8. Supplier management
Managing the supplier system
How to manage an effective supplier management system and what needs to be in your procedure.
The standards
Managing suppliers is a requirement of the following sections of the standards:
| BRCGS Food Safety Issue 9 | 3.5.1.1 Raw material risk assessment 3.5.1.2 Supplier approval and monitoring system 3.5.1.7 Exception procedure 3.5.3.1 Approval and monitoring of service providers 3.5.4.2 Outsourced processor approval 9.2.1, 9.2.2 Supplier approval and monitoring system; traded products |
| BRCGS Packaging Issue 6 | 3.7.1 Supplier approval procedure 3.7.7 Exceptions to the supplier approval procedure 3.10.1 Managing suppliers of services 7.1.1, 7.1.2, 7.1.3 Supplier approval and monitoring system; traded products |
| BRCGS Agents & Brokers Issue 3 | 4.1.1 Supplier approval and risk assessment 4.1.2 Manufacturer approval and monitoring system 4.1.6 Approval records 4.1.8 Handling exceptions to the supplier approval process 4.2.1 Approval and assessment of service providers 4.2.2 Approval and monitoring of service providers 4.2.6 Handling exceptions to the approval process for service providers |
| BRCGS Storage & Distribution Issue 4 | 3.5.1.1 Supplier approval and performance monitoring of service providers and equipment suppliers 3.5.2.5 X Exception procedure 10.2.1.1, 10.2.1.3 Supplier approval; branded products 10.3.1.1, 10.3.1.2, 10.3.1.4 Supplier approval; own-label 10.3.6.1 Incoming product risk assessment 12.6.1 Approval and monitoring of distribution suppliers 12.6.4 Monitoring of distribution suppliers. |
| FSSC22000 Version 5.1 | ISO 8.2.4f Supplier approval and assurance processes |
| IFS Food Version 7 | 4.4.1, 4.4.2, 4.4.3, 4.4.5 Purchasing |
| SQF Edition 9 | 2.3.3.4 Contract manufacturers 2.3.4.1, 2.3.4.2 Approved supplier program |
| FSMA Preventive controls for human food (Final 2015) | Subpart G – Supply-chain program |
The requirements
Procedure
A procedure must be in place which details how material and operational suppliers will be controlled, including:
- Scope.
- Risk assessment.
- Supplier controls.
- Assessment methods.
- Supplier agreements.
- Supplier performance monitoring.
- Review.
- Exceptions.
- Customer requirements.
- Roles and responsibilities.
Scope
The supplier management system must control material suppliers and service (operational) suppliers, to ensure the quality, safety, legality, authenticity, security, and traceability of the product.
Risk assessment
A risk assessment must identify potential risks to product safety, legality, authenticity, and quality, and determine the supplier controls needed for approval.
Supplier controls
The risk assessment must determine the supplier controls needed to mitigate product safety, legality, authenticity, and quality risks.
Assessment methods
A material supplier must be assessed to ensure that they comply with the minimum assessment criteria which are that they must have in place:
- A product safety plan (HACCP).
- Product safety reviews (HACCP reviews).
- Traceability.
- A product defence plan, which covers product authenticity and security.
- Good manufacturing practices (GMP).
The supplier assessment method must be based on risk.
A supplier assessment questionnaire can only be used to approve low-risk material suppliers.
Not low-risk material suppliers must be assessed using either an appropriate GFSI recognised certificate, a verified certificate, or a supplier audit.
Where the supplier is a trader who doesn’t hold relevant GFSI certification, the assessment must be conducted on the trader’s supplier, not the trader.
Methods of assessment for operational suppliers must be defined.
Supplier agreements
Specifications and supplier agreements must be in place, that ensure that suppliers are operating to the required standards.
Supplier performance monitoring
All suppliers on the approved supplier list must be monitored to ensure that they continue to meet the requirements set in supplier agreements and specifications.
There must be a system in place which ensures that suppliers notify you where anything changes, that may impact their assessment, such as changes to their certification or recalls.
Review
The supplier management system must be kept up to date. Therefore, a supplier review must be triggered when:
- There’s a proposed change to suppliers.
- A new material, product or service is going to be introduced.
- A new supplier is being considered.
- A new supplier risk emerges.
- A product recall or withdrawal occurs, where an approved materials or suppliers has been implicated.
- A review hasn’t taken place for 3 years.
Exceptions
Where material suppliers can’t be approved prior to use due an emergency or because it’s purchased on the commodity market, an exceptions process must be applied.
The exceptions process must mitigate the risks involved in purchasing materials from an unapproved supplier.
Where the exceptions process is used to procure a material, which is used in customer branded product, the exception must be communicated to the customer prior to use.
Customer requirements
Where a customer specifies the supply of a material from a specific supplier, it is acceptable for the liability for approval to sit with the customer, if this is clearly agreed in the customer contract.
Customer approval
Where processes relating to customer branded products are outsourced to suppliers, this must be approved by the customer prior to this taking place.
Roles and responsibilities
Where more than one person is involved in the supplier management system, the roles and responsibilities must be defined, with clear links between them.
BRCGS Food Safety Issue 9
The scope of the material risk assessment must now include authenticity. The risk assessment must also meet customer requirements, and it must be reviewed where a material or supplier is implicated in a withdrawal or recall.
Suppliers must be assessed to ensure that they have product defence plans in place.
Customers must be informed if the exception process is used and it impacts their brand.
The list of service suppliers has been expanded to now include consultants and food safety training providers.
Any actions that arise from supplier audits must be implemented.
Supplier management
Managing the supplier system
This eLearning course will teach you how to develop and implement a procedure for supplier management. It’s designed for staff who are responsible and accountable for the supplier system.
The course provides a simple 6-step process for managing suppliers.
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