Supplier Paid Premium Freight - How to get this information from suppliers?

J

Jennifer

#1
Any suggestions on how to get this information from suppliers? Our corporate office and an outside service track our plant's premium freight, but short of requiring all of our suppliers to notify us if they pay premium freight, we have no other way of doing this. Doesn't this rely heavily on the supplier remembering to contact us if they do get in this situation?
 
Elsmar Forum Sponsor

Marc

Fully vaccinated are you?
Staff member
Admin
#2
This is an oldie, but does anyone have any contemporary thoughts on this one?
 

Wes Bucey

Prophet of Profit
#3
Marc said:
This is an oldie, but does anyone have any contemporary thoughts on this one?
My customers cured US of getting into a premium freight situation by including contract clauses which ONLY allowed payment for lowest cost land freight UNLESS delivery earlier than scheduled was requested by customer, in which case they paid premium freight over and above what land freight would have been PLUS special handling charges to our company (sauce for the goose . . . .)

If we ran late, premium freight to meet delivery date was on us (alternate - take "dings" for late shipments which could endanger current and new contracts.)

Anybody handle the situation differently?
 
D

D.Scott

#4
I understand your presentation but the requirement is to record premium freight regardless of who incurs the cost. The theory is that even in the case of the supplier accepting all the charges, the cost of that premium will be included in the suppliers cost of doing business which will ultimately effect the price charged. There is a potential for hidden cost which the requirement seeks to identify and use in cost analysis.

Having said that, the requirement is to have a method to monitor the supplier performance. Because records of premium freight are mentioned in the following sentence, it is assumed premium freight is to be included in the monitoring method when applicable. As collection of these records is not specifically required (only retention of records), it is inferred that only KNOWN records are included. In other words, when the supplier provides you with this information, you are required to have records and to use them in the monitoring system. There is no requirement for you to hound a supplier for premium freight costs paid by the supplier. If you don't know about them, you don't have to keep a record of them. There may be reasons why you SHOULD know about them but that is business common sense and we are only talking about requirements at the moment.
It should go without saying, if the supplier incurred premium freight is charged back to you, this is a completely different kettle of fish and the costs should obviously be recorded, tracked, analyzed, reduced and whatever else you do when you are overcharged.
JMHO

Dave
 

Wes Bucey

Prophet of Profit
#6
I guess I really resent the intrusion of a customer who looks at MY costs and determines what I should shave. I resent it as much as a customer who wants to limit my percentage of profit.

I say, let the marketplace decide. There is no automotive OEM out there who gives a car buyer a look at his costs and allows the customer to say, "You paid a premium for using XYZ freight to transport my car and you should take back some of that charge." The customer's choice is to shop around for the best deal he can get with limited info.

Therefore, if any customer were to intrude in my finances as his supplier (what if I pay too high an interest on my inventory holding costs so I can assure on-time delivery at regular freight?), he had better be prepared to demonstrate how and why he gives similar visibility to HIS customer.

"Sauce for the goose . . . ."
 
