Editor’s note: A webinar on this topic will held on May 29, 2014, at 2:00 p.m. Eastern / 11:00 a.m. Pacific. Register here.
Food and beverage manufacturers have seen a considerable number of changes over the last decade. Mergers and acquisitions have expanded the footprint of many food and beverage organizations, which has increased their product portfolio and generated new sales.
Food companies are also becoming more global by sourcing from international suppliers and using contract manufacturers and packagers to create efficiencies and reduce costs. However, this practice also increases the risk to the brand owners by limiting the visibility into production and quality processes within their vendor network, which could lead to more rework, scrap, and product recalls.
With food recalls more than doubling since 2006, regulators and consumers are demanding that food companies provide products that comply with high quality and safety standards. Consumers expect the brand owner to ensure that finished goods are safe before they are released into the supply chain. So whether it’s the ingredients or the third-party production facility, the brand owner is carrying the burden of blame for product issues.
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