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. In the food, beverage, and supplements industries, the safety of goods produced depends heavily on the quality of the items and ingredients suppliers provide.
Highly 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 an ongoing procession of food safety risks. Three of the top areas of concern are a greater reliance on imported items and ingredients, food fraud, and 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 suppliers’ items and ingredients, services, and outsourced processing and packaging, meet acceptable safety standards, legality, quality and authenticity, service, and ethical business practices.
Having a properly managed supplier program ensures better quality goods while building better working relationships with suppliers. One key component to having an outstanding supplier program is a well-built and well-maintained supplier approval process, especially since supplier verification is a big part of the preventive controls for the Food Safety Modernization Act (FSMA) and GFSI.