, provided that all relevant interconnecting doors shall cover the whole area of their apertures and providing further that they shall be equipped with durable self-closing devices.

• Without such a lobby between them, provided that the connecting aperture shall have a self-closing door as contemplated above, provided further that the toilet is equipped with effective mechanical extraction ventilation to the outside air to render the atmosphere inside such a room under a negative pressure in relation to the atmosphere in the food handling room.

Premises and Rooms• Entrance to the food areas should all be provided with a hand wash and sanitizing station.

• Hand wash stations should provide both hot and cold water.

• Windows should not have the capacity of being opened. Doors should be close fitting and their condition should not compromise food safety.

If alterations and/or additions are made to a food facility the following must be verified• The alteration or addition must not result in the room in which food is handled having direct connection to an area in which gas, fumes, dust, soot deposits, offensive odours or any other impurity is present or may arise in such a manner that food in the food handling room could be contaminated or spoilt.

• Ventilation – The ventilation system design should allow for proper condensation and dust prevention. Can be natural or artificial. If natural, the openings must be in such a position to allow for effective cross- ventilation and the openings must be at least equal to 5% of the floor area of the room. If artificial, this must comply with all the requirements of the National Building Regulations and the Building Standards Act.

• Lighting – Can be natural or artificial but must allow an illumination strength equal to at least 200 lux to fall on all food-handling surfaces in the room concerned. All lighting within the food preparation areas should be covered.

• Storage – To ensure the safety of all foods, manufacturers have determined shelf-life based on scientific data. Read product labels and store accordingly i.e. snacks - store away from sunlight.

General Health Act ComplianceA room in which food is handled may be connected to a room in which toilets are situated with the following provisos:-

2016

D2.1.2

General HealthHSEQ

A person in charge of food premises shall ensure that:

• Effective measures are taken to eliminate flies, other insects, rodents or vermin on the food premises.

• Any person working on the food premises is adequately trained in food hygiene by a suitably qualified person.

• Refuse is removed from the food premises or from any room or area in which food is handled, as often as is necessary.

• Refuse is stored or disposed of in such a manner that it does not create a nuisance.

• Refuse bins are:

- Cleaned regularly.

- Disinfected whenever necessary and whenever an inspector requires it to be done.

• Wastewater on the food premises is disposed of to the satisfaction of the local authority.

• The food premises and any land used in connection with the handling of food and all facilities, freight compartments of vehicles and containers are kept clean and free from any unnecessary materials, goods or items that do not form an integral part of the operation and that have a negative effect on the general hygiene of the food premises.

• No person handling non-packed food wears any jewellery or adornment that may come into contact with the food.

• No animal, subject to the provisions of any law, is kept or permitted in any room where food is handled, except that:

- A guide dog accompanying a blind person may be permitted in the sales or serving area of the food premises.

- No condition, act or omission that may contaminate any food arises or is performed or permitted on the food premises.

• The provisions of these regulations are complied with.

• All persons under his or her control who handle food at all times must meet the standards and requirements and execute the duties prescribed by regulations 9 and 11 respectively.

A room or area in which food is handled shall not be used for;

• Sleeping purposes.

• Washing, cleaning or ironing of clothing or laundry.

• Any other purpose or in any manner that may contaminate the food therein or thereon.

• No food handler touches ready-to-consume non-pre-packed food with his or her bare hands, unless it is unavoidable for preparation purposes, in which case such food shall be handled in accordance with good manufacturing practices.

• The reporting of diseases and conditions contemplated in regulation 11(2)(b) are properly recorded and kept for perusal by an inspector.

Food Hygiene 2016

D2.1.3

General HealthHSEQ

Personal HygienePeople are a potential source of disease-producing micro organisms, since these organisms live in certain parts of the body, mainly the hairs in the nose, the mouth, throat and in sores. These micro organisms can easily be transferred to the hands since the hands are in constant contact with these parts of the body during the course of the day. Even blowing one’s nose into a handkerchief can contaminate one’s hands.

