Approved Vendor (Supplier) if Customer Pays Sub-tier Shipping Company

RCW

Quite Involved in Discussions
1) We are using a customer-specified shipping company to ship our customer's product to them.
2) Our customer pays the shipping company, we do not.
3) Should the shipping company be on our approved vendor list??

Sounds like an easier question than it really is.
 
D

Dean Frederickson

Re: Approved vendor if customer pays subtier

I would have to say no. It is not your vendor, it is your customers vendor. If there is a problem with this shipping company it will be dealt with by your customer right? But then again I am not an expert when it comes to dealing with customer required vendors.:2cents:
 

Jim Wynne

Leader
Admin
Re: Approved vendor if customer pays subtier

1) We are using a customer-specified shipping company to ship our customer's product to them.
2) Our customer pays the shipping company, we do not.
3) Should the shipping company be on our approved vendor list??

Sounds like an easier question than it really is.

What's required to get on the list? It depends on how your documentation for the approved-supplier list is written. You can do one of two things, neither of which should be particularly onerous: change your documentation to say that "directed buy" suppliers don't go on the list, or change it to say they do go on the list, but the standard requirements for supplier approval aren't applicable.
 
S

somerqc

Re: Approved vendor if customer pays subtier

We have a similar issue.

We basically have the account rep sign the approval form to say that the vendor is dictated by the customer.

No additional steps are required.

HOWEVER, we do still monitor this vendor as part of our monitoring system. If we have any issues, we contact the customer to inform them of the issue(s). Depending on the customer's wishes, we may invoke a SCAR on their request.
 
A

aeroqual

I have never included shipping companies on the Approved Supplier List/Approved Vendor List. The customer requested shipping company is not a supplier to your company.

Rob
 
L

Lauren B. - 2009

We initially had all vendors that affected the quality of the product on the list. We have since been acquired by a company that does not have an ISO system in place, how do you explain who needs to be on the list?:)
 
F

fuzzy

We initially had all vendors that affected the quality of the product on the list. We have since been acquired by a company that does not have an ISO system in place, how do you explain who needs to be on the list?:)

ISO 9001 never says that there must be a list:read:...this is a trap of our own making. So un-make the trap to work for you, as was suggested above. When I have had a list;) it did not include shipping companies. If there were issues with shipments, they would be addressed through complaints / returns and the appropriate corrective action response.:tg:
 
C

Craig H.

The real key here might be found in the terms of the transfer of goods. If these terms dictate FOB vendor's dock (Free on Board, or free loading of the truck/boat/etc.) then the responsibility for the goods passes to the buyer as soon as the vehicle is loaded. Seller does not dictate who the transporter is, does not pay them, and has no relationship other than making sure the right goods are loaded undamaged.

That said, convincing customers of this is sometimes difficult. Even with pristine "before" pictures they may still make a claim, in the form of short paying invoices.

:mad::mad::mad:
 
F

fuzzy

The real key here might be found in the terms of the transfer of goods. If these terms dictate FOB vendor's dock (Free on Board, or free loading of the truck/boat/etc.) then the responsibility for the goods passes to the buyer as soon as the vehicle is loaded. Seller does not dictate who the transporter is, does not pay them, and has no relationship other than making sure the right goods are loaded undamaged.

That said, convincing customers of this is sometimes difficult. Even with pristine "before" pictures they may still make a claim, in the form of short paying invoices.

:mad::mad::mad:

I used to write my procedures that way too, but I'm pretty sure that 7.5.5 is in conflict with this concept under 9001:2000, as the phrase "Shall preserve through to the intended destination" got added in there, which isn't FOB- centric IMHO.:2cents:
 
J

JaneB

1) We are using a customer-specified shipping company to ship our customer's product to them.
2) Our customer pays the shipping company, we do not.

The the shipping company is not a supplier to you - they supply services to the customer & are answerable to them, not you! I'd just treat this as a special customer-specified sale condition and definitely not as a supplier of yours.

Should the shipping company be on our approved vendor list??

No.

Your vendor/supplier list is for those who supply you. Note BTW that such a list isn't mandated by the Standard. It's a way that many organisations choose to use in order meet some of the requirements of clause 7.4.

Sounds like an easier question than it really is.
Why is that?
 
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