Blog > Four Ways to Manage Risk with Software for Food Distribution
Recent and current global events are continuously creating complications that are instigating businesses to review their food distribution solutions and processes. The need for tools that provide end-to-end supply chain management such as food distribution software is at an all-time high to improve operational performance and mitigate regulatory, legal, and food safety risks.
Many companies in the food and beverage industry may believe they have good or “good-enough” visibility of their supply chain, but recent years have exposed widespread vulnerabilities that can potentially result in monumental disruptions.
What are the top risks and challenges affecting supply chains?
Supply chain backlog
Continued backlogs and increased transportation costs have instigated even more complications for food distributors that may result in increased prices of raw materials, ingredients, and food packaging.
These challenges have also necessitated modifications to the formulation of some products. Many companies have been prompted to seek alternative sources for ingredients and packaging materials – in some cases, this may require identifying alternative ingredients that may be substitutable under the FDA’s policies until supply chains are reliably unstuck.
According to OSHA and several food safety experts, most food-borne illnesses either start or expand within the food supply chain. The need for retailers and suppliers to document the who’s, what’s, where’s, and when’s of every aspect of the food supply chain has stimulated a growing need for more accurate traceability standards for legal reasons and consumer safety brand protection.
Recent reports suggest the potential for increased food fraud in global food supply chains, due to the impact of COVID-19. Food fraud is a common type of economically motivated adulteration, otherwise known as EMA. The FDA, states,
“Food fraud occurs when someone intentionally leaves out, takes out, or substitutes a valuable ingredient or part of a food. EMA also occurs when someone adds a substance to a food to make it appear better or of greater value.”
Our partner, Muddy Boots by TELUS, addresses the vital need for food authenticity in their eBook “Managing risk in the agri-food supply chain” and states that due to the heightened vulnerability of food to fraud, the Food Authenticity Network recommends the food industry be extra vigilant and use authenticity control measures and tools to mitigate any potential emerging threats. The Institute of Food Science and Technology shared a 2019 analysis that estimated that “fraud accounted for 5 to 25% of all globally reported food safety incidents.”
In addition to spikes in commodity and energy prices, labor shortages, transport issues, and more, consumer habits are changing as the end-client increasingly demands full transparency about their ingredients, production processes, and supply chain, which could subsequently strain profit margins. Read more about this topic we explore in further detail in the blog “Increase Customer Retention with Supply Chain Management Software.”
Researchers at the MIT Sloan School of Management found that consumers may be willing to pay 2% to 10% more for products from businesses that provide greater supply chain transparency.
Four ways to manage risks and improve your supply chain processes
Manual processes and protocols can cause errors, waste time, and consume resources. Modern technologies and strategies will help to transform your supply chain and maximize performance.
Today’s food distributors require traceability that can provide peace of mind to their customers while complying with numerous food safety standards. The best way to combat these hurdles is by improving operational performance with leading food distribution solutions that are capable of optimizing the following four areas that are critical to supply chain performance.
Why mitigate risk with Ignition by TELUS software for food distribution?
While there are numerous practices businesses can implement into their processes to manage risks, maintain consistent product quality, and monitor food safety in the supply chain, the effectiveness will depend on the reliability and scalability of the systems in place.
It’s for this reason that companies choose Ignition by TELUS’s complete food software package with its extensive capabilities for traceability, food safety, production management, omnichannel order management, efficiency and automation, and perfect order success.
Quality issues can arise at any point in the supply chain, and it is critical to identify them as early as possible to prevent excess time and costs, mitigate risks to reputation, compliance, and ultimately, food safety. Ignition by TELUS’s leading food distribution software streamlines your operation and provides 360 degrees of visibility from the sale to the final mile.
The complete platform includes various modules including ERP, Warehouse Management, Order Management, Direct Store Delivery, and Business Analytics and Intelligence. These modules all work together to drive business results and deliver a quick return on investment but are also available as individual point solutions designed to optimize performance. Learn more about the complete foodservice software package and each module.
We provide continued support from the point of implementation of our supply chain management software, through ongoing maintenance and improvements. Read experiences from our customers to learn how our food distribution software has affected their businesses.
To learn how these solutions can directly help your company mitigate risks and improve supply chain performance, reach out to an expert today and evaluate your unique challenges.