How do you determine your supplier base?

We have carefully developed our loyal supplier group over time, with a focus on consistency and longevity. In most cases, we have been working with the same select group of suppliers for more than 15 years. We believe this long-term, mutual commitment is the best way to build a future for both our suppliers and our customers.

We have strategically chosen global suppliers with a record of quality, safety and performance; many are vertically integrated. Our policy of dual-hemisphere supply sourcing reduces risk in various situations including crop shortage and allows us to match the right supplier with the right customer.

We also seek out new, innovative high quality suppliers who offer a consistent supply of raw materials and are committed to supplying our customers with the best products at a fair price.

How often do you re-qualify your suppliers?

Our suppliers entrust KHI to uphold the highest standards of food quality and safety for the healthy enjoyment of those who consume our frozen fruit, frozen vegetables and canned fish products. All the plants we work with must have a third-party audit with a score that meets our customers' requirements.

Ongoing communication with our valued suppliers establishes
day-to-day and month-to-month compliance with internal and customer requirements. KHI regularly travels with our customer's quality assurance managers to supplier facilities to verify compliance, review procedures and protocols, and create standards that exceed expectations. Working together, our customers and suppliers become partners in this endeavor. Our suppliers know that failure to pass a review can result in their suspension or replacement.

Tell us about your third-party audits.

Third-party audits are conducted annually by respected industry auditors including AIB, the American Food Safety Institute, Silliker, Cook & Thurber, GMA/FPA, PrimusLabs, BRC and SGS among others. Each supplier must have an audit from one of the approved agencies and meet minimum scores and guidelines to be approved to sell to our customers.

Tell us about KHI's food safety oversight.

Food safety is of paramount importance to both KHI and its suppliers. Headlines about tainted food are frightening and alarmingly frequent. As a company, we play a critical role in the food safety chain that extends from field to table.

Vigilant oversight begins with our adherence to the industry's most stringent food safety policies. We require compliance in every area, whether it's the pesticides permitted in the field or specialized packaging requirements. Every activity in the processing plant is recorded, and suppliers are subject to both internal and external food safety monitoring on a scheduled basis. We offer our customers the peace of mind of complete traceability of every product and every shipment. We work closely with supplier and customer quality assurance, quality control and product management professionals to meet their food safety requirements. Nothing ships from our suppliers' plants unless it meets exacting standards.

KHI is a member of C-TPAT, the Customs-Trade Partnership Against Terrorism, a voluntary U.S. Government certification program.

The industry is plagued with challenges, from crop failures to labor strikes. How do you manage these issues?

Ours is a complicated and mercurial business. In our industry, a lot of things—including weather and shipping delays—are out of importers' control.

Our customers entrust us to help them run their businesses; in our role, it's critical that we are problem-solvers. We are involved in managing every step—from product specifications to meeting customs and duty requirements—to ensure the proper products are delivered to a customer's doorstep. We understand the stress that unforeseen situations can cause our customers, so when issues inevitably arise, we are proactive in suggesting and implementing solutions. Open, honest communication and creative problem resolution distinguishes KHI with our suppliers, customers and partners.

Tell us about your JIT delivery.

No company wants to incur additional costs related to inventory. So KHI has developed the knowledge and skills to buy and sell products when the time is right, offering our customers JIT deliveries. Optimum management of real-time delivery and inventory help our customers better manage their business model for the most favorable return on investment.

What kind of expertise do KHI employees have?

KHI employees have industry-related experience, honed from the ground up in every facet of the business. The strength of our team is reflected in its diversity. Members of our staff have worked in fields picking fruit, at processing facilities, at major steamship lines and at quality assurance departments of international food trading companies, so we possess an insiders' knowledge of the challenges our suppliers and customers face. We believe this is an invaluable asset of the KHI team.

What services does KHI offer?

We provide a full slate of services related to the procurement, packaging and delivery of food products we ship.

We take total responsibility for the products we represent. KHI clients rely on us to handle all aspects of the business, including purchasing, shipping, clearance, transportation and finance. Because we assume title to the products we ship, we help our clients maximize cash flow, absorb currency fluctuations and minimize inventories. Our behind-the-scenes expertise helps speed safe, high-quality food products from farm to consumer.

What advantages do you offer versus larger companies?

We think KHI offers the best combination of big-company acumen and small company responsiveness.

Because of our size and non-hierarchical structure, our staffers are empowered to make decisions quickly on behalf of our suppliers and clients. We believe—and our customers tell us—that this agility offers a competitive edge over more bureaucratic companies.

You've developed proprietary software. What has that achieved?

Developed in-house, the proprietary KHI software system has streamlined and boosted our company-wide efficiency, and resulted in cost and time savings for customers. Continual refinements will help us maintain our technology advantage.