Tag Archives: supply chain disruption

Scott C. Algeier
FST Soapbox

Re-Evaluating Our Cybersecurity Posture and Practices

By Scott C. Algeier
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Scott C. Algeier

On November 10, the White House released a National Security Memorandum (NSM) aimed in part at improving cybersecurity within the food and agriculture sector. The NSM contains a clear message: “The evolving threat environment requires the sector and its essential workforce to better prepare for and respond to incidents with broad impacts on our national and economic security.”  If cybersecurity was not a priority for your organization in 2022, it should be one in 2023.

The food and agriculture industry has benefited greatly by incorporating technology into core business functions, which makes the industry more efficient. Farmers now provide more food on less land thanks in part to precision agriculture. A complex, interconnected logistics system—propelled by information technology—enables just in time delivery of product. But this interconnectedness creates risk that needs to be managed. Even if an adversary may not intend to disrupt the food supply chain, a short disruption can quickly rise to a national security concern.

This is the impetus behind the NSM: There is a national security interest in ensuring the integrity and resilience of the global food supply chain. Addressing these threats, however, requires individual action by an untold number of companies. Many of these companies operate on small margins and lack resources to understand the or mitigate cyber risks.

The cyberthreat environment is complex and ever changing. Nation state actors seek core intellectual property and other proprietary information. Social activists launch campaigns aimed at disrupting access to public-facing Internet sites. Mis- and disinformation spreads through social media channels.

Organized cybercriminal gangs are motivated by money. Often, the victim is not necessarily the intended target. But sometimes the food and agriculture industry is targeted specifically. On December 12, the FBI, CISA, the FDA and the Department of Agriculture issued a public advisory warning of Business Email Compromise attacks, demonstrating the financial loss attacks can cause.

Developing a Common Approach to Cyber Risks

Developing a common approach to defend against these threats is challenging since industry and government view risk in different ways. This often leads to disagreement on risk tolerance and risk mitigation. While policymakers focus on national security risks, businesses focus on corporate risks.

While cyber risk is one of many business risks enterprises mitigate, these resources compete against other business priorities. Meanwhile, there is a government interest in ensuring that cyberattacks do not impact national security or cause wide-scale economic damage. Also, the fact that the most advanced cyber adversaries are nation states is a national security concern.

It is not reasonable to expect companies to be able to defend themselves against cyberattacks from well-resourced nation states. However, just because an organization is not able to defend itself from the most sophisticated attacks does not mean it should not defend against less sophisticated and more common attacks.

Hacker
The economics of cybersecurity favor the attackers. Collaboration allows defenders to maximize their resources and gain more even footing to protect their companies.

Realistically, there is a limit to what companies can spend. At some point the cost is not worth the return, and it makes more sense to assume or transfer the risk. In short, the risk management calculus for industry (business risk) and government (national security risk) are different. A business may be effectively managing a threat appropriate to its business risk while government is concerned about the national security risk of that same threat.

While it is important for government to address perceived national security risks, government policy should be informed by industry subject matter expertise. Most of the food and agriculture industry is owned, operated, or managed by private industry. Industry best understands its risks, vulnerabilities, and interdependencies. This expertise needs to be included in policymaking.

Industry Guidance and Reporting Requirements

In the fall of 2022, Congress passed the Cyber Incident Reporting for Critical Infrastructure Act of 2022 (CIRCIA) with the goal of helping companies defend against complex cyberattacks. When fully implemented, regulations developed under this law will require critical infrastructure “covered entities” –likely including food and agriculture companies—to report certain cyber incidents to DHS’ Cybersecurity and Infrastructure Security Agency (CISA). The idea is that CISA will use the information in the incident reports to better understand the threats and issue guidance to help industry and government protect themselves. CISA recently concluded a public “Request for Information” and is expected to issue the Notice of Proposed Rulemaking for implementation of this program in March 2024.

CIRCIA signifies a more aggressive regulatory approach by policymakers and is symbolic of a larger debate that has been unfolding for 20 years. That debate being: What is the best way to increase cybersecurity within private industry? Some believe regulations are needed to force organizations to take proper security measures. Others contend that regulations will divert resources from security to compliance and do little to assist small businesses who have the fewest resources and are most at risk.

