mbaa annual conference “the importance of supplier quality and its impact on brewing operations”...
TRANSCRIPT
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MBAA Annual Conference
“The importance of supplier quality and its impact on brewing operations”
by
Brad Rush
The Samuel Adams Brewing Company
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Questions?
Have you ever had a supplier fail you and your organization?
Have you ever bought a food or beverage to only have it be bad?
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The Story – Product Recall
Product recall
Impact on operations
Impact on sales
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Unwelcome Publicity
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Recall post mortem
What’s critical?
Regular audit of suppliers
High Risk materials –direct food contact
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RISK Model
Reliability
Indicators
Satisfiers
Key Performance Indicators
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Why do you need a supplier quality program?
Reduce food safety and financial risksReduce food safety and financial risks
Reduce money lost in materials, labor Reduce money lost in materials, labor and reputational costsand reputational costs
Reduce downtime due to sub standard Reduce downtime due to sub standard materialsmaterials
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Example
2013 Supplier RiskFinancial Impact X Food Safety =
Priority
Vendor Spend Product
Financial Business
Impact
Probability of a Food
Safety Occurrence
Priority
Dagar $74,000,000 Glass 5 5 25
XYZ Malting $41,000,000 Malt 5 3 15Hops Inc $9,500,000 Hops 5 1 5
John's farms $1,199,000
Lemon Peel, Orange peel,
blackberry 3 3 9Supply Inc. $897,000 Polyclar 3 1 3
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Supplier visits
Seek additional training for food safety auditing (FSSC – ISO22000, BRC, AIB)
Be prepared with a set of audit criteria – review purchase contract - R.I.S.K model
Have no more than 13 open ended questions for each process segment
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Supplier Audits
It allows you to observe your It allows you to observe your suppliersupplier
Understand their challengesUnderstand their challenges
Develop a partnershipDevelop a partnership
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DO NOT
Be the “seagull”
Use the same audit format every year
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Key take away from visits – PRIDE model
Will they be a “Partner in your growth”
Is the supplier a “Right Fit”
Are they “Innovative”
Are they “ Dedicated”
Are they “ Effective and Efficient
Is there PRIDE?
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The former president of Notre Dame University, Theodore Hesburgh said it well when he said:
“You don’t make decisions because they are easy”;
“You don’t make decisions because they are cheap”;
“You don’t make decisions because they are popular”;
“You make decisions because they are right”.
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This presentation in memory of
Sam McNeelyDirector of Quality
Dec 31, 1974 to Sept 5, 2013CITY BREWING COMPANY, LACROSSE, WI
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Connect with Brad Rush
www.linkedin.com/pub/brad-rush/61/177/792/
www.Twitter.com/@Rushbrad
www.facebook.com/BradRush
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