• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • Login
  • Subscribe
  • Logout
  • My Profile

  • CORONAVIRUS
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • REGIONS
    • Asia Pacific
    • Canada
    • China
    • Europe
    • Latin America
    • Middle East/Africa
    • North America
  • THINK TANK
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Food Safety Is Not Peanuts

Food Safety Is Not Peanuts

April 1, 2009
AMR Research

In his weekly address to the nation on March 14, 2009, President Obama announced he's forming a Food Safety Working Group to "upgrade our food safety laws for the 21st century." This got us thinking. Believe it or not, there are currently 11 government agencies in the United States with oversight on food safety under the departments of the Food and Drug Association (FDA), the Department of Agriculture, the Centers for Disease Control and Prevention, and the Environmental Protection Agency. While the FDA is the primary department, it has historically had more of a focus on drugs than food. So while 11 agencies own a piece of the problem--and forming the ultimate solution--in essence, there is no oversight.

To compensate, manufacturers have historically depended on supplier audits. For example, Peanut Corporation of America had been assigned a rating of superior by the American Institute of Baking in March 2008, giving a false endorsement of food safety to the extended supply chain.

Each year, an increasing amount of raw materials cross international borders. More than 30% of food manufacturing today is done by a third party. In addition, brand manufacturers in food and beverage have increased product claims. Terms like "organic," "free-range," and "allergen free" abound, as do "health" and "wellness." With this increased complexity, oversight cannot be solved by an individual company, a group of companies, or audit groups. The answer lies in more than technology or labeling. Instead, it needs to be an ecosystem play enforced by compliance. That's the only way to get players that don't play well together to work on solving the problem as a team.

In many ways, systems are broken. Public health systems take two weeks to sense a food-borne illness. According to the results from our studies, when there is a health or safety issue, only 40% of food products can be recalled. And it's more than just consumers getting hurt. When a major recall happens, it reduces the shareholder value of the producing company by 7%.

Company write-offs are also substantial. The average cost is $20M, with 14% of companies writing off more than $50M. When a category has a recall, 57% of consumers stop buying the category. In short, product velocity through retail is faster than public health sensing, with major risk to the company.

In the end, we all want to deliver safety to our children in their school cafeterias and our families at dinner. To do this, however, we need to rethink the entire system. We need to redefine the role of government, redesign supply chain capabilities, and more effectively sense and respond when there's a problem. This is one where it will truly take a village. Today, we need to start with city planning.

AMR Research has continuously researched this topic over the past several years. Below is a sample from our library that addresses the problems of food safety and traceability. If we can help advise your company on traceability in your supply chain, e-mail me at lcecere@amrresearch.com.
AMR Research

RELATED CONTENT

RELATED VIDEOS

Regulation & Compliance SC Security & Risk Mgmt Food & Beverage High-Tech/Electronics
KEYWORDS Food and Beverage High-Tech/Electronics Regulation & Compliance SC Security & Risk Mgmt
  • Related Articles

    ‘Smart’ or Not, A.I. Is Playing a Crucial Role in Ensuring Food Safety

    Who's Not Safe Under the Food Safety Act?

    Preventing Brand Damage: A New Bar Is Set for Food Safety Practices

  • Related Events

    Post-Pandemic Impacts on Food & Beverage Businesses and How to Ensure Resiliency

AMR Research

Mergers & Acquisitions Usually Bring Together a Lot of Headaches

More from this author

Wake up to Coronavirus Updates and the latest Supply Chain News!

Subscribe to our Daily Newsletter

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • Coronavirus-watch-Armada

    Virus Update: Biden Seeks $1.9 Trillion for Relief Bill; India to Supply Millions of Vaccine Doses to Neighbors

    Coronavirus
  • U.S. and China Trade

    How China Won Trump’s Trade War and Got Americans to Foot the Bill

    Global Supply Chain Management
  • Obtaining Adequate Supplies of PPE in the Pandemic

    Watch: Obtaining Adequate Supplies of PPE in the Pandemic

    Coronavirus
  • AT&T

    How the Pandemic Has Altered AT&T’s Global Sourcing Strategy

    Coronavirus
  • Chip Shortage Hits Global Automakers

    Chip Shortage Hits Global Automakers

    Coronavirus

Digital Edition

Scb home issue 27

2020 Supply Chain Innovator of the Year

VIEW THE LATEST ISSUE

Case Studies

  • LSP Saves Customer $1.5 Million a Year With MPO Global Inbound Management

  • Auto Supplier Wows Key Client Using riskmethods Supply Chain Savvy

  • Integrating Shipping and Compliance Saves Conglomerate Millions

  • How a Consumer Goods Giant Upped Its On-Time Delivery Performance

  • LSP Wows Global Client, Quickly Advances to Become End-to-End Provider

Visit Our Sponsors

6 River Systems ArcBest Armada
aThingz BluJay Burris Logistics
DSC Logistics DCSA (Digital Container Shipping Association) DHL Resilience360
Genpact GEP Honeywell Intelligrated
Infor Logility Magnitude Software
MPO Old Dominion Oliver Wight
OpenSky Ports America Purolator
QAD Precision Red Classic Riskmethods
TGW Systems Transportation Insights Watson Land Company
Westfalia Technologies Workjam Yang Ming
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright © 2016 - 2018 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing