Why VAWD Accreditation Matters: Enhancing Security in Pharmaceutical Distribution

Today’s topic: VAWD accreditation.

Pharmaceutical distribution is a very high-risk and tightly regulated industry that is under a lot of scrutiny and in the spotlight all the time.

NABP’s Drug Distributor Accreditation (DDA), which used to be the VAWD accreditation, is a big part of this.

It is mainly meant to:

• Helping to make the supply chain more secure and reliable.
• Lowering the chances of unsafe or fake drugs getting into the market.

For wholesale distributors, this is like a stamp of approval, telling their customers that their operations are up to recognized quality and security standards.

State and federal agencies these days expect that there will be tighter controls, stronger documentation, and better oversight of trading partners.

Distributors have to prove more and more that their facilities, processes, and records are compliant with industry standards. Additionally, independent accreditation is a great way to lend credibility and confidence to that commitment.

Understanding VAWD Accreditation

Verified-Accredited Wholesale Distributors (VAWD), which is presently known as NABP Drug Distributor Accreditation, is a voluntary program. It aims at protecting the public from counterfeit, diverted, or substandard drugs.

The National Association of Boards of Pharmacy (NABP) runs the program and offers a third-party audit process.

This helps ensure all wholesale distribution facilities not only stay within the boundaries of the law but also comply with the very basic standards of the industry.

To receive accreditation, facilities must go through a rigorous evaluation process that typically takes three to six months to complete. Key criteria include: 

• On-Site Survey: A detailed physical inspection of the facility conducted by trained NABP surveyors.
• Compliance Review: Verification of licensing and checks through the NABP Clearinghouse.
• Background Checks: Criminal background checks for “responsible persons” in the organization.
• Policy & Procedure Evaluation: Evaluation of security, record-keeping, drug authentication, and how returned or damaged products are handled.
• Maintenance: The accreditation is valid for three years and must have an annual compliance review in the second and third years.

VAWD Accreditation Importance: Why Do You Need It?

Here are some of the reasons why the VAWD Accreditation plays a major role:

Strengthening Supply Chain Integrity

Firstly, distributing drugs has many handoffs, storage sites, and transportation steps in between. Each handoff makes the drugs vulnerable to bad guys’ attempts to exploit them.

The accreditation standards used in the facility focus on physical security, inventory control, and documentation practices that help reduce the potential for these points of vulnerability.

The facility must demonstrate that they have strong oversight of how products are moved and accurate documentation of these movements. For instance, some of the things that improve the security of the environment are:

• Secure storage.
• Restricted access areas.
• Documented procedures.

The layers of oversight serve to provide protection for the supplier from diversion, counterfeit products, and tampering of the products.

Clear procedures help everyone within the facility understand what their responsibilities are. Besides, when job descriptions and workflows are clear and well-defined, the day-to-day operations experience fewer gaps in execution.

Additionally, the consistency of execution supports both the facility’s internal accountability as well as the external confidence of the facility’s regulators and business partners.

Supporting Regulatory Compliance

Secondly, pharmaceutical distributors operate in one of the most regulated sectors in the country. State boards of pharmacy, the FDA, and other authorities regularly review:

• pharmaceutical licensing
• recordkeeping
• security measures.

Accreditation aligns closely with many of these expectations.

Additionally, documented policies, training programs, and audit trails form the backbone of compliant operations.

VAWD Accreditation reviews examine how those elements work together in practice. This type of third-party review gives companies a clearer picture of how their systems perform under real-world conditions.

Organizations that pursue accreditation often gain a deeper understanding of their own processes. Gaps that once seemed minor can surface during review.

Addressing those areas early reduces the risk of enforcement actions, fines, or operational disruptions later.

Building Trust With Trading Partners

Thirdly, strong partner relationships between wholesale drug distributors, manufacturers, pharmacies, and health systems are essential to wholesalers’ success.

These partners seek assurance that the wholesalers have reliable sources for the products they distribute. They often view accreditation as an additional assurance.

For instance, demonstrated accreditation by a third party provides assurance to those partners of wholesalers’ adherence to:

• Storage condition.
• Documentation of pedigree.
• Use of proper security protocols.

All of these help increase the ease of discussion and support long-term business relationships.

Additionally, it is important to understand that even reputation matters to a degree. Especially in competitive markets.

As a result of that, VAWD Accreditation can help distributors set themselves apart from their competitors. Besides, this specific distinction reflects a willingness to operate above minimum licensing requirements.

Reducing Risk In A High Stakes Industry

Pharmaceutical distribution has an extremely low tolerance level for errors.  The failure of just one point in security or documentation opens the possibility of:

• Creating an investigative situation.
• Product quarantine.
• Potential loss of your license. 

Establishing strong operational controls can help reduce the likelihood of one of these outcomes.

An accreditation framework will place an emphasis on risk assessment and ongoing monitoring. 

Distributors should be continually evaluating their processes and making adjustments as the possibility of new threats and changing regulations arises. 

With this approach, all parties will be working on continuous improvement rather than just fixing a one-off issue.

Reducing risk also reduces financial risk.  If there are fewer compliance issues, there will be fewer disruptions, legal expenses, and damage to your reputation. 

Eventually, over time, your structured oversight will create an improvement in the consistency and resiliency of your operations.

Support For Pharmaceutical Distributors

Finally, pharmaceutical distributors have been requesting assistance with improving their compliance program and security infrastructure. This is due to continual increases in regulatory obligations.

Some of the things that provide useful information concerning how certain types of regulatory oversight impact everyday business activities include the accumulation of experience in the areas of:

• DEA (Drug Enforcement Administration) compliance.
• Regulatory strategy.
• Enforcement trends.

Support may include guidance on:

• Compliance program construction.
• Proper documentation practices.
• Developing internal controls that are compliant with accreditation standards.

An effective compliance system emphasizes creating viable and physically workable processes that fit into the organization’s daily business activities. Yes, not just creating written policy statements.

Preparing for an external compliance review is also a primary area of focus. Furthermore, in such cases, the emphasis is on closing any gaps and improving the organization’s internal readiness to pass the inspection.

Besides, this type of assistance is useful for businesses that are at different stages of organizational growth.

Some distributors are creating formal compliance programs for the first time. Additionally, others are building on their existing programs to comply with changing legislation and regulatory enforcement practices.

Read Also: Stay Compliant, Stay Profitable: How Financial Compliance Consulting Protects Your Business

Moving Forward With Confidence

In conclusion, pharmaceutical distribution is subject to ever-increasing oversight and demands from regulators and business partners.

Independent accreditation also provides distributors with a means of proving their compliance with operating securely within their supply chain. 

Moreover, distributors who invest in comprehensive, documented compliance programs are usually in a better position when subject to regulations or partner evaluations. 

Furthermore, organizations that adopt proactive measures to promote compliance are typically better able to manage risks while fulfilling their long-term operational strategies.

Additionally, guidance and planning can help ensure that regulatory requirements are converted into tangible systems that can provide for continuous compliance and the growth of a sustainable business.