Building Global Trust - How effective is your supply chain management programme? Cor Groenveld LRQA Global Product Manager Food Services

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1 Building Global Trust - How effective is your supply chain management programme? Cor Groenveld LRQA Global Product Manager Food Services

2 Session Content Is our food reliable enough? How to deal with supply chain concerns, and particularly with food safety issues? International developments Global Food Safety Initiative FSSC 22000: the certification scheme for ISO and PAS 220 ISO Working Group Food Standards Other developments Learnings from our audits Summary: benefits of robust supply chain management systems.

3 The Lloyd s Register Group at a glance 7,500 employees at offices in 250 cities and towns covering all parts of the world Over 100 companies Celebrating our 250 year anniversary last year Four business divisions: Marine Energy Transportation Management systems (LRQA) 2009/10 turnover US$1.25bn

4 LRQA, the world leader in business assurance One of the world s leading providers of independent assurance services A globally trusted brand with a portfolio of internationally recognised clients Clients in more than 120 countries More than 45 accreditation bodies recognise our work Independent and impartial in everything we do (no shareholders) LRQA Business Assurance - a unique approach to get the most from your management systems More than 4,000 certificates in the food industry More than 300 specialised food assessors in 55 countries.

5 Most important services Audits, Certification, GAP analysis ISO 9001 / / OHSAS ISO FSSC (ISO and PAS 220) BRC / IFS Dutch HACCP GMP+ (animal feed) CSR, Security Supply chain assurance/2 nd party assessments/validation of standards Training (audit skills and standards) Standards Audit skills Improvement programmes.

6 Is our food reliable enough? An estimated 76 million Americans are sickened as a result of food-borne illness each year, more than 300,000 are hospitalised and 5,000 die. Source: Centers for Disease Control and Prevention Food and water-borne diarrhoea illnesses present a growing public health problem that claim globally 2.2m lives annually 1.9m of these are children. Source: WHO

7 Is our food reliable enough? How concerned are consumers about the safety of their food supply? Source: Context Marketing, USA, Oct 2009

8 But there are more concerns... The global livestock industry emits more greenhouse gas than all forms of transport (FAO) The economic impact of an anthrax attack could range from $478 million to $26 billion for every 100,000 people affected (Centers for Disease Control and Prevention, USA) More than one-third of all children are malnourished and 6 million children a year die of causes related to malnutrition (FAO). Estimates show that around the world approximately 250 million children under the age of 12 are working for a salary (ILO)

9 What do consumers expect? Food safety and quality Sustainability Social responsibility Food security Does this affect you? Protection against bio terrorism Healthy food Fair trade Animal welfare.

10 and there you are... in control compliant sustainable

11 or more like this... changing interacting depending

12 How to deal with supply chain concerns, and particularly with food safety issues? Risk based supply chain management systems: 1. Throughout the supply chain 2. Risk based 3. Assure all supply chain concerns.

13 1. Throughout the supply chain Pesticides Fertilisers Animal feed Packaging Utilities Chemical processing Breeding Fishing Farming Growing Slaughtering /deboning Machines Services Chemical products Meat Fish Dairy Fruit/ Vegetables /Grains Transport/ storage Chemical products Fresh/ Frozen Meat Fresh/ Frozen Fish Short/Long Shelf Life Dairy Fresh/Frozen Fruit/ Vegetables rework Processed Food Distribution/sales/consuming

14 2. Risk based management systems HACCP analysis CCP s Quality analysis CCP s Environ mental analysis CCP s Health & Safety analysis CCP s external agreements Management System Control and Improvement fulfilled agreements

15 3. Assure all supply chain concerns Reliability of delivery Quality Counterfeit Information safety Image/brand Environment Food safety Social Accountability Efficiency Others Security/Bio-terrorism

16 Tools for effective supply chain management systems Food Safety Management Systems (ISO 22000, FSSC 22000, ISO 9001, ISO 14001) Risk management Audits and verification.

