Governance - Supplier Controls

An Approved Supplier List is not enough!integral to preventing disaster.
Many manufacturer's in the pharmaceutical,Formal monitoring of the supplier and service base
Medical Device and Biotechnology industries treataccomplished with a cross functional team can
their supplier and service base with a "If it's notgreatly reduce the risk of a problem with a
broken, don't fix it..." attitude. Those concernedsupplier or service provider resulting in significant
with ongoing compliance and business continuitybusiness interruption or product recall. Building a
have at least generated an Approve Supplier Listsystem of risk assessment and providing a
based on a quality survey or audit along withstream of key performance and quality indicators
some business performance indicators. Maybe, ato the management team is the, "ounce of
Quality Agreement has been put in place for keyprevention worth a pound of cure".
suppliers and contract manufacturers. In today'sSome good questions to start with are:
business environment with a trend toward· "What suppliers and service providers
outsourcing activities, this approach to supply chainhave the greatest impact on my business?"
management is just too antiquated.· "Is the impact based on volume,
True supplier control governance should take thecomplexity, cost?"
form of a risk-based assessment of suppliers and· "How much control can I exercise of
a routine management evaluation for thosethis supplier base?"
identified as critical or major. Categorization of· "Is the partner required to inform me of
suppliers and service providers based on Qualitychanges?"
Agreement status, Audit status, nonconformist· "Do I have a contingency plan in the
and corrective action status, supply critical andevent the provider does not meet their
business performance indicators to name a few iscommitments for my products?