Building a Resilient Food Supply Chain: Lessons in Streamlining Operations

By Ainsley Lawrence
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Supply chain stability has a great deal of influence over food safety and security across global markets. When food networks experience disruptions, the consequences affect production, distribution, storage conditions, and consumer well-being. Recent events, such as the COVID-19 pandemic, have demonstrated the urgency of developing adaptable food supply systems that maintain strict safety standards under pressure.

Modern food supply chains must balance operational excellence with strategic planning to respond to market shifts and evolving safety requirements. An ideal approach integrates vendor partnerships, technological solutions, and risk management practices to create robust networks that protect business value and public health. Successful food supply networks blend time-tested operational practices with smart innovation, maintaining quality standards through every market shift and challenge.

Streamlining Operations for Efficiency

Food supply networks depend on seamless coordination between multiple moving parts, from initial production to final delivery. Each step in the process — from cold storage management to transportation scheduling — requires precise timing and careful quality control. Optimizing these operations demands attention to two critical areas: building strong vendor partnerships and integrating smart technology solutions.

These core elements create reliable, efficient systems that maintain food safety while reducing operational costs. Success begins with cultivating strong partnerships throughout the vendor network and amplifying these relationships through strategic technology adoption. Striking this balance requires careful attention to supplier relationships and smart implementation of digital monitoring tools.

Building Strong Vendor Networks

Strong vendor relationships start with clear performance standards and consistent communication practices. Regular quality assessments and collaborative planning sessions help create lasting partnerships built on mutual success. These relationships become especially valuable during supply chain challenges when quick responses and flexible solutions matter most.

Effective vendor invoice processing reduces costs through automated systems and standardized procedures. This streamlined approach eliminates common error sources while freeing staff to prioritize strategic improvements. Well-managed vendor documentation also supports compliance efforts by maintaining clear records of all transactions and quality verifications.

Technology Integration for Safety and Efficiency

Advanced digital systems monitor food safety throughout storage and transportation, offering precise control over environmental conditions and product tracking. Modern IoT-driven sensor networks provide continuous updates on temperature, humidity, and other critical factors that affect food quality. These systems also utilize AI technology to analyze and formulate rapid responses to potential issues before they affect product safety.

Digital platforms also improve communication across the supply chain, connecting vendors, transporters, and facility managers through unified data systems. Real-time updates and automated alerts help maintain product integrity while reducing waste. Supply chain managers use this precise, real-time data to reinforce both immediate decisions and strategic planning.

Risk Mitigation and Flexibility in the Supply Chain

Food distribution networks face persistent challenges from multiple sources. Seasonal storms disrupt transportation routes, equipment failures compromise cold storage systems, and sudden demand spikes strain production capacity. Each type of disruption presents unique challenges to food safety and quality control, requiring specific strategies and response protocols.

Effective risk management combines two essential capabilities: systematic vulnerability assessment and operational flexibility. Organizations must develop methods to spot potential problems before affecting product quality. They then need adaptable systems that can quickly adjust to changing conditions without compromising safety standards.

Identifying and Addressing Vulnerabilities

Effective risk prevention begins with regular assessment of potential weak points. Transportation delays, equipment malfunctions, and storage complications can all threaten product integrity. Maintaining food safety during disruptions requires systematic monitoring and clear response protocols. Organizations particularly benefit from detailed contingency plans that anticipate various scenarios and outline specific actions for each situation.

Quality control teams must stay alert to subtle indicators that might signal developing problems. This vigilance includes monitoring supplier performance metrics, tracking delivery patterns, and analyzing temperature control data. Early detection of potential issues allows swift intervention before minor concerns escalate into significant disruptions.

Building Adaptable Systems

Flexible distribution networks accommodate sudden changes without sacrificing safety standards or operational efficiency. This adaptability stems from strategic redundancy in critical areas, including backup supplier relationships and alternative transportation routes. Cross-trained staff members provide additional flexibility, allowing quick reallocation of resources when specific areas need extra support.

Clear communication channels prove essential during periods of adjustment. Team members at every level need accurate, current information about changing conditions and modified procedures. Staff training drills sharpen emergency response skills and build team confidence. Well-prepared personnel protect food quality standards while smoothly executing needed process adjustments.

Branding and Consumer Trust in Food Safety

Consumer confidence grows from consistent safety practices paired with open communication. Food producers and distributors sharing detailed information about quality control measures build lasting market relationships. Today’s consumers look beyond basic safety claims — they want to understand specific handling procedures, storage protocols, and quality certifications. This heightened interest in food safety creates opportunities for meaningful dialogue with customers about quality assurance practices.

Meeting these expectations takes a coordinated approach that spans internal operations and external communications. Organizations can build consumer trust by creating clear, accessible messages about safety standards and fostering active participation in safety practices across all stakeholder groups. From employee training programs to consumer education initiatives, each element of safety communication plays a vital role in building and maintaining market confidence.

Communicating Safety Commitments

Clear messaging about food safety practices builds credibility with consumers and retail partners. Documentation of safety protocols, quality certifications, and handling procedures demonstrates dedication to product quality. Promotional products highlight your brand values while educating consumers about specific safety measures, from temperature monitoring to contamination prevention. If possible, tailor your materials to match the relationship in question.

Safety communication involves more than standard product packaging and labels. Websites, social media, and print materials collaborate to share detailed quality control processes and safety innovations. Using multiple communication methods helps consumers find accurate safety information wherever they look. Generally speaking, it’s better to have more information available than you need than to be too opaque.

Engaging Stakeholders in Safety Culture

Food safety excellence starts in warehouses and continues through every delivery route. Quality control teams conduct hands-on training sessions, from temperature monitoring to contamination prevention, to simulate real-world challenges. Staff members contribute valuable insights through structured feedback programs, often identifying practical improvements to daily operations. Employee recognition programs celebrate exceptional safety practices, spurring healthy competition and innovative approaches to quality control.

Safety education has far-reaching effects throughout the distribution network. Distribution centers conduct specialized training sessions for retail partners, teaching proper handling techniques for various food categories. Store staff learn optimal storage methods for different products and then pass this knowledge to customers through clear guidelines and practical tips. Local food safety workshops bring together warehouse teams, retail staff, and consumers, creating collaborative learning environments.

Final Thoughts

Strong food supply networks emerge from careful attention to three core elements: operational precision, risk readiness, and stakeholder engagement. Organizations that excel at vendor management while integrating advanced monitoring systems create reliable distribution channels that withstand market pressures. Clear safety protocols and quick-response capabilities maintain food quality through unexpected challenges.

Safety-focused communication strengthens every link in the food supply chain. Informed employees can spot potential issues early, trained vendors can follow precise handling procedures, and educated consumers can make smarter storage decisions. When each participant understands their role in maintaining food safety, the entire system benefits through consistent quality, reduced waste, and increased market confidence.