Regardless, mandatory incident reporting is on its way. However, it should not be viewed as a replacement for voluntary industry action. Voluntary collaboration with industry peers will remain a core component of industry cyber risk management.

There is a long history of such collaboration. For over 20 years, the IT-ISAC has facilitated the sharing of cyber threat intelligence within the IT industry. For over a decade, it also has supported a designated forum for food and agriculture companies to actively engage with each other to mitigate cyber risks. It is the only industry-only forum of its kind established to serve food and agriculture companies.

The Food and Ag SIG reflects three core realities in cybersecurity. One is that the attackers are already sharing with each other. They are actively leveraging their individual expertise to attack for a common benefit. To keep pace, industry needs to actively share threat analysis and effective defensive mitigations.

Second, the threat landscape is too complex for any one company to defend against alone. There are too many threat actors, too many vulnerabilities, and too few resources for any one company to adequately address the threat by itself. Companies are stronger when working together.

Third, the economics of cybersecurity favor the attackers. It is more expensive to defend than it is to attack. Defenders need to maximize their resources.

A Cost-Effective Force Multiplier

The Food and Ag SIG serves as a cost-effective force multiplier by enabling companies to share active threat intelligence targeting the food and agriculture industry. By engaging with analysts from peer companies facing similar business challenges and threats, companies can reduce their vulnerability to a wide range of risks. While there are common attacks all enterprises face, the food and agriculture industry faces unique actors that utilize customized methods for specific purposes. The IT-ISAC Food and Ag SIG helps companies address this challenge through:

  • An intelligence management platform containing active threat indicators and analysis.
  • Adversary attack playbooks on over 200 threat actors, including those targeting the food and agriculture industry. These playbooks catalogue tactics, techniques, and procedures used by attackers, including how they gain access to and move through environments and actions to defend against these threats.
  • A tracker of over 250 ransomware campaigns impacting the food and agriculture industry.
  • Engagement with cybersecurity analysts from the world’s leading technology companies.
  • Member-only meetings with analysts from peer companies in the food and agriculture industry.
  • Briefings from security experts on attacks and adversaries targeting the industry.
  • Daily reporting on trending threats and vulnerabilities.
  • Vendor neutral Incident specific reporting.

Looking ahead, 2023 will continue to be an active year for cybersecurity. The skillsets of attackers continue to advance. Nation states have the intent and capability to attack private industry. There remains too much reward and too little risk for many criminal gangs. As long as the likelihood of making money remains high and the risk of getting caught remains low, we will continue to see organized cybercriminal activity such as ransomware, despite the great work of our under-resourced law enforcement professionals.

In this environment, every company needs to re-evaluate their security posture and practices. While there is no one-size fits all approach to security, there are steps companies can take to manage their risks. Engage with your industry peers. Back up data. Deploy encryption. Implement and improve patch management policies. Enable multi-factor authentication. Segment networks. Implement credential access and control policies based on an employee’s need for access and terminate such access upon employee separation. Review (or create) and test incident response and business continuity plans. Simple actions can have big results.

Voluntary industry action and active collaboration not only enhances your corporate security it makes the industry as a whole more secure. Active sharing of cyber intelligence and effective mitigations improves security and reduces the potential of disruptions within the supply chain. The voluntary actions of individual companies managing enterprise risk can indeed have the collective effect of reducing national level risk.

Niels Andersen, ThinkIQ
FST Soapbox

Supply Chain Visibility and Transparency a Key Element of Change in 2021

By Niels Andersen
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Niels Andersen, ThinkIQ

It is safe to say that 2020 was a year unlike any other. The COVID-19 pandemic brought on significant changes to everyday life across the world. It also brought some significant challenges to businesses from retail, to restaurants and manufacturing. The supply chain industry faced a challenge like no other when shutdowns began and manufacturers were left scrambling to come up with a backup plan. Although these challenges were tough to handle, it gave the industry a much-needed eye opening to make the changes needed in order to avoid this from happening again.

