Food Manufacturing: New FoodReady Research Finds Small and Mid-Sized Food Manufacturers Unprepared for Audits
FoodReady, a leading provider of AI-powered food safety, traceability, and quality management software, has released new research highlighting a significant challenge facing small and mid-sized food manufacturers across North America: many companies believe they are prepared for regulatory and third-party audits, but the reality suggests otherwise.
The findings, based on a survey of hundreds of food manufacturing businesses conducted as part of FoodReady’s ongoing continuous improvement and customer engagement initiatives, reveal a widening gap between perceived audit preparedness and actual operational readiness. According to the study, many manufacturers remain heavily dependent on outdated, manual systems that leave them vulnerable to compliance failures, delayed responses during inspections, and increased operational risk.
The research paints a concerning picture of the current state of food safety compliance within the sector. While many respondents expressed confidence in their ability to manage audits, the underlying data showed that critical weaknesses persist across documentation, traceability, internal auditing, and supplier management practices.
One of the most striking findings was the continued reliance on spreadsheets and paper-based systems for managing essential food safety and quality records. Nearly half of surveyed companies reported using manual logs or spreadsheet-based systems to track critical operational data, despite the growing complexity of regulatory requirements and customer expectations. These traditional methods, while familiar, often create inefficiencies, increase the risk of human error, and make retrieving records during audits both time-consuming and stressful.
The study also found that only a small percentage of respondents had fully digitized important compliance workflows such as corrective action management and supplier verification processes. This lack of digital transformation leaves organizations vulnerable when auditors request documentation or evidence of compliance, often forcing teams into a last-minute scramble to gather records from multiple disconnected systems.
Documentation access emerged as one of the most common barriers to demonstrating audit readiness. Respondents indicated that locating and organizing records quickly remains a persistent challenge, particularly when information is stored across multiple spreadsheets, paper files, shared drives, and standalone software systems. In many cases, companies may have the required records—but cannot produce them efficiently when needed.
Traceability also remains a major concern. Although most food manufacturers recognize the importance of end-to-end product traceability, many surveyed organizations admitted that they only have visibility into one or two tiers of their supply chain. This limited oversight can create significant problems during recalls, supplier disputes, or regulatory investigations, where rapid and accurate product tracking is essential.
The issue becomes even more urgent in light of evolving regulations such as U.S. Food and Drug Administration’s FSMA 204, which introduces stricter requirements for traceability recordkeeping and faster access to critical supply chain data. FoodReady’s research suggests that many facilities are not yet equipped to meet these new expectations, potentially exposing them to future compliance risks and enforcement actions.
Another key finding from the survey was the inconsistency of internal audit practices. While many companies conduct internal audits, the scheduling and execution of those audits often lack structure and standardization. Some facilities reported performing audits only before anticipated inspections or certification renewals, rather than using them as continuous improvement tools throughout the year.
Digital adoption in other critical food safety areas also remains low. FoodReady found limited use of digital platforms for managing Hazard Analysis and Critical Control Points (HACCP) plans, supplier approvals, and preventive controls. These functions are often still handled through spreadsheets, email chains, or paper documents, creating fragmented systems that are difficult to maintain and scale.
According to FoodReady leadership, these findings reflect a common issue across the food industry: many companies are unintentionally placing themselves at risk through inefficient processes rather than deliberate non-compliance.
“Audit readiness isn’t something that happens once a year or only when an inspection is scheduled,” said Dave Seddon, co-founder and Chief Safety Officer at FoodReady. “It has to be built into daily operations and embedded into company culture. What our research confirms is what we hear from customers regularly—the biggest threat isn’t usually a lack of effort or intent. It’s the hidden inefficiency of manual recordkeeping and disconnected systems that only becomes obvious when an auditor asks for proof.”
Seddon emphasized that modern food safety management requires a proactive, systems-based approach rather than reactive document collection. In an increasingly regulated and competitive marketplace, companies that continue relying on outdated workflows may struggle to keep pace with customer demands, certification standards, and government oversight.
To address these challenges, FoodReady has positioned its all-in-one software platform as a digital solution designed to streamline and centralize compliance operations. The platform integrates multiple functions—including HACCP management, supplier documentation, corrective action workflows, internal audits, and traceability data—into a single connected system.
By eliminating data silos and automating repetitive tasks, the platform aims to help manufacturers reduce administrative burdens while improving visibility across their operations. According to the company, customers using the system have reported faster audit preparation, stronger documentation control, and improved performance during major food safety certification audits such as Safe Quality Food Institute, BRCGS, and FSSC 22000.
The release of this research comes at a time when food manufacturers are under growing pressure to modernize. Supply chains are becoming more complex, consumer expectations for transparency are rising, and regulators are demanding faster access to more detailed records than ever before.
For small and mid-sized manufacturers, the challenge is particularly significant. Unlike larger enterprises with dedicated compliance teams and larger technology budgets, smaller companies often operate with limited resources, making it harder to prioritize digital transformation. However, FoodReady argues that delaying modernization may ultimately cost more—through failed audits, production disruptions, or damaged customer relationships.
The company believes the message from its research is clear: audit readiness is no longer just about passing inspections—it is about building operational resilience.
As food safety standards continue to evolve, manufacturers that invest in connected, digital compliance systems today may be better positioned to respond to tomorrow’s regulatory demands. For those still relying on spreadsheets and paper logs, FoodReady’s findings serve as a warning that perceived readiness may not be enough when the next audit begins.
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