Ask The Expert

Top Questions to Ask When Selecting Your Food Safety Consultant

By Jennifer Lott
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In the dynamic and complex food industry landscape, the role of a food safety consultant is crucial. They provide expert guidance, advice, and assistance to ensure food safety, hygiene, and compliance with industry standards and regulatory requirements. Below are essential inquiries to ask your food safety consultant to ensure optimal results and mitigate potential risks and challenges.

  1. Are you familiar with our specific segment within the food industry? The food industry encompasses various sectors, each with unique challenges. Familiarity with your specific sector, such as dairies, bakeries, meat, confectionery, or packaging, will prove advantageous, allowing the food safety consultant to tailor their advice and solutions to your specific needs.
  2. Can you help develop and implement a robust food safety management system (FSMS)? An effective FSMS is key to ensuring the safety and quality of food products. You can gauge the consultant’s potential effectiveness by evaluating their ability to design and implement an FSMS based on relevant standards like HACCP or ISO 22000.
  3. How well-versed are you in risk analysis and hazard identification? The food chain has various potential hazards, from raw material sourcing to processing and distribution. The consultant needs expert knowledge in identifying potential risks and implementing measures to control them.
  4. How do you approach problem-solving when a food safety issue arises? Every consultant should have a systematic approach to mitigating food safety crises. This approach may incorporate principles from Six Sigma, Lean Manufacturing, or Kaizen, which are methodologies for problem-solving and continuous improvement.

Selecting a food safety consultant requires careful consideration. By using some of these questions as a framework for objectively assessing potential candidates, you can confidently select a consultant who will provide the knowledge, expertise, and strategic guidance your operation requires. This proactive approach to food safety ensures the well-being of consumers, compliance with regulatory standards and the longevity and reputation of your brand.

Do you have a pressing issue but don’t know where to start? Let SGS help you meet customer expectations with our tailored solutions.

Beltway Beat

Food and Dietary Supplement Labeling: What Comes Next?

By Paula Brock, PhD, MSCI
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Labeling of food and dietary supplements in the United States involve several aspects and each must be approached with careful consideration. Regulatory, scientific, and business decisions need to be considered when working on labels’ mandatory elements and claims. The FDA released in December 2024 and January 2025 a few new proposed and final rules on several issues that will impact food and dietary supplement labeling. 1,2,3,4 However, it is unclear at this time whether these rules will be approved by the new federal administration. 5 Stay tuned into these topics over the next few months to obtain information on the final requirements.

Mandatory elements of the label declared on the principal display panel (or front-of-package) include the statement of identity and net content of the product. Other elements such as warnings might also be required depending on the product. One of the newly proposed rules by the FDA is the inclusion of an abbreviated version of the nutrition information (“Nutrition Info Box”) to be placed on the front of the package of most packaged foods. 1 If approved, companies will have 3 to 4 years (depending on business size) to implement the new label. Although editing a label is not very challenging, some companies might decide to reformulate the entire product in order to avoid a potential drop in sales. The nutrition info box will include clear information of product’s level as low, medium, or high of saturated fats, sodium, and added sugars on the front-of-package. In addition, the FDA released a draft guidance (nonbinding recommendations) on the statement of identity of plant-based foods. Coming up with the statement of identity of non-standardized foods can be tricky. This FDA guidance provides examples of how to name plant-based foods such as “soy-based cheddar cheese,” “chickpea and lentil-based fish sticks,” and “chia and flaxseed egg-less scramble.” This draft guidance is open to receive comments. The period for comments ends on May 7, 2025, and can be submitted online. 2

The other mandatory elements of the label are declared in the information panel. This is the panel located immediately to the right of the principal display panel and includes the Nutrition/Supplement Facts panel, the list of other ingredients (including allergen declaration), and the name and place of business. One of the FDA’s newly proposed rules that will impact the information panel if approved is the ban on Red No. 3 color additive. 3 Prohibiting the use FD&C Red No.3 will cause companies to reformulate their products. Food companies will have until January 15, 2027 to comply. Imported foods will also have to comply. This rule came into decision due to data that Red No.3 dye might induce cancer. The FDA also released a final guidance for industry regarding food allergen labeling. This guidance provides several new questions and answers on allergens such as shellfish and fish species as well as on allergen-free claims. Although this is a final guidance, comments can be submitted any time. 4

Claims are another important piece of the labeling. Claims inform consumers of the intended use of the product as well as add product marketability. However, as with the other components of the label, ensuring compliance with the correct claims wording and claims substantiation will keep companies out of trouble. The new FDA rule that will affect product claims if approved is on the term “healthy.” In December 2024, the FDA released a final rule on the eligibility for use of the term “healthy” as it relates to nutrient content claims in food and dietary supplements. This rule is set to be effective on February 25, 2025 with compliance until February 25, 2028. However, again it is unclear if this final rule will remain after the new federal administration. In general, the term “healthy” will only be allowed when products meet the criteria of containing a certain amount of healthy nutrients (i.e., fruits, vegetables, grains, fat-free and low-fat dairy and proteins) as well as staying under the limit for unhealthy nutrients including added sugars, saturated fat and sodium. 5

References

  1. FDA Proposes Requiring At-a-Glance Nutrition Information on the Front of Packaged Foods. Content current as of: 01/14/2025. Retrieved from https://www.fda.gov/news-events/press-announcements/fda-proposes-requiring-glance-nutrition-information-front-packaged-foods
  2. S. Department of Health and Human Services – Food and Drug Administration – Human Foods Program. Labeling of Plant-Based Alternatives to Animal-Derived Foods: Draft Guidance for Industry – Draft Guidance. January 2025. Retrieved from https://www.fda.gov/regulatory-information/search-fda-guidance-documents/draft-guidance-industry-labeling-plant-based-alternatives-animal-derived-foods
  3. FDA to Revoke Authorization for the Use of Red No. 3 in Food and Ingested Drugs. January 15, 2025. Retrieved from https://www.fda.gov/food/hfp-constituent-updates/fda-revoke-authorization-use-red-no-3-food-and-ingested-drugs?utm_medium=email&utm_source=govdelivery
  4. Guidance for Industry: Questions and Answers Regarding Food Allergen Labeling (Edition 5). January 2025. Retrieved from https://www.fda.gov/regulatory-information/search-fda-guidance-documents/guidance-industry-questions-and-answers-regarding-food-allergen-labeling-edition-5
  5. Federal Register. Food Labeling: Nutrient Content Claims; Definitions of Term “Healthy”. Final Rule. 12/27/2024. Retrieved from https://www.federalregister.gov/documents/2024/12/27/2024-29957/food-labeling-nutrient-content-claims-definition-of-term-healthy
  6. U.S. Department of Health and Human Services – Food and Drug Administration – Use of the term healthy on food labeling. Current as of: 01/16/2025. Retrieved from: https://www.fda.gov/food/nutrition-food-labeling-and-critical-foods/use-term-healthy-food-labeling
  7. White House – Presidential Actions. Regulatory Freeze Pending Review. January 20, 2025. Retrieved from https://www.whitehouse.gov/presidential-actions/2025/01/regulatory-freeze-pending-review/?utm_campaign=EAS&utm_medium=email&_hsenc=p2ANqtz-_HHp0nhlpXvYDyI9YOR-vQDb1SlAgnpQqVgmz8ThSBYafnpoq4dU9cxrRdWE-bzXjjg5QSK9cAKqt0pJyAXSmuO2JP-Yjk7A_ym9DL2xL6O49XJRI&_hsmi=343689829&utm_content=343689829&utm_source=hs_email
Big data

Data-Driven Decisions in Food Safety: Avoiding Cognitive Bias in Risk Assessments

By Ainsley Lawrence
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Big data

Food safety remains a vital concern for public health and consumer trust. Every decision in risk assessment can protect lives and prevent contamination. Adopting data-driven methods offers a clear advantage over traditional practices prone to human bias. Today, predictive analytics, digital collaboration, and Industry 4.0 innovations provide much of the evidence needed to secure the food supply.