Prevention of contamination of food by personnel depends on their being aware of the potential risks associated with bad personal hygiene. Hence training in good hygiene practices is critical.

Duties of a food handler All food handlers must ensure that:

• Fingernails, hands, and clothes are clean.

• Hands are washed thoroughly with disinfectant soap:

• Immediately prior to the commencement of each work shift.

• At the beginning of the day’s work or after a rest period.

• After every visit to a latrine or urinal.

• Every time he or she has blown his or her nose or after his or her hands have been in contact with perspiration or with his or her hair, nose or mouth.

• After handling a handkerchief, money or a refuse container or refuse.

• After handling raw vegetables, fruit, eggs, meat or fish and before handling ready-to-use food.

• After he or she has smoked or on return to the food premises.

• After his or her hands have become contaminated for any other reason.

• Wear protective personal clothing and footwear.

• Hair/beard fully covered at all times.

• After gloves have been used, they should be cleaned and sanitized. Furthermore, disposable gloves to be changed regularly.

Food, a facility or a container shall not be handled by any person:

• Who has on his or her body a suppurating abscess or a sore or a cut or abrasion, unless such abscess, sore, cut or abrasion is covered with a moisture-proof dressing which is firmly secured to prevent contamination of the food.

• Who is or who is suspected of suffering from or being a carrier of a disease or condition in its contagious stage that can be transmitted by food, unless any such person immediately reports the disease or condition to the person in charge and a certificate by a medical practitioner stating that such person is fit to handle food is submitted.

• Whose hands or clothing are not clean.

• To avoid cross contamination, sick food handlers should not come into contact with unpackaged foods.

Personal Hygiene 2016

D2.1.4

General HealthHSEQ Duties

No person shall:

• Spit in an area where food is handled or on any facility.

• Smoke or use tobacco in any other manner while he or she is handling non-pre-packed food or while he or she is in an area where such food is handled.

• Handle non-pre-packed food in a manner that brings it into contact with any exposed part of his or her body, excluding his or her hands.

• Lick his or her fingers when he or she is handling non-pre-packed food or material for the wrapping of food.

• Cough or sneeze over non-pre-packed food or food containers or facilities.

• Spit on whetstones or bring meat skewers, labels, equipment or any other object used in the handling of food or any part of his or her hands into contact with his or her mouth, or inflate sausage casings, bags or other wrappings by mouth or in any other manner that may contaminate the food.

• Walk, stand, sit or lie on food or on non-hermetically sealed containers containing food or on containers containing food or on containers or on food-processing surfaces or other facilities.

• Use a hand washbasin for the cleaning of his or her hands and simultaneously for the cleaning of facilities.

• While he or she is handling food, perform any act other than those referred to above, which could contaminate or spoil food.

2016

D2.1.5

General HealthHSEQ

Signage• PPE (Personal Protective Equipment)

• First Aid

• No Smoking

• Caution

• Slippery When Wet. Caution Wet Floor.

PPE (Personal Protective Equipment)Appropriate PPE must be provided to staff (safety shoes, gloves, aprons and hair nets).

Fire Equipment• Fire extinguishers as stipulated by the local fire department or as per Engen requirements.

• 1 Fire blanket in every kitchen. Mandatory if cooking or frying.

Contact your relevant Area Manager for placement.

Signage 2016

D2.1.6

General HealthHSEQ

Certificates• Each site that prepares food must have a Certificate of Acceptability. This certifies them to prepare and sell food.

• They must also have a licence to prepare and sell food.

• All certificates must be in the name of the current owner and be on display.

Records• Completed checklists.

• Certificates.

• Pest control certificates.

• Safe disposal certificates for used oils.

• Fume extraction maintenance and cleaning schedules and records.

• Cleaning schedules.

• Waste management plan (please contact your HSEQ adviser).

• RDS 25; 26.

• APO checklists.

• Temperature control records.

• Equipment cleaning schedules.

• Daily production records.

Checklists• Cold chain (daily).

• Hot chain – Pie warmers, etc. (daily).

• Cleaning schedule.

