Responsible purchasing

Long-term, close relations with a small number of suppliers are central to BioGaia’s business model. In addition to its own subsidiary BioGaia Production in Eslöv, BioGaia works with external suppliers for production, packaging, culture manufacture and analysis services in Sweden, Denmark, Belgium, Spain and the USA.

BioGaia has implemented a Code of Conduct as part of business agreements. At the end of 2018 all contract manufacturers for production, packaging and culture had signed up to the Code of Conduct. For suppliers of analysis services the figure was 83 percent, with the remainder in an ongoing process. The Supplier Code of Conduct specifies BioGaia’s minimum requirements within areas such as human rights, working conditions, environment and business ethics/anti-corruption.

The ongoing dialog with suppliers covers sustainability aspects such as quality, safety and environmental impact. BioGaia also conducts regular inspections on site at its suppliers. During these inspections compliance with the Code of Conduct is also checked. Some of BioGaia’s distributors also inspect suppliers as part of their own sustainability work.

 

Use of material and resource consumption

BioGaia has an ambition to reduce the environmental impact from production and products. This is done primarily through activities to reduce the quantity of material that is used as well as increasing the proportion of renewable material.

Previous life-cycle analyses of packages have shown that small tablet containers have the greatest impact per dose. BioGaia therefore always recommends that distributors choose blister packs for small packages.

The target is that within five years all BioGaia’s packages will be completely biodegradable. The challenge is that probiotics are sensitive and the new packages must meet the same standards as today’s to retain the quality and shelf life of the products.

 

Safety in production

Manufacture and packaging of BioGaia’s products takes place at six facilities in the USA and Europe of which BioGaia Production in Eslöv is a wholly-owned subsidiary and the others are external suppliers. Issues concerning the work environment and safety are included in the Code of Conduct and also handled through regular supplier inspections.

BioGaia Production in Eslöv has been GMP certified (good manufacturing practice) by the Swedish Medical Products Agency since 2015. At both BioGaia Production and the adjacent laboratory, Center of Excellence, there is systematic work with risk management to ensure that potential risks are handled satisfactorily. For example, in the laboratory work is in progress to automate analysis methods to reduce the risk of workplace injuries.

Important issues

  • Responsible purchasing
  • Use of material and resource consumption
  • Safety in production

Targets and results

  • Suppliers who have signed up to the Code of Conduct. At the end of 2018, 100 percent of BioGaia’s contract suppliers of production, packaging and culture had signed up. Of suppliers of analysis services, 83 percent had signed up to the Code of Conduct.
  • Renewable material in packaging within five years. The development project started in 2017 continues.