Element 7.5.5 - Preservation of Product - We ship the product FOB Point of Origin

M

Michael T

Hiya Gang....

I need your help with a sticky point I'm trying to resolve. We just got done with our recertification audit to the 94 standard. During this audit we asked the auditors to keep an eye out for areas we need to address when we transition to the 2000 standard next year. The lead auditor mentioned one area that we may have an issue. Currently, one of our product lines is shipped FOB Point of Origin. This means that once the product hits the truck, the product (and it's preservation) is the customer's issue. Under the 94 version, preservation of product is broken out in to 5 different areas: Handling, Storage, Packaging, Preservation and Delivery. We don't have any problem here. Only under 4.15.6 - Delivery - does the 94 standard indicate protection extended to delivery to the destination, but only under contractual specifications. However, under the 2000 standard, element 7.5.5 reads:

"The organization shall preserve the conformity of product during internal processing and delivery to the intended destination.. This preservation shall include identification, handling, storage, and protection. Preservation shall also apply to the constituent parts of a product." (bold added for emphasis)

Okay... here's my dilemma... How do I meet the requirements of 7.5.5 when we ship the product FOB Point of Origin? :bonk: I'm toying with the idea of calling the Shipping Dock the "intended destination" but that doesn't quite sit well with me.

Any insight would be really really appreciated...

Cheers!!!
 
J

Jim Biz

Does the (any) contract actually read ship - FOB origion??

I wouldn't have a problem designating- the loaded truck as the intended delivery designation - if thats what the contract says.
 

CarolX

Trusted Information Resource
FOB

Michael,

If it is FOB origin, when it hits the truck, your done.

Perhaps you could word your procedure accordingly, i.e. that the procedure applies up to the point of FOB whether(sp) origin or destination.

Good Luck!

CarolX
 
C

Carl

Just a thought, but who chooses the carrier?

If they (the customer) do, then I would consider preservation their responsibility once the product is loaded.

If you (the supplier) choose the carrier, just show your criteria for choosing them (Quality, availability, delivery time and price for example)

The carrier may have a Quality policy/statement about handling/preserving their customers product that will be helpful.

The Real Carl-
 
M

Michael T

Cool....thanks!!!

Thanks for the responses...

For clarification - for the product line in question, the customer chooses the carrier, we have no control over that. They tell us who the carrier is and the carrier calls us for a pick-up appointment.

I was leaning toward calling the dock or truck the destination. That way we are covered. Now, on the rest of our items, we decide who the carrier is, so, as I read it, we have to maintain preservation to the destination.

Well... one less thing I've gotta worry about.

Thanks again!!!

Cheers!!
 
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