Interesting Purchase Order for its Terms and Conditions

normzone

Trusted Information Resource
#1
I've been making note of some of the more interesting purchase order terms and conditions. Following are some of them summed up briefly:

2% of the product failing in the same mode while under warranty triggers customer's right to demand design change at customer option and seller expense

Ten year warranty, spares supply, and one year EOL notice

Shipments five days earlier than target will be rejected, returned, and reshipped at the sellers expense

Shipments five days later than the target will be rejected and cancelled

China ROHS compliance ? product shall have a label stating how many years before ROHS substances will leak out

Counterfeit suspect parts will be confiscated by the customer, will replaced at the sellers cost. This liability does not lapse until a space vehicle has been launched

No research involving human subjects may be performed

No correction tape or write-overs

Any requirements waived in writing by the customer continue to stand regardless, despite any contract to the contrary

No child labor may be used, unless subcontracted through the southern Sudan
 
Elsmar Forum Sponsor
P

pldey42

#2
The telecom industry with its TL 9000 (based upon ISO 9001) discourages early and late deliveries. Late deliveries can cause expensive knock-on effects - the bolts is late so the sub-assembly is late so the equipment is late so we start earning money later than our investors expected.

Early deliveries, too, can be expensive. Suppose we drop-ship a big piece of equipment to an address in NYC where, on a specific day, the traffic will be stopped so that a huge crane can winch it through a window onto the customer's premises - if it arrives a few days early, it can't just sit on the sidewalk.

The ten year warranty sounds a bit over the top, but again, in telecom, spares are expected for the service life which could easily be ten years, and the one year EOL notice is often required (or something like) so that new network investment can be planned with confidence in supplied parts.

Some of the others are wild. I especially like the one about it being ok once we've gone into space.
 

John Broomfield

Staff member
Super Moderator
#3
I've been making note of some of the more interesting purchase order terms and conditions. Following are some of them summed up briefly:

2% of the product failing in the same mode while under warranty triggers customer's right to demand design change at customer option and seller expense

Ten year warranty, spares supply, and one year EOL notice

Shipments five days earlier than target will be rejected, returned, and reshipped at the sellers expense

Shipments five days later than the target will be rejected and cancelled

China ROHS compliance – product shall have a label stating how many years before ROHS substances will leak out

Counterfeit suspect parts will be confiscated by the customer, will replaced at the sellers cost. This liability does not lapse until a space vehicle has been launched

No research involving human subjects may be performed

No correction tape or write-overs

Any requirements waived in writing by the customer continue to stand regardless, despite any contract to the contrary

No child labor may be used, unless subcontracted through the southern Sudan
normzone,

Thanks, some of these made me smile.

Most terms and conditions from customers and their suppliers pass like ships in the night.

Rarely are they seen or questioned.

We're usually too busy looking at the main parts of the PO or contract itself to ensure the requirements have not changed from the quote and that we can still meet them.

Perhaps we should spend more time eradicating unreasonable terms and conditions but it's one of those jobs that we'll do later.

Perhaps the contract review part of our sales procedures should kick new T&Cs upstairs to the legal department while we get on with the "real work".

John
 

Wes Bucey

Quite Involved in Discussions
#4
I can see justification or rationale for all but the one about child labor. I'm still scratching my head on that one. The delivery time window was a major factor in the JIT (Just In Time) fervor in the 90s, especially the penalties. I recall tales of some suppliers having trucks full of product lined up outside Japanese OEMs to fit into four-hour windows of acceptable delivery.
 

somashekar

Staff member
Super Moderator
#5
Sustainability initiative and drive down the supply chain is common, and as a part of this no use of child labor is a significant term of PO.
 

Wes Bucey

Quite Involved in Discussions
#6
Sustainability initiative and drive down the supply chain is common, and as a part of this no use of child labor is a significant term of PO.
My head scratching was about the exclusion of southern Sudan.
No child labor may be used, unless subcontracted through the southern Sudan
NOT about forbidding child labor in general.
 

Mikishots

Trusted Information Resource
#7
"No correction tape or write-overs..."
This requirement is very common. I live in Canada, and Transport Canada rules are very straightforward in this respect:

"if changes to established records become necessary, they are made in such a manner that the reason for the change and the identity of the person making the change are also recorded, and the original information remains available".

White-out and correction tape is intended to obliterate the previous entry.
 

normzone

Trusted Information Resource
#10
And here's a good one - The customer will provide us forecast periodically, and we will prepare materials and production capacity to meet that forecast. But this does not constitute a purchase order, and they don't have to buy anything. But be ready, just in case.

Wes, I'll send you a PM.
 
