CHICAGO — Cargill has introduced a new assessment tool that the Minneapolis-based company says will help food and beverage companies achieve growth, cost reduction and risk mitigation goals by identifying, prioritizing and quantifying risks and opportunities in supply chains. The announcement was made July 15 at the Institute of Food Technologists Food Expo in Chicago.
“Customers, consumers and other stakeholders are increasingly demanding more information and communication around what’s happening in our extensive supply chains to mitigate corporate or brand risk, find opportunities for cost reduction, or use sustainability as a potential platform for growth,” said Scott Portnoy, corporate vice-president of Cargill’s food ingredients and systems businesses. “However, sustainability investments often struggle to gain traction as many organizations fall short of quantifying a return on investment. Our tool delivers a business case that enables responsible decision making and action.”
Cargill said the assessment tool allows it to work with customers to quickly identify and assess areas of risk and opportunity. Once identified, the companies may take action on responsible sourcing issues that may negatively or positively impact business. Examples cited by Cargill include labor practices, the environment and biodiversity.The tool then translates the risk and opportunities into specific financial terms by assigning cost and revenue implications, Cargill said.