mbaa annual conference “the importance of supplier quality and its impact on brewing operations”...

MBAA Annual Conference

“The importance of supplier quality and its impact on brewing operations”

by

Brad Rush

The Samuel Adams Brewing Company

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?

The Story – Product Recall

Product recall

Impact on operations

Impact on sales

Unwelcome Publicity

Recall post mortem

What’s critical?

Regular audit of suppliers

High Risk materials –direct food contact

RISK Model

Reliability

Indicators

Satisfiers

Key Performance Indicators

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

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

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

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

DO NOT

Be the “seagull”

Use the same audit format every year

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?

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”.

This presentation in memory of

Sam McNeelyDirector of Quality

Dec 31, 1974 to Sept 5, 2013CITY BREWING COMPANY, LACROSSE, WI

Connect with Brad Rush

www.linkedin.com/pub/brad-rush/61/177/792/

www.Twitter.com/@Rushbrad

Brad.rush@bostonbeer.com

www.facebook.com/BradRush

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