The food manufacturing industry was hit particularly hard and required some intervention from the U.S. government. In order to protect food plant workers, the FDA and OSHA jointly issued a 16-page checklist for use by owners and operators of food production companies in mid-August. While it did not list any new regulations, it pulled existing guidance from the FDA, CDC, and OSHA. The main focus was on employee health and food safety. The main concern was offering guidance on how to deal with resuming operations, protecting healthy workers, as well as for dealing with sick employees and those exposed to them. One of the struggles we have is that the guidelines relate to how workers behave inside a plant.

These guidelines were just the tip of the iceberg as it forced the industry to take a deeper look into two main areas: Supply chain robustness, visibility and transparency, and traceability. Highly optimized modern supply chains depend on a high degree of predictability from all actors in the chain; they are lean in order to minimize costs and working capital.

Unfortunately, this optimization has made supply chains brittle—the models did not anticipate COVID-19 and the unexpected complexity that followed. Moving forward, manufacturers need to take a closer look at how this happened.

The traditional way to increase robustness in a supply chain is to increase inventory buffers so that any breakdowns can be smoothed out over time. Inventory buffers are expensive, tie up working capital, and increase risks, because a manufacturer may not be able to sell what they have in inventory. A more modern approach is to make supply chains more agile, so changes can be implemented quickly in case the unexpected happens. Agility requires visibility and transparency in order to understand what’s happening. The struggle in manufacturing is that agility must be combined with repeatability so that quality products can be created in a cost-effective way on a large scale. Repeatability also requires visibility and transparency. A famous quote from Lord Kelvin says, “you cannot improve what you cannot measure”. This rings as true today as it did more than 100 years ago. Another key element is repeatability to ensure that the manufacturing resources produce the requested production orders. This is why it is so important to provide transparency in what is going on in your supply chain to ensure processes are stable and repeatable.

The pandemic has brought a renewed focus for manufacturers in making sure they are becoming more transparent and agile within their supply chain processes. They are realizing thanks to this disruption that suppliers can’t always deliver and a backup plan is crucial to keep things moving. One option is to implement technology that helps track visibility and transparency to better assess what is needed and to offer alternative suppliers. Having supply chain transparency requires companies to know what is happening upstream in the supply chain and communicate this knowledge both internally and externally.

Automation Can Help with Supply Chain Visibility

Automation has wrongly been perceived as just a way to kill jobs. At the same time, the idea of “bringing manufacturing back to the United States” is less about bringing jobs back and more about adding value creation. For manufacturers to be effective today, they must automate. It’s not just about being efficient, it’s about enabling manufacturers to scale up with precision. Most importantly, it’s about survival. In order for manufacturers to survive, they need to automate. This is driving a much higher demand in sensors which play an essential role in automation.

Automation systems are unbiased, and don’t have bad day. This means manufacturers can operate with high levels of repeatability and precision. Without this level of automated precision, we would not be able to enjoy many of modern life’s necessities like the car you drive or the cell phone in your pocket.

Additionally, automation reduces errors, increases the efficiency of the labor, and results in higher output with lower labor costs. This helps manufacturers reduce waste, increase sustainability, lower their carbon footprint, and reduce their energy dependency.

2020 prompted many necessary changes to the food manufacturing industry and their interaction with suppliers. It is true that a crisis spurs innovation. The pandemic has forced manufacturers to think differently about how they are conducting business. One thing will be critical to move forward: The ability to have better visibility of your supply chain. Adding visibility, transparency and collaboration tools are going to bring on lasting changes that are to manage a disruption such as a future pandemic.

Karen Everstine, Decernis
Food Fraud Quick Bites

COVID-19 and Food Fraud Risk

By Karen Everstine, Ph.D.
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Karen Everstine, Decernis

While foodborne transmission of the novel coronavirus is unlikely , the virus has significantly affected all aspects of food production, food manufacturing, retail sales, and foodservice. The food and agriculture sector has been designated as a “critical infrastructure,” meaning that everyone from farm workers to pest control companies to grocery store employees has been deemed essential during this public health crisis.* As a society, we need the food and agriculture sector to continue to operate during a time when severe illnesses, stay-at-home orders and widespread economic impacts are occurring. Reports of fraudulent COVID-19 test kits and healthcare scams reinforce that “crime tends to survive and prosper in a crisis.” What does all of this mean for food integrity? Let’s look at some of the major effects on food systems and what they can tell us about the risk of food fraud.