However, biases can still affect these advanced technologies. To maximize their benefits, it’s vital to be mindful of these potential issues so you can prevent them from occurring and overcome them if they do.

Understanding Cognitive Bias in Food Safety Risk Assessments

Cognitive biases distort decision-making. Confirmation bias leads experts to favor data that supports familiar ideas. The availability heuristic overemphasizes recent or vivid events.

Information bias encourages reliance on incomplete or misleading data. Each bias weakens the risk assessment process and can result in missed hazards.

Recent research shows that biased evaluations have contributed to significant safety failures. In several cases, incomplete data led to overlooked risks, causing contamination events and product recalls. The industry now embraces objective, data-based methods to reduce errors. Using comprehensive datasets clarifies risk factors and improves evaluations, building a more resilient food safety system.

Food safety professionals now seek methodologies that replace subjective judgment with measurable evidence. They commit to processes that rely on hard data, ensuring every decision reflects the true risk level. This change promises clearer assessments, stronger preventive measures, and a safer food supply chain.

Leveraging Predictive Analytics for Objective Decision-Making

Predictive analytics transform risk assessments by forecasting hazards before they occur. Advanced models examine historical data alongside real-time information to identify emerging risks. These algorithms reveal patterns that traditional methods may miss, empowering teams to act before incidents occur.

Food safety teams use predictive models to monitor trends and allocate resources effectively. Early intervention prevents potential outbreaks and minimizes losses. Predictive analytics shifts the focus from reacting to problems to anticipating them. This proactive approach leads to more precise, measurable outcomes and reinforces public confidence in food safety systems.

The power of predictive analytics inspires a forward-thinking mindset across the industry. Professionals apply data-driven tools to predict challenges and implement timely countermeasures. In doing so, they turn vast amounts of data into actionable intelligence, which strengthens the overall safety framework.

Using Collaborative Tools to Reduce Bias

Collaboration plays a crucial role in achieving unbiased risk assessments. Modern digital platforms enable experts from various fields to work together. Online whiteboards and collaborative software create an environment where data becomes visible and ideas exchange freely. These tools foster real-time discussions that help challenge assumptions and examine data thoroughly.

Team members organize and annotate information to reveal inconsistencies. They review data collectively, which reduces individual biases and refines overall judgments. Structured group analysis enhances transparency and leads to more accurate evaluations.

Key benefits of digital collaboration include:

  • Real-time brainstorming sessions
  • Clear, visual organization of complex data
  • Collective review processes that minimize personal bias

These collaborative platforms promote an atmosphere of open dialogue and mutual accountability. They encourage professionals to use every available data point to build well-rounded risk assessments. In turn, this approach improves decision-making and strengthens the safety net across the food industry.

The Role of Industry 4.0 and Data Analytics in Food Safety

Industry 4.0 technologies revolutionize food safety by streamlining data collection and analysis. Sensors placed throughout production lines capture real-time data on temperature, humidity, and pressure. Automated systems record this information and feed it directly into analytical models. Machine learning algorithms process the data and detect anomalies with impressive speed.

This technological integration minimizes human error. It ensures consistency in monitoring and sharpens the accuracy of risk assessments. Automated systems and smart devices provide continuous feedback, ensuring quick interventions as required. Such precision proves indispensable for upholding strict safety standards.

Industry 4.0 innovations drive a transformation that enhances efficiency and strengthens consumer confidence. The use of interconnected devices and advanced analytics creates a transparent environment where every step in the production process receives constant scrutiny. This proactive system ensures that potential ​​concerns are spotted and handled before they become larger problems.

Data Analytics in Food Safety Compliance

These tools can overhaul risk management strategies using advanced data analytics. Teams can integrate real-time monitoring with predictive models to examine a wide range of risk factors. This allows detection of the early warning signs of contamination that traditional methods often miss. Swift action could prevent a potential outbreak and avoid a costly product recall.

When professionals embrace analytics, they can achieve significant improvements in compliance. They can detect risks earlier and implement targeted measures that maintain high safety standards. Ongoing success confirms that investment in data analytics translates into improved operational efficiency and better protection of public health.

The potential positive outcomes from this use case drive home the value of advanced risk assessments. They demonstrate that data-centric strategies help shift reactionary processes into anticipatory systems. Industry professionals must adopt similar methods and continuously refine their safety practices.

Scientific Perspectives on Data-Driven Risk Assessments

Recent scientific studies support the benefits of data-driven risk assessments. Researchers have found that objective data and advanced models lead to more accurate, reproducible evaluations. Comprehensive datasets help uncover subtle risk factors that traditional methods often overlook. The evidence demonstrates that objective analysis reduces the influence of human bias.

Peer-reviewed research validates the need for measurable, data-based strategies in food safety. Scientists conclude that integrating robust analytics improves decision accuracy. Empirical studies reveal that evidence-based approaches lead to better identification of hazards. This research reinforces the importance of transitioning away from subjective methods toward data-driven protocols.

The scientific community’s findings promote a clear path forward. Food safety professionals receive encouragement to adopt advanced analytics in their work. They gain assurance that objective, data-driven practices enhance every aspect of risk management, leading to safer food systems and greater public trust.

Embracing the Human Element in Data-Driven Food Safety

Technology and data form the backbone of modern food safety, but human expertise remains essential. Skilled professionals interpret complex datasets and translate numerical insights into practical safety measures. Their deep understanding of food systems ensures that advanced analytics enhance, rather than replace, expert judgment.

These professionals scrutinize every data point, validate the accuracy of algorithms, and adjust protocols based on real-world conditions. Their critical analysis turns raw data into clear, actionable strategies. Human insight and analytical tools work together to refine risk assessments continuously.

Integrating human expertise with data-driven solutions builds a resilient safety culture. Food safety teams commit to continuous improvement, ensuring that every risk assessment reflects the latest insights and technologies. The combination of precise analytics and expert judgment ultimately strengthens the industry’s resolve to protect public health.

Conclusion

Data-driven decision-making is revolutionizing food safety risk assessments, replacing guesswork with objective, measurable evidence. Predictive analytics, collaborative digital tools, and Industry 4.0 innovations all work together to empower professionals to identify and mitigate risks before they escalate. Every sensor reading and algorithmic prediction strengthens transparency and ensures a proactive approach to safety.

