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2.3.4 Contract Manufacturers

Contract Manufacturers

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jportz

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Posted 14 April 2016 - 03:25 PM

We did our gap analysis and for 2.3.4 Contract Manufacturers it says There is currently no program to manage co-packers.  We receive sauerkraut in bulk bbl and then put our label on it and send it out to customers for further manufacturing.  The person who did our gap analysis said this is a co manufacturer.  The company is SQF certified but, we have no contract with them, it is buy on demand.  We order what we need based on what our customers want and label wrap and ship out as needed.  Sometimes we do put them in 5 gallon pails and ship out that way.  My boss who is the owner said we will not be able to get a contract from them since it is buy on demand.  I'm confused and stuck on making a procedure and how I manage this company.  Can anyone help???



Watanka

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Posted 14 April 2016 - 04:03 PM

Jportz,

 

Your question is one area where business practices intersect quality practices.  The relevant SQF guidance document (http://www.sqfi.com/...uidance-7.2.pdf) states: "In other cases, a contract manufacturer may only be used intermittently to fulfill or supplement the supplier’s production."  The guidance document goes on to say that even if used intermittently, the supplier must adhere to SQF requirements - but no where do those requirements spell out the format of the contract you enter into each time you purchase an ingredient used in the preparation of your finished goods. 

 

You are buying on demand, i.e. intermittently.  Each unique purchase constitutes a contract between buyer (you) and seller (co-manufacturer) when typically documented in a buyer's purchase order and then received and accepted by the seller.  Details for the PO may include documented terms and conditions where, purchase by purchase, you spell out as the buyer the requirements for the sale such as maintaining SQF certification, product specifications and so on.  At its most basic, these PO's and T's 'n C's are the "contract" required by SQF and your business should as a matter of routine retain these documents and make them available for audit. 

 

In addition to an SQF certification, regular buyer audits may be necessary to ensure and document the fact that the intermittent supplier bound only by unique, intermittent purchase agreements (contracts) is complying with SQF requirements which are mainly pointed towards food safety and quality.

 

Hope this helps.







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