Supply Chain & The Food Safety Process

The TÜV SÜD Safety Gauge has found that escalating consumer demand coupled with substantial annual recall costs mean that investing in enhanced product safety can improve consumer well-being and drive commercial success at the same time. 67% of consumers stated that food safety is very important to them now, up from 48% in 2007.

The TÜV SÜD Safety Gauge is an independent global study that explores the attitudes of 5,000 consumers and 500 management-level employees across three industries, including food products.

So important has food safety become that 75% of the consumers surveyed indicated that they are willing to pay a premium averaging 15.5% over regular selling price for food products that achieve exemplary safety standards verified by a credible third-party.

And yet, even as food companies reported conducting an average of 12 product recalls in the last five years at a cost of nearly 9% of revenue, only 56% of global manufacturers, distributers and retailers are able to trace ingredients throughout their supply chain and 47% cannot guarantee that their entire supply chain meets product safety requirements.

Supply chain management from farm to fork is incredibly challenging in the food industry, as it extends globally. However, traceability is critical to speed up the recall process and reduce scope of contamination for the food industry, contend the study’s authors.

They advise supply chain managers to take a “holistic approach” to food safety begins at the farm level with seed testing, tests pertaining to animal feed, as well as soil condition. This should then be supplemented with auditing/certification as well training of staff.

Finally, testing, auditing/certification and training should also be undertaken at the distribution and retail stage. Checks, for example, should be conducted on the packaging, containers and storage facility, supplemented with hygiene and vendor assessment audits.

Supply chain managers realize that consumers are demanding more steps be taken to increase the safety of their food, and that our businesses must respond.

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