Thread starter Similar threads Forum Replies Date
D Supplier OTD Slip Due to Shipping Delays or Natural Disaster AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 2
D Re-labeler - audit the supplier EU Medical Device Regulations 2
Evelyn7E The fastest way to get supplier to ship good parts to you Supplier Quality Assurance and other Supplier Issues 10
J Verification of purchased product / supplier questionnaires ISO 13485:2016 - Medical Device Quality Management Systems 2
D Question on Supplier Quality (SCAR) ISO 13485:2016 - Medical Device Quality Management Systems 6
Z REACH: contradictory statement from supplier? REACH and RoHS Conversations 4
G How to implement H&S and Quality Control Requirements in Contract for Potential Supplier? Contract Review Process 6
R Select the 1 Supplier based on the Parts Durability from 6 Supplier Samples using Minitab Using Minitab Software 11
K Why does load cell supplier requires force verification General Measurement Device and Calibration Topics 3
D Question and advice for a supplier self audit questionnaire ISO 13485:2016 - Medical Device Quality Management Systems 6
D Special IATF audit of sub-supplier IATF 16949 - Automotive Quality Systems Standard 18
S IATF 16949 Supplier selection criteria 8.4.1.2 IATF 16949 - Automotive Quality Systems Standard 2
M Supplier approved list - Notified body, regulatory body Supply Chain Security Management Systems 4
N Making improvements in supplier relationship last? Supplier Quality Assurance and other Supplier Issues 6
K Supplier Qualification for Engineering Consultant? Supplier Quality Assurance and other Supplier Issues 3
M Supplier evaluation Supplier Quality Assurance and other Supplier Issues 5
briteme4 ASL - AS9100 / Supplier Survey Supplier Quality Assurance and other Supplier Issues 3
A System for Supplier Documents Quality Assurance and Compliance Software Tools and Solutions 7
T IMDS submission without supplier's input? RoHS, REACH, ELV, IMDS and Restricted Substances 4
J Supplier not responding to PPAP request APQP and PPAP 5
D Supplier audit Medical Device and FDA Regulations and Standards News 2
lanley liao Does all of the suppliers need to integrated into the supplier list qualified of the company? Oil and Gas Industry Standards and Regulations 2
S Distinction between a critical supplier and a Virtual manufacturer EU Medical Device Regulations 2
R AS9102 FAI Change in Material / Process Supplier AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 4
John Broomfield Five ways to botch your supplier management program Misc. Quality Assurance and Business Systems Related Topics 7
C Supplier survey - 200 to 250 duppliers Supplier Quality Assurance and other Supplier Issues 3
J Where is the definition of a critical supplier? ISO 13485:2016 - Medical Device Quality Management Systems 5
U Approved Vendor (supplier) List Supplier Quality Assurance and other Supplier Issues 8
M Supplier requirements - Major supplier is a Non-Profit registered with ICCBBA (FDA UDI) Supply Chain Security Management Systems 12
P Training department ideas and development for automotive supplier Training - Internal, External, Online and Distance Learning 6
B Software service provider as critical supplier ISO 13485:2016 - Medical Device Quality Management Systems 5
T AS9100D Clause 10.2.1g Supplier Corrective Action for each and every nonconformity? AS9100, IAQG, NADCAP and Aerospace related Standards and Requirements 3
S Supplier protocol for the Quality Supplier Quality Assurance and other Supplier Issues 6
A API Spec Q1 Purchasing Process - Supplier Reevaluation based on Supplier Risks 5.6.1.4 Oil and Gas Industry Standards and Regulations 17
D Approved supplier list - Distributors question ISO 13485:2016 - Medical Device Quality Management Systems 6
G Supplier delivered recent PPAP, should he deliver yearly layout inspection? IATF 16949 - Automotive Quality Systems Standard 4
E ISO 13485 QMS certification as a Supplier ISO 13485:2016 - Medical Device Quality Management Systems 8
G Supplier doesn't share drawings IATF 16949 - Automotive Quality Systems Standard 15
S Use of raw materials by two supplier CE Marking (Conformité Européene) / CB Scheme 2
D Are Supplier Quality Agreements Quality Records ? Other Medical Device Regulations World-Wide 9
G Dealing with non conformity caused by Supplier Components detected in the production line IATF 16949 - Automotive Quality Systems Standard 14
G Supplier doesn't accept the complaints Supplier Quality Assurance and other Supplier Issues 20
K New supplier audit as per V3.1 by French Automotive OEM General Auditing Discussions 2
A ASL requirement when the supplier is certified for ISO 13485 ISO 13485:2016 - Medical Device Quality Management Systems 6
S Supplier Management ISO 13485: 2016- Which supplier needs to fill in a self assessment form? ISO 13485:2016 - Medical Device Quality Management Systems 6
D Approved supplier list for R&D ISO 13485:2016 - Medical Device Quality Management Systems 5
M SemaTech SSQA Standardized Supplier Quality Assessment - my favorite tool ever Manufacturing and Related Processes 1
D Supplier Quality level category help - high level ISO 13485:2016 - Medical Device Quality Management Systems 6
J Supplier Controlled Shipping (GM CS1) Condition Manufacturing and Related Processes 3
L Supplier within the Organization ISO 9000, ISO 9001, and ISO 9004 Quality Management Systems Standards 5

Similar threads

Top Bottom