Food Business Food Business ContinuityContinuity

James HazlettJames Hazlett

Andra MarcocciAndra Marcocci

Topic: Business Continuity Topic: Business Continuity Relating to Food RetailersRelating to Food Retailers

FDA issued recall of various peanut products due to salmonella FDA issued recall of various peanut products due to salmonella (Source: FDA)(Source: FDA) Began January 1, 2007Began January 1, 2007 Continues to this dayContinues to this day Overall projected losses to businesses: Over $1 billionOverall projected losses to businesses: Over $1 billion

Melamine found in Chinese food products (Source: CDC)Melamine found in Chinese food products (Source: CDC) Industrial chemical that can cause kidney failureIndustrial chemical that can cause kidney failure

Or unknown affects when paired with other chemicalsOr unknown affects when paired with other chemicals Chiefly found in infant formulaChiefly found in infant formula

Contamination normally occurs through infected supplier Contamination normally occurs through infected supplier personnel or through improper understanding of food personnel or through improper understanding of food ingredientsingredients

Many of the supplier regulations are handled through broker Many of the supplier regulations are handled through broker systemssystems This is not 100% secureThis is not 100% secure

For the Love of ChocolateFor the Love of Chocolate

Specializes Specializes extensively in extensively in chocolatechocolate

LocationLocation 3136 W Cary St3136 W Cary St Richmond, VA 23221Richmond, VA 23221

Has been in business Has been in business for 28 yearsfor 28 years

# of employees: 9-25 # of employees: 9-25 depending on the depending on the seasonseason

For the Love of ChocolateFor the Love of ChocolateStrategy Statement Strategy Statement RecommendationsRecommendations

Mission – To provide high quality, exotic chocolate, Mission – To provide high quality, exotic chocolate, and knowledgeable/helpful customer serviceand knowledgeable/helpful customer service

Vision – To increase the variety of chocolate and Vision – To increase the variety of chocolate and expand operations throughout Virginiaexpand operations throughout Virginia

Objectives – To meet product demands at seasonal Objectives – To meet product demands at seasonal peak times and plan for production of second peak times and plan for production of second facilityfacility

GoalsGoals Expand non-individual customer baseExpand non-individual customer base Create a second retail facility in the Short Pump areaCreate a second retail facility in the Short Pump area Create a chocolate catering specialty officeCreate a chocolate catering specialty office

Disasters confronted/acknowledged Disasters confronted/acknowledged by by

For the Love of ChocolateFor the Love of Chocolate Isabel related power outageIsabel related power outage

Had to deploy dry ice to keep the store coldHad to deploy dry ice to keep the store cold Dry ice was provided by inventory suppliersDry ice was provided by inventory suppliers

Scares relating to peanuts and peanut butterScares relating to peanuts and peanut butter FTLC not confronted this directly, but was informed, and FTLC not confronted this directly, but was informed, and

already had procedures in placealready had procedures in place Peak time inventory lossPeak time inventory loss

Peak times: Peak times: ChristmasChristmas EasterEaster HalloweenHalloween ThanksgivingThanksgiving Valentine’s DayValentine’s Day Mother’s DayMother’s Day

Critical ItemsCritical Items

Insurance coverageInsurance coverage Equipment breakdownEquipment breakdown Food contaminationFood contamination External assistanceExternal assistance Written procedures and future Written procedures and future

planningplanning

Question 1Question 1 What does your insurance plan cover?What does your insurance plan cover?

Broken equipmentBroken equipment Communication, registers, etc.Communication, registers, etc.

Customer/Employee relatedCustomer/Employee related LawsuitsLawsuits TheftTheft FraudFraud

Supply lossSupply loss Internally – Damage to the store causes loss of Internally – Damage to the store causes loss of

inventoryinventory Externally – Supply is interrupted due to disaster Externally – Supply is interrupted due to disaster

hitting supplierhitting supplier Peak time coverage – Periods during which there is Peak time coverage – Periods during which there is

more inventory in the store than usualmore inventory in the store than usual

Question 2Question 2

What backup equipment do you have What backup equipment do you have available should the main systems fail?available should the main systems fail? Backup systems are normally lower end Backup systems are normally lower end

systems designed for temporary usesystems designed for temporary use An identical parallel system can be An identical parallel system can be

prohibitively expensiveprohibitively expensive The backup system needs to stay on-line long The backup system needs to stay on-line long

enough to allow for continuation of business enough to allow for continuation of business during repairsduring repairs

Cost benefit analysis (DRII Subject Area 2)Cost benefit analysis (DRII Subject Area 2)