Thread starter Similar threads Forum Replies Date
M Informational Interesting read for risk managers – The Psychology of Prediction Medical Device and FDA Regulations and Standards News 1
Ronen E Interesting Discussion Interesting view of EU Authorised Representative under MDR EU Medical Device Regulations 3
Sidney Vianna Interesting Discussion Interesting article form the UNIDO Magazine - CSR: a wolf in sheep’s clothing? Sustainability, Green Initiatives and Ecology 16
Sidney Vianna Interesting Discussion ISO 9001 audits from the perspective of registrants' customers - an interesting paper Registrars and Notified Bodies 0
Sidney Vianna Informational The role of the quality professional - an interesting video by CQI Quality Manager and Management Related Issues 1
M Medical Device News EU interesting developments – embracing MDSAP and UDI alignment Medical Device and FDA Regulations and Standards News 0
J ASQ Chicago Training Institute - If any of you are interesting in teaching ASQ Certification preparation ASQ - American Society for Quality 1
N Dream Log - Occasionally I have some interesting Dreams Coffee Break and Water Cooler Discussions 27
H Interesting Article:Weak Supplier Relations Costing Big 3 Automakers, Nissan Billions World News 4
SteveK Interesting Medical Device Database Site (666,413 items listed) Other Medical Device and Orthopedic Related Topics 1
B Share ideas to make Management Review more interesting Management Review Meetings and related Processes 4
B Very interesting article concerning MSA (Measurement System Analysis) Book, Video, Blog and Web Site Reviews and Recommendations 8
V Medical Device Conference - May 2014 - Interesting topics and presentations Book, Video, Blog and Web Site Reviews and Recommendations 1
A Interesting article - Economics of Environmentalism Coffee Break and Water Cooler Discussions 0
Hershal Interesting Israel Holiday Coffee Break and Water Cooler Discussions 6
Randy Interesting lady I met today Coffee Break and Water Cooler Discussions 5
S Interesting ITAR related question from our Certification Body ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 11
R AS9100C vs. AS9101D 7.6 c.) - Interesting how meanings change AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 2
J Interesting Nonconformance During Upgrade Audit to ISO 9001:2008 ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 27
H How to perform interesting PFMEA (Process FMEA) Training Training - Internal, External, Online and Distance Learning 6
M Interesting article - Analysis of Risk: Are Current Methods Theoretically Sound? ISO 14971 - Medical Device Risk Management 7
GStough Verisys Registrars - Interesting Statements on Their Web Site Registrars and Notified Bodies 2
RoxaneB My train ride with the world's most interesting person... Coffee Break and Water Cooler Discussions 29
J Interesting humor cartoons and videos for quality awareness training Training - Internal, External, Online and Distance Learning 4
D Interesting graphic of BCS (college football coaches' ballots) Poll Coffee Break and Water Cooler Discussions 5
V Interesting quiz, case studies or exercises for AS9120 needed AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 4
Steve Prevette An interesting paper on Lean Lean in Manufacturing and Service Industries 13
Q How can I make the QMS (Quality Management System) interesting to employees? ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 38
Jim Wynne An interesting antivirus experience - A "dynamic" test After Work and Weekend Discussion Topics 14
Claes Gefvenberg Interesting Cove signatures Coffee Break and Water Cooler Discussions 65
F CAPA Training - Tips on making CAPA training topics interesting! Nonconformance and Corrective Action 3
K Management Buy In - Management has presented some interesting challenges IATF 16949 - Automotive Quality Systems Standard 11
Jim Wynne Interesting Signs - Possible new OSHA requirement? Funny Stuff - Jokes and Humour 7
V Interesting presentation about QUALITY Coffee Break and Water Cooler Discussions 8
A Need help with creating useful, interesting and good internal web site about QMS!!! After Work and Weekend Discussion Topics 5
J Some interesting information for those who are interested in ISO/TS 16949:2002 IATF 16949 - Automotive Quality Systems Standard 3
Claes Gefvenberg An interesting audit coming up - First combined ISO 9001 / 14001 surveillance audit General Auditing Discussions 6
E Some Interesting Sites Unrelated to Quality Coffee Break and Water Cooler Discussions 11
A Interesting audit request - Full reaudit when separating R&D from division General Auditing Discussions 6
WALLACE FPS (Ford production system) - Does anybody have any interesting comments? Customer and Company Specific Requirements 8
Marc An Interesting Failure Analysis - Ejection Seat Failure Nonconformance and Corrective Action 8
A Firestone Articles (Other Interesting Articles) World News 35
B Keeping the induction group awake - Interesting training exercises to share? Training - Internal, External, Online and Distance Learning 14
D Interesting Web Sites, Boards & other resources on Stats Statistical Analysis Tools, Techniques and SPC 4
R Purchase order forms - who keeps them? ISO 13485:2016 - Medical Device Quality Management Systems 3
DuncanGibbons Documentation aerospace OEMs require with purchase of parts from manufacturers/suppliers Manufacturing and Related Processes 0
S Customer Generated Purchase Orders Quality Manager and Management Related Issues 3
S Customer generated PURCHASE ORDERS Customer only sends Schedules ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 8
A Removing purchase order form from document control - should it be done? Document Control Systems, Procedures, Forms and Templates 9
B Best place is to purchase IEC 60417 labels that will pass markings test IEC 60601 - Medical Electrical Equipment Safety Standards Series 1

Similar threads

Top Bottom