Building Global Trust -

How effective is your supply chain management programme?

Cor Groenveld

LRQA Global Product Manager

Food Services

Session Content• Is our food reliable enough?

• How to deal with supply chain concerns, and particularly withfood safety issues?

• International developments

• Global Food Safety Initiative

• FSSC 22000: the certification scheme for ISO 22000 and PAS 220

• ISO Working Group Food Standards

• Other developments

• Learnings from our audits

• Summary: benefits of robust supply chain management systems.

The Lloyd’s Register Group at a glance

• 7,500 employees at offices in 250 cities and towns covering all parts of the world

• Over 100 companies

• Celebrating our 250 year anniversary last year

• Four business divisions:

• Marine

• Energy

• Transportation

• Management systems (LRQA)

• 2009/10 turnover US$1.25bn

LRQA, the world leader in business assurance

• One of the world’s leading providers of independent assurance services

• A globally trusted brand with a portfolio of internationally recognised clients

• Clients in more than 120 countries

• More than 45 accreditation bodies recognise our work

• Independent and impartial in everything we do (no shareholders)

• LRQA Business Assurance - a unique approach to get the most from your management systems

• More than 4,000 certificates in the food industry

• More than 300 specialised food assessors in 55 countries.

Most important services

Audits, Certification, GAP analysis• ISO 9001 / 14001 / OHSAS 18001• ISO 22000• FSSC 22000 (ISO 22000 and PAS 220)• BRC / IFS• Dutch HACCP• GMP+ (animal feed)• CSR, Security• Supply chain assurance/2nd party

assessments/validation of standards

Training (audit skills and standards)• Standards• Audit skills• Improvement programmes.

Is our food reliable enough?

‘An estimated 76 million Americans are sickened as a result of food-borne illness each year, more than 300,000 are hospitalised and 5,000 die.’Source: Centers for Disease Control and Prevention

Food and water-borne diarrhoea illnesses present a ‘growing public health problem’ that claim globally 2.2m lives annually – 1.9m of these are children.Source: WHO

How concerned are consumers about the safety of their food supply?

Is our food reliable enough?

Source: Context Marketing, USA, Oct 2009

But there are more concerns . . .

The global livestock industry emits more greenhouse gas than all forms of transport (FAO)

More than one-third of all children are malnourished and 6 million children a year die of causes related to malnutrition (FAO).

The economic impact of an anthrax attack could range from $478 million to $26 billion for every 100,000 people affected

(Centers for Disease Control and Prevention, USA)

Estimates show that around the world approximately 250 million children under the age of 12 are working for a salary (ILO)

What do consumers expect ?

• Food safety and quality

• Sustainability

• Social responsibility

• Food security

• Protection against bio terrorism

• Healthy food

• Fair trade

• Animal welfare.

Does this affect you?Does this

affect you?

and there you are . . .

√√ in controlin control

√√ compliant compliant

√√ sustainablesustainable

or more like this . . .

√√ changingchanging

√√ interactinginteracting

√√ dependingdepending

How to deal with supply chain concerns, and particularly with food safety issues?

Risk based supply chain management systems:

1. Throughout the supply chain

2. Risk based

3. Assure all supply chain concerns.

Pesticides

Fertilisers

Animal feed

Packaging

Utilities

Machines

Services

Transport/storage

Chemical products

Meat Fish DairyFruit/

Vegetables/Grains

Chemical products

Fresh/ Frozen Meat

Fresh/Frozen Fish

Short/Long Shelf Life

Dairy

Fresh/Frozen Fruit/

Vegetables

Chemical processing

Breeding Fishing Farming Growing

Slaughtering/deboning

Processed Food

Distribution/sales/consumingrew

ork

1. Throughout the supply chain

Management System

Control and Improvement

externalagreements

fulfilled agreements

HACCP analysis

CCP’s

Health &

Safety analysis

CCP’s

Quality analysis

CCP’s

Environmental analysis

CCP’s

2. Risk based management systems

Image/brand

3. Assure all supply chain concerns

Quality

Information safety

Food safety

Reliability of delivery

Environment

Efficiency

Social Accountability

Others Security/Bio-terrorism

Counterfeit

Tools for effective supply chain management systems

• Food Safety Management Systems (ISO 22000, FSSC 22000, ISO 9001, ISO 14001)

• Risk management

• Audits and verification.

International developments

International developments

What is GFSI?

