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GDP Compliance for Outsourcing: What Contracting Organizations and Service Providers Must Do

December 26, 2025

Outsourcing certain distribution activities for medical devices and pharmaceuticals can help organizations operate efficiently, but it also raises compliance challenges. Under Good Distribution Practice (GDP) standards—such as WHO GDP, EU GDP, PIC/S GDP, and local regulations—both the contracting organization and the outsourced provider have specific responsibilities. Understanding these roles is essential to maintain product integrity and meet legal requirements. This article explains what each party must do to ensure full GDP compliance.

Medical Supplies

Organizations and Outsourced Service Providers Do to Comply with GDP Requirements?

When an organization is required to implement Good Distribution Practice (GDP) regulations for medical devices and pharmaceuticals, and certain distribution activities are outsourced, a critical question arises:

What responsibilities do the contracting organization and the outsourced service provider have to ensure compliance with GDP?

The answer lies in GDP-related standards such as WHO GDP, EU GDP, PIC/S GDP, and local regulations issued by the Ministry of Public Health. These standards clearly define the responsibilities of both parties:

Responsibilities of the Contracting Organization

Establish a Written Agreement: A formal contract must clearly outline the roles and responsibilities of each party, including key details such as the scope of activities, product requirements, and applicable regulations.

Assess the Capability of the Service Provider: This assessment may include an audit before signing the contract and periodic reviews after activities commence. Alternatively, a self-assessment questionnaire can be used. The evaluation must cover GDP requirements relevant to the outsourced activities, and the frequency of audits should be based on risk assessment.

Responsibilities of the Outsourced Service Provider

  • Perform all assigned activities in full compliance with GDP requirements.
  • Do not subcontract any tasks to third parties unless the third party has been evaluated, audited, and approved by the contracting organization beforehand.

Summary

Any GDP-related activity carried out by an outsourced provider must be properly defined, agreed upon, and controlled to prevent misunderstandings that could compromise product integrity and credibility.

About SGS

SGS is the world’s leading Testing, Inspection and Certification company. We operate a network of over 2,500 laboratories and business facilities across 115 countries, supported by a team of 99,500 dedicated professionals. With over 145 years of service excellence, we combine the precision and accuracy that define Swiss companies to help organizations achieve the highest standards of quality, compliance and sustainability.

Our brand promise – when you need to be sure – underscores our commitment to trust, integrity and reliability, enabling businesses to thrive with confidence. We proudly deliver our expert services through the SGS name and trusted specialized brands, including Brightsight, Bluesign, Maine Pointe and Nutrasource.

SGS is publicly traded on the SIX Swiss Exchange under the ticker symbol SGSN (ISIN CH1256740924, Reuters SGSN.S, Bloomberg SGSN:SW).

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