Supply chains have seen major disruptions. Primary food production has generally continued, but there have been challenges within the food supply chain that have led to empty store shelves. Recent reports have noted shortages of people to harvest crops, multiple large meat processing facilities shut down due to COVID-19 cases, and recommendations for employee distancing measures that reduce processing rates. One large U.S. meat processor warned of the need to depopulate millions of animals and stated “the food supply chain is breaking.” (An Executive Order was subsequently issued to keep meat processing plants open).

Equally concerning are reports of supply disruptions in commodities coming out of major producing regions. Rice exports out of India have been delayed or stopped due to labor shortages and lockdown measures. Vietnam, which had halted rice exports entirely in March, has now agreed to resume exports that are capped at much lower levels than last year. Other countries have enacted similar protectionist measures. One group has predicted possible food riots in countries like India, South Africa and Brazil that may experience major food disruption coupled with high population density and poverty.

Supply chain complexity, transparency and strong and established supplier relationships are key aspects to consider as part of a food fraud prevention program. Safety or authenticity problems in one ingredient shipment can have a huge effect on the market if they are not identified before products get to retail (see Figure 1). Widespread supply chain disruptions, and the inevitable supplier adjustments that will need to be made by producers, increase the overall risk of fraud.

Reconstructed supply chain
Figure 1. Reconstructed supply chain based on recall data following the identification of Sudan I in the chili powder supply chain in 2005. Data source: Food Standards Agency of the U.K. National Archives and The Guardian. Figure from: Everstine, K. Supply Chain Complexity and Economically Motivated Adulteration. In: Food Protection and Security – Preventing and Mitigating Contamination during Food Processing and Production. Shaun Kennedy (Ed.) Woodhead Publishing: 26th October 2016. Available at: https://www.elsevier.com/books/food-protection-and-security/kennedy/978-1-78242-251-8

Regulatory oversight and audit programs have been modified. The combination of the public health risk that COVID-19 presents with the fact that food and agriculture system workers have been deemed “critical” has led to adjustments on the part of government and regulatory agencies (and private food safety programs) with respect to inspections, labeling requirements, audits, and other routine activities. The FDA has taken measures including providing flexibility in labeling for certain menus and food products, temporarily conducting remote inspections of food importers, and generally limiting domestic inspections to those that are most critical. USDA FSIS has also indicated they are “exercising enforcement discretion” to provide labeling flexibilities. The Canadian Food Inspection Agency (CFIA) announced they are prioritizing certain regulatory activities and temporarily suspending those activities determined to be “low risk.” GFSI has also taken measures to allow Certification Program Owners to provide certificate extensions due to the inability to conduct in-person audits.

While these organizations have assured stakeholders and the public that food safety is of primary importance, the level of direct regulatory and auditing oversight has been reduced to reduce the risk of virus transmission during in-person activities. Strong auditing programs with an anti-fraud component are an important aspect of food fraud prevention. Adjustments to regulatory and auditing oversight, as necessary as they may be, increase the risk of fraud in the food system.

There is a focus on safety and sustainability of foods. The food industry and regulatory agencies are understandably focused on basic food safety and food sustainability and less focused on non-critical issues such as quality and labeling. However, there is a general sense among some in industry that the risk of food fraud is heightened right now. Many of the effects on the industry due to COVID-19 are factors that are known to increase fraud risk: Supply chain disruptions, changes in commodity prices, supplier relationships (which may need to be changed in response to shortages), and a lack of strong auditing and oversight. However, as of yet, we have not seen a sharp increase in public reports of food fraud.

This may be due to the fact that we are still in the relatively early stages of the supply chain disruptions. India reported recently that the Food Safety Department of Kerala seized thousands of kilograms of “stale” and “toxic” fish and shrimp illegally brought in to replace supply shortages resulting from the halt in fishing that occurred due to lockdown measures.

High-value products may be particularly at risk. Certain high-value products, such as botanical ingredients used in foods and dietary supplements, may be especially at risk due to supply chain disruptions. Historical data indicate that high-value products such as extra virgin olive oil, honey, spices, and liquors, are perpetual targets for fraudulent activity. Turmeric, which we have discussed previously, was particularly cited as being at high risk for fraud due to “‘exploding’ demand ‘amidst supply chain disruptions.’”

