Many hands and companies touch the materials required to get a finished product to market. With the growth of supplier networks and contract suppliers, much of the quality process is out of the manufacturer’s control. If materials shipped from any vendor aren’t up to spec and a faulty product reaches the market, the negative results can directly affect the contracting company’s brand and bottom line. However, there’s a way to manage supplier relationships that is beneficial and efficient for both parties, and that’s through supplier audits.

Discovering the root cause of a supply problem is difficult given the number of suppliers and geography involved in a typical supply chain. Recent statistics show that 52 percent of product recalls across all industries are due to supplier and contract manufacturer issues, and the percentage may be even higher in the pharmaceutical industry. Although many manufacturers have quality agreements with their vendors, it’s the contracting company that’s ultimately held liable for mistakes.

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