Stanford supply chain forum call it distribution or logistics or supply chain management. Similar to the risks arising in other supply chains, food supply chains can be universally affected by a number of different factors all at once all resulting in vulnerabilities and potential risks. Profeducations train online from leading industry experts. Many hazards can be introduced into a facility through raw materials. The key to proactively managing the risks of any disruption in your supply chain is to understand how it can affect your business. Supply chain risk impacts every organization irrespective of sector, size or location in the supply chain. At the same time, the cost of managing supply chain risk is escalating significantly, as are the consequences of not managing such risks effectively. Fragile food supply chains reacting to risks aman deep, dr. In the supply chain, risks can occur in supplying a product or service to a customer in terms of cost, timely delivery and impact on image. This paper describes the methodology for a rapid agricultural supply chain risk assessment rapagrisk developed by the commodity risk management group. Risks to food safety exist along each step of the farmtofork continuum. Top 5 challenges in the retail supply chain spendedge. Supply chain management deals with the management of materials, information, and financial flows in a network consisting of suppliers, manufacturers, distributors, and customers.
The sgs industry survey confirmed that effective communication and collaboration across the supply chain, endtoend supply chain visibility, and transparencyas well as knowledge of current and emerging risksare considered to be the top three prerequisites to effective supply chain risk management and musthave requirements for the. Hazard analysis and risk based preventive controls for human food. Framework for evaluating risks in food supply chain. They have to constantly innovate to serve the changing needs of customers, shift retail formats, and focus on both price and quality.
Eliminating all risk, even if it was possible, would be disproportionate, inefficient and expensive. When one part of the food supply chain is affected, the whole food supply chain is affected, which is often manifested through changes in price agricultural marketing service, 2014. The united states is unlikely to run out of food, experts say, but the coronavirus has thrown supply chains offbalance. Products from local farms may appear in mainstream and local supply chains, and products from more than one supply chain may be present in the same outlets. This knowledge summary focuses mainly on risk management in food supply chains. Consumers, regulators, courts, and the media are paying increased. Scientific and technical needs of the food and drink. Samir dani loughborough university introduction the food supply chain despite. Food supply chain risks despite extensive food safety legislation, increasing customer concerns and its. Organisation carrying out any of the activities related to processing, manufacture, packaging, storage, transportation, import, distribution of. Companies need to begin to understand the risks involved and establish effective management approaches that help them to prevent and respond quickly to potential supply failures. Programs aeps team examining threats to pharmaceutical supply chains examines this event as a case study for the risks and implications of pharmaceutical supply chain disruption. Food supply chains each link is closely related to food safety, strengthen the risk management in the process of food supply chain operation is to avoid the urgent. Often, the same management culture may exist, and the supply chain manager must work to dismantle it.
Managing risks in the global supply chain food safety. In the mainframe situation, the supply chain manager must consider and address inattentive management as a cause of supply chain risk. Food is a fundamental requisite for human existence. Knowledge of what is being purchased, the composition of foods and products e. Due diligence must be completed on all aspects to avoid foodborne illness. The important factors in developing more sustainable supply chains are identified as the type of supply chain involved and the individual business attitude to extending responsibility for product quality into social and environmental performance within their own supply chains. Agricultural supply chain risk assessment is thus an intermediate level assessment. Many challenges today affect our growing global supply chain. By whatever name it is the sinuous, gritty, and cumbersome process by. Supply chain management problems in the food processing. Food safety supply chain risk management deloitte us. You should document this process in a risk management plan, which is part of your overall business continuity plan.
What happened after hurricane maria could shed light on other supply chain vulnerabilities, including the effect of cyber. Selected set of mitigation measures aimed at preventing food fraud in a given supply chain. Fucai xu, shaodong meng 2010 by based on the cause of food supply chain risk, from food quality and safety risk, risk of logistics, food information risk, system risk four aspects carries on the analysis, gives a method of food supply chain risk assessment, finally proposed the corresponding risk prevention measures. The resilience of the food supply chain fsc to disruptions has not kept pace with the extended, globalised, and complex network of modern food chain. We should spend more time and effort managing critical risks than managing low risks. The sourcing and supply of products and services to businesses and consumers is becoming more and more complex and with it, the assessment and management of the associated risk. Food supply chain safety risk prevention and control citeseerx. Addressing unknown risk supply chain risk management must also address unknown risks. Reducing risk in the food supply chain 20161001 ishn. Dang 2003 divided the food supply chain risks into. Pdf supply chain risk management and its mitigation in a. Contains nonbinding recommendations draftnot for implementation. Pdf supply chain risk management and its mitigation in a food. Supply chain risk a handbook of assessment, management.