This shift represents more than a technological upgrade. It is a commitment to public health and trust. Clear, accurate risk assessments reduce cognitive bias and reinforce industry accountability. By embracing data-driven methodologies, food safety professionals create a resilient system that adapts to new challenges, safeguards consumers, and upholds the highest standards of excellence.

Audit

Audits: Internal, Regulatory, and Mock…. Oh, My!

By Jeb Hunter
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Audit

“Oh no, not another audit!” This is a phrase most professionals in Quality have either heard uttered in staff meetings and huddles or have actually spoken themselves. Audits, whether you embrace them or not, are a staple of every regulatory environment, and how you conduct and handle audits can impact all aspects of your business. When viewed as a means of continuous improvement and preparation, audits can also provide deep, meaningful understanding of your systems and expose gaps when they are embraced as a Quality tool to utilize.

Audits come in a variety of types, but the three main audit types that will be covered here are Regulatory Audits, Internal Audits, and Mock Audits. The ways a company handles, conducts and views these three categories of inspections will set them up for success.

Regulatory Audits – Know Your Regulations to Best Your Regulations

Regulatory audits are some of the most common audits to be had in regulated industries and therefore are also the most common type to need to be prepared for. There are several steps involved with being prepared for a Regulatory audit: Knowing the regulations, having a process, and having people assigned to that process.

The first step seems like it shouldn’t need to be stated out loud, but it does. Knowing the regulations, and more importantly, how those regulations apply to your business and how you can show compliance to those regulations is absolutely critical to ensuring your best chances of a smooth regulatory inspection when the time comes. Take the time to not only read the full text of the regulation you will be inspected against, but step through it clause by clause asking how the clause applies to the business and what would need to be shown documentation wise to an inspector to show compliance. Additionally, remember that regulations periodically update, so the first time you step through your regulation should NEVER be your last. Always keep up with how the regulation has updated year over year and ensure you are not behind the curve on a new or enhanced clause.

The second and third steps go hand in hand: Have a process and have people assigned to it.  Having a written procedure on how to handle regulatory inspections will help ensure trained staff are consistent and prescriptive in how an inspection is handled. This goes a long way to showing an inspector, for many of whom it will be their first time in your business, that you are ready, willing and able to show compliance to the regulatory standards. The written process should cover every aspect of an inspection from greeting an inspector, opening meetings, facility tours, handling of documentation requests including roles and personnel for back action rooms for documentation review prior to entering the audit room, and inspection follow-up.

The procedure should describe for each of these steps who is responsible for executing the step in the process as well as list potential backup personnel for responsibility in order to ensure smooth and complaint execution of your procedure should personnel be unavailable due to vacation, illness, or other leave of absence. Once this process is in place, all staff should be trained on the process and procedure, including personnel not necessarily involved with the process as they will need at least an awareness of what will occur during the inspection.

Once you have completed a review of the applicable regulations, and written and completed training for a procedure to follow, remember that the core mission of agencies like the FDA is public safety, and that inspections, while potentially stressful, are opportunities to engage with the agency and mitigate gaps in compliance with regulations.

Mock Audits – Practice Makes as Perfect as Possible!

Mock Audits are, as the name implies, practice audits against the applicable regulations and implemented processes and procedures to ensure compliance.  Mock audits follow the same cadence as a normal inspection would and should test each aspect of your procedure to ensure compliance. Mock audits, along with Internal Audits discussed next, are a great way to probe and test your Quality Management Systems and unit operational activities to expose and correct any compliance gaps before an actual inspection occurs.  Conducting Mock Audits on a regular basis will also reduce anxiety and uncertainty among your staff in preparing them for an actual regulatory inspection and how normal inspector interactions flow, especially staff members who might be new to the regulatory landscape.

A difference with a Mock Audit versus an Internal Audit will be that the “inspector,” who is a staff member or person contracted by your firm, should be in character at all times during the audit, and should expect to receive responses and documents as if they were not an employee. You will want your auditor in this case to have experience with both the regulations they are auditing against as well as the normal cadence and flow of a regulatory inspection. The auditor should not rely on standardized checklists but instead focus on open ended questioning of processes and procedures and speaking with employees at length to have them talk through the process they are performing. Doing this will benefit everyone involved in that compliance gaps will be identified and addressed, and employees who might not normally spend large amounts of time in the presence of a regulatory auditor or inspector will have the opportunity to learn the best ways to engage questioning.

Internal Audits – Better Me Than Them!

Finally, let’s cover Internal Audits. Internal Audits and associated internal audit programs are not only a good idea to have in place they are a requirement of several regulatory standards. Like Mock Audits, Internal Audits are a great way to identify and address any regulatory gaps you may have in your processes and systems before an actual inspection takes place. The approach here can be simplified down to “Who would you rather find this compliance gap: Me the internal auditor, or a Regulatory Inspector?” Additionally, Internal Audits provide a clear path for deep, thorough analysis of processes and procedures, allowing for processes and systems to be evaluated from a variety of standpoints throughout the internal audit cycle.

For an Internal Audit program, there should be a written defined procedure that covers not only the scheduling and cadence of internal audits but also defines the areas to be covered under the schedule (including Quality!), the process for the issuance of observations, reporting timelines, and auditor qualifications (an item that is often overlooked!).

As internal audits are often a deeper, more meaningful dive into a subject, it is best if possible, to have audit teams for internal audits consisting of a member of Quality as well as various subject matter experts versus a single auditor.  Caution must be taken in this team approach, however, to ensure that an auditor does not audit their own work.  This is especially important when auditing Quality, including an inspection of the Internal Audit Program. It is also a good idea to utilize checklists for audits to ensure that every clause of the applicable standard is reviewed, leaving nothing overlooked to ensure full compliance.

In conclusion, audits and inspections in the various forms they come in are not a requirement to be feared or dreaded.  Audits and inspections are a great tool that when utilized correctly via documented and implemented processes and procedure can help provide deep, meaningful insight into all aspects of a business and help prepare both a facility and the staff for complete compliance to any auditing situation that may arise.

Why now is the time to prepare for FSMA 204

By Geoff Olsen
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In recent years, food recalls have become a concern for the food and beverage (F&B) industry, with regulatory bodies tightening oversight as the number of recall-related incidents continues to rise. The F&B industry is no stranger to recalls, but recent trends indicate a steady increase in frequency, with the Food and Drug Administration (FDA) and the United States Department of Agriculture (USDA) issuing 313 recalls in 2023, an 8% increase from the previous year. This uptick can be attributed to various factors, including the detection of undeclared allergens, which made up almost half of food recalls last year, and contamination by harmful bacteria such as Listeria, Salmonella, and E. coli.

Consumers are taking notice of these continuous food recalls as a new Gallup poll revealed that Americans’ perspective of the grocery industry has turned negative due to inflation and food safety concerns. It also showed that, for the first time, Americans have more negative views (47%) than positive (33%) of the grocery industry. The growing number of recalls, plus consumer concerns, has intensified calls for stricter compliance and enhanced traceability within the food supply chain.

