Cost to implement- SQF Level 2 Packaging
As we're moving forward with this program, I'm shocked at how much it costs to implement the system!! Much of it is facility upgrades which are overdue, but I'm wondering what other packaging companies are spending to implement SQF and are they seeing any returns on their investment? Thanks!
I wasn't with my current employer when they did the initial implementation of SQF. I know we incurred costs to add our security key badges, pass-through from bathrooms in to the plant, stainless steel sorting tables, and cost to order appropriate food safety items such as hairnets. We were already FDA IMS listed so many of the required items were in place well before SQF. However, we didn't make huge changes to the facility if they were cost prohibitive. For example the code indicates hand washing stations shall be adjacent to all plant entrances, this was deemed too costly. A risk assessment was performed and determined the fix was to develop our personnel practices instead of pipe in new washing stations. I know many companies are willing to take a hit on an audit instead of pay the cost to change the facility. In regards to return on investment, I couldn't really say. Our customers require a third party certification or we don't do business with them.
Do you have an estimate of your yearly costs to upkeep with the program?
Good question, much of this was already in place for our IMS listing prior to SQF certification. I'll tally up some of those costs and give you a breakdown of equipment, man hours, and recertification costs for SQF.
I swear I didn't forget you. I did some digging. Hard costs and man hours spent for SQF annual certification. Our hard costs came to about $7200. This includes cost of certification, office and training materials (not including initial implementation) and facility materials (i.e., hair nets, beard nets, saniwipes etc.). Our man hours spent were about 3100 hours, based on maintenance man hours, training, daily sanitation needs, monitoring and verification activities, and general time working on SQF specific tasks as a practitioner.
You ask some good questions. If you are interested (or anyone else) with networking, feel free to find me on linkedin, Skype, or send me an email.
Nathan Corliss
The initial cost of certification is heavily dependent on your starting point and can be as little as a few hundred all the way to infinity and beyond. Your/every business is unique and so will your cost of certification.
If your manufacturing and warehousing building and infrastructure are designed for modern food packaging manufacture then that is a large chunk saved. Then there is the question of whether you are using a consultant, do you need any testing equipment, have you got a hygienic layout and product flow, maybe overalls, tools and equipment are required, some contracts for laundry, calibration, pest control. The list goes on. And then the human resources of implementing and maintaining the system and training such as SQF practitioner, auditors etc.
It can be very expensive, but the alternative is that you are out of the game and cannot trade....that's the first ROI. Then of course having a well-organized, disciplined and quality conscious working environment that focuses on continual improvement can become more efficient and reduce waste etc.
Regards,
Simon
wow Ncorliss, just the certifcation audit by itself over here is around 3k. How did you guys manage to do it all for 7200$!
Congrats on that achievement!
Simon actually hits it on the head of the nail quite well.
In the past 8 years we helped a number of food, packaging and logistic companies to develop their SQF systems and the majority of our clients actually lacked basic food safety programs to begin with and needed major capital investment to at least be in compliance with most of the SQF requirements.
The ROI as Simon mentioned are quite true. You will get certified to maintain current accounts and in many cases it will make the difference in getting new accounts or not.
As to costs we,have found the average for 1st year pre-audit, desk audit, certification audit, SQFI sign up fees,and related CB fees to be about 5500-7500 USD.
I would highly suggest any company thinking about becoming SQF certified to bring a competent Consultant in on at least the front end to review operations and the facility itself with a critical eye and full knowledge and understanding of the SQF code.
That way you don't spend a lot more than you need too, know what you can side line and what you may be able to midi gate via risk analysis's.
Recently we conducted a review on a facility and found they needed 15 hand washing sinks - the cost of which would have been prohibitive because of piping, but they still needed those 15 hand sinks.
We had a solution for them that did not require any floor or wall piping and at cost savings of thousands.
We have had companies that only needed a couple of items to be in full compliance and one that we estimated would have to spend 2.5 million - the estimate was close to actual at 2.4 million.
Be careful of what you hear from well meaning amatuer's that will tell you you need this, that and the other thing - most times they will be wrong and it will cost you dearly.
So costs are very much wide open.
Get some experienced eyes - that is,an investment that has great ROI.
Thank you for your reply and tips Mr Osler, wish we had someone like you around!!
Kindest Regards,
Danica
Dear Glen
Our company manufacture food pack, (flexible, termoformable and printed (laminated)). Which will be the most adequated certification? The cheapest? The "basic"?
Which is the difference (applied to our company) between FSC 22000 and SQF?
Thanks in advanced for your help
I have no clue as to what is basic or cheapest - it's completely different than buying a value meal at McD's.
We specialize in SQF only, thus someone else would need to answer the difference between the two.
Of course I think SQF is the best, but then I am rather bias.