Respondents to the PTIS/Contract Packaging magazine survey indicated they are managing the risks associated with using contract-packaging services in the following ways:
Recommendation or direct observation (35%)
• Checking references
• Surveying track records from current users
• Arranging on-site visits and audits
• Scheduling meetings
• Seeking referrals
• Conducting due-diligence activities
• Planning on-site random inspections
Documentation (36%)
• Reviewing standard operating procedures (SOPs)—policies and procedures
• Asking about certifications • Detailing and completing specifications
• Addressing all considerations in long-term contracts
• Writing a memorandum of understanding (MOU)
• Including performance bonding
• Arranging for insurance coverage
Relationship (16%)
• Forging close, long-term relationships
• Building integrated teams
• Partnering
• Focusing on strategic partnership development
• Considering co-location for production
• Staying in regular communication
• Sharing information
• Using trusted suppliers
Alternatives (13%)
• Arranging for backup sources
• Creating disaster/contingency plans
• Noting and acting on redundant capabilities
• Qualifying alternatives
• Maintaining a high inventory of finished goods
