How to Vet a Pharmaceutical Supplier Before Your First Order: A Buyer's Checklist

How to Vet a Pharmaceutical Supplier Before Your First Order: A Buyer's Checklist

How to Vet a Pharmaceutical Supplier Before Your First Order: A Buyer's Checklist

Sourcing pharmaceuticals from India offers significant commercial advantages — price competitiveness, product breadth, and established manufacturing quality. But the stakes of getting supplier selection wrong are high: regulatory non-compliance, product quality failures, and unreliable supply can all create serious problems for your business.

This checklist gives you a structured process for vetting an Indian pharmaceutical supplier — whether you found them on IndiaMART, through a trade referral, or via a trade show. Bharat Medex welcomes this kind of scrutiny; a supplier who helps you verify them is one worth trusting.

---

Step 1: Basic Legal Compliance Verification

Before any commercial conversation, confirm that the supplier is legally authorised to operate.

IEC (Import Export Code) - Request the IEC number - Verify it on the DGFT portal: dgft.gov.in - Confirm the entity name matches what you are dealing with GST Registration - Request GSTIN - Verify on: gst.gov.in → Search Taxpayer - Check registration status is "Active" Drug License - Request a copy of the current State Drug License (Form 20B / 21B for wholesale) - Check validity date — licenses require periodic renewal - Confirm it covers the product categories you intend to purchase - If the state FDA has a public portal, cross-check the license number Company Registration - Request MCA (Ministry of Corporate Affairs) registration number if a Private Limited company, or Partnership Deed / Proprietorship declaration if a smaller firm - Verify on MCA portal: mca.gov.in

---

Step 2: Product-Level Documentation Capability

A compliant business entity is necessary but not sufficient. You also need to know the supplier can provide the product documentation your import regulations require.

Ask for sample copies of:

- Certificate of Analysis (CoA) for a representative product — check that it includes test parameters, specifications, results, batch number, and analyst sign-off - Manufacturer's GMP certificate (WHO-GMP, EU-GMP, or Schedule M certificate from State FDA) for the products you need — confirm it is current and covers the relevant facility - Free Sale Certificate (FSC) — confirm the supplier can obtain this from CDSCO or State FDA if your country requires it - Certificate of Origin — confirm they can arrange this through FIEO, Chamber of Commerce, or relevant authority

If the supplier cannot produce sample documentation, or hedges on it, that is a significant red flag.

---

Step 3: Product Range and Sourcing Transparency

Ask directly: - Which manufacturers do you source from for these products? - Are these manufacturers WHO-GMP or EU-GMP certified? - Do you hold manufacturer authorisation letters / stockist agreements?

A serious pharmaceutical trader will either have stockist/distribution agreements with named manufacturers, or will be transparent about how they source. Vague answers ("we source from top manufacturers") without specifics warrant further probing.

For generics specifically: - Is the product registered in your country, or do you need the supplier to provide dossier support? - What is the typical remaining shelf life on dispatch?

---

Step 4: Logistics and Cold Chain Capability

Standard products: - What packaging do you use for export? (Outer cartons, desiccant, temperature recording?) - Which freight forwarders do you work with? - Can you handle both air and sea shipments? Temperature-sensitive products (if applicable): - Do you have a validated cold-chain facility (2°C–8°C storage)? - How is cold chain maintained during domestic transit to the port/airport? - Do you use temperature data loggers in shipments?

Pharmaceutical cold chain is governed by WHO's guidelines on cold chain for vaccines and temperature-sensitive medicines — a supplier who cannot articulate their cold chain process for relevant products is a risk.

---

Step 5: References and Track Record

- Request two or three references from existing international buyers (different countries preferred) - Contact those references and ask specifically: How long have you worked with this supplier? Have there been shipment or documentation issues, and if so, how were they resolved? - Check IndiaMART reviews if the supplier is listed — look for consistency and response to negative feedback - Ask the supplier for their approximate export history (which countries, how long, what volumes)

---

Step 6: Communication and Responsiveness

Before your first order, you will interact with the supplier many times. Use the vetting process itself to assess:

- Response time: Do they respond within 24–48 hours to business inquiries? - Documentation fluency: Do they understand your documentation requirements, or do they seem uncertain about standard export documents? - Proactiveness: Do they flag potential issues (e.g., "this product has a 12-month shelf life, we can guarantee X months on dispatch") or do they only answer what is asked?

A supplier who is thorough, honest, and responsive during vetting is much more likely to be the same during active trading.

---

Step 7: Payment Terms and Commercial Terms

- What payment terms do they offer? (Advance TT, LC, DA/DP) - Do they have a standard Proforma Invoice and Purchase Order process? - What is their policy on short-dated, damaged, or non-conforming goods?

Get all commercial terms in writing — a supplier who resists written confirmations of terms is a concern.

---

Summary Checklist

| Item | Status | |------|--------| | IEC verified on DGFT portal | ☐ | | GST verified on GST portal | ☐ | | Drug license copy received and checked | ☐ | | Company registration confirmed | ☐ | | Sample CoA reviewed | ☐ | | Manufacturer GMP certificates confirmed | ☐ | | FSC / CoO capability confirmed | ☐ | | Logistics process discussed | ☐ | | Cold chain capability confirmed (if applicable) | ☐ | | References contacted | ☐ | | Communication quality assessed | ☐ | | Commercial terms confirmed in writing | ☐ |

---

Bharat Medex is happy to support any of the above steps for buyers who are qualifying us as a supplier. Contact us here to begin the conversation.

0 comments

Leave a comment