Major Changes Are Coming

These recalls have become a persistent public health problem, with over 1,100 Americans falling ill from foodborne illnesses linked to recalled products. However, significant steps are being taken to address these concerns in the next few years. To reduce the number of foodborne illnesses, the FDA introduced the Food Safety Modernization Act (FSMA) 204, a regulation requiring F&B businesses to provide detailed traceability information within 24 hours of a recall. Starting in January 2026, this rule will focus on tracking food inputs from suppliers, enabling companies to pinpoint the source of contamination more efficiently.

FSMA 204 will bring major changes to the F&B industry by enhancing traceability requirements for high-risk foods. The rule mandates that companies must improve tracking across the supply chain to ensure key data points are recorded at critical stages of food production, processing, and distribution. This means F&B businesses must implement more stringent record-keeping processes, invest in technology for real-time tracking, and increase collaboration with suppliers to ensure compliance.

However, many organizations aren’t prepared to undergo the data process transformations needed to align with this new traceability rule. Below are a few actionable steps companies can take to prepare their supply chains for FSMA 204:

Investing in Solutions to Streamline Reporting

Despite the wide scale impact FSMA 204 will have across the F&B industry, a main challenge for companies will be updating and investing in new systems and processes to comply with the rule. FSMA 204 mandates that F&B companies provide detailed, accurate traceability data within a 24-hour window during a recall, which requires modern technology capable of handling real-time information. Many existing systems are outdated or not equipped to meet this new level of compliance. As a result, suppliers will need to adopt new software, train staff, and overhaul data management processes. These changes are certain to be time-consuming and raise operational costs. The complexity of this process, especially in a global and multifaceted supply chain, can be overwhelming without the right tools in place.

In addition, suppliers face the challenge of integrating these new systems with their broader supply chain networks. Ensuring seamless communication between suppliers, manufacturers, and retailers is essential for meeting the strict reporting timelines under FSMA 204. The coordination required to share and track data effectively across multiple partners adds an additional layer of complexity. Suppliers must also ensure their traceability solutions are scalable to accommodate future growth and evolving regulations, all while maintaining business continuity and protecting their bottom line.

Investing in scalable technology not only ensures compliance but also enhances business resilience. It provides better visibility into the supply chain, helping businesses respond quickly to disruptions, recall situations, or emerging food safety threats. Furthermore, these solutions enable businesses to streamline their data-sharing processes with trading partners, improving collaboration and reducing the time and resources spent manually documenting transactions.

While this can be costly, investing in robust technology systems and implementing effective food safety quality programs for employees provides the benefit of demonstrating a commitment to food safety and helps ensure smoother operations.

A few solutions suppliers can consider include advanced technologies like supply chain control towers and blockchain. These solutions provide real-time insights into inventory, orders, and potential disruptions, allowing companies to trace food origins and pinpoint contamination sources quickly. Supply chain control towers centralize data collection, management, and analysis, streamlining reporting processes, while blockchain offers a secure, tamper-proof record that ensures data consistency and transparency across all participants in the supply chain. By leveraging these technologies, suppliers can enhance traceability, reduce contamination risks, and build greater consumer trust.

Enhancing Data Consistency

Data consistency works in tandem with the integration of new technologies. The success of any traceability system under FSMA 204 relies on the consistency and accuracy of data collected throughout the supply chain. However, one of the most significant challenges businesses face is ensuring that data is recorded uniformly across different suppliers and systems. Inconsistent or incomplete data can lead to gaps in traceability, making it difficult to track products effectively or respond quickly to a recall. With the new regulation requiring detailed traceability information within 24 hours of a recall, any discrepancies or gaps in data could lead to delays in identifying contamination sources.

To ensure data consistency, suppliers can implement standardized data collection practices and utilize integrated technologies, such as supply chain control towers and blockchain. By implementing uniform data entry protocols across the entire supply chain, suppliers can avoid errors, discrepancies, and miscommunication that often result from inconsistent or fragmented data. Standardization helps streamline reporting and ensures that all parties—from suppliers to distributors—are working from the same set of accurate, reliable information.

Bringing Employees Along on the Journey

Investing in technology and ensuring data consistency are vital steps in preparing for FSMA 204, but they are only part of the equation. For these initiatives to succeed, businesses must also invest in their employees through training and education. Compliance with FSMA 204 requires everyone involved in the food supply chain to understand their role in the traceability process and the importance of accurate data reporting.

Training programs can be implemented at all levels of the organization to educate employees on the new traceability requirements and how they affect day-to-day operations. This includes not only teaching staff how to use new software solutions but also fostering a culture of accountability and food safety awareness, including setting up conversations with employees at every stage of the supply chain. Employees must understand that even minor data collection or reporting lapses can have significant consequences, from costly recalls to legal penalties and damage to brand reputation.

Continuous education is also key to keeping up with the evolving regulatory landscape. As food safety regulations change and new technologies emerge, businesses must keep their teams informed and updated. This can be achieved through regular workshops, webinars, or online courses that keep employees engaged and equipped with the latest knowledge.

The Cost of Non-Compliance

Failure to comply with FSMA 204 can lead to serious consequences for both suppliers and retailers. The FDA has the authority to enforce various penalties, including civil or criminal actions in federal court. It’s important to remember that this rule is considered mandatory, and parties will be under real pressure from the government if they don’t take the necessary steps to ensure the traceability requirements under this act. Non-compliance can lead to legal repercussions for both companies and suppliers in the form of lawsuits and litigation. In addition, the FDA has the authority to impose significant fines, sanctions, and criminal penalties for non-compliance.

Suppliers that are unable to meet FSMA 204 requirements may also face financial loss and damage to the company’s reputation as retailers and manufacturers may decide to switch to more reliable partners. Compliance penalties can also result in lost sales and brand damage that can impact consumers’ decisions.

Operationally, non-compliance with FSMA 204 can disrupt supply chain processes, leading to delays in identifying and resolving contamination issues. The inability to quickly trace food inputs can result in prolonged and costly recalls. Furthermore, non-compliance can strain relationships with trading partners who rely on accurate traceability data for product safety.

Preparing for FSMA 204 requires a multifaceted approach that combines technology, data standardization, and employee engagement. By investing in solutions that streamline reporting, enhance data consistency, and bring employees along through training and education, F&B companies can position themselves for success. These actions will help ensure compliance with FSMA 204 and lead to more efficient, transparent, and resilient supply chains, ultimately improving food safety for consumers.

Wiping down table

Germiest Surface Areas In Restaurants

By Kelly Gavson
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Wiping down table

While food safety remains a vital issue for health and safety in restaurant kitchens, not every part of the premises receives the same careful attention. These sites in particular contain far more germs that can cause the spread of foodborne illness.

Food contamination is a major problem worldwide. Approximately 10% of people will get sick after eating contaminated food each year, and hundreds of thousands of them will die from the resulting illness. While restaurant administrators and staff understand the importance of food safety practices as a way to combat the spread of foodborne illness, not all surfaces receive the same kind of care. These high-contact surfaces often have the most germs in the premises.

