8. Supplier management
Managing operational suppliers
This articel looks at how service and operational suppliers must be risk assessed, approved and monitored for compliance.
The standards
Managing service suppliers is a requirements of the following sections of the standards:
| BRCGS Food Safety Issue 9 | 3.5.1.4 Approved supplier list 3.5.3.1 Approval and monitoring of service suppliers 3.5.3.2 Contracts with service suppliers 3.5.3.3 Service supplier performance review 4.16.6 Third-party contractors |
| BRCGS Packaging Issue 6 | 3.7.1 Supplier approval procedure 3.7.2 Acceptable methods of supplier approval 3.7.4 Approved supplier list 3.10.1 Managing suppliers of services 3.10.2 Supply chain traceability 5.10.1 Communication of requirements to service suppliers |
| BRCGS Agents & Brokers Issue 3 | 4.1.3 Approved supplier list 4.2.1 Approval and risk assessment of service providers 4.2.2 Approval and monitoring of service providers 4.2.3 Service provider contracts |
| BRCGS Storage & Distribution Issue 4 | 3.5.1.1 Approval and risk assessment of subcontractors 3.5.1.2, 3.5.1.3 Subcontractor contracts 3.5.2.3 X Subcontractor performance review 3.5.2.4 X Approved subcontractor list 12.6.1, 12.6.2, 12.6.3 Distribution networks |
| FSSC22000 Version 5.1 | ISO 8.2.4f Supplier approval and assurance processes |
| IFS Food Version 7 | 2.3.3.3 Contract agreements |
| SQF Edition 9 | 2.3.4.2 Approved supplier program |
| FSMA Preventive controls for human food (Final 2015) | Subpart G – Supply-chain program |
The requirements
Scope
The supplier system must manage all operational suppliers, including:
- Final mile delivery companies.
- Laundry.
- Maintenance of equipment.
- Pest control.
- Transport services.
- Third-party ink kitchens.
- Staffing agencies.
- Contracted cleaning.
- Contracted servicing and maintenance of equipment.
- Equipment providers (for example, pallets, racking).
- Transport and distribution.
- Off-site storage or dispatch of materials or product.
- Laboratory services.
- Catering services.
- Calibration services.
- Product safety and quality consultants.
- Product safety training providers.
Risk assessment
A risk assessment must be completed, which:
- Identifies the supplier controls needed.
- Determines the risk rating of the supplier.
Risks
When identifying the relevant risks, the following must be considered:
- Risks which are symptomatic of the service provided.
- Customer specific requirements.
- Relevant legislation.
- Product defence related risks.
Supplier controls
Supplier controls identified through the risk assessment, must be:
- Used to assess the supplier for approval.
- Formally agreed in supplier agreements and specifications.
- Used for supplier monitoring.
Operational supplier assessment
Supplier controls identified through the risk assessment, must be used to assess the supplier. Successful assessment could be achieved using:
- Enforceable warranties from the supplier.
- Historical trading experience and business reputation.
- Membership of a recognised and specialist trade association.
- Legal registration (for example, using waste licences).
- Evidence of training and competence.
- Internal audits (for example, cleaning or pest management).
- Supplier assessment questionnaires (SAQs).
Approved supplier list
An up-to-date list of approved operational suppliers must be maintained and communicated to those who need it.
Supplier agreements
Supplier agreements must be in place, up to date and reviewed at least every 3 years. Reviews must be recorded.
The agreement must include:
- Supplier controls identified through the risk assessment.
- Relevant legislation that must be applied.
- Maintenance of product traceability.
- Conformance to specification.
- Any service level agreements.
- Any permitted or prohibited subcontracting.
- Any restrictions for mixed loads.
Supplier monitoring
The performance of suppliers must be monitored to ensure that they meet the supplier agreement.
Using contractors
Where processes relating to customer branded products are contracted to operational suppliers, this must be approved by the customer prior to this taking place.
BRCGS Food Safety Issue 9
Food safety and quality consultants and training providers must now be included in the list of service suppliers.
The performance of service suppliers must now be monitored.
What is an operational supplier?
An operational supplier:
- Provides an operational service.
- Supplies operational materials required to process the material or product, but which don’t appear on the bill of materials.
This is why we don’t call them service suppliers – as they don’t just provide services, they supply materials too.
Supplier management
Managing operational suppliers
This eLearning course will provide you with a robust solution for risk assessing, assessing and approving service suppliers (operational suppliers) . It’s designed for staff who use service suppliers.
Includes examples of how a training supplier can be assessed.
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