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How Supply Chain Management Helps Food Businesses?

By Food and Beverages | Tuesday, February 11, 2020

Supply chain management has a very critical role to play in food safety. How can it help the food industry to decrease food risks?

FREMONT, CA: Supply chain management is a very necessary component of the food industry. A weak supply chain management can become a primary cause of food recalls. Therefore, it has become very necessary for food manufacturers and retailers to install robust food safety management systems for reducing supply chain risks.

The following are some of the ways for food businesses to decrease food safety risks in their supply chain.

1. Using technology for greater transparency

Technology is the connection more and more food manufacturers and retailers to suppliers than ever; therefore, it is necessary for them to be aware of the risks. Technologies like sensors detect changes in temperature, and smart packaging changes the color on the basis of expiry dates, thus providing manufacturers with greater control over possible hazards.

2. Supervise indirect suppliers

It is challenging to document the end-to-end supply chain, which puts manufacturers at a higher risk of losing control of their supplier relationships. This is where the importance of monitoring of indirect suppliers comes into the picture. Although, this can be expensive as well as extensive process, which needs both money and time, and decisions regarding whom to target and how far to go rely on the relative risks associated with the products or ingredients being sources like country of origin.

3. Considering consumer’s feedback and demand

Today consumers are increasingly conscious about the food they eat and demand high ethical standards when it is about the sourcing and manufacturing of food. Enterprises are now held publicly responsible for the inferior ethical activities of the first, second, third, and fourth-tier suppliers. Therefore, organizations need to stay close to their customer’ requirements and demands as it is very critical for their success.

4. Setting key performance indicators for suppliers

Motivating suppliers to strive for excellence can prove to be highly useful. For example, suppliers who are performing excellently can be awarded for providing the finest quality products, flawless service, and most on-time delivery. The company should make sure that these indicators are exact for early risk detection and are set throughout the supply chain.

5. Implementing supplier diversity management program

Supplier diversity management is gaining popularity among food companies who are looking to migrate from the ‘preferred supplier’ model to a ‘multi-supplier’ relationship model. This kind of program can introduce innovations through the latest products, services, and solutions, which empowers an enterprise to discover new opportunities for business expansion.

To conclude, food manufacturing companies must ponder upon the above points in order to succeed in the food market and establish their brand.

See Also :- Top Food and Beverages Technology Solution Companie

 

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