Product Risk Management

Product Risk Management

PRODUCT RISK MANAGEMENT PROTECTING CONSUMERS, PROTECTING REPUTATIONS When you re manufacturing food and beverages for consumers, product safety is the number one priority. Having a product risk management strategy in place will protect your brand, reduce the financial risk and ensure safer products for your consumers. And that s where we can help. Fonterra s expert assessment team will work with you to develop the right product risk management strategy for your business, products and markets, delivering improved product quality and a plan to keep it that way. Fonterra offers both preventive and crisis management services. When product risk events occur, contingency and emergency operations are essential to ensure protection and expedite recovery. We can develop a contingency plan for serious events, such as product recalls and in the event of a product safety breakdown, our rapid response team can assist you in tracing the cause, resolving the problem and ultimately, protecting your brand. As an exporter of dairy products to 140 countries and with consumer businesses in selected markets, Fonterra understands how the management of product risk is crucial to customer and consumer confidence. Our proven product assurance processes are available to support you in reducing the risks and costs associated with food safety. Our deep understanding of the manufacturing environment and the economic valuation of risk is complemented by extensive export experience in dairy ingredients and a clear understanding of consumer demands. With Fonterra you have access to a global pool of experts and the tools and processes we trust in our own business to manage product risk.

Fonterra s Product Risk Management offerings are split into four areas: PRODUCT RISK MANAGEMENT PRODUCT RISK CONSULTANCY SANITARY BUILDING DESIGN TRACEBACK SERVICES CRISIS / CRITICAL EVENT MANAGEMENT PRODUCT RISK CONSULTANCY Prevention really is the best medicine, so by understanding your plant s potential hazards, you can improve and prevent future risks. This starts with a quantitative gap analysis and risk profile, and the creation of a quality improvement blueprint, to provide the pathway for progress. PRODUCT RISK CONSULTANCY STRUCTURED HAZARD ID EXPERIENTIAL JUDGEMENT & LOGIC GAP ANALYSIS & RISK PROFILE, BLUEPRINT PACKAGED SOLUTIONS CONSULTANCY Chemical Contaminants Programme Pathogen Management Hygiene Barrier Design and more

SANITARY BUILDING DESIGN Good sanitary building and process design is effective in avoiding microbiological and contamination risks. Our team has extensive experience, working with clients involved in both new builds and site modifications. We can help you reduce operating costs with best practice design, and reduce hygiene and food safety risks. Fonterra s team can also offer you a training course to provide your staff with the skills, tools and knowledge to continuously improve your operation and reduce the risks. SANITARY BUILDING DESIGN CASE STUDY PROJECT HYGIENE A manufacturer of consumer and bulk dairy powders was experiencing periodic microbiological problems. Pathogenic bacteria were detected in the hygiene zone manufacturing areas within the plant building, which resulted in product contamination. Fonterra s investigation identified several building design faults, which was allowing contamination to enter from the external environment. The review also uncovered problems with zoning of process areas and personnel access issues. A monitoring programme of the environment was recommended and sanitation response procedures were developed for this customer. The building improvements recommended and implemented have since raised the plant s hygiene status, and pathogenic bacteria are no longer detected in the processing environment or the product.

TRACEBACK SERVICES Microbiological traceback is essential in effective process control. When a positive microbiological result is found, traceback to the source is critical and must be done quickly and effectively to mitigate product loss and eliminate the source of contamination. Failure to effectively control the microbiological status in a process can result in public health issues or product spoilage, both of which incur financial losses and can damage the reputation of both the brand and the business. TRACEBACK SERVICES IDENTIFY UNDERSTAND SCOPE SCIENCE KNOWLEDGE EDUCATE CASE STUDY PROJECT ERADICATE A manufacturer of a dairy based beverage was experiencing product failure before shelf-life expiry. This resulted in product returns from market, cost associated with stock loss, and impact on brand reputation. Fonterra s traceback team identified the organisms creating the spoilage, tracing to multiple sources. These included a fundamental design fault in the filling machine, poor cleaning procedures and process equipment faults. During the investigation, other opportunities were also identified for plant operation improvements, which enabled improved operating efficiency and reduced costs. It was identified that filling machine operators had been unaware of the importance of correct matching of machine parts. With our support, the manufacturer achieved operational savings of US$400,000 per year due to the improved product quality which also enabled two days shelf-life to be added.

CRISIS / CRITICAL EVENT MANAGEMENT As consumer sensitivity continues to grow, protection against serious, large-scale product risk events is essential. Without a clear view of how to respond in a crisis, an inefficient, ineffective or delayed recovery can occur, which can lead to significant financial effects and damage your brand. A rapid and effective response to unexpected events is fundamental to the protection of a manufacturer s reputation but is often hard to put in place, particularly during a crisis. CRISIS / CRITICAL EVENT MANAGEMENT CASE STUDY RAPID RECOVERY In 2010, Fonterra s crisis management team were engaged to assist an Asian milk powder blending operation to manage the recall of salmonella contaminated product from thousands of retail outlets. Fonterra s team led the traceback investigation to identify the root cause of the contamination, mitigating the risk of recurrence. Within 72 hours, 99% of the contaminated product was recovered. This rapid identification of root cause and prompt securing of the supply chain enabled the customers production to recommence weeks earlier than would have otherwise occurred, saving their organisation as much as US$2 million in potential lost revenue. TALK TO THE EXPERTS