Assessment of suppliers in food business: is there a way to estimate the risk?

Abstract

The objective of the study was to develop an easy-to-apply method for assessing the supplier-linked risk in the food business. The method as suggested in the study makes it possible to calculate, using simple mathematical tools, a level of risk involved in the cooperation with a particular supplier. The risk assessment is based on six criteria set for every supplier: type of commodities or products provided by the supplier; period of the cooperation with the supplier; systems applied by the supplier to assure quality and safety; past performance of the suppliers with respect to delayed deliveries, cancelled deliveries, and claimed deliveries owing to improper quality of raw materials. The method developed was validated in three companies: meat plant, dairy plant, and catering facility. A simple method was proposed to assess what risk a particular supplier could bring on the quality and safety of finished food product. This risk assessment method can be applied in different food businesses. The greatest benefit of the method developed consists in its ease of use and functionality. The suggested method can be used by small companies and it does not require any complicated calculations or advanced statistical techniques. The method can be very useful for enterprises; however, it has certain limitations such as knowledge and awareness of its users.