ChainPoint blog

Risk management in organic supply chains

Posted by Alexander Ellebrecht on Oct 16, 2018 1:28:00 PM

In every supply chain there are risks, either related to the supply chain itself or the product and ingredients that travel through the supply chain. Food safety, for example, is a concern not only in the food industry but also in industries such as animal feed. Contaminated feed entering the food supply chain caused the 1999 Dioxin crisis with huge impact on companies and empty shelves in supermarkets.

Scandals, such as the dioxin crisis, are still possible in today’s supply chains, although today many quality systems are in place to safeguard against such calamities. If, however, issues do occur, they can seriously damage consumer trust, resulting in lost sales and reduced brand loyalty. In some cases, a loss of consumer trust can be devastating to an entire sector.

Preventing fraud

One such sector is the organic produce sector. Consumers that buy organic products heavily place trust on the fact that the products have been produced organically. But with long, complex international supply chains and higher prices for organic products, fraud can be a real threat. Selling non-organic food or ingredients as their organic equivalent poses a real threat to consumer trust once exposed. Companies that are active in organic supply chains therefore need to collectively take action to prevent food fraud and ensure food safety. Data collection and rigorous quality checks are needed to assess any potential risks and safeguard against any non-organic ingredients entering the supply chain.

Bionext, one of ChainPoint’s customers, is actively involved in organic supply chains and offers multiple solutions to reduce risks and improve visibility. One of these solutions is Biotrust, a web-based solution for organic produce risk assessment, which has been built on ChainPoint technology.

Solutions for sustainable supply chains

As a solution provider in sustainable and secure supply chains, ChainPoint is actively involved in both traditional and organic food supply chains. Challenges such as resource scarcity, supply disruptions, food safety and social disparity can have a big impact on the image of a company’s brands. In order to improve or solve such issues, full supply chain visibility is needed. This can be achieved by using supply chain mapping or traceability. Supply chain visibility offers opportunities for reducing risks and costs, while at the same time improving on efficiency and sustainability.

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Topics: organic, fruit & vegetables, food supply chain, risk management

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