How can we ensure food sufficiency, safety, and integrity? FAO has recommended that food banks be mobilized, the health of workers in the food and agriculture sector be prioritized, that governments support small food producers, and that trade and tax policies keep global food trade open. They go on to say, “by keeping the gears of the supply chains moving and actively seeking international cooperation to keep trade open, countries can prevent food shortages and protect the most vulnerable populations.” FAO and WHO also published interim guidance for national food safety control systems, which noted the increased risk of food fraud. They stated “during this pandemic, competent authorities should investigate reported incidences involving food fraud and work closely with food businesses to assess the vulnerability of supply chains…”.

From a food industry perspective, some important considerations include whether businesses have multiple approved suppliers for essential ingredients and the availability of commodities that may affect your upstream suppliers. The Acheson Group recommends increasing supply chain surveillance during this time. The Food Chemicals Codex group recommends testing early and testing often and maintaining clear and accurate communication along the supply chain.1 The nonprofit American Botanical Council, in a memo from its Botanical Adulterants Prevention Program, stated “responsible buyers, even those with relatively robust quality control programs, may need to double- or even triple-down on QC measures that deal with ingredient identity and authenticity.”

Measures to ensure the sufficiency, sustainability, safety and integrity of foods are more closely linked than ever before. In this time when sufficiency is critical, it is important to avoid preventable food recalls due to authenticity concerns. We also need to stay alert for situations where illegal and possibly hazardous food products enter the market due to shortages created by secondary effects of the virus. The best practices industry uses to reduce the risk of food fraud are now important for also ensuring the sufficiency, sustainability and safety of the global food supply.

Reference

  1. Food Safety Tech. (April 24, 2020). “COVID-19 in the Food Industry: Mitigating and Preparing for Supply Chain Disruptions “. On-Demand Webinar. Registration page retrieved from https://register.gotowebinar.com/recording/1172058910950755596

*Foodborne transmission is, according to the Food Standards Agency in the U.K., “unlikely” and, according to the U.S. FDA, “currently there is no evidence of food or food packaging being associated with transmission of COVID-19.”

Kevin Kenny, Decernis
FST Soapbox

COVID-19 Supply Chain Disruptions on the Horizon

By Kevin Kenny
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Kevin Kenny, Decernis

On the one level, it’s still too early to see full supply chain stoppages, other than growing port and customs delays. While one does not need a crystal ball to see that significant issues are already on the horizon, it takes time for both positive and negative supply impacts to wend their way through the chain.

My company, Decernis, a FoodChain ID Company, provides a complete regulatory intelligence software suite that covers more than 100,000 global regulations in 219 countries, and as such, we have a unique global perspective on how the pandemic is going to affect the supply chain.

Among the countries to watch is India, which imposed a nationwide 21-day shutdown on March 25 and thus far is the tightest lockdown in the world. In the large cities, the lack of public transportation has forced newly unemployed to walk home, often over a period of days, to their home villages. This creates a challenge for the economy because India depends on seasonal migrant and factory workers.

Unlike most countries, pharmaceutical and supplement manufacturers, as well as food processors, are entirely shut down. While farm operations and their supply chains are exempt, there is no harvest without migrant labor. Moreover, truckers transporting frozen goods often are stopped en route due to uneven permit enforcement across states. Add to this the problem of export foods stuck in containers or ports with limited market access, combined with import/export restrictions, and a crisis is at hand.

And, while the Indian government has not banned rice exports, India’s Rice Exporters Association effectively suspended exports because of dramatic labor shortages and logistical disruptions. So, while buyers exist, there is no practical way to harvest, process or ship those exports.

Combine the lack of migrant agricultural workers with the closing of restaurants and schools in many countries and economies are left with a steep drop in demand. As a result, unprocessed food including pork, eggs, milk and early-harvest fruits and vegetables are being destroyed or “tilled under.”

Countries whose leadership is turning a blind eye to the pandemic (i.e., Brazil) will ultimately see a more significant impact.