• Non-profit foundation

• Retailers, Manufacturers, Food Services and other stakeholders

• Created May 2000

• Initiative from CIES and FMI

• Benchmarks existing food standards against food safety criteria

• Develops mechanisms to:

• exchange information in the supply chain

• raise consumer awareness

• to review existing good retail practices.

GFSI Breakthrough

The following companies have now come to a common acceptance of GFSI standards:

12 Schemes recognised by GFSI

Scheme Scope

FSSC 22000 Food manufacturing

Dutch HACCP (B) Food manufacturing

IFS Food manufacturing

SQF 2000 level 2 Food manufacturing

BRC Food manufacturing

SQS 1000 Agriculture

Synergy 22000 Food manufacturing

Global Red Meat standard Red meat manufacturing

GAA Seafood processing Seafood manufacturing

Global GAP Agriculture

Primus GFS Agriculture and Food manufacturing

Canada GAP Agriculture

International developments: FSSC 22000

Food Safety System Certification Scheme ISO 22000 and PAS 220

Background and benefits of the scheme

• Need for international harmonisation of food safety standards

• Need for supply chain approach

• Use of existing, independent, international standards

• ISO 22000, PAS 220 (ISO 22002/1) and ISO 22003

• Scope: food manufacturing

• Stakeholder approval & commitment (industry, retailers).

• High quality food safety audits

• Independent scheme management

• Transparency

• Non profit approach

• www.fssc22000.com

Background and benefits of the scheme

ISO Guide 17021Certification bodyFood Manufacturer

Accreditation bodyISO 22000 & PAS 220Certification regulation

& ISO-22003

Board of Stakeholders

Foundation forFood Safety Certification

FSSC 22000 certification scheme

AccreditedCertified

Certification Process

Current Situation

• Commitment from Global Food Manufacturers

• Recognised by GFSI

• Accredited certification available from January 1st 2011

• JAZANZ, ANAB, Standards Council Canada and European Accreditation bodies (EA) accept the scheme

• Scheme documents on website

www.fssc22000.com

• Board of Stakeholders in place

• 35 licensed CB’s.

ISO Working Groups Food Standards

International developments: ISO

ISO Working Group Food Standards

• ISO TC34 / SC17 (Technical Committee 34, Sub Committee 17)• Members: representatives national standardisation organisations• Responsible for food and food safety standards (ISO 22000 series)• Current Standards:

• ISO 22000: Food Safety Management Systems• ISO 22002/1: PRP’s for Food Manufacturing• ISO 22003: Requirements for ISO 22000 audits• ISO 22004: Guideline for ISO 22000• ISO 20005: Traceability

• New Work• ISO 22002/xyz per Food Chain Category (in progress: primary

production, food services/catering)• Rules for developing ISO 22002/xyz.

ISO 22002/xyz Food CategoriesRef. ISO 22003

Other developments

In addition to PAS 220 the folowing PASxxx are underdevelopment:

• PAS 221: PRP’s on food safety for Food Retail• PAS 222: PRP’s on food safety for manufacturing Food for Animals• PAS 223: PRP’s on food safety for manufacturing Packaging Materials

ISO 22002/z: PRP’s Catering

ISO 22002/y: PRP’s Packaging Manufacturing

ISO 22002/x: PRP’s Feed Manufacturing

ISO 22002/1: PRP’s Food Manufacturing

ISO 22000: generic FSMS standard

Possible Approach for HarmonisationEtc.

• Insufficient transparency across supply chain

• Several risk areas

• Lack of cooperation

• Geographical positions links

• No unambiguous hazard-risk analysis technique

• Insufficient depth in hazard-risk analysis

• Insufficient harmonization legislation / standards

• Control hazards / risks not at the right place

• Insufficient control suppliers

• Validation / control of changes.

Food supply chains – our findings

Summary:Benefits supply chain management systems

• Trust within the chain• Focussed on risk areas• Unambiguous technique for analysis• Transparency throughout the whole chain (incl. interfaces)• Control of hazards at the right place• International recognized approvals possible• Effective improvement programs

Preventing failures and customer satisfaction= Reduction of costs= Increasing confidence of clients / consumers= Protection of brand / image.

Who sees the bigger picture?

LRQA Business Assurance

helps you manage your systems and risks to improve and protect the current and future performance of your organisation.

Thank you for your attention!

And always manage your risks . . .

Cor GroenveldGlobal Product Manager Food

Lloyd’s Register Quality Assurance Limited

E w

Services are provided by LRQA and other members of the Lloyd’sRegister Group. For further information visit www.lr.org/entities

cor.groenveld@lr.org

www.food.lrqa.com

Questions?