Maintaining supplier compliance
A robust supplier program ensures better quality goods while building better working relationships. One key component to having an outstanding supplier program is a well-built and maintained supplier approval process, especially since supplier verification remains an integral part of the U.S. Food Safety Modernization Act (FSMA) preventive controls.
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Reduce supply chain risk
The increasingly global nature of today’s supply chain means even the most stringent quality control measures might not be enough to protect an organization from supply chain risk. Specifically when, in the food, beverage, and supplements industries, the safety of goods produced depends heavily on the quality of the items and ingredients suppliers provide. The best safeguard in this situation is, therefore, a strong supplier approval program.
Addressing today’s top challenges
In order to be effective, supplier approval programs must be proactive and predictive to address evolving consumer preferences and changing business environments. With the growing complexity of the supply chain, suppliers and buyers face a ceaseless procession of food safety risks. Three of the top areas of concern are:
- Increased reliance on imported items and ingredients.
- Food fraud.
- Intentional adulteration.
There’s also the challenge of accurately assessing supplier value. When the price is the sole driver, it’s easy to underestimate the total cost of ownership, which considers customer service, quality of goods, and reliability. An effective approval program ensures supplier ingredients, services, and outsourced processing and packaging, meet acceptable safety standards, quality and authenticity, and ethical business practices.
A Sneak Preview: Step 1
A Supplier Approval Checklist Keeps the Process on Track
A standardized supplier checklist lies at the heart of an effective supplier approval program. Building this checklist keeps teams organized and efficient throughout the process. It’s used across departments to ensure responsible parties understand their roles, complete required tasks, and stay informed.
For example, Purchasing needs to examine costs and minimum order requirements for new ingredients, Quality Assurance (QA) must inspect the potential ingredients for quality, and R&D needs to review and approve test samples.
Each company should put thought into the checklist and how it’s implemented and maintained. Consider incorporating the following elements:
- Company personnel.
- Available products and services.
- Quality management.
- Food safety systems.
- Certifications.
- Past performance.
Learn more from this resource:
Read through this up-to-date ebook to discover:- Why having a strong supplier approval process is necessary.
- Elements that make up a strong supplier approval program.
- How to have one source for all supplier information.
- How to better monitor and scorecard suppliers performance.