1、From Cost Center to Value Creator:Making the Business Case for Food SafetyFood Safety Summit 2026Incident CostsPre-Incident CostsNotification&LogisticsPlant Shutdown&Extra ExpensesReplacement&RestorationBrand RehabilitationBusiness InterruptionIncident CostsIncident Cost Totals by Category$50K for E
2、quipmentLets Apply a Basic ROI CalculationScenarioA company experiences a food safety incident traced back to aging or malfunctioning equipment.The total cost of the incident is$103,700,which includes$50,000 to replace the equipment after the fact,along with additional costs such as testing,recall l
3、ogistics,and business disruption.ROI Calculation Assumption:If the company had proactively replaced the equipment for$50,000,the incident(and associated$103,700 total cost)would have been avoided.Benefit/Cost Avoided:$103,700Investment(preventive cost):$50,000=103,700 50,00050,000=53,70050,000=1.074
4、 107.4%Result:The company would have realized an approximate 107%return on investment,meaning the preventive investment would have more than paid for itself.In other words,for every$1 spent on prevention,the company would have saved about$2.07 total Basic ROI for FSQ Investments Use this as your sta
5、rting point:=Financial Benefits Cost of InvestmentCost of Investment In FSQ terms:Benefits=avoided recall costs+reduced waste+efficiency gains+customer/sales preservation Cost=equipment,systems,training,personnel,implementation Important to recognize cost of the“fix”is usually never the total“cost”O
6、ther ROI Calculations “Return on Prevention”This is the most powerful framing:=Probability of Incident Cost of Incident AvoidedCost of Prevention Example:Probability of recall:5%annually Cost of recall:$10M Prevention investment:$500K =0.05 10,000,000500,000=1