Managing Your Supply Chain for Food Safety in a Global Environment

1. Managing Your Supply Chain for Food Safety in a Global Environment Dane Bernard Keystone Foods

2. Background • Food companies must rely on multiple companies and Countries for food ingredients and packaging. • Items can be manufactured in all parts of the world. • “Expectations” placed upon suppliers is the foundation for food safety and quality. • tartartrace.xls

3. Expectation Areas • Animal Welfare (if applicable) • Biosecurity/Food Defense • BSE Firewalls (if applicable) • Residue Control • Sanitation • Pest Control • Good Manufacturing Practices / Good Agricultural Practices Practices • HACCP • Foreign Material Control

4. Expectation Areas • Product Withdrawal • Hold Procedures • Product Storage • Load Security • Lot Identification • Lot Control • Traceability • Laboratory Support (if applicable) • Laboratory Testing Capabilities (if applicable).

5. Animal Welfare • Requirements specific for each species • Safe and responsible animal treatments • Accountability • Auditable to acceptable standards • Verified by all levels • Internal audits  • Second and third party audits • Corrective actions • Increasing use of Video Monitoring

6. Sanitation • Written Sanitation Standard Operating Procedures (SSOP’s) • Clearly defined responsibilities • Assessment of effectiveness • Preoperational visual inspection • Equipment swabbing with tracking and trending • Corrective action plans • Use of appropriate sanitary design

11. Foreign Material Control • A systematic approach that considers sources of FM from: • People • Place • Product • Prefer: • active “audits” • Risk Ranking [Using Failure Mode Effects Analysis framework] to prioritize • Tracking and follow through

12. Eliminating a High Risk RPN • This Batching combo hoist has Nylon guards which contaminate product due to the scraping of metal combos against the Nylon. These are not required as all suppliers use cardboard combo’s RPN 140 RPN 0

13. Thermometer Control • In the facility there are many thermometers used and constantly make contact with product. These thermometer holding areas have been installed in areas where they are used. • “If the thermometer is not in its designated location, it is in use” RPN 432 RPN 120

14. Load Security • Keystone policy is that all loads must arrive with acceptable seal applied at departure point or trackable history of seal that is in place upon arrival. • Cable or bolt seals are required on all access doors • For less than truck load shipments, security must be applied at case and or pallet level.

15. Traceability • One up, one down is the minimum expectation • Questions remain about extent of uniformity that will be needed on product and ingredient coding systems to be able to be more proactive on addressing food safety issues.

16. Approval Process • Basic understanding of the supplier’s capabilities. • Outlining our expectations. • First or Third party assessment of conformance to expectations. Poultrysupplieraudit.docx • “Probationary” approval. • Limited purchases until a baseline can be established linking supplier performance with conformance. • Active purchasing. • Name placed on the Approved Supplier List (ASL).

17. Approved Supply List (ASL) • Specific locations which a Keystone facility can purchase items. • Contains the “latest history” of a supplier. • Annual audit results. • Contact information. • Non conformance results. • Names of plants which have been delisted. • ASL is a living document and should always be current.

18. Supplier Verification • Prioritize suppliers • Pre-ASL audit compliance. • Initial load(s) testing (if applicable). • Normal monitoring schemes in place. • Product dependent • Time • Type of monitoring • Annual Audit • Third Party Audit • Keystone Audit

19. Meeting Expectations • Non Conformance expectations must be established. • Differing levels of actions • Minor infractions – corrective actions • Major infractions – corrective actions and possible follow up • Critical infractions – suspension of supply • Trending of data may indicate suspension of supply without a critical defect failure. • Micro trends? • Foreign material trends?

20. Communication • Constant feedback is a MUST! [by Whom?] • Helps keep your expectations up to date. • The goal is to have confidence and consistency in the products you receive. • One Tip – Partner with purchasing! Conduct frequent program reviews.

21. Summary • Be selective; look for value not just price • Clear expectations then verify • Maintain and enhance the program • Keep it simple: • Start with risk ranked suppliers and limited scope of expectations • Elaborate on expectations • Verify conformance with audits and appropriate testing/observations • I’d rather be here than shoveling snow in US!

22. Summary