Supplier Performance Appraisal

The notion about supplier assessment was first known to me when developing an ISO 9000 program with a feed factory in Taiwan. Most our direct suppliers were importing agencies; therefore, trademark selection seemed prior to the supplier. Highlights of evaluation were the quality (freshness, contents, purity) and the effectiveness (growth rate, color enhancement) of raw material and ingredient.

Years later, the requirement of Supply-Chain-Applied Control in HARPC for regulations of Food for Animals brought this idea to me again. Priority falls on food safety risks of raw material/ingredient produce and manufacture in this program. To this day, food fraud is becoming an equally critical issue as food safety in food supply. Vulnerability assessment and intervention plan are mandatory to many GFSI schemes and traceability modules.

In SSAFE version of vulnerability assessment, 50 questions are categorized into three directions: opportunity, motive and control measures. Things that impact vulnerability include price, availability, history of offence, records of traceability, prevention program and index of social values. Unmeasurable factors such as interaction among supply chain, competition culture of the industry, business ethics and personal integrity are put into account.

Our expectations to a supplier have escalated from a competitive price, cooperative service, the quality of a product to a certified risk management system. Then, go a step further to the decency and morality of the business. Indeed, it takes discipline, honesty and courage to enforce quality control and resist temptations.

As an auditor, what are the pertinent questions (or evidence) that could elicit an objective inference? The vision, belief and principles of an entrepreneur shall be truthfully reflected in its business culture. A relatively straightforward approach is to take a peek at the employer-employee relationship.

Wage level, pay period, working days, overtime payment and work safety are legal subjects. Legislations for employment standards are explicitly stipulated in most countries. If a company choose to defy a statute law in the belief of being savvy, how could I trust the it will honor the code of conduct which is simply a consensus in food industry. ???

High turn-over rate is a manifestation of poor management practices and unethical business culture. So, always look deeper into the reasons for staff resignation in order to discern the moral quality of a company. Below are some causes:

·???????? Falsify documents and other wrongful, dishonest demands. This is FRAUD.

·???????? Unfair treatment: Unequal workload; unequal job opportunities; pay disparity ?

·???????? Company policies that maybe legal but expose the lack of trust between employees and employer. For example, personal belongings or body search without just causes, surveillance cameras installed for the purpose of supervision ??

·???????? Disrespectful and abusive management.???

·???????? Underpayment or late payment.

·???????? Unsafe and unhealthy workplace?

·???????? Unrealistic goals, excessive workload and infeasible schedule

·???????? Inconsistent and unorganized work orders. This is usually because standard operating procedure program is not in place or is not been followed.

These features shall uncover the values, characters and conduct of the owner (or the management) of a supplier.

In addition, toxic attitude could be brewing over resentment that may leads to acts of sabotage. When reprisal becomes another vulnerable element, not only food safety, quality and authentic issues unable to be guaranteed, food defense risks will also ascend.