Supply chain risks can have an impact on your company’s brand and ability to meet FSMA and other regulatory requirements. But how do companies best focus limited resources on areas of greatest risk? Dr. David Acheson (President and CEO, The Acheson Group) leads an interactive discussion about key strategies in controlling supply chain risks and shares his insights on how to reduce gaps in your supply chain.

1. Supply Chain Risks: Closing the Gaps to Better Protect Your Company
Presented By: Dr. David Acheson, The Acheson Group
Beyond Compliance
Webinar & Podcast Series

2. Beyond Compliance Webinar Series SafetyChain.com
The Series
Webinar & Podcast Series
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The Sponsor
Food Quality Management System
Food Safety
Food Quality
Supplier Compliance
Learn more at SafetyChain.com

4. Beyond Compliance Webinar Series SafetyChain.com
Before We Get Started
HELPFUL TIPS
Informal but professional format
Ask Questions (Q&A at end)
Only panelists are displayed
Recording link will be shared
Audio issues: use call-in number

5. TRAINING TOPIC
Supply Chain Risks: Closing the Gaps
to Better Protect Your Company
Presented By: Dr. David Acheson, The Acheson Group

6. Overview
• Why is supply chain a risk increasing
• Regulatory perspective on supply chain
– Preventive control rules
– FSVP
• How to assess risks
• How to manage risks
– For new suppliers
– For current suppliers

7. Increasing Complexity
• Need for innovation
• New flavors
• New products
• Exciting ingredients
• New threats to food
• Control costs
• More testing
• New regulations

8. Supply Chain Complexity

9. How Are You Managing Supply Chain Risk Today
• Use of on site audits
– Second party
– Third party
• Reliance on your specifications
• Certificates of analysis
• Your own testing program
• Monitoring supplier behaviors

10. Key Questions
• Do you have adequate understanding of
the risks
• Do you know who is really controlling the
risk in your supply chain
• Are you able to track all the information
you receive
• Checking COAs
• Reviewing third party audits
• Who is in charge of the supply chain

11. FSMA Approach to Supply Chain Control
• Preventive Controls Rule (Human and Animal Food)
– Registered firms must assess supply chain risk
– If suppliers are responsible for controlling risk, the
customer must verify that the risk is being controlled
• Foreign Supplier Verification Program
– Shift the burden of ensuring safe food to importers
– Importers required to perform risk-based activities to verify
that food imported into the U.S. is to the same food safety
standards as those required of U.S. producers.

12. FSMA Approach to Supply Chain Control
• Do you need to comply with the PC rule?
– Need supply chain control as part of PC requirement
• Are you an importer of food that does not need to be compliant
with the PC rule
– Need to be compliant with FSVP

13. FSMA Approach to Supply Chain Control
• Applies to both the Preventive control rules and FSVP
• Hazard analysis
• Evaluate the risks – who is controlling the risk
• Supplier verification that risk are being controlled
• Use only approved suppliers
• Document corrective actions
• Build a program and keep records

14. FSMA Preventive Control Rules – Basic Approach
• Create a list of all ingredients you are using
– Basic ingredients
– Products
– Primary packaging
• Do a hazard analysis on every one
– Determine if any risks are Class 1 level
• Determine who will control the risks you have identified
– You - build the controls into your food safety plan
– Your supplier – verify that the supplier is controlling the risk

15. • Create a list of all your suppliers
– Include all locations if multiple manufacturing sites for one
supplier
• For all Class 1 risks
– Need an onsite audit
– Can be avoided if you control the risk in some other way
• For other risks
– Certificate of analysis
– Review of suppliers food safety plan
– Your own testing program
– Other….
Supplier Verification

16. Certificate Of Analysis
• Make sure you know how robust the COA is
– Sampling strategy used
– Testing method (AOAC/ISO)
– Laboratory
• Don’t make your COA requirements a “feel good”
• Make it count

17. Remember
• Maintain a list of approved suppliers
• Take appropriate corrective actions
• Keep full records

18. Supply Chain Risk
• How do you determine risk in
your supply chain?
• Not all suppliers are equal risk
• How do you differentiate?
• Focus resources on the areas of
greatest risk
• Multiple factors impact risk

19. Managing Risks
• Hazard analysis
• History
Ingredient
risk
• On site information
• Document review
• History
Supplier risk
• Processing
• Volumes
• Exposure
Your use of
the ingredient
Manage
Supply
Chain
Risk

20. Assessing Supply Chain Risk
• Develop a series of 10-15 questions
around ingredient risks e.g.
• History of problems
• From high risk area
• Chemical contaminants
• Microbiological contaminants
• Ask same questions for each
ingredient
• Allows you to rank the ingredient risks

21. Assessing Supply Chain Risk
• Develop a series of questions around
supplier risks e.g.
• Qualifications and certificates
• On site audit results
• Prior history of problems with
supplier
• Regulatory actions
• Ask same questions for each supplier
• Allows you to rank the supplier risks

22. Assessing Supply Chain Risk
• Develop a series of questions around
your use of the ingredient e.g.
• Number/volume of products
involved
• Use in a Flagship product
• Economic impact

23. New Products/New Suppliers
• Work as a team
• Product development/ R and D
• Food Safety
• Procurement
• Supply chain
• Understand product risk, supplier risk, exposure
to you
• Manage the risk accordingly
• May need more resources
• May decide not to go there

24. Current Suppliers
• Track and trend data
• Timeliness of delivery
• Meeting specifications
• COAs
• Take corrective actions
• Warnings
• Site visits
• Change supplier
• Keep records

25. Summary
• Supply chain may be your biggest risk
• Be proactive
• Develop a scientific and risk based approach
• Manage supply chain based on risks
• Leverage past history – Horizon Scan
• Leverage technology
25

26. Thank You!
Questions?
Need Help – Call TAG
(800) 401-2239
www.achesongroup.com
Info@achesongroup.com

27. Q & A

28. Resources
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Webinars & Videos
Product & Partner Info
Solution Consultation
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