Vendor Qualification and Evaluation in Pharmaceutical Industry

To deliver a high quality and safe medicines, it is a must to certify the vendor according to the GMP requirement. This qualification is done to prevent the adverse events, prevent the recalls or serious illness or death due to the low standard quality of manufactured medicines. Vendor qualification is the process by which a vendor is assessed to determine, if it can provide the required goods or services to the standards that the purchasing company requires. This article explains about the detailed procedure for qualifying raw material vendors, packaging vendors and service providers. This also explains the vendor assessment and the reassessment. Vendor re-assessment must be carried out at least once a year for each packaging material and the raw material. The manufactured part number is used for tracking. Supply Chain Management team (SCM) should request the QA department to generate Manufacturing Part Number. Explained about the vendor rating. The vendor must be disqualified if the batch will not adhere to specification of critical tests. For further evaluation and investigation, vendor must be once again qualified. Vendor must be informed regarding the removal and the reasons must be explained clearly. Vendor Relationship Management (SRM), is systematic planning and managing of all interactions with suppliers to maximize its value.

Developing a model of vendor rating to manage quality in the supply chain

PurposeThis paper aims to present a model developed by an Italian company, Gamma, that produces technologically high-precision components, with the objectives of defining a model of vendor rating to improve companies’ management and quality within the supply chain.Design/methodology/approachThe research has been developed through a qualitative approach, based on a longitudinal single case study. Two semi-structured interviews have been carried out with the company’s Quality Manager in September 23 and October 31, 2016. Relevant secondary data were also used, such as company reports and their website.FindingsOwing to the implementation of the Gamma model, the company is committed to the prudent selection of its partners and in establishing lasting relationships of mutual benefit with them. The termination of the relationship with suppliers is therefore rare; monitoring periods and improvement of suppliers are preferred. The Gamma model and its suppliers jointly undertake corrective actions that have to be implemented within a defined time frame.Practical implicationsEstablishing criteria for an objective evaluation of suppliers could be directly or indirectly related to the quality of the final product, and greatly affects the same. This model has been effective for the identification of less performing suppliers that have to be subjected to improvement and audit plans.Originality/valueThis model allows the assignment of penalties or rewards, identifies which suppliers to direct audits and improvement plans, with which to end the relationship and with which to establish a relationship of integration and direct involvement.

Vendor rating system for an Indian start-up: a combined AHP & TOPSIS approach

Purpose The aim of this paper is to identify the criteria that are used for vendor or supplier rating, prioritize these criteria based on the industry inputs and develop a vendor rating model. The data were collected from an Indian start-up working in product development using three-dimensional printing (3DP). Design/methodology/approach Factors of importance for vendor rating were identified through industry visits, and interacting with the industry experts from the start-up under consideration, substantiated by extensive review of relevant literature. A questionnaire-based survey was carried out to further narrow down the factors important to the industry, prioritizing them with a pairwise comparison analysis as envisaged in the analytical hierarchy process (AHP) technique along with the calculation of consistency ratios. Technique for order preference by similarity to ideal solution (TOPSIS) methodology was further used for data aggregation. Findings This research brought forward the criteria that are useful for rating vendors or suppliers with reference to 3DP sector. Originality/value This paper integrates AHP and TOPSIS to solve a multi-criteria vendor rating problem. The attempt was made to make vendor rating process universal so that it can encompass all the vendors of the firm.

Vendor Rating Using Analytical Hierarchical Process - Insights from Indian Engineering Construction Industry

Vendor Evaluation and Selection is one of the most critical activities of purchasing management in supply chain. It is a complex problem involving qualitative and quantitative multi-criteria. A trade-off between these tangible and intangible factors is essential in selecting the best supplier. This paper aims to develop a vendor rating system for Engineering Construction Industry where there is a huge involvement in the purchases of Pipes (like Ductile Iron, Mild Steel, HDPE, RCC, PVC), Pumps, Electrical items (like Panels, PLC, Motors, Generators) and Mechanical items for Water & Effluent Treatment Projects. The conventional method is less accurate in ranking the vendors as a result of greater amount of subjectivity.This paper focuses on developing a Vendor Rating System using AHP methodology to choose the best suppliers in such a way to reduce the time taken for the selection process.