• APO checklists.

• Daily production schedule.

Signage 2016

Housekeeping

D3.1

HSEQ

A good housekeeping practice not only improves the appearance of the shop, it provides a safe and healthy environment. This also tends to boost the morale and efficiency of employees, giving them a sense of pride in their workplace.

This schedule should be strictly adhered to in order to achieve the above• Sweep, vacuum and clean carpets and mats daily.

• Clean the cashier area with a clean cloth and detergent.

• Clean food display unit, shelving and fixtures with a cloth and sanitizer.

• Remove stock from the shelves, wipe down and replace stock once a week.

• Sweep floors with a broom, removing litter and dust, then wash with floor cleaner using a mop and bucket daily, twice a day where possible. Ensure that a cautionary board is in place. Where high volumes of foot traffic are experienced, cleaning should take place regularly and as the need arises.

• Check all lights are operational and replace faulty bulbs and fluorescent tubes immediately.

• Clean all windows and frames with a cloth and window cleaner twice a week.

• Keep food preparations and eating areas spotless at all times.

• Clean filters in air-conditioners weekly for proper functioning.

• Keep chillers free of leaks, and clean the drip tray under the fridge daily.

• Clean the drain of fridges weekly to prevent blockages.

• Pest control done quarterly with an approved supplier.

• Apply a “clean as you go” policy in high-risk areas such as cashier counters and food preparation areas.

• Every two hours, equipment surface areas such as preparation tables and fridge doors must be wiped down and sanitized.

Reference can be made to the HSEQ manual for further in-depth information.

2016

Housekeeping

D3.1.2

HSEQ

47

Good hygiene demands effective and regular cleaning of the establishment, equipment and environment. This cleaning process should be followed by a disinfecting process. The cleaning and disinfecting stages can be combined with the use of a detergent/disinfectant mixture, although this is not as effective. There must be a cleaning schedule which is developed and strictly adhered to. A checklist on completion should be filled.

Other housekeeping practices are to ensure that:

• All walls and floors are smooth, free from cracks and chips, rust free and clean.

• All areas are kept clean and tidy.

• Lockers are available for staff to keep personal belongings and clothing and must not be in the food preparation area.

Wash basins There must be 3 washbasins available, all with hot and cold water:

• One for hands

• One for utensils

• One for food preparation

• Hand washing and utensil washbasins must have disinfectant hand wash soap available. Hand towels must be made available.

• Areas for storage of raw food must be separated from cooked food.

• Designated waste area that is away from the food preparation area and regularly cleaned.

Poor Housekeeping Practices

2016

Housekeeping

D3.1.3

HSEQ

Display, storage and shelf life• Food that is displayed should not be in direct contact with the floor or any ground surface.

• Any equipment used for displaying food must be kept clean, dust-free and away from any other impurities.

• Cold chain: Ensure that the cold chain for perishable items is maintained. (Frozen below -18ºC for up to 7 months. Chilled between +4ºC and 7ºC. (Up to 24 Hours)

• Hot chain (pie warmers, etc.): Ensure the correct temperature for warmers is maintained above 65°C for up to 4 hours shelf life.

• Expired goods must be removed immediately from shelves and disposed of in the appropriate approved manner.

• A weekly checklist shall be conducted and records maintained.

• FEFO - first expiry products must be the first to come out from storage.

• FIFO – “First in - first out” principle to be applied for merchandising products i.e. prepared sandwiches.

• Use By Dates - the date after which the product should not be consumed, this is used for determining shelf life.

Good Housekeeping Practices

2016

Housekeeping

D3.1.4

HSEQ

Stacking and StorageThe storage of foodstuff shall be such so to prevent damage, contamination or deterioration. It shall also be in place to prevent becoming or creating an additional risk to the business. All utensils and food products to be stored off the floor, also applicable to storage in the the walk in freezer.

Goods and StockCold storage - Refrigerated Food

• Meat shall be stored below vegetables to prevent oozing.

• Meat must be covered/wrapped and not left open in cold storage.