Question 3Question 3

What procedures do you have in the case What procedures do you have in the case of a food contamination scare?of a food contamination scare? Assessing what constitutes acceptable Assessing what constitutes acceptable

product quality (ISO22000 Std. Standard product quality (ISO22000 Std. Standard 7.4.2)7.4.2)

Bleach, throw away, take photographs Bleach, throw away, take photographs verifying the destruction of the foodverifying the destruction of the food

Quarantine recalled productsQuarantine recalled products Put out a press release to announce the Put out a press release to announce the

issueissue Offer full refunds for return of contaminated Offer full refunds for return of contaminated

productsproducts

Question 4Question 4

Who do you contact about providing Who do you contact about providing emergency assistance, in the case of emergency assistance, in the case of a disaster? (DRII SA 9 & 10)a disaster? (DRII SA 9 & 10) Some suppliers will provide assistance in Some suppliers will provide assistance in

the case of any emergencythe case of any emergency Individuals with vested interest in the Individuals with vested interest in the

company (Stakeholders)company (Stakeholders) InsuranceInsurance Press release points of contactPress release points of contact

Question 5Question 5

What steps have you taken to insure that What steps have you taken to insure that your employees are properly educated to your employees are properly educated to confront potential disasters?confront potential disasters? Available documentation (DRII SA 9)Available documentation (DRII SA 9)

Phone numbers, procedures, press release point of Phone numbers, procedures, press release point of contact, etc.contact, etc.

Regular emergency management meetingsRegular emergency management meetings Designated team leaders (ISO22000 Std. 5.5)Designated team leaders (ISO22000 Std. 5.5) Supplementary question: How Supplementary question: How

competent/robust is your command chain? competent/robust is your command chain? (ISO22000 Std. 6.2)(ISO22000 Std. 6.2)

Relevant Standards and Relevant Standards and Professional Practices (ISO22000)Professional Practices (ISO22000)

Standard 5.5: Standard 5.5: Food safety team leader responsibilities and authoritiesFood safety team leader responsibilities and authorities

organizing the team’s training and workorganizing the team’s training and work ensuring the implementation and updating of the systemensuring the implementation and updating of the system reporting to managementreporting to management communicationcommunication

Standard 6.2: Standard 6.2: The requirements of (demonstrated) competence of The requirements of (demonstrated) competence of

the HACCP (Hazard Analysis and Critical Control Point) team the HACCP (Hazard Analysis and Critical Control Point) team members members

Staff’s impact on food safetyStaff’s impact on food safety Standard 7.2Standard 7.2

Company should itself select and implement appropriate good Company should itself select and implement appropriate good hygiene practices (instead of merely applying those imposed upon hygiene practices (instead of merely applying those imposed upon it)it)

Standard 7.4.2Standard 7.4.2 Analyze various stages in food chain where hazards occurAnalyze various stages in food chain where hazards occur Determination of acceptable levels of flaws in the finished productDetermination of acceptable levels of flaws in the finished product

Relevant Standards and Relevant Standards and Professional Practices (DRII)Professional Practices (DRII)

Subject Area 2: Risk Evaluation and Control:Subject Area 2: Risk Evaluation and Control: Determine the risks (events or surroundings) that can Determine the risks (events or surroundings) that can

adversely affect the organization and its resources adversely affect the organization and its resources ……avoid or mitigate the effects of those risksavoid or mitigate the effects of those risks ……cost benefit analysis will be required to justify the cost benefit analysis will be required to justify the

investment in controlsinvestment in controls Subject Area 9: Crisis Communication Subject Area 9: Crisis Communication

Develop and document the action plans to facilitate Develop and document the action plans to facilitate communication of critical continuity informationcommunication of critical continuity information

Coordinate and exercise with stakeholders and the media Coordinate and exercise with stakeholders and the media to ensure clarity during crisis communicationsto ensure clarity during crisis communications

Subject Area 10: The Coordination with Subject Area 10: The Coordination with External AgenciesExternal Agencies Establish applicable procedures and policies for Establish applicable procedures and policies for

coordinating continuity and restoration activities with coordinating continuity and restoration activities with external agencies external agencies

Standards and Professional Standards and Professional Practices SourcesPractices Sources

ISO22000ISO22000 Blanc, Didier. "ISO22000: From intent to implementation." Blanc, Didier. "ISO22000: From intent to implementation."

ISO Management SystemsISO Management Systems JUN 2006 7-11. Web.13 Apr JUN 2006 7-11. Web.13 Apr 2009. 2009. <http://www.iso.org/iso/22000_implementation_ims_06_0<http://www.iso.org/iso/22000_implementation_ims_06_03.pdf>.3.pdf>.

