Business Cont Pres041209


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Business Cont Pres041209

  1. 1. Food Business Continuity James Hazlett Andra Marcocci
  2. 2. Topic: Business Continuity Relating to Food Retailers <ul><li>FDA issued recall of various peanut products due to salmonella (Source: FDA) </li></ul><ul><ul><li>Began January 1, 2007 </li></ul></ul><ul><ul><li>Continues to this day </li></ul></ul><ul><ul><li>Overall projected losses to businesses: Over $1 billion </li></ul></ul><ul><li>Melamine found in Chinese food products (Source: CDC) </li></ul><ul><ul><li>Industrial chemical that can cause kidney failure </li></ul></ul><ul><ul><ul><li>Or unknown affects when paired with other chemicals </li></ul></ul></ul><ul><ul><li>Chiefly found in infant formula </li></ul></ul><ul><li>Contamination normally occurs through infected supplier personnel or through improper understanding of food ingredients </li></ul><ul><li>Many of the supplier regulations are handled through broker systems </li></ul><ul><ul><li>This is not 100% secure </li></ul></ul>
  3. 3. For the Love of Chocolate <ul><li>Specializes extensively in chocolate </li></ul><ul><li>Location </li></ul><ul><ul><li>3136 W Cary St </li></ul></ul><ul><ul><li>Richmond, VA 23221 </li></ul></ul><ul><li>Has been in business for 28 years </li></ul><ul><li># of employees: 9-25 depending on the season </li></ul>
  4. 4. For the Love of Chocolate Strategy Statement Recommendations <ul><li>Mission – To provide high quality, exotic chocolate, and knowledgeable/helpful customer service </li></ul><ul><li>Vision – To increase the variety of chocolate and expand operations throughout Virginia </li></ul><ul><li>Objectives – To meet product demands at seasonal peak times and plan for production of second facility </li></ul><ul><li>Goals </li></ul><ul><ul><li>Expand non-individual customer base </li></ul></ul><ul><ul><li>Create a second retail facility in the Short Pump area </li></ul></ul><ul><ul><li>Create a chocolate catering specialty office </li></ul></ul>
  5. 5. Disasters confronted/acknowledged by For the Love of Chocolate <ul><li>Isabel related power outage </li></ul><ul><ul><li>Had to deploy dry ice to keep the store cold </li></ul></ul><ul><ul><ul><li>Dry ice was provided by inventory suppliers </li></ul></ul></ul><ul><li>Scares relating to peanuts and peanut butter </li></ul><ul><ul><li>FTLC not confronted this directly, but was informed, and already had procedures in place </li></ul></ul><ul><li>Peak time inventory loss </li></ul><ul><ul><li>Peak times: </li></ul></ul><ul><ul><ul><li>Christmas </li></ul></ul></ul><ul><ul><ul><li>Easter </li></ul></ul></ul><ul><ul><ul><li>Halloween </li></ul></ul></ul><ul><ul><ul><li>Thanksgiving </li></ul></ul></ul><ul><ul><ul><li>Valentine’s Day </li></ul></ul></ul><ul><ul><ul><li>Mother’s Day </li></ul></ul></ul>
  6. 6. Critical Items <ul><li>Insurance coverage </li></ul><ul><li>Equipment breakdown </li></ul><ul><li>Food contamination </li></ul><ul><li>External assistance </li></ul><ul><li>Written procedures and future planning </li></ul>
  7. 7. Question 1 <ul><li>What does your insurance plan cover? </li></ul><ul><ul><li>Broken equipment </li></ul></ul><ul><ul><ul><li>Communication, registers, etc. </li></ul></ul></ul><ul><ul><li>Customer/Employee related </li></ul></ul><ul><ul><ul><li>Lawsuits </li></ul></ul></ul><ul><ul><ul><li>Theft </li></ul></ul></ul><ul><ul><ul><li>Fraud </li></ul></ul></ul><ul><ul><li>Supply loss </li></ul></ul><ul><ul><ul><li>Internally – Damage to the store causes loss of inventory </li></ul></ul></ul><ul><ul><ul><li>Externally – Supply is interrupted due to disaster hitting supplier </li></ul></ul></ul><ul><ul><ul><li>Peak time coverage – Periods during which there is more inventory in the store than usual </li></ul></ul></ul>
  8. 8. Question 2 <ul><li>What backup equipment do you have available should the main systems fail? </li></ul><ul><ul><li>Backup systems are normally lower end systems designed for temporary use </li></ul></ul><ul><ul><ul><li>An identical parallel system can be prohibitively expensive </li></ul></ul></ul><ul><ul><ul><li>The backup system needs to stay on-line long enough to allow for continuation of business during repairs </li></ul></ul></ul><ul><ul><li>Cost benefit analysis (DRII Subject Area 2) </li></ul></ul>
  9. 9. Question 3 <ul><li>What procedures do you have in the case of a food contamination scare? </li></ul><ul><ul><li>Assessing what constitutes acceptable product quality (ISO22000 Std. Standard 7.4.2) </li></ul></ul><ul><ul><li>Bleach, throw away, take photographs verifying the destruction of the food </li></ul></ul><ul><ul><li>Quarantine recalled products </li></ul></ul><ul><ul><li>Put out a press release to announce the issue </li></ul></ul><ul><ul><ul><li>Offer full refunds for return of contaminated products </li></ul></ul></ul>
