The food industry's supply chain risks

The food industry's supply chain is developing and becoming gradually complex. Companies must know the challenges they face and potential solutions to manage food security risks in today's environment. Some fundamental challenges involve company organization and governance, recall management, marketplace evolution, a balance between cost reduction and risk mitigation, and difficulty defining supply chains beyond tier one. Companies should proactively address these challenges to identify and react to food safety and quality risks. An organization, which indicates leadership activities, should develop a food safety and quality culture. The culture of companies is fundamental to anticipate that food security is a priority for the company, and it supports the structure of governance and supervision.

To effectively manage the world market's challenges, organizations that provide accurate documentation, traceability, and control must reduce complexities within their supply chains. Supply chain documentation will proactively detect potential risks and support the mitigation of those risks, thereby protecting brands and meeting ever-changing consumer demands. Investing in integrative IT systems, end-to-end documenting of the supply chain, the blockchain, and the creation of food safety capability will be required to address problems encountered by organizations and their supply chain partners.

The safety of incoming ingredients, packaging materials, and other essential process-related equipment arriving at its production facilities is a weak link for many in the industry. In 2011, the U.S. FDA passed the Food Safety Modernization Act, its most comprehensive law on food safety.

The Foreign Supplier Verification requirement is a principal feature of U.S. legislation. All foreign food shipments entering the entry ports in the U.S. should satisfy the same food safety standards as those that domestic producers should.

This part of the FSMA regulation is expected to lead to a significant upheaval for many supply chain partners in the U.S.; the regulation is also expected to improve food safety throughout the supply chain. These landmarks are based on accepting fundamental scientific principles to confirm food safety. The apparent reason these laws are written is the validation and verification, a mark of both the FSMA and the SFCA.

However, food manufacturers, restaurants, and retailers will continue to face the challenges posed by internal and external food security challenges as the supply chain complexity increases, regulations continue to evolve, and the demands of consumers increase. As a result, companies must understand what innovative and disruptive technologies, like the IoT and blockchain are available and leverage them to identify and manage the food security risk supply chain.