In all industrial sectors, there are constraints, regulatory requirements or standards to comply with.
Agribusiness, food production, manufacturing, Import-export, distribution and retail are no exception; for sure.
Procedures, work instructions, quality control and quality assurance programs are a good start, but this does not fully protect you from non-compliances or customer complaints and claims, for example.
From a financial point of view, putting in place the elements that allow you to comply with different requirements, norms or standards may seem expensive. So, it's better to make sure that it works and that it allows you to operate with the minimum of interruptions, returns, products to be reworked, or other problems associated with compliance.
What would you say if you could be able to minimize all these hazards, to operate more efficiently and to improve your income while being able to react before non-compliances, complaints or problems arise?
Well, that’s possible by staying one step ahead of all the requirements, norms and standards that you are asked to comply with!
How to do that? Well, there are several ways but one of the best is to perform the following steps:
1-Clean up and list of all the constraints/requirements/norms/standards/regulations to which you must comply or comply
2-For each item or aspect, identify the most severe constraint/requirement/norm/standard/regulation
3-You can consider product families or ranges or quality levels, processes, etc.
4-Once you have identified the most severe constraint/requirement/norm/standard/regulation; ask yourself if you can go slightly over/beyond, what it can apply to and what it entails (see point 3 above)
5-Once it is done; put in place this little extra that is more severe than what is asked of you
6-When the constraints/requirements/norms/standards/regulations to which you must comply or comply with that little extra tick change; you will already be ready to face the music.
7-You will then have to go get another little tick more and wait for the next change
8-This will allow you to minimize:
a.Non-compliances
b.Product returns
c.Products to be reworked
d.Recalls
e.Complaints
f.Production slow down
Here is one concrete example:
Changes in labeling requirements are usually announced well in advance and here we are talking about several months and in some cases a year or more in advance.
If you plan ahead and plan your label purchases in advance and synchronize everything with your suppliers; you'll be able to make a much smoother and more efficient transition than if you wait until the last minute.
Being proactive in terms of labeling also means working hand in hand with your suppliers to avoid recalls due to undeclared ingredients. The biggest cause of recalls in Canada is still undeclared allergens. A single recall or withdrawal of a product from the market will cost you much more than all the measures you can put in place to prevent it.
A second example:
Animal welfare requirements are constantly changing and modifications are also announced well in advance. If you take the bull by the horns and apply standards that are just a little more stringent than those in force and/or innovate by implementing new strategies or measures; you will protect yourself in addition to being able to promote it and limit the complaints and non-compliances.
A third example :
The import and export requirements of many countries are changing rapidly. On the other hand, if you go just a little further than what is asked of you; you will stay ahead of the parade. Implementing an effective traceability system can make a huge difference.
Regularly updating the export requirements of the main countries you export to can also save you a lot of time and money as well as avoiding costly mistakes. A computerized documentation system for your import and export forms can also make your job much easier and avoid very costly mistakes.
The study, understanding and mastery of bilateral agreements between Canada and third countries you export to Versus those of competing countries (for example the United States) with the third countries they export to; will definitively refine your import-export strategy, improve your income and reduce your losses.
In everything you do or will do to keep you on the cutting edge and a little more; there is of course the cost and what it pays off to do so that have to be considered.
If this is an issue for you; do not hesitate to look at all sides of the coin (even at the edges) and to calculate what it costs to invest to stay a little bit ahead Versus what it costs to manage the non- compliances, complaints, returns, products to be reworked, recalls, production slow down, etc. not to mention losses of all kinds (products, inputs/incoming material, equipment, packaging components, production time, financial losses, monetary penalties, loss of customer opportunities, customer penalties on the "Fill rate" for example, etc.) as well as a reduced operational efficiency.
It's a bit like taking out an insurance policy that won't cost you anything and will bring you money in the medium and long term!
It is a rigorous exercise which, once done, allows you to:
1-See more clearly and maintain a better overview of regulatory changes that may have an impact on your business, your operations, your processes, your supply chain, your import-export activities, etc.
2-Avoid unnecessary costs and monetary penalties because you saw the potential pitfalls coming
3-Operate more smoothly and efficiently
4-Produce at your cruising speed rather than spending time solving problems
5-Use your resources to contribute to continuous improvement rather than settling avoidable non-compliances
6-Be more profitable
What do you think?
Are you interested?
Contact us!
MMNA Consultants
514-913-2685
Références :
1-The of Costs Food Safety_ Correction vs. Prevention – FoodSafetyTech
2-Economic Analysis of Food Safety Compliance Costs and Foodborne Illness Outbreaks in the United States