All eyes are on the food sector. With recalls at a 10-year high, and supplier failures making headlines, the stakes have never been greater.
Every lapse – whether it’s allergen mislabelling, pathogen contamination or ingredient fraud – has a direct impact on consumers, who are often the most vocal critics when trust is broken. These risks are not theoretical. They are playing out in real time, and in an age where a single incident can dominate global news cycles, the food industry is under constant pressure to prove that its supply chains are not just compliant, but resilient, transparent and worthy of consumer confidence.
The harsh truth? Traditional approaches to supplier verification and risk management are no longer enough. If businesses continue to rely on static, one-size-fits-all models, they will struggle to maintain integrity in their supply chains. A more dynamic, data-driven approach is needed – one that segments suppliers based on risk exposure to better inform the right risk management strategy, ensuring resources are focused where they matter most.
The cost of failure
Recent incidents highlight the stark consequences of inadequate supply chain oversight.
- Allergen contamination – In late 2024, the UK's Food Standards Agency (FSA) advised individuals with peanut allergies to avoid consuming foods containing mustard due to potential peanut contamination. This precautionary measure was implemented because of the inability to confidently trace the breadth of contamination in raw material supply, leading to widespread consumer uncertainty (FSA).
- Pathogen outbreaks – In October 2024, TreeHouse Foods, a prominent manufacturer of private-label frozen waffles, initiated a voluntary recall of certain frozen waffle products due to potential contamination with Listeria monocytogenes. Subsequently, the recall was expanded to include all waffle and pancake products produced at the affected facility, raising serious concerns about trust and oversight (FDA).
- Ingredient safety fears – More than a year after lead contamination was found in apple sauce products containing cinnamon, media reports continued to question the safety of all cinnamon supply, creating long-term reputational damage for brands and suppliers alike (CDC) (Verywell Health).
These failures come at a heavy cost – to consumers, brands and regulators. They erode trust, create financial strain and disrupt entire supply networks. More often than not, they stem from outdated risk management strategies that fail to account for the realities of modern supply chains.
Rethinking supplier risk
Most organisations have supplier approval and verification programmes that they believe are robust. But are they dynamic enough to respond to the changing risk landscape? Next time you assess your approach, consider these key questions:
- Do you know the true source of the materials you purchase?
- Have you assessed the risks associated with the movement of goods across your supply chain?
- How important is your business to your supplier? Are you a major customer or a small fraction of their sales?
- When was the last time you reassessed your supplier risk criteria?
For many businesses, supplier risk assessment remains a static process – one that does not adapt to emerging threats or leverage real-time data. This is a fundamental weakness in the way supply risk is managed.
The case for supply chain segmentation
An LRQA-commissioned study revealed a concerning gap in how businesses assess supplier risk. While 38% of companies take a multi-faceted approach to the data used, 44% still rely on a single, traditional measure – such as material risk classification or food safety certification status. This narrow focus creates blind spots, leaving businesses vulnerable to disruptions.
To build a more accurate risk profile, organisations must distinguish between two key factors:
- Risk exposure – The inherent risk associated with a supplier or product, shaped by factors such as sourcing location, historical incidents, geopolitical pressures and environmental conditions.
- Risk management capability – The strength of a supplier’s controls, audits and verification processes in mitigating identified risks.
By analysing these dimensions together, businesses gain a more complete understanding of their vulnerabilities and where intervention is needed.
LRQA drives a segmented approach to supplier risk management, ensuring verification and oversight efforts align with each supplier’s actual risk profile. This means:
- Directing more rigorous checks towards high-risk suppliers while streamlining processes for lower-risk partners.
- Shifting from reactive recall mitigation to proactive risk management.
- Using real-time data and external intelligence to strengthen the approach to supplier verification methods.
- Leveraging business influence to drive supplier performance improvements.
Segmentation does more than improve compliance; it enhances resilience, protects brand reputation and builds trust across the supply network. By moving beyond a ‘tick-box’ approach to supplier assurance, businesses can implement risk-based strategies that drive real impact.
A call to action
The food industry can no longer afford to rely on outdated risk management practices. The stakes are too high. Recalls will continue to rise, and consumer confidence will continue to erode unless organisations take a more strategic approach to supplier oversight.
By embracing supply chain segmentation, businesses can strengthen their ability to anticipate, assess and address risks; before they escalate into crises. It is time to move from compliance-driven audits to intelligence-led supplier assurance. This is how we build trust through the chain.
At LRQA, we are working with businesses across the food industry to implement risk-based supplier segmentation strategies that enhance safety, integrity and resilience. Are you ready to take the next step?
