Walmart Reduces Costs by Using the Food Safety Global Initiative

Walmart reduces costs by using the Food Safety Global Initiative

Food recalls are very expensive. Besides the costs associated with returning product there is the potential of lawsuits. Plus recalls can damage a stores reputation. By requiring that their suppliers are Certified by the Food Safety Global Initiative (FSGI) Walmart have improved food safety and reduced their costs.

The (FSGI) is a non-profit foundation, created under Belgian law in May 2000 by a group of food service providers to start  global food safety standards that covers food from the farm to your lips. The idea was to make food safe everywhere.

The GFSI objectives are to:

• Reduce food safety risks by delivering equivalence and convergence between effective food safety management systems
• Manage cost in the global food system by eliminating redundancy and improving operational efficiency
• Develop competencies and capacity building in food safety to create consistent and effective global food systems
• Provide a unique international stakeholder platform for collaboration, knowledge exchange and networking

With the input of food service companies, academics, governments and food scientist the GFSI gathered together the latest techniques  into a Guidance Document. This document changes as new safety procedures are developed.

To be certified by the GFSI a company is inspected by a third party to make sure they are complying with the Guidance Document. A study by the University of Arkansas showed that food companies having achieved certification had a well documented food safety management system, had improved product safety and had well trained employees.

As more Companies realize that food safety is cheaper than recalls we will see a change in the food industry.