Risk k Assess essing ing Your Food Su Supply ly Chain ain A - PowerPoint PPT Presentation

Risk k Assess essing ing Your Food Su Supply ly Chain ain A PASSION FOR FOOD INDUSTRY COMPLIANCE

About Sa Safefo food od 360 360 ° Software Platform Comprehensive platform covering all aspects of food industry compliance: SaaS Solution Web Access 30+ Modules Compliance Software Domain Expertise World class knowledge of food safety and World class support Robust SLA compliance provided by a team of experienced food industry experts: IT developers led by food safety experts Experienced team Food safety product – not an IT project

Food Sa Safety y Issues ues in the Su Supply ly Chain in • Inability to maintain the safety and quality of your products. 1 in 10 people affected and >420,000 die globally from foodborne illness every year (WHO, 2015) • Difficulty conducting risk assessments (supply chain entities, products and supply chains) • Lack of traceability and difficulty tracking and controlling product movements • Inadequate communication between parties and sharing of data for conducting risk assessments • Rising supply chain costs including increased cost from number and effectiveness of recalls

Food Sa Safety y Issues ues in the Su Supply ly Chain in • Complexity of global food supply chain increasing • Complexity of trade arrangements and barriers • Variation in food safety standards across geographic and political regions

Main in Chall llen enges ges – Su Supply ly Chain in Data ta • Visibility of supply chain data • Cooperation across interested parties and stakeholders to support the flow of this data • Solutions to enable data flow securely • Suitable and accessible technologies to support this

What is Risk? k? “The scientific evaluation of known or potential adverse health effects resulting from human exposure to foodborne hazards” - WHO

What is the requir uiremen ement t for conduc uctin ting g risk sk assess ssment ent on your supply ly chain? ain? FDA – FSMA Rules Retailers GFSI Standards “Th c y h ll u d k “All u l h u b Supplier Verification - risk assess assessed to determine the overall documented risk assessment of each individual suppliers, supplier facilities l…” BRC I7 3.5 and products potential risk associated with their l g g b ” TFMSv6Sec 3

Sc Scope of Risk k Assess ssments ments Requir uired ed On Your Su Supply ly Chain in Faci cili litie ies Agents / B Broke okers Suppli lier ers Individual facilities accounting for Supplier entity with title of ownership Assessed as a supplier local objective risks rd Party 3 rd Raw Mater erials ials Product ducts Must be within the scope of Individual raw materials, ingredients, Traded products where title of assessment and addressed as a facility packaging ownerships is assumed - FSMA

Su Supply y Risk: sk: Comes s mainly nly from two sources ces 1. Nature of supplier’s operation and compliance with requirements 2. Intrinsic hazard to the material supplied Companies should identify suppliers that drive the greatest level of risk. The lack of visibility through the overall supply chain and amount of information required are the main challenges that a company needs to face.

Typical ical Food Su Supply ly Chain ain Facility Facility Retailer Distributor Facility Agent Supplier You Retailer Broker Facility Broker Agent Retailer Facility Facility RISK RISK RISK RISK RISK RISK Potent tentia ial l risk k added as compl plexit exity y of chain n increases ases

Risk k Assess essment ment Model el - Matri rix More appropriate for HACCP based assessments focusing on a specific hazard at a specific process step or stage. Probability Severity RISK

Case e St Study – US M S Manufacturing ufacturing Busine iness ss The annual al demands nds of F FSMA requir ire e this s food business ness to compl plet ete e almost st 40,00 000 0 individu vidual al actio ions ns every year to comply ly with supply y chain in manag agement ement requir irements. ements. 363 3,054 34,533 80% 12 Suppliers Materials Documents Compliance Facilities Producing Multiple T o determine this Annual assessment Annual assessments T o be collected, Category Products compliance rate is, in required required reviewed, and itself, a major job before approved annually actions can even be taken. This well resourced company can only achieve 80% compliance levels

Risk k Assess essment ment Model el – Criteria iteria Model el More appropriate for Supply Chain risk assessments looking at various risk factors contributing to supplier or material risk. Criteria Criteria Criteria Criteria RISK 1 3 2 4 Risk Weighting Some risk criteria will contribute more to the overall risk value – some will contribute less

Type e of Sa Sample e Crit iter eria ia Being g Used by Companies anies Assign risk Has the supplier / facility achieved some 3 rd party certification standard? GFSI I / Oth ther er Certifica tificatio tion values to criteria Does the company issue certificates of analysis or conformance? COA / COC Weight criteria This criteria involves referring to public databases on the history of food safety from Coun untry y of Origin igin particular countries or regions including likelihood for food fraud Recall call / Aler lerts ts in Last ast 24 Measuring the number of recalls, alerts, notifications, withdrawals, sanctions over a recent Months period may indicate the level of risk with a particular supplier A measure of the potential level of threat in the supply chain – food fraud / adulteration, etc. Threat eat / Food Defens ense Integrating exposure into the RA. The greater the volume the greater the exposure should an Volu lume me of Supply ly issue arise

Su Supply y Chain in Mappin ping g & & Intelligence elligence You need to know WHO at various Tiers in your supply chain [MAPPING] Real Time Data You need to know WHAT for individual supply chain entities and any given moment in time [INTELLIGENCE]

Su Supply y Chain in Mappin ping g & & Intelligence elligence Do they have a history of Food Fraud issues? Agent Agent You Facility Dist Material Facility Supplier Are they from a Facility high risk Broker country? Are they GFSI certified?

T echn chnolog ologic ical al Develop velopmen ments ts and Opportunities unities • Distributed ledger technology (Blockchain) / smart contracts • Cloud technologies and solutions / portals / shared platforms • Big data analysis/modelling / sharing of data particularly in relation to hazards and risks • Technologies for tracking movement of products • Smart labelling, smart packaging • Monitoring of quality and food safety attributes in the supply chain - sensors – temperature/ humidity • Predictive modelling

Key T akeaw keaway ay Given the nature of the challenges it’s clear that technology will play an increasing role in solving these challenges medium to long term. What that looks like, remains an open question.

Que Question stions? s?

Th Thank nk you you! George e Howlet ett CEO, Safefo food od 360 360 ° george. ge.howle howlett@saf @safefo efood od36 360. 0.com com www.s .saf afef efoo ood36 d360. 0.co com