Menus

Menus may be one of the hottest touchpoints for the spread of foodborne illness. These laminated sheets or books may hold as many as 185,000 bacteria per square centimeter. The chief reason for this problem lies in proximity and frequency. Menus are touched frequently, sometimes by hundreds of people per day. Once the order has been placed, the menus go back into a stack, where contact allows the germs to spread to one another. Because menus are infrequently cleaned, if at all, the bacteria continues to spread for several days.

Tables

Without regular sanitation of restaurant tables, a single bacterium continues doubling. Researchers estimate that even the most minor contamination of a table can lead to billions of bacteria within hours. Although tables often receive a better cleaning with restaurant cleaning supplies than menus, the cleanliness of these supplies raises several questions. Restaurant staff who use the same washcloth to wipe several tables may inadvertently be spreading bacteria from one table to others. Proper sanitation requires the use of clean tools and sanitizing equipment, but many restaurants lack the staff or time to complete the task between customers.

Chairs

When it comes to breeding spots for bacteria and viruses, chairs present a unique problem. Like tables, restaurant chairs are usually not sanitized between customers and may not even be wiped down regularly. Booth seats, chairs with cushions, and infant high chairs tend to be the worst culprits for growing pathogens. Research estimates that the average restaurant chair contains as much as 184 individual bacteria per square centimeter. These sources are more likely to have examples of intestinal bacteria, such as E. coli.

Toilets

People expect toilets to be dirty and germ-ridden, but even a thorough daily cleaning is not sufficient to combat the spread of bacteria. As the most frequent touchpoint, the toilet seat is the worst of everything in the bathroom. People enter the bathroom after touching the restaurant table, chair, menu, and possibly their own food before they touch the seat. Even if they wash their hands properly afterward, the contact has already happened. Research shows that toilet seats are more likely to contain drug-resistant bacteria, including Staphylococcus.

Bathroom Floors

In areas like the bathroom floor, the survivability of the pathogens becomes an issue. Restaurant bathrooms often receive a thorough cleaning at least once per day. In between those hours with high traffic, bacteria can flourish. Research demonstrates that even bathroom floors that are soaked once a day in a bleach solution will eventually start to grow bacteria at an alarming rate. Although viruses can also be present on bathroom floors, bacteria from skin cells appears to have the best survivability in these conditions.

Ice Machines

The way that restaurants handle the serving of ice can strongly dictate the cleanliness of this surface. A literature review from 2024 showed that most studies indicate that restaurant ice machines have more bacteria than machines producing ice for industrial purposes. Recent research indicates that as much as a quarter of ice used in restaurants tests positive for bacteria. The type and severity depending on the application. Ice machines used to produce ice for food storage are more likely to be contaminated than ice used for drinks, highlighting a key vulnerability in restaurants that use ice machines to perform both functions.

Condiments

Condiment containers, whether they are held in the dining area or back of house, are carriers of all kinds of bacteria. Research shows that, when tracking bacteria spread throughout a restaurant kitchen, spice bottles and condiment containers are contaminated at least half of the time. Researchers suggest that the main reasons condiment containers face such high levels of contamination is that most people do not see them as a threat. In fact, these surfaces can carry bacteria as much as any other surface, which makes them an important consideration for restaurant food safety.

Shared Utensils

Shared utensils, especially those that are used by both staff and patrons, can cause cross-contamination from multiple sources. People touch salad bar tongs, which can transfer bacteria from the food to the plate. Using the same utensils to handle different foods can spread bacteria even further, given that some foods are more likely to carry harmful bacteria than others. The frequency of cleaning or replacement of utensils can help, but only if the food sources remain uncontaminated.

Designing a restaurant to prevent the spread of foodborne illness requires a plan to sanitize all high-touch surfaces. By examining the contamination risk of these surfaces in particular, restaurant administrators can devise sanitation strategies that further minimize the risk of bacterial growth in the restaurant.

SOURCES

World Health Organization (WHO). (2022, May 19). Food safety. Who.int; World Health Organization: WHO. https://www.who.int/news-room/fact-sheets/detail/food-safety

Rathey, A. P. (2024, December 19). Measuring Cleaning Performance Like an Athlete. Cleaning & Maintenance Management. https://cmmonline.com/articles/beware-of-germs-on-the-menu

developer. (2018, May 21). How Many Germs Are On Your Restaurant Table? Sani Professional. https://saniprofessional.com/how-many-germs-are-on-your-restaurant-table/

Patel, D., Stansell, J., Jaimes, M., Ferris, K., & Webb, G. (2016). A Survey of Microbial Contamination on Restaurant Nonfood-Contact Surfaces. Journal of Food Safety, 37(1), e12287. https://doi.org/10.1111/jfs.12287

Ibrahim, K., Tahsin, M., Rahman, A., Rahman, S. M., & Rahman, M. M. (2024). Surveillance of Bacterial Load and Multidrug-Resistant Bacteria on Surfaces of Public Restrooms. International Journal of Environmental Research and Public Health, 21(5), 574. https://doi.org/10.3390/ijerph21050574

Gibbons, S. M., Schwartz, T., Fouquier, J., Mitchell, M., Sangwan, N., Gilbert, J. A., & Kelley, S. T. (2014). Ecological Succession and Viability of Human-Associated Microbiota on Restroom Surfaces. Applied and Environmental Microbiology, 81(2), 765–773. https://doi.org/10.1128/aem.03117-14

Triggiano, F., Apollonio, F., Giusy Diella, Marcotrigiano, V., & Caggiano, G. (2024). State of the Art in Hygienic Quality of Food Ice Worldwide: A Ten-Year Review. Microorganisms, 12(4), 690–690. https://doi.org/10.3390/microorganisms12040690

KIRCHNER, M., GOULTER, R. M., CHAPMAN, B. J., CLAYTON, J., & JAYKUS, L.-A. (2021). Cross-Contamination on Atypical Surfaces and Venues in Food Service Environments. Journal of Food Protection, 84(7), 1239–1251. https://doi.org/10.4315/jfp-20-314

Huber, D. (2015, November 6). Kitchen utensils can spread bacteria between foods, UGA study finds – Center for Tropical and Emerging Global Diseases. Center for Tropical and Emerging Global Diseases. https://ctegd.uga.edu/kitchen-utensils-can-spread-bacteria-between-foods-uga-study-finds/

Intuitive Leadership: Unlocking Better Outcomes in Food Safety Compliance

By Ainsley Lawrence
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A production line runs smoothly by every measurable standard. The gauges read normal, and quality checks pass, yet an experienced manager picks up on subtle irregularities in the process flow. That pause for additional testing reveals a critical safety risk — one that standard protocols alone might have missed. These pivotal moments are the essential connection between established safety procedures and professional insight into food production environments.

Professional judgment is the secret sauce in food safety, built through extensive experience and refined observation. Combined with rigorous compliance standards, this instinctive understanding creates a powerful foundation for protecting public health and maintaining operational excellence.