• Pies shall be stored in boxes and not open in cold storage.

• Expiry date and goods received date to be clearly visible on all merchandise.

Dry storage - Food

• Suitable storage space must be provided.

• Food and perishables must be stored separately from hazardous oils, flammable chemicals and cleaning chemicals.

• All stacking must be done in accordance with the OHS Act (GSR8).

All storage areas must be kept in a hygienic condition. Cold storage will be monitored and recorded regularly to ensure compliance.

LPG

• A maximum of 19kg LPG cylinder to be stored in the kitchen unless otherwise stipulated by the local fire chief or Engen representative.

Stacking and Storage

Poor Stacking and Storage

Good Stacking and Storage

2016

Housekeeping

D3.1.5

HSEQ

• All electrics must be neat and tidy.

• There must be no exposed wires.

• Cabling must be tied to prevent a trip risk.

• Cabling should not run near water.

SDS (Safety Data Sheet)Ensure that SDSs are available for all cleaning detergents used from your supplier. The storage and disposal methods must be followed as stipulated in the SDS. All chemicals and detergent containers must be clearly and correctly labelled.

Food grade or food safe chemicals should be used in/on the food premises and the certificate for the chemicals or SDS must be available upon request.

Pest Control• Rodents and insects carry micro organisms and are therefore a major source of contamination and disease. Proper controls must be exercised.

• Every site must have a contracted pest control programme with an SABS-approved service provider. All records must be maintained.

Electrics

Incorrect Electrics

2016

Food Labelling and the Law

D4.1

HSEQ

Non-compliance or breach of these acts occurs when:

• The QuickShop is using unlisted suppliers or local suppliers without proper labelling and packaging. This places the dealer, as well as the Engen brand at risk.

• Where fresh foods are prepared from scratch i.e. cooking stews, it is by law necessary to test the ingredients and declare common allergens that may be harmful to consumers.

• To ensure compliance, Engen recommends only using approved lines and approved suppliers.

Food Labelling and the LawRegulations governing the labelling and advertising of foodstuffs are part of the Foodstuff’s, Cosmetics and Disinfectants Act (Act 54 of 1972) which controls the sale, manufacture and importation of foodstuffs within South Africa. Regulations relating to the labelling and Advertising of Foodstuff’s (No. R.146) were promulgated on 1 March 2010 and was intended to replace the previous regulation with more rules to strengthen the effectiveness of food labelling legislation.

In the past, some food manufacturers have used marketing strategies that misled the consumer with untruths or half-truths printed on labels.

These regulations assist and protect consumers through reliable label information in order to not only make informed choices about healthier food purchases, but also to prevent misleading labelling of foodstuffs.

This legislation requires that labels contain a more extensive list of definitions, prohibited and misleading statements, prescribed letter sizes, product naming, batch identification, date markings, nutritional claims (prescribed wordings and cut-off values), allergens, expiry dates, nutritional information and ingredient listings to name but a few.

Access the following links for more information (www.doh.gov.za; www.saafost.org.za)

Also of relevance is the Consumer Protection Act which has extensive provisions regarding product labelling and marketing with related prohibitions against misrepresentations to and deception of consumers especially the most vulnerable who are challenged by literacy, language, age or health. Examples of situations where misrepresentations could take place are listed in the Act and these include claiming the product is available when it’s not, has a certain characteristic when it does not, has a price advantage over other products when this is not the case etc.

A consumer may hold any or all the elements in the supply chain liable (producer, importer, distributor and/or retailer) for damages for causes such as allergic reactions to ingredients in snack food products of which the consumer has not adequately been warned, foreign objects in food products, food poisoning and other food safety related situations.

The consumer will also no longer have to prove negligence on the part of anyone in the supply chain in order to open a damages claim and this may result in many “minimal” claims of a very minor extent, such as the replacement of a pack of snacks, but which will require proper responses from the likes of the Retail Ombudsman, the Consumer Commission and even the Consumer Tribunal rather than just the current customer care-line-type of approach.

