Can I exclude Customer Property? ISO 9001 Clause 7.5.4

[Big Jim]

Hi all, i have one question regarding customer property (clause 7.5.4)

Is a product sent back by the customer to the factory and reworked as refurbished unit considered a customer property? The customer here is referring to OEM customer and my company is a contract manufacturer. The OEM customer will then resell these refurbished units to end customer.

Something isn't clear here.

What do you mean by "resold".

If a customer sends you something for rework/refurbishing and you do that and then bill them for that service, yes, it is customer property.

If what they send you becomes yours, you rework/refurbish it and sell it to another customer, it is not customer property.

If you keep a bank of reworked/refurbished units and ship an exchange replacement to the customer from that bank so he does not get back the same unit it is not customer property. What the customer sent in was a core to replenish your bank.

 

[wfong3]

Hi Big Jim,

Thank you for your reply. Let me clarify my statement..

My company is a contract manufacturer. We manufacture a product for company A and company A will sell the product to end customer. When end customer returns a defective product to company A, company A will then send back this defective product to my company to be reworked/refurbished. The refurbished unit will be sent back to company A to be sold to end customer as refurbished product.

My question is, the defective product sent back by company A, is it considered as customer property?

Thank you!

 

[somashekar]

My question is, the defective product sent back by company A, is it considered as customer property?

~~~ YES
Your earlier post was pretty clear about it.

 

[Big Jim]

Hi Big Jim,

Thank you for your reply. Let me clarify my statement..

My company is a contract manufacturer. We manufacture a product for company A and company A will sell the product to end customer. When end customer returns a defective product to company A, company A will then send back this defective product to my company to be reworked/refurbished. The refurbished unit will be sent back to company A to be sold to end customer as refurbished product.

My question is, the defective product sent back by company A, is it considered as customer property?

Thank you!

If I were you, I would consider it as customer property.

It would seem, though, that if the customer had not accepted it and returned it for correction it would still be your property. It would be your property until the customer accepted it.

Still, to avoid any problems weth auditors, I would treat it as customer property.

 

[jonref]

Apologies for not reading through the thread. I just want to clarify one thing:

A distributor offers a product to Customer

Customer liked the product and placed an order.

Distributor, naturally, has to reserve the particular product to ensure they can fulfill the order for said Customer

Down payment was received.

Do we consider that 'product' already a Customer property even if it isn't delivered yet to Customer site?

Thanks,

Jon

 

[somashekar]

Apologies for not reading through the thread. I just want to clarify one thing:

A distributor offers a product to Customer

Customer liked the product and placed an order.

Distributor, naturally, has to reserve the particular product to ensure they can fulfill the order for said Customer

Down payment was received.

Do we consider that 'product' already a Customer property even if it isn't delivered yet to Customer site?

Thanks,

Jon

Its OK you have received the down-payment and one out of your many products that you have in your distribution warehouse will eventually be delivered to that customer.
Say for example product sl. # 420 is delivered. This product sl. # 420 is not customer property until delivered, and later happens to come back to you.

 

[jonref]

Its OK you have received the down-payment and one out of your many products that you have in your distribution warehouse will eventually be delivered to that customer.
Say for example product sl. # 420 is delivered. This product sl. # 420 is not customer property until delivered, and later happens to come back to you.

So, unless delivered, duly accepted & fully paid (stated in a contract), product will remain the company's property?

TYVM Mr. Somaheskar.