The practice of blending data-driven protocols with well-developed professional insight leads to faster threat identification, more effective risk management, and ultimately stronger safety outcomes across the food production chain.

The Science of Intuition in Decision-Making

Split-second gut feelings in food production environments stem from a complex interplay of experience, knowledge, and rapid cognitive processing. The brain processes countless subtle cues — slight variations in equipment sounds, minor changes in product appearance, small shifts in temperature patterns — comparing them against stored memories of previous experiences. This mental processing occurs below conscious awareness, producing insights that manifest as gut feelings or professional hunches.

As this singular observation becomes many through repetition, the brain subconsciously picks up on patterns, anomalies, and deviations that could prove perilous for consumers. To help build your intuition, you can train your brain’s ability to recognize patterns while painstakingly building your own experience-based mental model of the food safety process.

Pattern Recognition in Food Safety

The mind catalogs countless details during daily operations, creating an internal database of normal conditions and potential warning signs. These mental patterns form through years of hands-on experience, becoming an invaluable tool for early risk detection. When subtle deviations occur, this stored knowledge triggers recognition, often before conventional monitoring systems detect an issue.

Production environments present complex, interconnected variables that require rapid assessment. Successful food safety leaders develop an acute awareness of normal operational patterns, allowing quick identification of potential issues. This ability to spot subtle variations from standard conditions provides crucial extra time for investigation and correction of developing problems.

Building Experience-Based Mental Models

Mental models in food safety develop through repeated exposure to both routine operations and crisis situations. These frameworks combine technical knowledge, regulatory requirements, and practical experience into a comprehensive understanding. The resulting insight allows for rapid assessment of complex situations and informed decision-making under pressure.

The development of reliable mental models requires systematic exposure to varied scenarios and careful analysis of outcomes. Each experience adds to the framework, refining and expanding the ability to recognize potential issues. This accumulated knowledge becomes particularly valuable during high-pressure situations when time constraints demand quick, accurate decisions.

The Role of Reputation in Food Safety Compliance

Food safety excellence paves the path toward consistent, reliable performance, not just barebones regulatory compliance. Each operational decision carries weight, influencing immediate safety outcomes and long-term market position. Strategic approaches to reputation management demonstrate how proactive safety measures protect both public health and brand value. Every action within the production chain builds or diminishes this foundation of safety excellence.

Market trust takes years to establish yet remains fragile. Food safety leadership requires maintaining high standards while preparing for potential challenges. This dual focus on prevention and preparedness creates a resilient framework that supports both operational excellence and brand protection. Small lapses in judgment or execution can ripple through an organization, affecting stakeholder confidence and stability.

Building Trust Through Consistent Performance

A strong reputation in food safety stems from daily operational excellence. Each quality check, each verified process, and each maintained standard contributes to a track record of reliability. These accumulated actions create a buffer of trust that proves invaluable during challenging situations. When unexpected challenges that could damage trust occur, this buffer helps assure consumers.

Success in food safety requires more than avoiding failures — it demands creating and maintaining systems that consistently exceed basic requirements. This proactive approach builds credibility with regulatory bodies, business partners, and consumers while establishing a culture of excellence that permeates all operational levels.

Managing Crisis Situations

Crisis management in food safety demands both swift action and careful consideration. The ability to recognize potential issues early allows for measured responses that address problems while maintaining stakeholder confidence. This balance between speed and precision defines effective crisis management. Where others would freeze or falter, decisive leaders know when to lean on data, gut instinct, or a combination of the two.

Successful crisis navigation relies on preparation, clear communication channels, and established response protocols. When combined with well-developed professional judgment, these elements enable rapid, effective responses that minimize impact while maintaining transparency and trust. The focus remains on protecting public health while preserving the operational integrity that supports long-term success.

Cultivating Intuition in Food Safety Leadership

Professional judgment in food safety grows through structured practice and mindful observation. The most effective safety cultures develop when leaders actively cultivate awareness at every level, creating environments where signs of potential issues receive prompt attention as merited by their respective urgency. This systematic approach to developing professional insight strengthens the entire safety framework while leaving room to adapt.

The integration of intuitive understanding with formal safety protocols creates robust protection against emerging risks. By facilitating open communication about safety concerns, organizations build collective expertise that enhances both individual judgment and system-wide effectiveness.

Developing Professional Judgment

Building reliable intuition requires exposure to varied operational scenarios and careful reflection on outcomes. Regular practice in risk assessment, combined with systematic analysis of decisions, creates a deeper understanding of complex safety dynamics. This deliberate approach transforms experience into actionable insight.

Effective judgment develops through the careful balance of confidence and verification. Each decision provides an opportunity to refine understanding, building a foundation of knowledge that supports swift, accurate responses to emerging situations. This growing expertise becomes particularly valuable during non-standard situations that demand quick assessment.

Creating a Culture of Vigilance

Strong safety cultures grow from consistent attention to detail and shared commitment to excellence. When organizations support the development of professional judgment at all levels, they create multiple layers of protection against potential risks. This distributed awareness strengthens the entire safety system but is only as useful as its weakest link. Where vigilance is concerned, you want to shore up your weak spots while continuing to refine what you do well.

Maintaining high safety standards requires ongoing dedication to both individual and collective development. Regular practice in risk assessment, combined with open discussion of observations and concerns, builds organizational expertise that supports both routine operations and crisis response. As with many things, this ultimately boils down to clear communication.

Final Thoughts

Food safety excellence stems from combining seasoned professional judgment with meticulously paced protocols. The integration of well-developed intuition, strong compliance practices, and careful reputation management lays the groundwork for better safety leadership, creating robust yet flexible systems capable of pivoting to address routine challenges and critical situations alike.

Food safety demands leaders who balance quick insights with verification, supporting decisions with both experience and data. This combination of refined professional judgment and rigorous standards builds the foundation for operational excellence, creating lasting protection for public health while maintaining the highest levels of food safety integrity.

 

 

Using Technology to Create the World’s Most Advanced Food Defense System

By Arjun Ganesan
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Food Defense is a new approach to protecting the food supply chain, and it uses advanced data analytics to better understand and respond to threats. It allows food producers to better understand risks, take the most effective steps to mitigate them, and enable operational and financial efficiencies within their businesses.

The poultry industry is under constant threat, from the emergence of new pathogens and shifting consumer preferences to heightened regulatory demands and intricate supply chain networks. As poultry producers spend millions to uphold safety, quality, and profitability, proposed regulations from the USDA and shifting political winds add yet another layer of uncertainty. Companies are drowning in information, but cannot act on them without intelligent, data-driven systems.

Creating an Integrated Approach

A new approach called Food Defense involves using data analytics to better understand and respond to costly diseases and pathogens. It seamlessly integrates advanced diagnostics, data analytics, and software solutions. This comprehensive digital command center for the food supply chain helps producers monitor productivity in near real-time.

