There are more than 200 diseases that spread through the food supply. About 10% of the population becomes ill due to foodborne illnesses.

If your business deals with food, your business faces many more risks than most businesses. You’re operating on small profit margins and you have to deal with potential liabilities in your business.

A supplier approval program can help you select the best vendors and make sure you deliver quality products to your customers. Read on to learn about the benefits of these programs and how you can implement them.

1. Reduce Your Risk

Food providers are under more scrutiny and take on more risks if there’s an issue with any food products. It could be your fault, or your suppliers gave you raw materials that were contaminated.

No matter the cause, your business is ultimately responsible for any issues with your product. One way to reduce your risk is to implement a supplier approval program.

This demonstrates that your company did its due diligence in evaluating suppliers.

2. Consistent Selection Process

You want to make sure that your business selects the best vendors. It can be easy to be influenced by people who you already have existing relationships with. It can be even easier to choose the supplier that offers the lowest price.

By having a supplier selection program, you ensure that your company sticks with the same standard across the board. It ensures that your process is fair and consistent.

3. Eliminate Supply Chain Disruptions

If you’re operating a restaurant, you may not be able to serve your signature meal because a supplier wasn’t able to deliver a key ingredient.

A food manufacturer can’t produce a product without an ingredient, no matter how small. That will impact the consistency of the product and have implications for the brand. One missing ingredient can hold up production for weeks on end.

You can use a supplier approval program to run your suppliers through different scenarios to make sure they can deliver.

A Supplier Approval Program Example

At the heart of the supplier approval program, you have to show that you thoroughly vetted your vendors before selecting them. You can create a supplier approval program template that outlines what information you need to collect, who reviews it, and the criteria used to select vendors.

You can start off by collecting the basic information of the supplier, then create a supplier approval checklist. The checklist will address items like recall procedures, quality control processes, risks, supply chain management, and regulatory compliance.

Create Your Own Supplier Approval Program

The food industry is loaded with different types of risk. You can limit your financial and operational risk by selecting the right suppliers.

A supplier approval program helps your business choose the perfect suppliers that are up to your standards. You also have a method to limit your risk by having a process to evaluate each vendor.

If you found this article helpful, visit the Biz section of this site for more business news and tips.

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