Vendor Verification Process is the process of verifying any new Vendor that AdvaCare has never cooperated with before. There are several reasons to follow this process:
Safety: it is important to know the basic information about the new Vendor to be able to make sure the quality of the products.
Building out the database: adding detailed information about the markets of the Vendor will help to find solutions for new RFQs more efficiently.
Vendor Verification Process consists of 2 parts: the stage of quoting first prices, and the stage before placing the new order.
PART 1: After the price is quoted and BEFORE adding the Vendor to the System
Inform the Vendor that there is a verification process to be followed, as per AdvaCare company policies, before cooperation can be started, and ask to provide the information according to the following points:
Primary Information of the New Supplier: the blank template must be sent to the Vendor at the initial stage of the first contact by email and must be then filled out by the Vendor.
Copies of ALL basic certificates (such as: ML, BL, ISO, HACCP, local GMP, CE, FDA, etc.).
Pictures of the workshops.
All the files received from the Vendor must be saved in the Manufacturer’s folder in the File Server.
If Vendor refuses to provide the above information, Purchasing Person needs to convince the Vendor by mentioning the following points:
“AdvaCare has presence in a lot of countries across the world, while the current RFQ is for XX market, we also want to identify other countries which we can potentially develop with you. We are hoping to continue cooperation and give you more orders in future, therefore we need this information to add to our system and know when to consider you for orders for other countries.”
If Vendor still does not agree to provide this information, discuss the issue with Purchasing Dept. Supervisor.
At the same time as getting the above information from the Vendor, check the following information online:
Any available information about the Vendor, such as reviews, complaints from customers, comments;
Date of establishment, venture type, registered capital, annual turnover, etc.;
FDA COPP website;
Lawsuits (legal action) and regulatory infractions history (FDA inspection, for example Vendor failed the inspection and GMP has been revoked) of the Vendor.
After information is collected, Purchasing Person needs to send a task to Purchasing Dept. Manager to add the Vendor and collected information to the ERP. The task must follow the template:
Vendor Name: (English + Chinese)
Vendor Address: (English + Chinese)
Product Range/Product(s) Quoting:
Website: (if any)
Contact Person Name:
Mobile Phone Number:
Export Countries:
International Approvals:
Certificates + Pictures are saved here: (link)
Comment: (if any)
New Vendor won’t be added to the ERP until all the information is provided, unless agreed otherwise due to special circumstances.
PART 2: Before starting the first order
Before starting the first order with the new Vendor, Purchasing Person needs to request samples, send AdvaCare samples for reference, and make sure that all the required information about the Vendor is available in the System and File Server.
Third party audit report: if Vendor refuses to provide, refer to Purchasing Dept. Supervisor.
Samples from the Vendor to be sent to AdvaCare office.
SAMPLES OF ADVACARE PACKAGING TO BE SENT TO THE NEW VENDOR (samples of the box with correct paper quality/printing). Any new Vendor must be absolutely clear on the box specifications for every new order. Purchasing Person is responsible to make sure that box specifications of the produced products are correct.
List of countries the Vendor has exclusivity in (specify for all products or not).
Check if all the information is collected according to the first part of the process:
Certificates are saved in the server and are reflected in Site Documents section in the System;
Foreign countries GMPs are added to Site Documents section in the System;
'Export to' section is filled out in the System;
Factory pictures are saved in the file server.
If any of the points are not filled or answered, ask the Vendor and add the information to the System.
Purchasing Dept. Manager will not approve PO until the information is collected and reflected in the ERP.