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Monitoring Premium Freight Charges including any charges our supplier incurrs


Mike Goward

We have had a concern raised during audit with the way we are monitoring premium frieght charges.

Can anyone help ? What is the best way to monitor premium frieght charges, including any charges our supplier incurr to deliver their parts on time to use

Many Thanks

matthew evans - 2002

At last. Somone else who is having problems with premium freight charges. We currently monitor freight charges on goods that we supply to ensure that additional charges are not incured as a result of our inability to meet delivery deadlines. Where there is some confusion is where the requirement asks to monitor premium freight charges for subcontractors as well. Do you know if this applies to freight charges incured as a result of us asking the subcontractor to deliver early?
Any help is appreciated.

Don Reid

hello, lads.

We had exactly the same problem. Admittedly it is easy to monitor your own premium freight but not that of a supplier. They way we handled this was to fax our suppliers on a monthly basis asking them to tell us the extra charges incurred due to our c**k ups.

This information can then be thrown at the production control people to sort out.


matthew evans - 2002

Thanks for that.
Only one question comes to mind and that is how your suppliers feel about them faxing you every month. Do they complain or moan about doing it and how do you know that what they send through is actually acurate.

Don Reid

Luckily, we do not have too many suppliers, and as we are pressworkers the majoity rae sheet/coil steel suppliers.

The way we assess the accuracy is that we know the standard quantities ordered for our work (we do have to maintain a certain stock level). Based on the replies, we assess the delivery record for that month. If it was a standard qty and they pin premium freight to it the chances are they are telling porkies.
If, on the other hand, they deliver 100kg against what would normally be 2 tonnes, or if they split the delivery, then the chances are they are correct.

Our suppliers are pretty good. They know why we are asking for the information as many of them are going through similar pains in keeping registrars quiet!


Helmut Jilling

Auditor / Consultant
Marc said:
Anyone with contemporary comments?

Marc, I think TS has eased this requirement. It is no longer so prescriptive. merely mentions tarcking preminum freight, without going into the prescriptive details of when supplier pays, etc.


It's too subjective. When it's causing our business to stop, we'll deal with it. Otherwise, we've none to report unless there's obvious evidence to suggest the contrary.

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