A report I read recently from an insurance company indicated that the premium for contamination insurance could be as low as £10,250 for companies £100m turnover and £24,275 for companies with £250m turnover. Margins are tight across the food industry but this seems like reasonable cost insurance for the potential value if something does go wrong.
Most businesses look at supply chain risk and supplier risk from the perspective of food safety, but in these in a globally interconnected world with longer and leaner supply chains it becomes necessary to consider financial & commercial risks as part of a supply chain risk management strategy.
This has to be an encouraging development for technical teams responsible for supply chain risk management. Food safety risk & supplier risk has been seen as a compliance issue for too long, if the CFO's are waking up to the reputational risk to their business they may start to take investments in supplier management systems and supply chain compliance more seriously.
The one lesson I would advise you to take away from all the likely conferences & webinars is that recent developments should result in a more focussed senior management commitment to supplier approval management.
t seems to me that there is a lot of experience around the industry about the risk of spontaneous combustion of various ingredients in varying circumstances. It would be really beneficial to pull all this knowledge together in one document
Our supplier assurance systems are designed to identify and reduce supplier risk. Lets make sure that we are proactive rather than just chasing paper.
Another supplier risk issue to consider
With allergen thresholds likely over the coming years this is a good example of how supplier audit and supplier risk management which is traditionally seen as an overhead can be turned to business advantage to support customers looking for cleaner allergen labelling.
A media example of why supply chain risk management needs to be a core competence for all brands.
Botulism in Italian olives highlights the risk that businesses without robust food specs and supplier approval are taking.