4 replies to this topic

[izundusydney]

Hello everyone,

I am researching on the how food safety principles practically affect the organisation bottom line especially in area of reducing cost. If you have any case studies or scenarios to justify why an organisation should invest money to encourage food safety culture or general safety practices I would appreciate if you can share.

 

Cheers

Izu

[kenzml]

Hi izundusydney, 

 

RECALLS - a good food safety program works to reduce recalls or issues before they even happen. 

 

The COST of a recall due to product disposal, returning product, replacing product and the impact to the brand as a whole is enough to support needing good food safety principles enforced within a company. Worst case scenario - what if someone or multiple people pass away because your product isn't safe??? This turns from a bottom line question to your business no longer being operational. 

 

Also - you have a typo in your subject (foot vs food)

[Timwoodbag]

https://www.cbsnews....en-closes-shop/

 

https://www.foodsafe...-profitability/

 

https://www.iseki-fo...le/view/303/160

 

https://www.stericyc...etail-Level.pdf

 

https://edis.ifas.ufl.edu/fs270

[kingstudruler1]

convincing accountants and people that think like accounts that food safety has a benefit other than a "recall" is difficult.  There are absolutely benefits of a good program that rarely get take into account.    Im not sure if this is what you are looking for but here are a few of my ideas.  

 

first time pass.   placing product on hold and reworking or destruction has a cost   i've saved companies 100ks by improving this.   

reduction in customer complaints.   answering, investigating, correcting complaints has a cost.  retaining customers

waste reduction / over using ingredients resources through close specification & process  monitoring / statistical control, training.   ive saved companies 100ks with this  

efficiencies  - gained in a thoroughly trained and competent staff.  

reduced down time due to properly designed and maintained equipment.   

reduced waste from consistent raw materials.  

sanitation efficiencies due to correct procedures,  training, etc ( reduced time, reduce chemical, reduce recleans)

benefits of food safety culture.  employees engaged with ideas, concerns, solutions, improvements

weight control - reducing giveaway and scrap / rework

[SQFconsultant]

This is what I know after 10 years in SQF Consulting - investing in food safety by getting GFSI certified regardless of SQF, BRC, IFS, FSSC, GlobalGap, etc. is not reducer of costs - it is a major profit maker.

 

I sat in a conference room recently with five owners of a hundred million company, that is not GFSI nor for that matter does not meet FSMA, nor simply even have a viable  Food Safety Management System and they were telling me about how they are holding on by threads with major retailers that told them to get GFSI certified, or else... the or else part came with the loss of a 10 million account and then another one of 7 million - they are now an 83 million dollar company and they still wanted to argue that being certfied would not reduce their costs.

 

They asked me what I thought and I said - I agree, it will not reduce your costs - in fact on the front end it will increase your costs becuase you haven't been "with the program" for years and years and now the stark reality is that your business is falling apart because of your stubborness to get certified - which is a business retainer and generator.

 

I told them I would show them ways to get back the business that was lost and generate new, but they had to engage us first to handle their entire SQF program and the roll out -- they have.

 

We got the 10 million acccount back + will add 500 more stores in that group once the company is SQF certified, we have contacts with several retailers and they will be coming on line as well.

 

In total the company will spend about a million in infrastructure, consulting fees, labor and all those things that a company has to have like sinks, flammable storage cabinets, dumpsters, first aid kits, cleaning implements, etc, etc. etc.

 

I think it will take about a year to start seeing a reduction in costs and it will be huge.