Food Beverage COMPLIANCE READINESS

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1 Food Beverage COMPLIANCE READINESS

2 CONTENTS Government Agencies FSMA Safety Inspections Compliance Training Industry Knowledge Technology for Traceability Documentation MILAN Commitment Why Us? About MILAN

3 MILAN specializes in servicing clients in the Food & Beverage industry. Success comes from understanding food safety requirements and complying to those requirements. They depend on MILAN s operational best practices for their products. We work tirelessly educating ourselves on the regulatory and legal commitments that we must adhere to for our clients. GOVERNMENT AGENCIES Food and Drug Administration (FDA or USFDA) is a federal agency of the United States Department of Health and Human Services, one of the United States federal executive departments. The FDA is responsible for protecting and promoting public health through the control and supervision of food safety, tobacco products, dietary supplements, prescription and ove r-the-counter pharmaceutical drugs(medications), vaccines, biop harmaceuticals, blood transfusions, medical devices, electromagnetic radiation emitting devices (ERED), cosmetics, animal foods & feed and veterinary products. Hazard Analysis and Critical Control Points (HACCP) is a systematic preventive approach to food safety from biological, chemical, and physical hazards in production processes that can cause the finished product to be unsafe, and designs measurements to reduce these risks to a safe level. Principles of HACCP 1. Conduct Hazards Analysis 2. Determine the Critical Control Points 3. Establish Critical Limits 4. Establish Monitoring Systems 5. Establish Corrective Actions 6. Establish Verification Procedures 7. Establish Documentation Good Manufacturing Practices (GMP) in the Food industry is short for good manufacturing practices and forms an important part of the overall HACCP food safety system in a food business. Good manufacturing practices (GMP) can be defined as the operational requirements necessary to enable a food business to produce food safely.

4 MILAN s best practices are molded around several Food Safety requirements. Understanding regulatory and legal requirements of handling food products has allowed MILAN to grow with Fortune 500 clients and bring value to their supply chains. FSMA In 2011 when the Food Safety Modernization Act (FSMA) was signed into law, the FDA shifted its food safety system to focus on PREVENTION of problems versus responding and reacting to food contamination issues. This prevention approach impacts shippers by addressing how product is stored and handled, how product is transported and other key functions associated to food handling and distribution. In response to the changes of FSMA, MILAN developed a comprehensive Food Safety Plan that addresses all the needs of the FDA, FSMA and HACCP global standard. Since Food Safety training is key to a successful plan, MILAN determined the specific training that was necessary and required based on the key clients that they service within the industry. A structured process was necessary that helped deliver the training curriculum and ensure that MILAN s handling, storage and transporting of all food products were done in a safe and compliant nature. Communication was key to this process to ensure products move through the supply chain in a safe, efficient andtrackable manner.

5 As a third-party provider, the structure of MILAN s Food Safety Plan needed to manage all aspects of product safety throughout the MILAN supply chain. The plan addresses how product is handled in the MILAN distribution facilities including any value-added processes that are incorporated. In addition, once products are transferred to MILAN trucks, that same mindset of safe movement was included and adhered to within the procedures. SAFETY INSPECTIONS COMPLIANCE Since safety prevention that minimizes possible hazards to food contamination was important and required, MILAN s Food Safety process began with GMP practices of cleanliness and a robust sanitation program for its facilities and trucks that eliminate potential contamination into food product over the duration the product was housed or transported by MILAN. As with any FDAregulated facility, MILAN has written and validated processes that align with FSMA requirements. The integrated service of warehouse distribution and transportation are all aligned appropriately to the quality and safety requirements of FSMA. As an additional support to this process, MILAN is audited annually by AIB which provides an outside source of input as to the FMSA readiness oftheirfacilities and theirprocesses. AIB International s mission is Empower the global food industry to elevate their food safety and grain based production capabilities.