2016

Operations Escalation Process

D4.2

HSEQ

• CO whilst doing RSD 25, raise an issue / concern with the Dealer for Dealer to resolve. Dealer get marked down on the RSD 25.

OR • AM raise an issue or concern with the Dealer.

• The Dealer has 7 days to rectify the matter. (AM informs the RCOM of visit and outstanding challenge/s). Note: Ideally the AM is required to go back after 7 days to check if the matter has been rectified. However, not being possible – AM needs to send a follow-up on email checking if the matter has been rectified.

If the issue/matter has not been rectified/resolved• AM to visit the site with RCOM, another 7 days to be given to the Dealer to resolve the matter.

If the issue/matter still has not been resolved after 7 days• AM to notify RSM & COM for the Breach letter to be issued to the Dealer.

• Breach letter is issued.

2016


Concern Is noted and AM informed / AM address the issue with the

Dealer.

DEALERCO / AM

NO

7 DAYS

NOYES

RESOLVED?

RSM and AM

AM Informs RCOM

YES

PROCESS ENDS

Breached Issued

RESOLVED?

RESOLVED

7 DAYS

RCOM, COM

•CO whilst doing RSD 25, raise an issue / concern with the Dealer for Dealer to resolve. Dealer get marked down on the RSD 25.

OR• AM raise an issue or concern with the Dealer.• The Dealer has 7 days to rectify the matter.(AM informs the RCOM of visit and outstanding challenge/s)Note:Ideally the AM is required to go back after 7 days to check if the matter has been rectified. However, that not being possible – AM needs to send a follow up on email checking if the matter has been rectified.

If the issue / matter has not been rectified/resolved

• AM to visit the site with RCOM, another 7 days be given to the Dealer resolve the matter.

If the issue / matter still has not been resolved after 7 days.• AM to notify RSM & COM for the Breach letter to be

issued to the Dealer.• Breach letter is issued.

AM +RCOM to address Dealer



Dealer.

DEALERCO / AM

NO

7 DAYS

NOYES

RESOLVED?

RSM and AM

AM Informs RCOM

YES

PROCESS ENDS

Breached Issued

RESOLVED?

RESOLVED

7 DAYS

RCOM, COM

•CO whilst doing RSD 25, raise an issue / concern with the Dealer for Dealer to resolve. Dealer get marked down on the RSD 25.

OR• AM raise an issue or concern with the Dealer.• The Dealer has 7 days to rectify the matter.(AM informs the RCOM of visit and outstanding challenge/s)Note:Ideally the AM is required to go back after 7 days to check if the matter has been rectified. However, that not being possible – AM needs to send a follow up on email checking if the matter has been rectified.

If the issue / matter has not been rectified/resolved

• AM to visit the site with RCOM, another 7 days be given to the Dealer resolve the matter.

If the issue / matter still has not been resolved after 7 days.• AM to notify RSM & COM for the Breach letter to be

issued to the Dealer.• Breach letter is issued.



Dealer.

NO

7 DAYS

NOYES

RESOLVED?

RSM and AM

AM Informs RCOM

YES

PROCESS ENDS

Breached Issued

RESOLVED?

RESOLVED

7 DAYS

RCOM, COM



D4.2.1

HSEQ Expired Stock Process

1. Expired Stock Process 1.1 Rectified immediately

1.2 Stock removed off shelf

1.3 Dealer to dispose of expired stock in a responsible manner.

1.4 Noted on Discussion Sheet and dealer given 7 days to rectify (ensure no expired stock on site in any category)

1.5 RCOM to return to site after 7 days to make sure there is no expired stock (outlying areas excluded)

2. Repeated Offence 2.1 No time frame with ANY PRODUCT

2.2 Rectified immediately

2.3 Stock removed off shelf

2.4 Noted on Discussion Sheet

2.5 Escalated/scanned to RCOM with a copy of the Discussion Sheet

RCOM to arrange counselling session with Dealer. If after the counselling session the dealer is found with expired stock again, issue a breach.

2016

quickshop operations manual 2016

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