Another major player to watch is China, where the tariff crisis initially exposed supply chain vulnerabilities. Combined with the current pandemic, businesses now see that sourcing can often be a more substantial factor than price.

Prior to COVID-19, the United States, among other countries, initiated a trend toward blatant economic nationalism, which significantly accelerated this year. In an effort to protect their populations and national security, countries (i.e., Cambodia, India, Kazakhstan, Russia, Serbia and Ukraine) halted the export of vital commodities. As a result, critical supplies have been diverted to more developed countries that can outbid and pay a higher price, leading to food security risks in smaller and weaker markets.

These factors will trigger a rethinking of supply chains in the medium and long term. The cost savings realized in China, India, Vietnam and Thailand will be weighed against the threats to supply chain stability. The result may be a subtle new form of supply chain nationalism, where companies prefer more reliable local production to lower-cost, more vulnerable foreign production. The recent sourcing trend for large multinationals to partner with fewer, trusted providers could reverse once the dust settles from this pandemic.

The decrease in air cargo capacity (due to the grounding of passenger aircrafts) has also played a significant role in supply chain disruption and will lead to dramatic short-term increases in the cost of air freight.

Last, but certainly not least, will be the fallout from obvious bankruptcies. As an early indicator, 247,000 Chinese companies declared bankruptcy in the first two months of 2020, with many more closures expected.

Obvious candidates include movie theaters, airlines, cruise ships, retailers, and hotels, but any company caught carrying a large debt load is also endangered. Pharma companies and those in oil, gas and petrochemicals will also be affected by a perfect storm of oil market collapse.

On a positive note, any supplement (i.e., Vitamin B, C and D) food commodity (i.e., blueberries, oranges) and processed food products (i.e., juices, yogurts) perceived to have immunity-boosting potential will likely see a short and long-term boost in sales. Botanicals, however, may soon have significant new sourcing problems.

As they deal with consequences of this pandemic, global companies will need to strategize for building a more durable and flexible supply chain. These unprecedented times are sure to spark more innovation and technological growth to address the challenges industry is facing.

Coronavirus, COVID-19

Webinar this Friday: Supply Chain Issues Related to COVID-19

By Food Safety Tech Staff
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Coronavirus, COVID-19

Visit Food Safety Tech’s COVID-19 Resource CenterAs the coronavirus pandemic disrupts personal lives and business, the food industry must continue to operate under very different conditions. This Friday, Food Safety Tech is hosting the third webinar in its series of COVID-19 in the Food Industry. Experts will discuss how to prepare for supply chain issues and disruptions. Sponsored by Intelex, this is a complimentary webinar event.

Event

COVID-19 in the Food Industry: Mitigating and Preparing for Supply Chain Disruptions

When

Friday, April 24, 2020 at 12 pm ET

Panelists

Steven Sklare, President, The Food Safety Academy (Moderator)
Kermit Nash, Partner at Saul Ewing Arnstein & Lehr
Steven M. Gendel, Ph.D., Senior Director for Food Science, Food Chemicals Codex

Register now

Coronavirus, COVID-19

Worker Safety a Concern as COVID-19 Affects U.S. Meat Plants, Supply Chain Uncertain

By Maria Fontanazza
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Coronavirus, COVID-19

Employees at meat processing plants across the nation aren’t reporting to work as they fear for their health during the coronavirus pandemic. Hundreds of workers have become infected with COVID-19, and several deaths have been reported. There is no official count on the infection rate or how many employees have succumbed to the novel coronavirus, but the information released thus far is alarming. Demands for more protective equipment, along with hazard pay, may not be enough to keep workers safe; concerns over a meat shortage loom.

Tyson Foods

On March 31, Tyson Foods posted on “The Feed Blog” (the company’s blog) that it would be taking additional measures to protect and reward its frontline workers and truckers during the COVID-19 crisis: Protection in the form of “protective facial coverings for production workers who request them” and a reward in the form of a “one-time $500 bonus” to be paid the first week in July “based on their work attendance in accordance with our relaxed COVID-19 attendance policy during the months of April, May and June”.