Strategic PlanningStrategic Planning Martinelli, Frank. Martinelli, Frank. STRATEGIC PLANNING MANUALSTRATEGIC PLANNING MANUAL. .

Milwaukee: The Center for Public Skills Training, 1999. Milwaukee: The Center for Public Skills Training, 1999. Print.Print.

DRI Institute for Continuity Management (DRII)DRI Institute for Continuity Management (DRII) "Professional Practices." "Professional Practices." DRI Institute for Continuity DRI Institute for Continuity

ManagementManagement Web.13 Apr 2009. Web.13 Apr 2009. <https://www.drii.org/professionalprac/prof_prac_details.p<https://www.drii.org/professionalprac/prof_prac_details.php>.hp>.

Government SourcesGovernment Sources Food and Drug Administration (FDA)Food and Drug Administration (FDA)

"GUIDE TO MINIMIZE MICROBIAL FOOD SAFETY "GUIDE TO MINIMIZE MICROBIAL FOOD SAFETY HAZARDS FOR FRESH FRUITS AND VEGETABLES." HAZARDS FOR FRESH FRUITS AND VEGETABLES." US US FDA/CFSANFDA/CFSAN 26 OCT 1998 Web.13 Apr 2009. 26 OCT 1998 Web.13 Apr 2009. <http://www.foodsafety.gov/~dms/prodguid.html>.<http://www.foodsafety.gov/~dms/prodguid.html>.

"Peanut Product Recalls: Salmonella Typhimurium." "Peanut Product Recalls: Salmonella Typhimurium." FDAFDA 10 APR 2009 Web.13 Apr 2009. 10 APR 2009 Web.13 Apr 2009. <http://www.fda.gov/oc/opacom/hottopics/Salmonellatyp<http://www.fda.gov/oc/opacom/hottopics/Salmonellatyph.html>.h.html>.

Center for Disease Control (CDC)Center for Disease Control (CDC) "Melamine in Food Products Manufactured in China." "Melamine in Food Products Manufactured in China."

CDCCDC 07 OCT 2008 Web.13 Apr 2009. 07 OCT 2008 Web.13 Apr 2009. <http://emergency.cdc.gov/agent/melamine/chinafood.a<http://emergency.cdc.gov/agent/melamine/chinafood.asp>.sp>.

Private SourcesPrivate Sources

For the Love of ChocolateFor the Love of Chocolate 804-359-5645804-359-5645 2820 W. Cary St, Ste A2820 W. Cary St, Ste A Richmond, VA 23221Richmond, VA 23221

Hartford InsuranceHartford Insurance "Insurance Solutions for Small "Insurance Solutions for Small

Business." Business." Hartford, TheHartford, The Web.13 Apr Web.13 Apr 2009. <http://sb.thehartford.com/>.2009. <http://sb.thehartford.com/>.

Misc. SourcesMisc. Sources PicturePicture

"Boutique of the Week: For The Love of Chocolate." "Boutique of the Week: For The Love of Chocolate." Collegian, TheCollegian, The 25 SEP 2008 Web.13 Apr 2009. 25 SEP 2008 Web.13 Apr 2009. <http://images.google.com/imgres?imgurl=http://www.t<http://images.google.com/imgres?imgurl=http://www.thecollegianur.com/wp-content/uploads/2008/09/hecollegianur.com/wp-content/uploads/2008/09/bow.jpg&imgrefurl=http://www.thecollegianur.com/bow.jpg&imgrefurl=http://www.thecollegianur.com/2008/09/25/boutique-of-the-week-for-the-love-of-2008/09/25/boutique-of-the-week-for-the-love-of-chocolate/chocolate/&usg=__eEBfe2V8snt9UuT1r38mpyXo4dQ=&h=300&w&usg=__eEBfe2V8snt9UuT1r38mpyXo4dQ=&h=300&w=400&sz=71&hl=en&start=1&tbnid=Ue4Y_xDG9HWso=400&sz=71&hl=en&start=1&tbnid=Ue4Y_xDG9HWsoM:&tbnh=93&tbnw=124&prev=/images%3Fq%3DforM:&tbnh=93&tbnw=124&prev=/images%3Fq%3Dfor%2Bthe%2Blove%2Bof%2Bchocolate%2Brichmond%2Bthe%2Blove%2Bof%2Bchocolate%2Brichmond%2Bva%26gbv%3D2%26hl%3Den%26client%3Dfirefox-%2Bva%26gbv%3D2%26hl%3Den%26client%3Dfirefox-a%26rls%3Dorg.mozilla:en-US:official%26sa%3DG>.a%26rls%3Dorg.mozilla:en-US:official%26sa%3DG>.