Show Me The Money: Share-ify Saves Time & Money
Share-ify Saves Time & Money
For assurance of quality and food safety, your company verifies the certificate of analyses and process capability data on the products supplied to your company. This verification is product-centric and is much more effort than just collecting audit certificates and checking the box for “Yes, I have it”. What if you actually required the food safety records for the product supplied to you as well? Share-ify greatly reduces the pain associated with the administration of the Supply Chain Management program through its transaction nature and the partner-led management approach.
What is forgotten at times, is that the purpose of manufacturing the food is to make a profit. Quality and Food Safety management is not usually thought of as a “profit center”, just the opposite. The Quality and Food Safety team should have metrics linked directly to cost avoidance or reductions. You do have limitations on available resources and time available to achieve the basic quality and food safety management expectations. Activities must have cross purposes that impact quality, food safety, and financial results. Basically, killing several birds with the same stone, with practice and the right “stone”, it becomes easier.
Let’s say that you may have major spend on 10 to 20 products. Defining major spend would depend upon your overall spend for products from your fellow Share-ifyers. If you are spending about a million dollar a year each on 10 products, the importance of exact compliance to the specification will have huge financial benefits to your company. Which is a funny statement, exact compliance is what you are paying for in the first place. It is really a principle of cost avoidance, assurance that you are not incurring hidden costs.
Let’s pick a simple example, you purchase a case of chicken parts or lasagna pucks. The case net weight standard is 25 pounds and the item count is 50 per case. What if the case weight is always 25 pounds, but the item count is 49 or there are 2 or 3 unusable items in the case. You did pay for 25 pounds, but you use or sell the product on a piece basis. Also, what do you do with the unusable items? Sell them? Return them? Throw them away? Did you have a program in place to report product noncompliance to your fellow Share-ifyers. Is that program tied to your claims process.
So, you are taking a “haircut” financially in every case. Even if the loss is only 5 percent, you could be having a hidden cost of $50,000 per product at your usage locations. If this example of noncompliance is repeated on any of the other products, the hidden cost just keeps increasing for the locations. The locations would have to explain why their numbers do not add up when a loss is actually headquarters’ fault. Then again, it all depends on which financial bucket the cost would find a home. The “Cost of Sales “ account is an unusual bucket at times.
If you were to implement a simple product evaluation program for your major products to assure product quality and costs, the opportunity exists to improve the bottom line and have happier customers. This program would allow you to “get ahead” of the issue before your usage locations have to deal with the losses. In addition to improved compliance, the product evaluation data can drive improvement in your specifications which could drive further cost savings.
Fellow Share-ifyer,
Share-ify has a unique product evaluation tool that allows you to conduct detailed statistical evaluations of your major products. There is a further benefit, the tool is linked directly to the specifications which you have already created on Share-ify. The unique linkage approach provides you with multiple data usage opportunities without having to maintain addition identical databases.
Save money today, Share-ify