Supplier Quality Agreement that one of our customers has sent us?

J

Joconnell

#1
Hello All,
I am attaching a supplier quality agreement that one of our customers has sent us and requested we sign. I am inquiring if they have gone too far? We are ISO 13485 certified, and it seems as though they are requesting an awful lot more than what we already do. This is the first agreement we have run into that is in this format and requires as much as they do. I was just curious if this is a common thing, or if we can push back a little on some of the aspects...

Thank-you in advance!!
 

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Marc

Hunkered Down for the Duration with a Mask on...
Staff member
Admin
#2
Looks like a pretty standard 'Fine Print' contract. I'm not sure what they want in 4.1 Internal Documents and 4.2 External Documents. You do get some latitude (?) "6.3.1 The Supplier’s production process documentation shall include the following: (Delete those that do not apply. Add others as required.)"

Years ago when I did quoting for a company I made up a blanket 'Terms and Conditions' document that went out with all quotes.

Is there a specific part of the contract that you're uncomfortable with?
 
J

Joconnell

#3
Thank-you for commenting. I guess one of my concerns is 6.5 performance reporting, that may be something that we need to clarify with them also. I wouldn't think they would care as to what our yield was as long as their products made it to them on time and within specification.

This contract is all together kind of concerning. The company is first to complain, and last to pay. They have substantial outstanding invoices, and always are willing to complain. When we try and work with them they give us nothing. They will not return parts for us to collect our data and evaluate what exactly is wrong, but demand 'replacement' parts. Our biggest concern is they are potentially setting us up for failure...
 

Jen Kirley

Quality and Auditing Expert
Staff member
Admin
#4
Thank-you for commenting. I guess one of my concerns is 6.5 performance reporting, that may be something that we need to clarify with them also. I wouldn't think they would care as to what our yield was as long as their products made it to them on time and within specification.

This contract is all together kind of concerning. The company is first to complain, and last to pay. They have substantial outstanding invoices, and always are willing to complain. When we try and work with them they give us nothing. They will not return parts for us to collect our data and evaluate what exactly is wrong, but demand 'replacement' parts. Our biggest concern is they are potentially setting us up for failure...
Given the customer is not supplying parts they claim are poorly performing so you can give data on the dtermined causes and actions, there's not much else except to show what is done, like SPC charts on their purchased product, in your own operations.

Why they are not returning their rejected parts, paying in a timely way or working with you is open to guesswork, but such things make me suspicious. I knew a company that closed up not too long after doing that sort of thing. That makes me wonder how valuable, solvent and functional is this customer, and if you should weigh your options in the market because they might not last long anyway--either on their own or conjuring some reason to buy elsewhere. :2cents:
 

bobdoering

Stop X-bar/R Madness!!
Trusted Information Resource
#5
I have worked for companies that simply refuse to sign burdensome quality agreements. However, you have to keep an eye out for the contract - because they may cite that if you accept the contract, you accept the agreement. Then you have to revise the contract (as part of your contract review). It boils down to the risks. Will they take their business elsewhere? Would it be a loss? Is it smoke and mirrors? Do you infer that it is a contract rider, and increase pricing to cover the additional overhead? It is a strategic decision, not a quality decision. Some "big pens" need to be involved in the decision.
 

ScottK

Not out of the crisis
Staff member
Super Moderator
#6
I agree totally with bobdoering

That's a pretty large set of demands.
I would not sign it. I would kick it up and make it clear to who I'm kicking up to what is above and beyond current practice.

This kind of contract is a business decision as there's a lot of costs involved.
 
G

Gert Sorensen

#8
Looks good to me, there is nothing there that wouldn't be covered by any of the Q-systems that I have been subjected to in the past 5-6 years. I appreciate a clearly defined set of rules in interaction with customers. Only thing I would change is that I would make sure to incorporate the lessons of the "history" in the agreement. E.g. no complaint handling or replacement parts without samples, or no reporting when invoices are overdue. That would probably open the discussion a bit :)
 
Q

Q-vo Man

#9
Some of the questions such as para such as 3.0, 4.0 and 6.3.4 are a bit over-reaching and are not normally required. The content of this "agreement" is supposed to be relative to your QMS. Do you have a QA POC for this customer / potential customer? If so, call and get clarification.:confused:
 

Ajit Basrur

Staff member
Admin
#10
Hello All,
I am attaching a supplier quality agreement that one of our customers has sent us and requested we sign. I am inquiring if they have gone too far? We are ISO 13485 certified, and it seems as though they are requesting an awful lot more than what we already do. This is the first agreement we have run into that is in this format and requires as much as they do. I was just curious if this is a common thing, or if we can push back a little on some of the aspects...

Thank-you in advance!!
Hi Joconnell,

I do not think its too much. If you have a system as per ISO 13485, you should be quite comfortablke with this.

The Customer only wants to avoid any undesirable things once you start serving him and hence this is all documented in the agreement.
 
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