The Weakest Link: Risks in the food and drink supply chain

By Gary Clifton, NFU Mutual Preston.

In 2017, NFU Mutual published its first Food Fraud report.

Our study involved more than 2,000 consumers and found that consumer confidence in food products and retailers is facing a tough challenge: 33 per cent said they are less trusting now than they were 5 years ago, with only 9 per cent saying their trust had increased.

Whilst trust is on the decline, consumer demands and attention to detail regarding the source and contents of food are increasing. For instance, a recent survey (by foodservice supplier Aviko, May 2017) found more than half of British consumers want more gluten-free options on menus.

Gluten-free – as other ‘Free From’ options – goes beyond the medical imperative with many perceiving the ‘Free From’ choice to be a healthier one, thanks to celebrity endorsements and the rise of social media, where everyone has the potential to be a health guru.

This places a huge responsibility on the food and drink industry. From ensuring that the supply chain is delivering on content claims, to a producer’s own labelling. With scrutiny at ever higher levels, a business cannot afford to get it wrong.

Businesses should not assume either, that a wholly UK-based supply chain is less vulnerable to these issues than a global one (remember the home-grown horse meat scandal?).

Businesses need to ensure that they have control of their supply chain and be selective about its choice of suppliers. A supplier that invests in employee education programmes and operating its own tight policies may be better equipped to combat food fraud and minimise product errors. Due diligence procedures should be reviewed to ensure they are fit for purpose.

Even the most developed food safety and standards systems have scope for errors though. With a more sceptical customer base, the ability to manage the reputation protection and costs in the event that something does go wrong is vital.There are practical steps a business can take to do this:

Regularly review your own Product Recall Insurance policy, and ensure your suppliers have their own policy in place.
Have a crisis management plan ready to allow a swift, coordinated response – test it.
Know your suppliers and ensure they have a comprehensive food defence strategy.
Have systems in place that support traceability throughout the supply chain, allowing the source of the problem to be identified and affected batches withdrawn.
Maintain regular communications with suppliers and retailers in order to identify as soon as a problem arises and to react quickly to resolve issues.
Businesses also have a legal obligation to inform their local authority and the Food Standards Agency, which will give advice on what action to take.
Ensure customer complaints are monitored and thoroughly investigated – particularly on social media where problems can escalate if criticism is not addressed quickly.
Insurers should be told of the circumstances in case there may be a claim.