Constant Change, Challenge, & Risk(s)
This video is approximately 6:56 minutes in length and briefly introduces you to risk in the food supply chain. The acronym SCREAMM in the video is the Intellectual Property of Proteico Consulting LLC and is a risk management methodology developed by Proteico Consulting LLC.
VIDEO TITLE: Intro to Supply Chain Risk Management
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Supply chain risks in the food industry can significantly impact companies across the value chain. Let's explore some of the these risks:
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Ingredient Shortages and Disruptions: The availability of key ingredients or raw materials is critical for food production. Disruptions due to natural disasters, political instability, or unexpected events (such as the COVID-19 pandemic) can lead to shortages, increased costs, and decreased production capacity. For instance, sudden order cancellations left food-service suppliers with excess stock that couldn’t easily be redirected to consumers due to packaging-size mismatches, creating uncertainty in the supply chain1.
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Seasonality and Shelf Life Constraints: Food products often have specific shelf life and expiration date requirements. Managing inventory to avoid wastage while ensuring freshness is a delicate balance. Seasonal variations in demand and supply can also pose challenges, especially for perishable goods.
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Regulatory Compliance and Food Safety: Stringent regulations govern food safety, quality, and labeling. Non-compliance can result in fines, recalls, and damage to brand reputation. Companies must navigate complex compliance requirements across different regions and markets.
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Globalization and Complex Supply Chains: As supply chains become more global, companies face challenges related to transportation, customs, and cross-border logistics. Managing suppliers, distributors, and partners across different countries introduces additional risks.
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Technology Adoption and Cybersecurity: Increasing reliance on technology for supply chain management exposes companies to cybersecurity threats. Data breaches, system failures, or disruptions in digital platforms can disrupt operations and compromise sensitive information.
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​In summary, food companies need robust risk mitigation strategies to address these challenges and ensure a resilient supply chain. Understanding vulnerabilities and proactively managing risks is essential for maintaining continuity and meeting consumer demands.
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