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Freight Carriers - Disqualify a customer defined supplier with poor performance?

The Taz!

Quite Involved in Discussions
#1
Freight Carriers

I am curious to see how the community views and handles this issue. . .

Customer designated suppliers are to be used when specified by the customer. . . how do you disqualify a supplier that gives poor performance?

TS-16949 states ALL suppliers are to be certified to ISO or TS (or QS until
2006). Customer specific requirements allow relief for suppliers too small to pursue certification.

Freight carriers are not mentioned, except by exception by reviewing the list
of who needs to be certified.

They are not certified to any quality standard (ISO, TS, etc.) I am aware of, and they are customer specified.

In a nutshell, they effect delivery and end product quality (Shipping damage).
. . Do they need to be certified?

Who gets dinged when that rush shipment to keep an assembly plant line running is rejected because the product was damaged in transit?

And ultimately, how can we be responsible for a supplier we are mandated to use. . .
 
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SteelWoman

#2
Interesting question! I've been doing this only about 7 years and I don't think anyone here has ever suggested our carriers be certified to anything and/or considered "suppliers," so the issue of using one who is not certified to anything has never come up. Geeze, I hope there aren't any Registrar's spying on this board, lest they decide this is an interesting interpretation they'd like to jump on! YIKES! :mg: But I've never heard of anyone suggesting a carrier is a "supplier." Interesting....

We've also had to deal with some carriers who are customer-specified, and believe it or not YES we've been dinged on a claim on occasion when the customer specified and even customer DISPATCHED carrier is late or damages the goods. My favorite was a customer claim wanting corrective action for a late shipment. Was supposed to be there on Thursday by 3pm and the customer dispatched the driver from his facility to ours at 2:30pm - from 4 and a half hours away! DOH! But WE were supposed to provide a corrective action plan to prevent it from happening again!

But I digress.... I buy your line about carrier's impacting customer quality, but does that make them a "supplier," per se? IMHO, no. The old QS definition of a supplier, in this sense, was "providor of production materials, production or service parts, or heat treating, etc." Under that definition your carrier wouldn't qualify.
 
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tomvehoski

#3
The Big-3 have been mandating their carriers be ISO certified for years. I worked with a small company that was forced into it by Ford in 1999. I also worked with one of the largest LTL carriers in North America (16,000+ employees) last year - the only reason they went for 3rd party registration was trying to get more automotive business. I have noticed that Chrysler's own trucks carry an ISO certified logo.

I would not be surprised if the carriers they mandate are certified, but I would not bet my life on it.

TS-16949: 2002 has a note that purchased product includes services that affect customer requirements (7.4.1 Note 1). Transportation is not specifically mentioned (sub-assembly, sequencing, sorting, rework and calibration are), but you could easily say that transportation is critical.
 
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SteelWoman

#4
Tom, interesting! We do not do any Tier 1 automotive, so it seems I have been blissfully unaware of that requirement - ignorance truly IS bliss!
 
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tomvehoski

#5
I don't know if there is a requirement from GM, Ford or DCX that a Tier 1 must use a certified carrier. I know they required it for companies that they used directly.

I also had a 3 person client that just did packaging/freight logistics - they scheduled and managed freight, but did not touch it. They were required to get certified also. Note they also did some design work and were working on getting into the sequencing business. The trucking company they used was 9001 certified.
 

The Taz!

Quite Involved in Discussions
#6
tomvehoski said:
The Big-3 have been mandating their carriers be ISO certified for years. I worked with a small company that was forced into it by Ford in 1999. I also worked with one of the largest LTL carriers in North America (16,000+ employees) last year - the only reason they went for 3rd party registration was trying to get more automotive business. I have noticed that Chrysler's own trucks carry an ISO certified logo.

I would not be surprised if the carriers they mandate are certified, but I would not bet my life on it.

TS-16949: 2002 has a note that purchased product includes services that affect customer requirements (7.4.1 Note 1). Transportation is not specifically mentioned (sub-assembly, sequencing, sorting, rework and calibration are), but you could easily say that transportation is critical.

I just finished an internal audit and randomly selected 5 outgoing orders to audit. . . all automotive. . . all customer mandated. . .and not one cert. . .hence the question to start this thread. . .

Oh well. . .I can't claim ignorance anymore. . . :nope:
 

RoxaneB

Super Moderator
Super Moderator
#7
While not in automotive, our facility does have an "Approved Carrier List". Carrier evaluations are conducted at least twice a year where appropriate - in some cases, we may only use a carrier once a year thus the "twice" rule does not apply. They are scored in a variety of areas (including personal cleanliness), paperwork, associated customer complaints assigned to them, etc. If the carrier falls below the designated rating they are removed from our list and we no longer deal with them.
 
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SilverHawk

#8
Csr - Gm

According to GM Customer Specifics Requirements 4.1.11 Supplier QMS Development, it was mentioned that indirect and service providers such as distributors adding no manufcaturing value, logistics, sequencers, parts packagers, tooling & equipment are not included in this requirment.

If these logistic providers would like to seek ISO 9001 registration, I do not think it does any harm....
 
#9
The Taz! said:
I am curious to see how the community views and handles this issue. . .

Customer designated suppliers are to be used when specified by the customer. . . how do you disqualify a supplier that gives poor performance?

TS-16949 states ALL suppliers are to be certified to ISO or TS (or QS until
2006). Customer specific requirements allow relief for suppliers too small to pursue certification.

Freight carriers are not mentioned, except by exception by reviewing the list
of who needs to be certified.

They are not certified to any quality standard (ISO, TS, etc.) I am aware of, and they are customer specified.

In a nutshell, they effect delivery and end product quality (Shipping damage).
. . Do they need to be certified?

Who gets dinged when that rush shipment to keep an assembly plant line running is rejected because the product was damaged in transit?

And ultimately, how can we be responsible for a supplier we are mandated to use. . .
You have no control over customer designated suppliers, other than to collect and record and submit there performance to the customer.

I've been there with the problem freight carriers. Fortunately with OEM's you have a couple of methods you acnuse;- an ASN system that documents and maintains the shipping records for you.
- There is is also a complaint process that you can go through. It takes a while, but it's worth it.

With one OEM our delivery rating went from 100% to about 30% in two months time due to late pick-ups, late deliveries and even delivering to the wrong address. Using the complaint system we were able to restore our delivery rating back to 100%, but it took about two months.
 
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