  10. 10. Question 4 <ul><li>Who do you contact about providing emergency assistance, in the case of a disaster? (DRII SA 9 & 10) </li></ul><ul><ul><li>Some suppliers will provide assistance in the case of any emergency </li></ul></ul><ul><ul><li>Individuals with vested interest in the company (Stakeholders) </li></ul></ul><ul><ul><li>Insurance </li></ul></ul><ul><ul><li>Press release points of contact </li></ul></ul>
  11. 11. Question 5 <ul><li>What steps have you taken to insure that your employees are properly educated to confront potential disasters? </li></ul><ul><ul><li>Available documentation (DRII SA 9) </li></ul></ul><ul><ul><ul><li>Phone numbers, procedures, press release point of contact, etc. </li></ul></ul></ul><ul><ul><li>Regular emergency management meetings </li></ul></ul><ul><ul><li>Designated team leaders (ISO22000 Std. 5.5) </li></ul></ul><ul><ul><li>Supplementary question: How competent/robust is your command chain? (ISO22000 Std. 6.2) </li></ul></ul>
  12. 12. Relevant Standards and Professional Practices (ISO22000) <ul><li>Standard 5.5: </li></ul><ul><ul><li>Food safety team leader responsibilities and authorities </li></ul></ul><ul><ul><ul><li>organizing the team’s training and work </li></ul></ul></ul><ul><ul><ul><li>ensuring the implementation and updating of the system </li></ul></ul></ul><ul><ul><ul><li>reporting to management </li></ul></ul></ul><ul><ul><ul><li>communication </li></ul></ul></ul><ul><li>Standard 6.2: </li></ul><ul><ul><li>The requirements of (demonstrated) competence of the HACCP (Hazard Analysis and Critical Control Point) team members </li></ul></ul><ul><ul><li>Staff’s impact on food safety </li></ul></ul><ul><li>Standard 7.2 </li></ul><ul><ul><li>Company should itself select and implement appropriate good hygiene practices (instead of merely applying those imposed upon it) </li></ul></ul><ul><li>Standard 7.4.2 </li></ul><ul><ul><li>Analyze various stages in food chain where hazards occur </li></ul></ul><ul><ul><li>Determination of acceptable levels of flaws in the finished product </li></ul></ul>
  13. 13. Relevant Standards and Professional Practices (DRII) <ul><li>Subject Area 2: Risk Evaluation and Control: </li></ul><ul><ul><li>Determine the risks (events or surroundings) that can adversely affect the organization and its resources </li></ul></ul><ul><ul><li>… avoid or mitigate the effects of those risks </li></ul></ul><ul><ul><li>… cost benefit analysis will be required to justify the investment in controls </li></ul></ul><ul><li>Subject Area 9: Crisis Communication </li></ul><ul><ul><li>Develop and document the action plans to facilitate communication of critical continuity information </li></ul></ul><ul><ul><li>Coordinate and exercise with stakeholders and the media to ensure clarity during crisis communications </li></ul></ul><ul><li>Subject Area 10: The Coordination with External Agencies </li></ul><ul><ul><li>Establish applicable procedures and policies for coordinating continuity and restoration activities with external agencies </li></ul></ul>
  14. 14. Standards and Professional Practices Sources <ul><li>ISO22000 </li></ul><ul><ul><li>Blanc, Didier. &quot;ISO22000: From intent to implementation.&quot; ISO Management Systems JUN 2006 7-11. Web.13 Apr 2009. <>. </li></ul></ul><ul><li>Strategic Planning </li></ul><ul><ul><li>Martinelli, Frank. STRATEGIC PLANNING MANUAL . Milwaukee: The Center for Public Skills Training, 1999. Print. </li></ul></ul><ul><li>DRI Institute for Continuity Management (DRII) </li></ul><ul><ul><li>&quot;Professional Practices.&quot; DRI Institute for Continuity Management Web.13 Apr 2009. <>. </li></ul></ul>
  15. 15. Government Sources <ul><li>Food and Drug Administration (FDA) </li></ul><ul><ul><li>&quot;GUIDE TO MINIMIZE MICROBIAL FOOD SAFETY HAZARDS FOR FRESH FRUITS AND VEGETABLES.&quot; US FDA/CFSAN 26 OCT 1998 Web.13 Apr 2009. <>. </li></ul></ul><ul><ul><li>&quot;Peanut Product Recalls: Salmonella Typhimurium.&quot; FDA 10 APR 2009 Web.13 Apr 2009. <>. </li></ul></ul><ul><li>Center for Disease Control (CDC) </li></ul><ul><ul><li>&quot;Melamine in Food Products Manufactured in China.&quot; CDC 07 OCT 2008 Web.13 Apr 2009. <>. </li></ul></ul>
  16. 16. Private Sources <ul><li>For the Love of Chocolate </li></ul><ul><ul><li>804-359-5645 </li></ul></ul><ul><ul><li>2820 W. Cary St, Ste A </li></ul></ul><ul><ul><li>Richmond, VA 23221 </li></ul></ul><ul><li>Hartford Insurance </li></ul><ul><ul><li>&quot;Insurance Solutions for Small Business.&quot; Hartford, The Web.13 Apr 2009. <>. </li></ul></ul>
  17. 17. Misc. Sources <ul><li>Picture </li></ul><ul><ul><li>&quot;Boutique of the Week: For The Love of Chocolate.&quot; Collegian, The 25 SEP 2008 Web.13 Apr 2009. <>. </li></ul></ul>