17 International developments

18 International developments

19 What is GFSI? Non-profit foundation Retailers, Manufacturers, Food Services and other stakeholders Created May 2000 Initiative from CIES and FMI Benchmarks existing food standards against food safety criteria Develops mechanisms to: exchange information in the supply chain raise consumer awareness to review existing good retail practices.

20 GFSI Breakthrough The following companies have now come to a common acceptance of GFSI standards:

21 12 Schemes recognised by GFSI Scheme FSSC Dutch HACCP (B) IFS SQF 2000 level 2 BRC Synergy Global Red Meat standard GAA Seafood processing Global GAP SQS 1000 Primus GFS Canada GAP Scope Food manufacturing Food manufacturing Food manufacturing Food manufacturing Food manufacturing Food manufacturing Red meat manufacturing Seafood manufacturing Agriculture Agriculture Agriculture and Food manufacturing Agriculture

22 International developments: FSSC Food Safety System Certification Scheme ISO and PAS 220

23 Background and benefits of the scheme Need for international harmonisation of food safety standards Need for supply chain approach Use of existing, independent, international standards ISO 22000, PAS 220 (ISO 22002/1) and ISO Scope: food manufacturing Stakeholder approval & commitment (industry, retailers).

24 Background and benefits of the scheme High quality food safety audits Independent scheme management Transparency Non profit approach

25 Certification Process Foundation for Food Safety Certification FSSC certification scheme Board of Stakeholders ISO & PAS 220 Certification regulation & ISO Accreditation body Certified Food Manufacturer Accredited Certification body ISO Guide 17021

26 Current Situation Commitment from Global Food Manufacturers Recognised by GFSI Accredited certification available from January 1st 2011 JAZANZ, ANAB, Standards Council Canada and European Accreditation bodies (EA) accept the scheme Scheme documents on website Board of Stakeholders in place 35 licensed CB s.

27 International developments: ISO ISO Working Groups Food Standards

28 ISO Working Group Food Standards ISO TC34 / SC17 (Technical Committee 34, Sub Committee 17) Members: representatives national standardisation organisations Responsible for food and food safety standards (ISO series) Current Standards: ISO 22000: Food Safety Management Systems ISO 22002/1: PRP s for Food Manufacturing ISO 22003: Requirements for ISO audits ISO 22004: Guideline for ISO ISO 20005: Traceability New Work ISO 22002/xyz per Food Chain Category (in progress: primary production, food services/catering) Rules for developing ISO 22002/xyz.

29 ISO 22002/xyz Food Categories Ref. ISO 22003

30 Other developments In addition to PAS 220 the folowing PASxxx are under development: PAS 221: PRP s on food safety for Food Retail PAS 222: PRP s on food safety for manufacturing Food for Animals PAS 223: PRP s on food safety for manufacturing Packaging Materials

31 Possible Approach for Harmonisation ISO 22002/z: PRP s Catering Etc. ISO 22002/1: PRP s Food Manufacturing ISO 22002/y: PRP s Packaging Manufacturing ISO 22002/x: PRP s Feed Manufacturing ISO 22000: generic FSMS standard

32 Food supply chains our findings Insufficient transparency across supply chain Several risk areas Lack of cooperation Geographical positions links No unambiguous hazard-risk analysis technique Insufficient depth in hazard-risk analysis Insufficient harmonization legislation / standards Control hazards / risks not at the right place Insufficient control suppliers Validation / control of changes.

33 Summary: Benefits supply chain management systems Trust within the chain Focussed on risk areas Unambiguous technique for analysis Transparency throughout the whole chain (incl. interfaces) Control of hazards at the right place International recognized approvals possible Effective improvement programs Preventing failures and customer satisfaction = Reduction of costs = Increasing confidence of clients / consumers = Protection of brand / image.

34 Who sees the bigger picture? LRQA Business Assurance helps you manage your systems and risks to improve and protect the current and future performance of your organisation.

35 Thank you for your attention! And always manage your risks...

36 Questions? Cor Groenveld Global Product Manager Food Lloyd s Register Quality Assurance Limited E w Services are provided by LRQA and other members of the Lloyd s Register Group. For further information visit

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