When you think of threats to the food supply chain, the word “contamination” and food recalls and foodborne illness outbreaks likely come to mind. If you manage a food supply chain, particularly those involving fresh foods, you are well aware of their inherent risk.
Contamination is an extreme, albeit real, threat to food supply chains; however, because of regulations such as the Food Safety Modernization Act (FSMA) and the diligence of businesses all along the chain, recalls and illness remain relatively rare. There are other factors though that pose threats to food supply chains. These include fluctuations in commodity pricing, weather-related transportation disruptions, breakdowns in asset processing (e.g. a distribution center is unexpectedly forced to close), geopolitical challenges, shifting consumer demand and any number of other variables. When businesses are unprepared to respond to these events, they risk supply chain inefficiencies and negative impacts on profitability and reputation.