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Supplier or Contract Manufacturer?

Supplier Approval Contract Manufacturing Raw Ingredients SQF Safety SQF Quality

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#1 QC in NC

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Posted 18 December 2019 - 04:15 PM

Hi All,
 
Our company is looking for someone to produce a hard-to-find ingredient on our behalf. It's something we could produce in-house but might be difficult for us due to cross-contamination issues. However, the requirements for approving a supplier vs. a contract manufacturer are really different per the SQF codes (we are SQF certified for both Safety and Quality). My question is: What makes the difference between a contract manufacturer and a supplier? 
 
We're not asking the outside firm to create a final product for us, just an ingredient. But in the way we're thinking about it now, since it is a unique, hard-to-find ingredient, that we would provide the recipe, production guidance, and legal support for the manufacturer. I feel like we're blurring the line between a contract manufacturer and an ingredient supplier, but I'm not sure how to call it. Maybe contract manufacturer refers just to finished, ready-to-sell product, but that's not clear in the code (or I missed it).
 
Thanks!  

 



#2 Jean Carmona

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Posted 18 December 2019 - 04:39 PM

Hello @QC in NC, im no expert in this matter but i will share my humble thoughts and let the experts later judge me.  :spoton:

 

- Contract manufacturer is when you ask that company to produce your final product and not just a part of it. (I think).

 

- In this case if that ingredient is part of your HACCP, it can not be accounted as a contract manufacturer but as a supplier.

 

However, wait always for an expert's opinion.

 

Hope this helps.....

 

 

 

Hi All,
 
Our company is looking for someone to produce a hard-to-find ingredient on our behalf. It's something we could produce in-house but might be difficult for us due to cross-contamination issues. However, the requirements for approving a supplier vs. a contract manufacturer are really different per the SQF codes (we are SQF certified for both Safety and Quality). My question is: What makes the difference between a contract manufacturer and a supplier? 
 
We're not asking the outside firm to create a final product for us, just an ingredient. But in the way we're thinking about it now, since it is a unique, hard-to-find ingredient, that we would provide the recipe, production guidance, and legal support for the manufacturer. I feel like we're blurring the line between a contract manufacturer and an ingredient supplier, but I'm not sure how to call it. Maybe contract manufacturer refers just to finished, ready-to-sell product, but that's not clear in the code (or I missed it).
 
Thanks!  

 



#3 SQFconsultant

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Posted 18 December 2019 - 07:10 PM

A contract manufacturer is one that either makes your product and packages it into your branded packaging or packs a product into your branded packaging.

 

Either way and for all intents and purposes it appears to the consumer to come from your company even though made/packed by another company.

 

The major requirement is that a contract manufacturer will need to be SQF certified like your company is, or any GFSI Cert or as the last resort mirror all the requirements of your SQF program - my feeling is if a company is going to do that they might as well get certified.

 

I have a client that has five contract manufacturers and each one is SQF or BRC certified.  

 

There are a couple of other requirements for a contract manufacturer as well, such as agreements, etc.

 

What you have there however is not a contract manufacturer, just a supplier and if you send your secret ingredient list to them you better have a strong non-disclosure in place.


Edited by SQFconsultant, 18 December 2019 - 07:13 PM.

Warm regards,

 

 

Glenn Oster

 

 

Glenn Oster Consulting, LLC / 800.793.7042 / FUSA, Centro America & Caribbean

SQF System Development, Implementation & Certification Consultant

 

Specializing in helping small-to-large food businesses to co-develop SQF systems...

and, doing so without even needing to step inside of your facility

 

www.GlennOsterConsulting.com

 

 

Humanity is not a virus!


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#4 oigdaym8

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Posted 02 January 2020 - 04:17 PM

Good Morning

 

Our company obtains ingredients from outside sources for manufacturing our finished products and we consider them to be suppliers. This was also a topic that came up during our recent SQF re-certificaiton and the auditor held the same opinion. 

 

Hope this helps! 



#5 Hoosiersmoker

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Posted 08 January 2020 - 04:43 PM

They are a raw material supplier. They are providing a finished product that you will use to complete your finished product. No different than a packaging supplier that uses raw materials to make their packaging (paper or plastic, inks, adhesives etc.). They wouldn't be considered a contract manufacturer, they are a supplier to your finished product.







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