I currently work for a mid-sized dry goods manufacturer and distributor. Our primary product categories include nuts, dried fruits, and confectionery, but we also regularly source a variety of other products for bulk repacking or cross-dock distribution.
Our team has run into a challenge regarding supplier documentation requirements. Our understanding has been that we need to obtain the manufacturer's documentation (GFSI audit, HACCP plan, allergen program, etc.) as well as the distributor's Letter of Guarantee (LOG), Certificate of Insurance (COI), and GFSI certification (if applicable).
However, as we've worked through this project, the volume of documentation has become overwhelming. One of our biggest challenges is that we have no visibility into when a distributor's manufacturer becomes inactive (for example, two years after the last receipt). Our ERP only tracks the distributor as the vendor, not the actual manufacturer, so we have no reliable way to identify when manufacturer documentation is no longer required.
In addition, our brokers frequently source products from new manufacturers without notifying us in advance. We often don't discover that a new manufacturer is involved until the product arrives, which results in inventory being placed on hold while we obtain the required documentation. This creates unnecessary delays and impacts production schedules.
To put the scope into perspective, we currently manage approximately:
- 400 active suppliers
- 1,000 active raw materials
- 14,000 supplier documents
And we haven't yet broken out all of the manufacturers behind our brokered purchases.
I've searched through numerous discussions on this topic because this has become a significant issue for us. Most people indicate that the manufacturer's documentation is required, while others suggest that if the distributor is GFSI certified, their certification and supplier approval program should be sufficient. Can anyone clarify what SQF specifically requires in this situation?
If manufacturer documentation is required for products purchased through a distributor, how does your organization manage this efficiently?
One idea we've discussed is having our purchasing team identify the manufacturer when the purchase order is created and record that information on the PO. This would give us a searchable record, allow us to request documentation before the product arrives, and help us determine when a manufacturer becomes inactive so their documentation can be removed from our program. While this seems like a practical solution, our purchasing department has been reluctant to change their current process.
I can't imagine we're the only company facing this challenge. I'd appreciate hearing how others have addressed this issue or any best practices you've found for managing manufacturer documentation through distributors while remaining SQF compliant.
