Compliance, auditing a regular part of the procurement process

Food resellers conducting business with multiple consumer packaged goods, produce and meat companies need to integrate auditing into their strategic sourcing. 

Between government health regulations and the need to deliver quality goods to the market, supermarkets, restaurants and other food distributors could face serious disruptions if suppliers aren't properly screened. In some instances, it may be necessary to outsource procurement services for the express purpose of reviewing a source's facilities and practices in an unbiased manner. 

The warning signs 

Otherwise, enterprises connected to organizations that fail to meet government-sanctioned standards may encounter shortages of popular consumer foods. According to RIA Novosti, the U.S. Food and Drug Administration recently issued a number of warning letters to food companies, citing several violations:

  • Coporacion Avicola Morovis​, a Puerto Rican egg producer, was cited for failing to abide by the Salmonella Prevention strategy. The FDA discovered wild fowl nesting in chicken houses and cattle standing in manure pits. 
  • Franzese SPA, an Italian canned-food company, received a warning pertaining to thermally processed low-acid edibles. 
  • SSE Manufacturing, an organization based in Texas, was reprimanded for selling shrimp containing sulfating agents, which can harm certain individuals. 
  • Sushi Den Japan failed to satisfy regulations defined by the Hazard Analysis and Critical Control Point regulations.

The aforementioned recipients, as well as other producers, have been given 15 working days to provide a written outline detailing how the cited violations will be assessed and resolved. 

Calling out the lies 

Unfortunately, some organizations blatantly fabricate claims pertaining to their manufacturing processes. A critical part of global sourcing includes the assessment of corporate culture. If there are any signs that a company may avoid or blatantly violate regulations, an organization should refrain from doing business with it entirely. 

Russ Bynum of The Associated Press noted grievous findings related to the Peanut Corporation of America, which is accused of sending fake salmonella test results to customers. Assistant U.S. Attorney Alan Dasher asserted that the business knowingly distributed untested and compromised goods to customers such as Kellogg's. 

Former Peanut Corp. of America owner Stewart Parnell, his brother and food broker Michael Parnell and plant quality control manager Mary Wilkerson are each facing charges in U.S. District Court. Although none of them are charged with causing any deaths, the indictment contains 76 isolated counts. The case refers to the 2008-2009 salmonella outbreak, in which an estimated 714 people were infected. 

Besides the fact that Peanut Corp. of America is facing a public relations nightmare, entities that conducted business with the corporation may also face certain legal repercussions. 

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