Inevitably, the cost of doing food business adds up. However, it is difficult for food manufacturer to pass on the cost to the consumer. Every little savings help!
Let’s look at a case example of why it is important to have a functional quality system.
Company ABC produces packaged products where sealing is a control point to ensure there is no leakage on the package so that the product can be heat-treated to reduce microbial risks and upon heat treatment, the seal prevents reintroduction of post-handling microbial contamination.
Let’s say there is a very weak quality program for this particular product. There is no one catching the problem until they received few complaints from unhappy customers. It is then identified that there is something wrong with the sealing for that batch and the line workers are unable to identify there is a problem with the product size. Although the product size was slightly larger, they thought that it is good for the consumers so they packed it anyway. The line workers sealed it despite it looks slightly larger.
What they didn’t realize was the post-handling microbial contamination
The tangible costs of this incident are obviously the production cost, shipping cost, and cost to recall including manpower to run the recall exercise. What get missed most of the time are the intangible cost of the incident which can include the stress on the team running a recall exercise, the lost time dealing with customer , media and regulatory agency, loss faith from customer, brand damage etc.
If we tabulate the cost of handling simple quality issues like this, does it make sense to invest in proper food safety and quality management system?
A quality system is not an option, it is a must-have to ensure food business cost like the above doesn’t occur to your business. The cost of the proper quality system has the largest return on investment (ROI) for any food manufacturing company. It protects your brand, keeps your customers happy and prevents recalls at a fraction of the cost.
Let’s use the same case example in a properly functional quality management system. Line-worker and Quality Assurance team are empowered to speak up and only the first 30 minutes of production were affected. The cost now is limited to the 30 min productions and the maintenance work required to ensure the sealing is working. While there is no monetary value on this case example, you see how much just one incident alone saves you money.
Good news if you are in this situation, you are optimizing the function of the quality management system to not just deliver the ROI but also, to reduce waste.
I hope that this case example debunk the myth that Quality Management program is a program that eats away your margin and you get to walk away, realizing that your biggest ROI is actually having a proper quality management system.
I am eager to get you started to improve your ROI for your food businesses. If this is something that interest you, please click here to connect further.