Example procedure: Supply and Supplier Evaluation

Procedure Supply and Supplier Evaluation

General: Supply and Supplier Evaluation

The supply and supplier evaluation procedure is as follows: the purchase of various products and services may only take place with approved suppliers. The purchase only takes place if a purchasing contract has been drawn up with the supplier, either from the supplier or our own purchasing conditions, or if the supplier survey has been completed. This applies to products and services. Edit

Approved suppliers:

For various reasons, it can be decided to replace a current supplier or look for a new supplier.

Often test order is first placed to assess the quality of the products. There is also the possibility to audit the new supplier. This depends on the supplier and the products / services which they will deliver.

When adopting a new supplier, the follow are looked at:

• Value for money;
• Delivery reliability;
• Recognitions (if necessary);
• “Name in the market “;
• Known reliability;
• Trader or producer.

When deciding to purchase from a new provider, the following must be present in advance (if applicable):

• Purchasing contract;
• Name of producer;
• Required specifications;
• Declarations comply with legislation and nominal amount;
• Rationale for controlling raw material hazards / product hazards;
• Research reports in advance or with the delivery;
• Any copies of permits (including waste)
• Declarations of expertise (certification, maintenance, information provision).

The first deliveries are closely monitored to assess whether the agreements made are fulfilled and / or used the quality, safety, and price used are in accordance with agreements. After approval (after trial delivery) the supplier is included in the accepted list. A product supplier is only approved with GFSI certification or on-site audit that looks at product safety, HACCP, GMP (good manufacturing practices) and tracing. This audit must be performed by an experienced and demonstrably competent product safety auditor, whereby an EU recognition will also suffice when all audit reports are available. In the case of outsourced production or packaging activities, a GFSI accreditation must be renewed annually and / or the above audit must be performed annually. Test protocols should also be drawn up for these activities for the outsourced work on visual, chemical, and / or microbiological parameters.

It is checked whether the purchased product or outsourced process falls withing the scope of the GFSI certificate.

In the case of low-risk suppliers, a completed questionnaire and a completed tracing test will be sufficient. This questionnaire and tracing test must be renewed every 3 years. In addition, the supplier must report any significant changes in advance (statement included in the questionnaire).

For raw materials that fall under “bulk commodity” or “agricultural products”, product testing (eg. MRL) may suffice to ensure product safety and quality.

In exceptional situations it may be necessary to purchase products from an unknown supplier. This emergency can and should only occur with suppliers of products or services that have no direct connection to the safety or quality of our products. In all other cases, the necessary data must be available in advance (a risk analysis must be carried out). Edit

Required information:

Must be present before delivery, where applicable:

• The specifications; must be current and correct as well as meet the applicable requirements.
• Declarations regarding GMOs.
• Declarations that the potential hazards should be controlled.
• Declarations for trained staff (cleaning, pest control, maintenance, and etc)
• Analysis certificates/COA.
• Permits (such as waste)
• Declarations / specifications of suitability for foodstuffs.
• Contracts with powers and responsibilities of external experts hired to develop, implement, or review a food safety management system.

Adjustments:

When changes occur in the production process and / or recipe, our supplier must notify us. Changes that directly concern food safety and product characteristics must be communicated in advance.

When changes occur at our company due to customer-specific wishes (such as Dutch-only origin), these customer-specific wishes must be communicated and record with the supplier.

Any changes to contracts should be communicated beforehand and be signed by both parties. Edit

Registrations:

For all delivered products it is known from which supplier they were delivered. This is partly from a tracing point of view. Edit

Supplier Assessment:

Each year, a supplier assessment is prepared. This assessment aims to determine how our suppliers “do it” and whether we believe that this should change. The supplier evaluation covers suppliers of products but also services (maintenance, cleaning, pest control, research, and etc.).

The suppliers that are assessed regularly (at least 1 x 12 months or under a contract basis) deliver a product or service.

Where relevant, concrete data and interviews with the relevant buyer / department are used for the assessment. The inputs used for asssessment include:

• Complaints;
• Errors;
• Billing;
• Keeping appointments;
• Support if requested;
• Information provision;
• Microbiological research;
• Experience with the products internally and by customers;
• Reliability;
• Cooperation with any audits;
• Controlling hazards regarding:
• Cross contamination;
• Foreign components;
• Chemical contamination/
• Product authenticity (food fraud);
• High/low risk profile (based on the above points).

A report is drawn up of this information. If a supplier has a shortcoming, they must resolve it. If a supplier does not meet the expectations in such a way that confidence is gone, then the purchase of products is stopped. The suppliers with a shortcoming will receive a letter. To which a written response is expected. Edit

Standards:

Standards assessment	A	B	C	D
Total complaints*	0-5	5-10	10-15	>15
Total incorrect deliveries	0-5	5-10	10-15	>15
Kept appointments (total comments)	None	1	2	>2
Support (total comments)	None	1	2	>2
Microbiological research* (disapprovals)	1	2-3	4-5	>5
Experience with the products internally and by customers (total comments)	None	1	2	>2
Reliability (total comments)	None	1	2	>2
Controlling hazards (total comments)	None	1	2	>2
Product authenticity	None	None	None	>1

*complaints / micro research is relation to food safety are always D.

The lowest score determines the assessment level:

A level suppliers → no action necessary.

B level suppliers → extra checks during ½ year on the above assessment points (must then be A level, otherwise send the supplier a letter).

C level suppliers → improvements demanded from supplier to reach A-B level.

D level suppliers → no more purchasing possible until everything has been improved. Edit