Advanced diagnostics and software allow producers to identify and trace harmful microbes with a level of detail that goes beyond traditional methods, which can be costly and represent only a snapshot in time. Emergent tools add rich data to Food Defense systems and can provide insights into gut health, productivity, and microbial loads, which support informed decision-making at the operations level.

In tandem with these diagnostic tools, the integration of supply chain traceability and visibility technology has revolutionized how food products are monitored from farm to table. By combining mobile surveillance systems, CRISPR sequencing, and epidemiological models, companies have developed robust barriers against pathogens, which includes real-time tracking systems to ensure the rapid identification and containment of microbes – enabling efficiencies between live operations and the plant.

The inclusion of artificial intelligence (AI) and machine learning (ML) in these systems represents another significant leap forward. By processing vast amounts of unstructured data – from government reports and news articles to scientific research – AI-driven platforms can now conduct predictive analytics that identify potential risks before they become tangible threats.

To bring all these components together, software-driven intelligence plays a pivotal role in web interfacing (like SaaS) that supports dynamic data visualization, geospatial analytics, alerts and trend analyses.

This integrated approach – melding diagnostics, data analytics, AI, and software – is yielding a more responsive food system overall.

Realizing True Safety and Productivity

Food defense with a proactive approach not only protects consumer health but strengthens the overall integrity of the food supply chain. Real-time insights that these systems provide into items like flock health and production metrics allow for more efficient resource allocation and targeted intervention strategies, potentially saving producers millions in lost productivity.

For instance, in the poultry industry, companies spend millions of dollars at each plant on anti-microbials and sanitation, regardless of the actual microbial load. In one real-world application, a processor was able to use data-driven techniques to optimize their anti-microbial usage, saving an estimated $500,000 per year at the plant. Food Defense systems can monitor threats and respond with the appropriate interventions, both improving food safety and financial performance. Food defense technologies additionally position companies to meet current compliance requirements and stay ahead of evolving standards.

The Future of Food Defense is Innovation

Food systems are complex and interconnected, and the role of technology in maintaining food safety will continue to grow in importance. Yet, as with any technology-driven solution, certain challenges persist. Maintaining strong cybersecurity practices, effectively managing the vast amounts of data generated, and continually adapting to emerging threats will remain critical priorities.

By harnessing technology to build a more resilient, transparent and efficient food supply system, the industry is moving toward a future where safe, high-quality food becomes the standard, rather than the exception.

Why Falling Inflation is Not Halting Soaring Grocery Costs

By Pascal Yammine
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Food industry suppliers face enormous challenges as they balance safety standards with affordability. Suppliers must navigate these responsibilities while dealing with steadily increasing costs, from predicting supply needs to maintaining proper storage conditions to ensuring public safety protocols.

Pricing is more critical than ever, directly impacting a company’s brand, financial stability, and the overall
buying and selling experience. As businesses face challenges like inflation, supply chain issues, and market
volatility, rising grocery prices in the U.S. have pushed consumer frustration to new heights. Food industry
suppliers face enormous challenges as they balance safety standards with affordability. Suppliers must
navigate these responsibilities while dealing with steadily increasing costs, from predicting supply needs to
maintaining proper storage conditions to ensuring public safety protocols.

Regardless of recent claims1 that big retailers are cutting back prices, consumers report feeling the opposite
at the grocery store – for 37% of them, monthly grocery spending has become unaffordable. Our 2024
Consumer Price Index Survey2 of 2,000 Americans uncovered interesting findings about rising prices,
consumers’ understanding of supply and demand, perspectives on dynamic pricing, and views on pricing
transparency and brand loyalty. The results from the survey also indicate how retailers should adapt their
pricing strategies to meet evolving consumer demands, particularly around pricing transparency, to improve
their brand loyalty and customer relationships.

Consumer Sentiment

Consumers are increasingly frustrated from the moment they step into the store to the moment they reach
the register and must shell out hundreds of dollars on a basic basket of food. What was once a mundane
and accessible chore for most households has become a panicky and worrisome task for the everyday
shopper.

In the survey, 61% of consumers have seen their typical grocery prices rise in the last six months. Similarly,
households are spending an average of $61.49 more per month since inflation began dropping. This signals
that although inflation is falling at a steady pace, the prices of groceries are remaining high due to the costs
the grocery stores are incurring.

Despite changes in supply, demand and production costs, only 37% of consumers agreed that adjusting
prices based on supply and demand made sense, and only 15% felt that prices should rise on goods in low
supply but high demand. Interestingly, we found that 33% of consumers are more accepting of price increases when they are linked to rising production costs. This indicates that although consumers may or may not grasp the basics of supply and demand, they do not believe that the market challenges that producers must bear should be passed on to them and that demand should not determine price. This may suggest that when a product is in high demand, consumers might expect increased production and expect prices to remain predictable.

We discovered in our research that many consumers may have misunderstandings about dynamic pricing.
Dynamic pricing can best be described as pricing that responds to changes in supply, demand, competitor
actions, and customer behavior, ensuring prices remain competitive and aligned with the market. In our
findings, 38% of respondents viewed higher prices during times of high demand and low supply as an
impact of dynamic pricing. Since a significant number of consumers surveyed felt that dynamic pricing only
leads to higher prices, it’s clear why they associate it with negative outcomes for them.

Lessons for Retailers

While sentiment around price hikes is generally negative, grocery stores can take steps to better inform
customers and alleviate some of the financial strain. The one consumers appreciate the most is increasing
transparency, which ultimately helps increase customer satisfaction and build trust.
The results revealed that 29% of consumers want more information about the pricing of goods and/or how
it is achieved. Transparency around price changes is crucial for consumers regarding dynamic pricing should
stores decide to implement this strategy. When there is a lack of transparency around price increases, 32%
of respondents responsible for grocery shopping said that was the top reason they might hesitate to shop
at a grocery store that uses dynamic pricing. Grocery stores could help ease concerns around dynamic
pricing by proactively informing shoppers when prices are higher due to high demand, low inventory, or
inflation. Providing clear explanations for price fluctuations could enhance consumer trust and further
strengthen loyalty, especially among shoppers who might otherwise consider switching brands due to rising
prices.

The Importance of Pricing Transparency

For suppliers, the results of this survey help answer the question of how customers feel about pricing in
light of the current market conditions. Food industry suppliers can take away an important lesson:
prioritizing pricing transparency is essential for building stronger connections with customers.
For example, if a typical grocery item like bread or eggs experiences a sudden price increase, suppliers need
to focus on clear communication as to why. Explaining the reasons behind the change can help ease
consumers’ concerns, especially as many are already feeling financial pressure.

These turbulent times are reshaping market dynamics, requiring companies to rethink and transform their
pricing processes. Unfortunately, for many businesses, pricing is often ignored, underfunded, or
underscoped. Companies need to manage their entire pricing lifecycle to ensure they are delivering the right
product at the right price to their customers.

References:
Nassauer, S., & Haddon, H. (2024, October 11). After Years of Increases, Companies Are Rolling
Back Prices. WSJ; The Wall Street Journal.

Zilliant. (2024, November 20). 2024 Consumer Price Index. Zilliant.com