There are 2 main types of risk to include in your risk management plan. Managing upstream risks in chinas food supply chain. This paper discusses the scope and impact of supply chain fraud, the areas of vulnerability in the supply chain, and key measures to prevent and detect supply chain fraud. A particular risk is the globalization of the food supply chain, as the ingredients are often purchased all over the world and then incorporated into a single product 48. Identifying supply chain risks business queensland. Food suppliers cannot afford supply chain failures, especially with regard to food safety and quality, but such failures occur on a daily basis throughout the industry. Food supply chain is characterized by the complexity of covering a large range of aspects, which determines the diffi culty of its safety risk. Pdf we create a model which analyses the various risks involved in a food supply chain with the help of interpretive structural modelling ism. But a protracted pandemic crisis could quickly put a strain on the food supply chains, a complex web of interactions involving farmers, agricultural. Within the food and beverage industry the supply chain encompasses all aspects of producing, processing, transporting, selling and consuming food. Research on food supply chain risk and its management. To offer customers exciting new flavors, products, and ingredients, many businesses have expanded their geographic reach of sourcing ingredients and materials. These risks can delay or completely disrupt the supply chain, threatening ontime delivery, manufacturing processes and customer commitments.
Page 4 of 7 poorer countries can seek international funding to support their smallholder farmers. In the first place, manual and paperbased operations are common in food supply. Supply chain security reduces risks such as product theft and product diversion, says carlos alvarez, health sciences technical manager for dietary supplements, nsf international. Section 2 talks about the supply chain management for food industry. Food supply chain disruption due to natural disasters. An agrarian society shows the simplistic form of existence where agriculture forms the core of the society and is the prime means of support and sustenance. Before we can understand the constituents of supply chain risks it is important to.
Best practices in supplier qualification and supply chain. Mainly focused on food supply, the survey included four key themes. Food and drink supply chain management looks specifically at the supply chain in the food and drink industry to provide readers with an understanding of the areas as it is now and its growing importance, and where it is going in the future. There are funding mechanisms, such as the global agriculture and food security program, which was created in the aftermath of the 20072008 food crisis for this purpose. Addressing food safety risks along the supply chain download the pdf common challenges internal and external driving forces affect how companies manage their supply chains and can directly or indirectly shape food safety programs. Agriculture and food insecurity risk management in africa. This goes way beyond your supply chain, but thats the point. This study presents a holistic view of the fsc, including the dynamics among its components, and risks and vulnerabilities to disruptions, particularly natural disasters. You can limit the impact of supply chain disruptions on your business by identifying the risks within your supply chain and developing ways to mitigate them. Case studies of mainstream supply chains and two types of local food supply chains reveal the great variety of ways that food products can move from farms to consumers. Food supply chain risk assessment and mitigation tools. Natural disasters, weather, civil unrest, terrorism, workforce strikes and even construction and traffic, all can impact your supply chain.
Top 5 challenges in the retail supply chain the retail supply chain is the one of the busiest supply chains in any industry. The supply chain for food and beverage companies has grown to be truly global and interconnected. As the food supply chains become increasingly global the inherent risk arising from disruptions in supply, lack of traceability and limited accountability have brought supply chain risk management to the fore. Supply chain risk management and its mitigation in a food industry article pdf available in international journal of production research 5011. As food waste is resulting throughout the entire food supply chain around the world, improving the local food supply chain can contribute to optimization of the food supply chains at the global scale corrado and sala, 2018. To achieve this aim, two objectives were formulated, namely 1 to determine supply chain management problems facing the food processing industry, and 2 to establish the influence of supply chain management problems. Effective agricultural risk management strategies play a vital role in fostering productive and sustainable investment across the food and agricultural value chain in order to ensure food and nutrition security. Criticality spatial analysis cristal onlinemobile software technology enables private food companies to document supply chain components, identify specific points and facilities that are at risk of failure, proactively identify and mitigate risks and identify priorities for allocation of. Different types of risk in your supply chain, and how to.
While food safety risks exist throughout the supply chain, this discussion is focused on chinas primary agricultural production. The article concludes with a discussion of risk related to traditional logistics concepts time, cost, quality, agility and leanness by arguing that supply chain risks should also be put into the. Supplychain program requirements and comanufacturer supplier approval and verification for human food and animal food. The following sections compare chinas major agricultural. Supplier and service provider risk management addressing food. Best practices in supplier qualification and supply chain protection.