Sodexo: one Fortune 500 company focused on serving others

From: Economic Daily

“I created Sodexo in Marseilles en 1966. We consider our profession of serving others to be a noble calling. Our mission—to improve the quality of daily life, provides a shared meaning to our teams and we have a clear vision to be the premier global outsourcing expert in quality of life services. Over 40 years, the turnover has multiplied by 11,200 times, representing on average an annual increase of 27%. We are now present in 80 countries, employ 332,000 persons and have become the global leader in most of our segments of clients.” 
                                                                              ——Mr. Pierre Bellon, Chairman and Founder of Sodexo

Look at all details in purchasing foods

After apple farmers finished picking and stored their apples at their courtyards, 37-year-old Meng Kaoshe begins to purchase apples from his fellow villagers home after home. He prices the purchased apples usually over 0.1 Yuan higher than other apple dealers. But he stresses that, the apples he wants shall be 7.5 to 8 centimeters in diameter, no shorter or longer. Because this is one requirement listed in the contract signed between him and Sodexo, one Fortune 500 company. Meng told the reporters that, “4 years ago, my third youngest brother who’s working in Shanghai got to know Sodexo. Hearing that our hometown is famous for good apples Sodexo sent survey people to our village and later began to purchase our apples to supply the Sodexo restaurants in Shanghai.”

In Linmeng Village of Shaanxi province, most of the 200 families there live by growing apple trees and revenues from apple sales account for over half of their family incomes. Ms. Long, Purchasing Manager of Sodexo East China, says that Sodexo Shanghai purchase about 250 tons of apples in Shaanxi province every year, which means direct sales revenues every year for the farmers in Shaanxi province and neighboring areas. “We have been also providing training courses to local farmers, i.e. on apple picking, apple packaging, apple storing and transportation. Especially on apple packaging, we teach them to install clapboards into the paper bags for storing apples to prevent the births of Gloeosporium. Sodexo's global sustainable development strategy is practiced by the localization policies made according to the specific situations of its host countries. Purchasing apples from local villages is one Sodexo policy based on the specific situations of China in support of the development of “Villages, Villagers and Agriculture” as always advocated by Chinese government. In so doing, we can not only establish reliable purchasing bases and reduce our purchasing costs, but also bring more incomes to local peasant families.”

Sodexo is barely known by Chinese customers compared to its counterparts like KFC, MacDonald’s and Pizzahut, etc. “Sodexo is not directly linked with mass customers. The clients we directly face are enterprises, hospitals, schools and public institutions.” said by Mr. Christophe SOLAS, CEO of Sodexo Greater China. Sodexo is the Quality of Daily life specialist for those who live together, and provide every day all the services to ease their life.

Mr. Christophe SOLAS introduced that, Sodexo entered into China market in 1995. Now, Sodexo China employ 13,000 people, with 99.9% of which being Chinese, almost all food purchases happening in China, 96% of Sodexo-purchased food raw materials being made in China. “We have strictly-controlled quality-ensuring system, which allows us to purchase food products only from the suppliers who are qualified in terms of relevant State-set standards and industry-set standards. There is one personnel in charge of food purchase in every city to ensure good communication between our Purchasing Department and Operation Department. For now, Sodexo's food purchasing targets at nearly 10,000 types of food products in China, thus making positive contributions to local economic development and employment.”

Be the best of the bests in support services

Sodexo is the first trans-national company engaged in the logistics outsourcing market to enter into China market. It won the first contract in 1995 in China. It's said that, by entrusting part of non-core business or even some departments to professional outsourcing service supplier and thus more focusing on the development of their core businesses, the client enterprises can not only cut down relevant costs by big margins, but also go on with their core business with knowing that every thing about its logistics is OK and Fine since there are professional, satisfactory relevant services from the professional outsourcing company. The Business-Outsourcing concept has become one fashionable business idea in Western countries.

Mr. Christophe SOLAS told reporters that, the global market value of business outsourcing services has reached as high as 5 trillion US Dollars, 80% of which comes from North America and Europe and only 7% from Asia, which reveals that there are huge development potentials and bright future for business outsourcing services. The outsourceable businesses include professional services such as finance, publicity and internal audit, human resource functions such as compensation payment, recruitment and training, and technical fields such as computer processing and telecommunication. Sodexo is good at logistical supporting services, mass meal services (Staff restaurants, banquet services and related services, food services for large events), non-engineering facilities management services (Helpdesk, Reception, Switchboard, Cleaning, Indoor greening, Ground maintenance, etc) and engineering facilities management services (Building and Equipment maintenance services, HVAC, Low and High voltage , Energy management, Fire safety and Security management, elevators, Landscaping, etc)

In outsourced food services, what are the tips for Sodexo's success? Mr. Christophe SOLAS answered, “First, clients are the foremost; second, strictly-controlled management is the key“. Sodexo run over 500 operation sites scattered across vast areas in China which are different from each other in terms of the number of customers. Menus for every day and every site can be different. We have over 10,000 kinds of service offers as references. The clients can choose what they want at what price. Thus, their expectations can be better satisfied. Enterprises and other organizations decide to outsource the food services for their staffs, because they want to enjoy high-quality food services at best-bargain prices, which also allow the service suppliers to gain reasonable profits. Through its scientific management, Sodexo keep food cost down as 60% or so of sales revenues and therefore materializes a good balance the two sides' interests. Currently, many big companies and organizations like Simens, Nokia, Motorola and the Central Academy of Fine Arts have entrusted their everyday eating to Sodexo.

Sodexo is also engaged into serving many grand events in China like F1 Game. During 2006 Sino-Africa Beijing Forum, Sodexo provided food services to some great hotels which were designated to receive important guests from African governments. Based on the demands of our clients, Sodexo worked out new and special menus and increased night meals and locally-flavored meals. In so doing, we took good care of hotel employees and thus contributed to the successful procession of the Forum. Mr. Christophe SOLAS said, the market of service outsourcing is blessed with bright future. Various new service projects have appeared constantly. Sodexo is wiling to share its relevant successful experiences with Chinese enterprises and achieve common development.

Reporter's comment: In such a World of globalization, one enterprise can win new opportunities to develop, if it ensures high-quality services for its clients by focusing on the professionalization of what it does. Sodexo is one good reference. From offering meal services on maritime liners, Sodexo has been gradually expanding its business into various fields and finally become one Fortune 500 company.