The online buying of pharmaceutical raw materials, APIs, or nutraceutical ingredients has made finding suitable suppliers relatively easier. The buyer no longer needs to depend solely on the conventional networks to find suppliers but rather can perform searches, comparisons, request quotations from suppliers among other procurement-related activities.
However, this ease in supplier discovery does not necessarily make the procurement process risk-free.
Having a professional website, an impressive catalogue of products or even a competitive quotation doesn't necessarily mean the supplier is reputable. It is important for the buyer to know the source of the product, whether the documentation provided is authentic, the way in which the material has been handled by the supplier.
This is particularly important for companies that buy pharma & nutraceutical products online. Having a correct supplier helps in ensuring a consistent procurement process, while an incorrect supplier will bring delays in delivery, failures in quality control and other complications within the chain.
Here are the seven signs of a poor supplier that need to be considered before purchasing anything.
The first question to ask is a very basic one:
The business offering a quote can either be the manufacturer, but it can also be a trader, distributor, broker or repackager.
This is not necessarily an indication that the supplier is not reliable. Traders and distributors can actually be useful in pharmaceutical purchasing depending on the requirements of the buyer.
The trouble starts when the supplier fails to give clear information about the supply chain.
For APIs and pharma raw materials, buyers should know:
If basic manufacturer information remains unclear, do not ignore it. Traceability is an important part of supplier qualification.
“GMP certified” is a phrase commonly seen in supplier profiles and product listings.
However, buyers should look beyond the claim.
Ask for appropriate documentation and check whether it relates to the actual manufacturing site producing the product. A certificate associated with one company location does not automatically demonstrate the same status for another facility or product.
Depending on the product and destination market, you may need to review:
GMP is not simply a marketing label. It relates to controlled manufacturing and quality systems.
A reliable supplier should be prepared to discuss its quality systems and provide relevant documentation when appropriate.
A Certificate of Analysis, abbreviated as CoA, is one of the most vital documents in the area of sourcing pharmaceuticals and chemicals.
However, receiving a CoA does not necessarily mean that it has to be accepted at once.
Check whether the information matches the material being quoted.
Look at:
Compare the CoA against the supplier quote, product spec sheet, and packaging details.
A document that appears generic, has inconsistent information, or lacks batch specificity should make you suspicious.
The key is not simply asking, “Do you have a CoA?”
The better question is:
“Can this CoA be clearly linked to the product and batch I am buying?”
Quality risks do not end when a product leaves the manufacturing facility.
Pharmaceutical products and certain nutraceutical ingredients may require specific storage and transportation conditions. Improper handling can affect product quality even when the material originally left the manufacturer in acceptable condition.
Ask the supplier:
The answers will depend on the material. Not every API or ingredient has the same requirements.
But it is essential that the supplier have knowledge of the basic handling needs of the products that it supplies.
If the supplier fails to provide answers to simple questions on storage, packaging, and transportation, buyers must dig deeper.
This is especially true for sourcing from a nutraceutical marketplace.
The name of an ingredient alone does not provide sufficient procurement information.
Buyers may require extra information such as
Different types of nutraceutical ingredients also have different quality considerations.
Botanical Extract, Vitamin, Mineral, Amino Acid, or Functional Ingredient may have different specification and tests.
Before choosing any supplier, ensure that you know clearly what you will get.
Two products having similar names do not always mean that they have same specification and standards.
A good supplier should be able to explain, within reasonable confidentiality limits, how product quality is controlled.
You do not need access to every internal manufacturing record. But you should be able to understand the basic quality information relevant to your purchase.
Ask about:
Be cautious when a supplier provides only general statements such as “high quality” or “premium grade” but cannot support those claims with product-specific information.
Claims regarding quality should be backed up by appropriate documentation and testing.
This doesn’t imply that all suppliers should have similar third-party certifications.
The key thing here is the transparency.
Everyone wants a competitive price.
But the lowest quotation is not always the lowest procurement cost.
The supplier could also be offering a very enticing price with minimal details provided on the manufacturer, batch, specifications, testing, lead times, and documentation.
That can create additional costs later.
The real procurement cost may include:
Product price + testing + qualification + freight + documentation + delays + quality risk
A lower price can become expensive if the shipment fails your incoming quality checks or cannot meet documentation requirements for your intended market.
This does not mean cheap suppliers should automatically be rejected.
Instead, ask why the price is lower and compare the complete commercial and quality package.
If the supplier cannot provide reasonable answers, that is the real red flag.
A Simple Supplier Check Before You Buy
Before you buy pharmaceutical and nutraceutical products online, take a few minutes to verify the basics:
Sourcing platforms can streamline this entire process.
For instance, a nutraceutical marketplace or B2B pharma platform can assist in discovering suppliers, conducting searches for goods, comparing sources of supply, and sending RFQs. The ChemDmart platform, for example, assists in supplier discovery and B2B sourcing processes in the pharmaceutical and chemicals industries.
A platform must facilitate the supplier discovery but not the supplier qualification process.
The supplier approval and the compliance of the product against the required standards still rests on the shoulders of the buyer.
Procurement of pharmaceutical and nutraceutical products through the web is evolving.
The solution does not lie in not purchasing anything through the Internet.
The correct solution lies in buying pharmaceutical and nutraceutical products online with the verification process included.
Know who made the product. Inspect the paperwork. Compare the CoA with the batch. Know how the product was stored and handled. Inquire about the testing and quality control process. And above all do not make any sourcing decision only because of the price factor.
The Internet is definitely going to help purchasers explore more avenues for sourcing. Better supplier discovery has to come with correct supplier verification.
Online sourcing will speed up procurement. Supplier verification will bring the safety factor in the picture.