Huh? What is "Stop Shipment Notification"

Okay, I'm entitled to one truly stupid question a year, and this is it, I promise!

I'm reviewing the list of things my auditor has provided me with that they want to see updates on in my first Surveillance audit to TS, and one of the items is "stop shipment notification." Now I'm probably just having a brain fart, but I'm drawing a blank on what that IS exactly. Is it referring to situations where I'VE notified a customer that we are stopping shipment to them because we are doing some kind of containment, suspect some of the material may be bad - or is it referring to a customer notifying US to stop shipment in some way?

Excuse my ignorance - maybe this is a Tier 1 term or something and being just a lowly Tier 2 or 3 supplier, I'm obviously not in the know. Help??

My own understanding is that it is an "order" from anywhere along the supply chain to stop shipment "temporarily" until a Quality "issue" is resolved.

If it comes from the customer to the supplier, it means, "we have a question about the quality of the item in question and do not want more shipments cluttering our dock until the issue is resolved."

If it comes from the supplier to the customer, it means, "we have a question about the quality of the item in question and do not want more shipments cluttering your dock or incurring shipping and possible return charges until the issue is resolved."

Ultimately, there are other associated issues involved -

1. does supplier get dinged for late shipments if the situation initiated by customer turns out to be conforming after all?
2. does the supplier get reimbursed for costs, damages if the stop shipment order from customer was not necessary?
3. does supplier incur penalty for possibly closing a production line, regardless of who initiates stop shipment?
4. how do we resolve 'he said, she said' issues between customer and supplier if there is no agreement on nonconformity?

Certainly,

I'm reviewing the list of things my auditor has provided me with that they want to see updates on in my first Surveillance audit to TS, and one of the items is "stop shipment notification."

Click to expand...

the situation should be on your "items considered" list.

My involvement in "stop ship" has usually centered around product recall and liability issues. In some instances we may advise the customer that limited use is available until the issue is resolved. In any event our legal department is usually involved and the proper notices are sent to all customers affected advising of the problem, the fix, limited use and lead times.
I have also been involved with a supplier notice to us that something is amiss with a part that we purchase and it is usually a product recall as well. Most recent was a mixup of 24 volt vs. 12 volt coils on solenoid valves.
In all cases not only are letters sent but phone calls are made.
hope this helps.

Yes, it does help. That's about what I figured it meant, but wasn't sure. We do occasionally see situations where we've notified a customer that some material on their dock might be a problem, but we've not had any situations from the customer's end like you're describing, so I guess we're okay on that point.

Thanks, all!

I make a decided difference in my mind between "stop shipment" and "product recall." The former says, "there is a question which needs to be resolved, we are not going to proceed until we resolve it." The product recall says, "we know there is a nonconformance, do not use the product." Further instructions say whether to destroy the recalled product or to return it to the manufacturer.

The customer may "suggest" a product recall, but only the supplier or a governmental regulatory body can order a recall.

"Recall" is different from "return."

Wes Bucey said:

I make a decided difference in my mind between "stop shipment" and "product recall." The former says, "there is a question which needs to be resolved, we are not going to proceed until we resolve it." The product recall says, "we know there is a nonconformance, do not use the product." Further instructions say whether to destroy the recalled product or to return it to the manufacturer.

The customer may "suggest" a product recall, but only the supplier or a governmental regulatory body can order a recall.

"Recall" is different from "return."

Click to expand...

I like "Market Withdrawl".

Wes Bucey said:

I make a decided difference in my mind between "stop shipment" and "product recall." The former says, "there is a question which needs to be resolved, we are not going to proceed until we resolve it." The product recall says, "we know there is a nonconformance, do not use the product." Further instructions say whether to destroy the recalled product or to return it to the manufacturer.

The customer may "suggest" a product recall, but only the supplier or a governmental regulatory body can order a recall.

"Recall" is different from "return."

Click to expand...

You are correct! But in our case we stop shipment of the product until the issue is resolved. Why would you add to an already large recall? Many times the two are concurrent!