Natural Products Insider

NOV-DEC 2018

INSIDER is the leading information source for marketers, manufacturers and formulators of dietary supplements, healthy foods and cosmeceuticals. Since 1997, INSIDER has been serving the needs of the global nutrition industry.

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Page 65 of 166 53 tool used to evaluate a supplier's performance. Most companies use a metric called "key performance indicators," which measure supplier function. The intent is to analyze and identify issues/problems that can possibly affect supplier performance. Monitoring develops trust ("trust, but verify"). The best way to know a supplier is to go onsite. Scheduling supplier audits is one way to ensure trust between both parties. Fostering a strong vendor relationship can result in greater transparency along the supply chain. Regulations Regulations are a component of national and international supply chains, so companies need to make sure they understand compliance or have a compliance program in place. Most of these regulations revolve around transparency in the sourcing of materials or products entailing ethical labor practices, environmental/ecological responsibility and political/social compliance. The United States has a history of laws and regulation relating to supply chain or procurement practices. This is expected to continue to change and evolve over time. U.S. Tariff Act of 1930: Prohibits the import into the United States of any good that is mined, produced or manufactured wholly or in part by convict labor or forced labor. 2001 U.S. Executive Order (13626): This list is intended to ensure U.S. federal agencies do not procure goods made by forced or indentured child labor. 2012 California Transparency in Supply Chains Act: Requires every retail seller and manufacturer doing business in California and having annual worldwide gross receipts that exceed US$100 million to disclose its efforts, if any, to eradicate slavery and human traffi cking from its direct supply. 2012 U.S. Executive Order (13627): Requires government contractors to adhere to specifi c policies set out by the Federal Acquisition Regulation (FAR) as part of the long-standing zero- tolerance policy in the United States "regarding government employees and contractor personnel engaging in any form of ... criminal behavior" related to severe forms of "traffi cking of persons." 2015 FAR: Amendments to the FAR in 2015 enhanced existing regulations against human traffi cking and forced labor in the supply chains of U.S. federal contractors and subcontractors. It is important for companies to continually assess risks to their supply chains, whether anticipated (such as emerging regulations) or unexpected (such as natural disasters). Firms that have a high level of supply chain integrity, visibility, traceability and transparency generally will be able to mitigate supply chain sustainability risks. Robin C. Koon is executive vice president at Best Formulations ( He has more than 35 years of experience in clinical pharmacy, as a retail drug chain executive in managed-care and in nutraceutical/pharmaceutical manufacturing.

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