Last week Tyson Foods issued a news release about the steps it is taking to further handle the COVID-19 problem at U.S. plants: At all facilities, workers are having their temperatures taken (temporal thermometers or infrared temperature scanners, depending on the location) prior to entering the plants; the company has increased deep cleaning and sanitizing, some of which will require the shutdown of at least one day of production. The release also states that Tyson Foods is implementing more social distancing measures, which includes putting up dividers between workstations and increasing space between workers on the plant floor.

The company’s measures come among serious concerns about the presence of outbreaks at various facilities. The New York Times reported about the deaths of three workers at a Tyson poultry plant in Camilla, Georgia, one of whom was allegedly told to return to work even after feeling symptoms of COVID-19. In Columbus Junction, Iowa, a Tyson pork plant closed after more than 24 employees tested positive for COVID-19. And according to the Benton-Franklin (Washington state) health district COVID-19 Case Count page, 30 people linked to the Tyson Fresh Meats plant have been diagnosed with the coronavirus as of April 13.

Cargill, Inc.

Last week Cargill closed a meat production facility in Hazleton, PA due to the high concentration of COVID-19 cases in the area. The facility has 900 employees, and it has been reported that some workers were staying home as a result of testing positive for coronavirus or out of concerns for their own safety.

JBS

JBS shut down its plant in Pennsylvania for two weeks; it shuttered its beef plant in Greeley, Colorado after at least 36 employees tested positive for the virus, and at least one death was reported. One representative for union workers stated 50 employees have tested positive and an additional worker has died. JBS issued a statement on Friday that it is offering free COVID-19 tests to all workers at the Greeley beef plant. The company also lists its policy on prioritizing team member health and safety on its website.

Smithfield Foods, Inc.

Smithfield Foods is the world’s largest pork processing company, employing 40,000 people in the United States. The company shut down its plant in Sioux Falls, SD indefinitely after more than 80 workers tested positive for COVID-19 (this particular accounts for 4–5% of pork production domestically and employs an estimated 3700 workers). “The closure of this facility, combined with a growing list of other protein plants that have shuttered across our industry, is pushing our country perilously close to the edge in terms of our meat supply,” said Kenneth M. Sullivan, president and CEO of Smithfield Foods in a news release. “It is impossible to keep our grocery stores stocked if our plants are not running. These facility closures will also have severe, perhaps disastrous, repercussions for many in the supply chain, first and foremost our nation’s livestock farmers.”

Several Smithfield Food workers in poultry plants across Alabama, Georgia and Tennessee have also tested positive for the virus.

“We have a stark choice as a nation: we are either going to produce food or not, even in the face of COVID-19,” said Sullivan.

Tatiana Bravo, INTURN
FST Soapbox

Looking Ahead: The Digital Supply Chain and Fast-Moving Consumer Goods

By Tatiana Bravo
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Tatiana Bravo, INTURN

The global supply chain is changing. The fast-moving supply chains that power many of the world’s top businesses are being transformed before our very eyes, as companies all over the globe compete to beat their competitors through digitalization.

What we’re now seeing is the emergence of a digital supply chain, with processes powered by innovative and exciting new ideas turned into software.

As we look ahead to the coming months and years, we can expect to see incredible changes affecting the supply chains of all manner of businesses. In fact, we’d go so far as to say that any business that’s serious about competing on the global stage will have no choice but to embrace these innovations and go digital.

So, what exactly can we expect to see from the digital supply chain in the near future, and how might these changes affect fast-moving consumer goods?

Advanced Analytics

The potential of analytics is incredible, particularly when you look at supply chains.

Recent years have seen data rise to the forefront of many business leaders’ concerns. Increasing numbers of companies have started to pick up on the impact that informative data can have on their strategies, and ultimately their chances of ongoing success in the marketplace.

The supply chain is no exception to this rule. As the power of analytical software improves, businesses will be clamoring to gain access to, and make use of, the huge amount of data that’s now available.

We’re likely to see those managing data put under increasing amounts of pressure to use that data effectively, helping to inform decisions that impact supply chain processes and limit wastage. This data will also be invaluable in determining the real impact of critical supply chain decisions and informing future strategies.

The Emergence of AI
AI is the next big thing in business, and it’s set to transform the way the digital supply chain works. Artificial intelligence is now emerging as a hugely powerful tool, capable of helping businesses to make the right decisions for their supply chains.

