FoodLogiQ CEO Discusses Supply Chain Risk During Food Logistics Webinar
As the food supply chain becomes longer and more complex, the risk to food companies is amplifying. From food safety to regulatory compliance to the negative consequences of a recall to a brand and its reputation, the need for a comprehensive risk mitigation program is crucial.
Please join our CEO, Dean Wiltse and Lara Sowinski, Editorial Director of Food Logistics, on Tuesday, December 12 at 1:00pm EST who will discuss food supply chain risk, what it looks like, where it resides, and how to formulate a risk mitigation plan. Register here.
Different Risks are Affecting the Food Industry
Foodborne illness outbreaks are making national headlines. Increased testing in the supply chain is fueling a rise in food recalls and voluntary withdrawals around the world. Recalls are incredibly costly for food companies. In a joint report published by the Grocery Manufacturers Association, Food Marketing Institute and GS1 US, the average recall is about $10 million in direct costs, not including brand damage and lost sales.
Companies are still scrambling for solutions to get their supply chain ready for FSMA compliance. Our CEO, Dean Wiltse explains, “For many, getting a handle on who exactly is supplying into their operations is a daunting task. But if you don’t have a deep understanding of your suppliers, how are you supposed to manage risk in your supply chain? Once you are fully aware of your suppliers and their ingredients, you can better execute your plan when there is a quality or safety issue.”
The demand by consumers for fresh, organic and even local food is changing every segment of our business. Consumers are also craving transparency. They want more information about the food they eat, what’s in it and where it came from. They are patronizing companies that are providing it and they are willing to pay more for it. How can companies make good on these brand promises?
The majority of food companies are lagging behind in the technology needed to address these growing food safety and supply chain issues as well as meet consumer transparency demands. Surprisingly, in this age of smartphones and technology, the majority are still manually managing suppliers and their quality requirements on endless paper documents, spreadsheets and over email. If you are faced with a recall, voluntary withdrawal or if faced with a FDA inspection, time is of the essence. Technology can provide the speed, accuracy and single source of truth that are mission critical, especially during a recall.
How to Mitigate Risk
Technology allows food companies to confidently make food safety decisions, protect their brand while documenting and recording every step of the process to demonstrate to regulators - and their Board of Directors - their precise and timely handling of any issues.
FoodLogiQ allows you centralize and automate supplier management, capture product information and documents from each of those suppliers and house the communications in one spot. You can then achieve end-to-end traceability for your supply chain and act with confidence when food safety or quality issues arise or you have to issue a stock withdrawal or recall.
For much of the food industry, recalls are managed manually through paper, email, spreadsheet and phone calls. Using Recall + Response for executing stock withdrawals, recalls and mock recalls empowers food companies both large and small to execute faster, more targeted recall management across their supply chain.
“I recommend looking at technology that can address your pain points today but also grow with you and your business needs,” said Wiltse. “With FoodLogiQ’s open API platform, you can connect the data you gather with other IoT platforms and achieve the supply chain visibility critical for not only food safety and efficiency but leverage it for a competitive advantage.”
Whether it is a consumer-facing loyalty app, temperature monitoring sensors, inventory management platforms or grocery delivery services, the food industry requires a centralized technology platform, like FoodLogiQ, to connect these many complex data sources and reduce redundancies through integrations.