Glossary of sourcing terms
26 terms buyers meet when sourcing APIs, excipients and supplement ingredients.
- API (Active Pharmaceutical Ingredient)
- The substance in a medicine that produces its therapeutic effect, for example Levetiracetam in an antiepileptic tablet.
- Call‑off
- A delivery released against an annual or framework agreement on a scheduled date.
- CEP (Certificate of Suitability)
- A certificate from the European Directorate for the Quality of Medicines confirming that an API meets the European Pharmacopoeia.
- Certificate of origin
- A shipping document stating the country where the goods were made, often needed for customs and duty rates.
- CoA (Certificate of Analysis)
- A lot‑specific document listing each specification test, its limit and the lot’s result, signed by the manufacturer’s quality unit.
- DMF (Drug Master File)
- A confidential file a manufacturer submits to regulators describing how an API is made and controlled.
- Enteric coating
- A coating that resists stomach acid and releases the drug in the intestine, used for acid‑sensitive molecules such as proton‑pump inhibitors.
- Excipient
- An ingredient other than the API that helps make, protect or deliver the medicine, such as binders, fillers, solvents, sweeteners and preservatives.
- GMP (Good Manufacturing Practice)
- The quality system rules that manufacturers of medicines and ingredients must follow.
- HS code
- The Harmonized System number that classifies goods for customs duties and statistics.
- Incoterms
- International trade terms, such as FOB, CIF and DAP, that set who pays for transport and insurance and when risk passes.
- Indent order
- An order shipped directly from the manufacturer to the buyer, arranged by the supplier, instead of coming from local stock.
- Lead time
- The time between confirming an order and receiving the goods.
- Lot / batch
- A quantity of material produced in one cycle and identified by one number that links it to its CoA.
- Micronized
- Milled to a very small particle size, usually to improve dissolution or uniformity.
- Modified release
- A formulation designed to release the drug at a controlled rate or time rather than all at once.
- MOQ (Minimum Order Quantity)
- The smallest quantity a supplier or manufacturer will sell in one order.
- Nutraceutical
- A food‑derived product sold for a health benefit, such as vitamin, mineral and botanical supplements.
- Pellets
- Small spherical particles carrying an active ingredient, often coated, used to fill capsules.
- Pharma, food and feed grades
- Grades of the same substance made and tested for medicines, food or animal feed, each with its own standards.
- Pharmacopoeia (USP, BP, EP)
- Official books of quality standards for medicines and ingredients: the United States, British and European Pharmacopoeia.
- Premix
- A blend of vitamins, minerals or actives prepared in advance for mixing into feed or food at the right dose.
- Retest date
- The date by which an API should be re‑examined to confirm it still meets its specification.
- SDS / MSDS (Safety Data Sheet)
- A document describing a material’s hazards, safe handling, storage, spill response and transport information.
- Specification
- The agreed list of tests and acceptance limits a material must meet, often based on a pharmacopoeia monograph.
- Spot order
- A one‑off purchase, usually from available stock, without a longer supply agreement.