As the potential of AI improves, we can expect to see its impact felt more widely throughout global supply chains. Look out for AI being used to inform businesses on changing customer preferences, disruptions in supply chains, increasing costs and other obstacles to product delivery. Artificial intelligence will predict future problems before they occur, giving business owners plenty of time to steer clear of potential pitfalls and keep things moving.

AI will also prove invaluable when it comes to anticipating the purchasing habits of existing customers and establishing the value of new leads and potential purchasers. If used effectively, this information could have a dramatic impact on the success of a wide range of different businesses—particularly those focused on fast-moving consumer goods.

Automation of Supply Chain Tasks

Automation itself isn’t a new idea, but the way it’s being used in digital supply chains is.

In the coming months and years, we’re likely to see automation transform the way supply chains work. The automation of processes will help businesses to cut costs, improve efficiency and eliminate any skills gaps by which they may be affected.

Supply chain tasks are being automated with the help of something called robotic process automation, or RPA. This form of automation is even smarter than traditional automated processes.

Informed by software bots or AI, RPA is a significant step forward in the world of digital supply chains. It’s highly scalable, incredibly effective and, importantly, it’s been proven to be hugely reliable. So, even businesses dedicated to the very highest standards of quality are now beginning to automate processes using RPA.

Climate Change Challenges

Climate change continues to be a hot topic in the news, and supply chains are likely to feel the impact of these concerns.

Consumers’ purchasing habits are increasingly led by environmental considerations. It’s therefore important that companies consider the environmental impact of their supply chain processes and provide visibility on these, for those who have an interest.

It’s expected that issues surrounding sustainability will become ever more critical in the future. Inevitably, supply chains will be impacted. Companies making use of digitalization will be best placed to prepare for the challenges of sustainability, reducing waste and making speedy adjustments to their processes as and when required.

A Shift in Transportation

The digitalization of supply chain processes has given ecommerce companies and online retailers the edge over traditional high street retailers. And this has led to a shift towards online shopping, which shows no sign of waning. As we continue into 2020 and beyond, we can expect to see more and more consumers choosing to shop online, and that’s going to have a knock-on effect on the transportation of goods.

Experts are predicting a transportation crunch, when demand begins to outstrip the availability of transport for online goods. This is likely to lead to a shift in how goods are transported, which could well align with changes to logistics designed to improve sustainability and reduce the carbon footprint of products.

Changes in Trade Agreements

Changes in trade agreements between many of the world’s leading economies are likely to impact supply chains in the future. With Brexit looming and trade issues between the United States and China continuing, it’s important that companies remain aware of how political decisions might affect the way they work.

Digital supply chains provide enhanced flexibility for companies, enabling organizations to quickly adapt to changes that could be outside of their control. So, companies that continue to provide a fast and reliable service despite changing trade agreements could well gain an edge over less efficient competitors as time goes on.

Companies making full use of digitalization will be best placed to make the most of new opportunities, and avoid supply chain disruption as a result of changing trade agreements.

Security Concerns

While businesses are beginning to realize the potential of the data that’s now available to them, consumers too are opening their eyes to the data that they share with the world. And this increased awareness has led to consumers being newly concerned about the data they reveal, and how secure that data is once it’s been shared.

Companies looking to make full use of the digitalization of supply chain processes will be incredibly reliant on data to maximize their efficiency. For this reason, it will be vital that companies establish trust with their existing customers and new prospects.

Security measures should therefore be top of the agenda for forward-thinking businesses. Companies that fall foul of security breaches and data losses are unlikely to be trusted with consumers’ data going forward, and this could have a detrimental impact on the efficiency of their digital supply chains in the future.

Digitalization is sweeping through the supply chains of companies all over the planet, and its potential is mind boggling. The automation of supply chain processes has already transformed the way supply chains are managed, massively increasing the speed and efficiency of a huge number of different companies.

In the future, we’re likely to see further improvements to digital supply chains, as companies begin to make better use of artificial intelligence and robotics. Look out for supply chains managed by AI-powered software and RPA, and get ready for astounding productivity from early adopters of these exciting new technologies.