Supplier Audit Program Marks Progress

p>The Rx360 pharmaceutical supply chain consortium was launched in 2009 in response to the heparin adulteration crisis, which raised broad concerns about inadequate monitoring of the pharmaceutical supply chain by manufacturers. Since then, Rx360 has attracted more pharmaceutical and biotech companies to support its efforts to enhance supply-chain security. The group has expanded to conduct approximately 25-30 joint audits a year, a collaborative process that can lower audit costs, expand the audit process, and reduce suppler “audit fatigue.” Joint audits coordinate the assessment of a particular supplier of APIs, excipients, container/closure systems, packaging materials, and other raw materials. All sponsors of the joint audit gain access to the resulting report, which then can be purchased by other parties.

To improve this program, Rx360 established a “strategic partnership” with BSI Supply Chain Solutions to handle joint audit scheduling and management. The goal is to conduct more than 100 joint audits in the coming year, said Martin VanTrieste, senior vice president at Amgen and founding chair of Rx-360. While the audit volume so far is respectable, he believes that there are thousands of suppliers that could benefit from this collaborative program. “But we’re not close to that,” he commented. Not all suppliers have bought in to the joint audit process, he notes, some due to fears the process could damage their relations with customers. VanTrieste also sees a reluctance within leading manufacturers to shift from doing audits themselves. The group’s shared audit program has developed more slowly, but now has more than 200 audits available to members. Drug manufacturers and suppliers tend to feel more proprietary about their own reports on key suppliers, even with the ability to redact confidential information.