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A FIRST STEP TOWARD MORE INDUSTRY TRANSPARENCY—AND THAT’S A GOOD THING
By Josh Kasteler
THINK
PRODUCT
RESPONSIBILITY
APRIL 2016 •
PPB
• 63
Actually, it is a big deal. These types of questionnaires (and docu-
ments like them) are making their way around our industry more
often these days, and you may have gotten a few already. They are pri-
marily being pushed by our industry’s largest corporate customers who
are starting to put a bigger spotlight on the safety of what they buy.
Product safety is an issue that affects both distributors and suppli-
ers. Suppliers may do much of the heavy lifting when it comes to
compliance, but distributors also need to have processes in place to
curate the best products for their clients. Suppliers and distributors
that work together are able to provide better information about how
products are made and tested.
End users may now work with several distributors and suppliers
simultaneously in search of the hottest (and perhaps least expensive)
products, but that is changing as companies are increasingly looking to
consolidate their buying with a limited number of vendors. This not only
saves them money, but makes it easier to manage risks to their brand.
This push to consolidation brings opportunities to forge strong,
high-volume contracts with the biggest fish. But for every winner,
there will be several more companies that won’t make the cut and will
be shut out of lucrative programs. Increasing regulation (and litigation)
and recent, embarrassing recalls are making compliance more of a
requirement to do business.
A few years ago your completed questionnaire may not have
been read, but these days it will likely be carefully reviewed and
graded. Those who do well will be at the top of the list for business
and those who do not will be at the bottom or cut altogether.
Therefore, your answers to the questions need to be informed and
The Compliance
Questionnaire
PICTURE IT—it’s a Friday afternoon and your
mind is already focused on the weekend. Suddenly
you get an email from one of your biggest customers
with the subject heading, “compliance question-
naire.” The attachment is an innocent looking,
three-page document that asks a number of ques-
tions about product safety, social compliance and
regulations. No big deal, right?