6 TRAINING One requirement of the FMSA is for all companies and its employees to administer a detailed training process if handling or managing food products. Evidence of this training must be recorded and available for audit and inspection. Since there are many options of training, MILAN has selected the training that applies to their organization and the products that they handle for their clients. The training is written and documented to ensure best practice and consistent messaging to employees. Training for Food Safety is different than other elements of training in the 3PL world. MILAN recognizes the importance of moving food safety throughout the supply chain. They make every effort in ensuring that employees understand the importance and the consequences associated to noncompliance. INDUSTRY KNOWLEDGE MILAN stays abreast of new requirements and each new client goes through an internal process of uncovering compliance requirements and expectations. MILAN ensures that the chain of custody where all ingredients have been properly handled during each stage of the supply chain is in fact compliant during MILAN s tenure with the product. We work hard to communicate to all parties (client, carrier, supplier) and embrace our role in the supply chain.

7 At MILAN, to be successful, we know we must join with our clients to manage risk constantly. With Safety as a core value in the MILAN organization, our rigorous approach to Food compliance more than meets the needs of regulatory requirements. KEVIN CHARLEBOIS, president TECHNOLOGY FOR TRACEABILITY With the FDA having mandatory recall authority over all food products, it is required that if you handle food products in any way, that you must be able to trace those products through the portion of the supply chain that you control. With FSMA s record and lot tracking requirements, a 3PL must have the means to recall and provide information on food products within hours of a request. Not only must you be able to track finished goods but also those specific products that were built into a new sku must be available and trackable. MILAN s WMScapabilities allows the tracking and tracing ofthose products in a variety of units with real-time and full transparency of activities. This recall capability is necessary when handling problem products and ingredients and required for a transparent supply chain. Another key element to transparency is integrating MILAN s WMS with our client s systems. This allows for full visibility and a complete stream of information on the supply chain with efficiency and a higher level of communication to all parties involved. DOCUMENTATION What is key to FSMA is the need to document and record all aspects of the Food Supply Chain that you manage and impact. Areas that are required are your Food Safety Plan, all records of training of personnel and all movement of food products within your care. Building a culture of safety and compliance is what makes MILAN a valued partner.

8 WHY US? MILAN COMMITMENT We know that there are many 3PL service providers in the market. But at MILAN, it s personal to us. We work diligently in our operational approach to guarantee that everything we do brings VALUE to our clients and their supply chain. SERVICE is our only product. FLEXIBLE APPROACH Flexible and agile approach in managing client challenges. INTEGRATED SERVICES Depth of warehouse distribution, transportation and value-add services. INNOVATIVE SOLUTIONS Customized and creative solutions for complex supply chains that result in operational efficiencies. EXPERIENCE EXPERTISE Leadership and Industry expertise that helps solve those pain points and challenges. DELIVERED EFFICIENCY Methodical, documented and trained workflows that deliver effective results of excellence. CONTINUAL MOVEMENT Lifestyle of Continuous improvement initiatives that create value. PROVEN RESULTS Performance Tracking that s used to share with the customer and raise the bar. CUSTOMER CARE Culture and Client alignment as a MILAN core competency. TECHNOLOGY CONNECTION WMS and TMS integration, connectivity, internal IT expertise.

9 ABOUT MILAN MILAN Supply Chain Solutions is a third-party logistics company who specializes in warehouse distribution, transportation and value-added services to its clients. Our warehouse facilities in Tennessee distribute throughout the southern region while our asset-based trucking operation touches points throughout the southern and midwestern regions. MILAN also provides a nonasset solution from our brokerage department to customers based on the best-fit solution. MILAN specializes in serving the Food & Beverage, CPG, Automotive and General Merchandise industries. Our facilities, yards and trucks are clean, safe and secure. Our MILAN team takes great pride in personalizing their service to our clients. Both our warehouse and transportation operations are managed with the SITED values as the backbone of our operational approach. This foundation of core operational beliefs guide us in our management of the organization and keeps us focused and grounded on providing our clients with service value and building relationships that are long-lasting. S I T E D SAFETY INTEGRITY TEAMWORK EXCELLENCE DIVERSITY We do the right thing. We build trust. We value people. We give our best. We embrace our differences.

10 Business Moves Fast. MAKE YOUR MOVE. Contact us at: (800) DISTRIBUTION TRANSPORTATION VALUE-ADDED MILAN SUPPLY CHAIN SOLUTIONS MILAN, TN JACKSON, TN MILANEXPRESS>COM