Last week we talked about the 'for profit' sharing of data, but how about people that want your data for food safety?  We identified that Shifting Liability can make or break an organization during a recall, and guess what... people want your data for those same reasons. Let’s explore the data demands of safety related organizations today.

 

You want my data? Part 2: To be Safe?!

We recently wrote about what the USDA tells you to keep track of as part of your HAACP plan.  So this week we'll focus on other organizations that want your food safety data.  There are many out there, but let’s focus on two very big ones: IPC and SQF.

IPC is the buying cooperative for the Subway's 33,000 (and growing) franchisees. Many of their US stores belong to IPC. Not only do they negotiate prices for the SUBWAY members they also require data about what is being sent to the franchisees. Some of these reports are daily, some are weekly, and some are monthly. They use this data not only to protect their pricing but also for food safety issues like truck temperature, conditions, etc. very much like HAACP requirements. Of course if you provide product to SUBWAY you are required to report those sales to IPC. Food Safety is a huge concern when it can affect 33,000 businesses.

SQF Certification is the preferred choice for retail grocery stores that want food safety audits done on the products they carry. Large chains like Wegmans in the Northeast and Mid Atlantic states require their protein suppliers are SQF certified. Not only is the cost the burden of the vendor but annual audits of their programs must be performed by SQF Certification Bodies.  The chart below shows the 3 levels of SQF and how they equate to HAACP implementations. Not a coincidence.

The SQF certification bodies also will perform mock recalls and inspect your data as an ongoing audit of your food safety data.  

At the end of the day whether your data is required for pay to play or food safety these burdens are all part of doing business in today's risk averse society.  Using ABC (activity based costing) total all your costs of making product and divide by pounds processed to get your true cost allocations.

When determining your Margins ALL costs need to be accounted for, especially food safety.

 



Issue 586 - Where have all the people gone?

Sunday, at the Fancy Food Show for opening day, as I was going through the booths I mentioned to my companion, “The show seems quiet, but it is opening day.” In today’s newsletter we’ll discuss that phenomena and what it might mean for the food industry at large.

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