Learn how utilising technology can build a more sustainable and efficient system of risk management
In general, supplier due diligence processes and the management of supplier risk in the food industry have remained largely unchanged to those of the pre-digital era. Standards have improved, audits have proliferated and there are many more certification schemes to ensure the food we source is safe and sustainable. However, the way the industry accesses & shares information, analyses data and interprets risk has fallen behind many other sectors.
The current challenges represent an opportunity for us to rethink the approach to supplier compliance and develop systems and processes that not only handle the current COVID-19 crisis but are efficient and effective in the long term.
In this White Paper, we look at each of these and offer some answers to how a more technology driven approach can provide better insight, reduce the burden on suppliers and create economies of cost and resource.
1. Supply chain transparency
Deep Supply chain transparency – the new normal
Food supply chains are now Global. The old one-up, one-down methods of supplier transparency are no longer fit for purpose.
Technology is helping drive this change, in the same way that Linked-in enables us to create our own profile to be shared with others and gives control of how we are connected (1st, 2nd, 3rd degree), the technology is now widely available to enable food businesses to securely map supply chains for products back to the source of raw materials, whilst sharing valuable technical data with trusted partners in the same supply chain.
2. Certification Schemes
More collaboration & equivalence between Schemes
More than 400 Certification schemes compete, often duplicating each other’s goals.
In the last month, we have spoken to several Scheme owners looking to develop their own APIs. Each is working in isolation with a 12-18-month timeline. Creating a standard will reduce the costs for each Scheme and reference implementations that can be built-upon will speed up the process significantly.
Already close to breaking point. Will go remote.
Far too many audits are carried out creating significant disruption and cost to the supply chain.
As all the technology already exists today, we need to move to a greater level of digitisation for the majority of audit processes – the work we need to focus on is e standards for the information that is captured to ensure remote audits provide the same degree of verification as a physical audit.
4. Risk Assessment
A move towards automation and predictive analysis
Risk management often seems to be an industry based on excel spreadsheets, attempting to combine data from multiple sources where there is no-systems integration.
This data should be available instantly at your fingertips, enabling you to then identify your strategic risk management aims – e.g. diversify supply in sole supply categories, reduce supply from countries with poor ethical / sustainability scores, unless the supplier can demonstrate standards in-line with your target market, increase the level of certification in your supplier base to demonstrate enhanced animal welfare.
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If you would like further information on how Authenticate can help your business then please contact us below.