1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.
Dismiss Notice
You must be a registered member in order to post messages and view/download attached files in this forum.
Click here to register.

Customs Clearing and freight forwarding (Outsourced process vs Purchasing)

Discussion in 'ISO 9001:2008 - Quality Management Systems' started by Kunle Ogunola, Sep 10, 2015.

  1. Kunle Ogunola

    Kunle Ogunola Member

    Joined:
    Sep 9, 2015
    Messages:
    8
    Likes Received:
    0
    Trophy Points:
    1
    Location:
    Nigeria
    These two are clearly identified and defined processes in our QMS. However, we engage service providers and agents e.g forwarders, logistics companies...etc. to carry out the operations. There is a process owner who takes responsibilities and relate with the service providers.

    In another way, I'm developing a procedure to define controls necessary for all outsourced processes. Can I classify Customs clearing/freight(cargo) forwarding as outsourced processes and equally classify providers as suppliers?

    Please, share your knowledge and experience
     
  2. RoxaneB

    RoxaneB Moderator Staff Member

    Joined:
    Jul 31, 2015
    Messages:
    926
    Likes Received:
    1,081
    Trophy Points:
    92
    Location:
    Ontario, Canada
    I think I understand your question and the short answer is, in my opinion, yes.

    In my experience, my company had a shipping process, but the actual delivery of the product was conducted by a 3rd party. We treated our shipping companies as critical suppliers and they were subject to evaluations, complaints, and compliments. Because many of our deliveries had to cross the border into the United States, only shipping companies who were licensed to carry freight across the border were used for those deliveries. We required copies of their current and valid documentation - this protected our interests in case of a dispute.
     
  3. Jim Hagenbaugh

    Jim Hagenbaugh Member

    Joined:
    Aug 4, 2015
    Messages:
    26
    Likes Received:
    24
    Trophy Points:
    2
    Location:
    VA
    All of our deliveries were 3rd Party. We had our trucking companies and our international freight forwarders listed as suppliers. We evaluated them as we would any other supplier. Our shipping process ended with the turnover to the carrier.
     
  4. Eric Twiname

    Eric Twiname Well-Known Member

    Joined:
    Jul 31, 2015
    Messages:
    329
    Likes Received:
    232
    Trophy Points:
    42
    Location:
    Northeast USA
    I work pretty much on the same line as Jim.

    There is a separation that might happen, though...based on one point: Where is the product when change of ownership takes place?

    If the product is your property until it reaches the customer's dock, you might want to treat it as an outsourced process.
    If the product changes ownership with the hand-off to FedEx...I would just treat them as a supplier (since they still affect your customer's satisfaction with you).

    Since all of the 'change-of-ownership' for me happens before or at the hand-off, I just treat freight companies as a supplier.
    The once or twice I retained ownership to final receipt inspection...I watched it a whole lot more closely.
     
  5. PaulJSmith

    PaulJSmith Well-Known Member

    Joined:
    Jul 30, 2015
    Messages:
    107
    Likes Received:
    113
    Trophy Points:
    42
    Location:
    Midwestern USA (STL area)
    Welcome to QFO, Kunle!

    I believe, as Eric pointed out, that it probably depends on the ownership status while it's in the carrier's possession as to how you would want to classify them.
     
  6. Robert Jones

    Robert Jones New Member

    Joined:
    Jul 11, 2019
    Messages:
    1
    Likes Received:
    0
    Trophy Points:
    1
    We have the same case our shipment is handled by the third party. How can I manage? Please help
     
  7. kayleycun

    kayleycun New Member

    Joined:
    Jul 3, 2020
    Messages:
    1
    Likes Received:
    0
    Trophy Points:
    1
    I will start off by apologizing if this isn't the right location for this post. I tried to search for similar topics, but couldn't find anything for my specific questions and then I found this. Do you know any outsourcing company that provides cargo or freight support services? I tried to look online but couldn't search what exactly it has to be called.
     
  8. tony s

    tony s Well-Known Member

    Joined:
    Sep 10, 2015
    Messages:
    1,350
    Likes Received:
    1,054
    Trophy Points:
    112
    Location:
    Laguna Philippines
    Is your company a logistics company? or a manufacturing company? If you're from a manufacturing and engages logistics companies to deliver your products to customers, then definitely both customs clearing and freight forwarding are externally provided processes. You need to control them as per clause 8.4.

    If you're from a customs clearing company, then customs clearing is your core - not an external process. Most customs clearing companies also offer forwarding services but outsource the process of transporting cargoes from trucking companies or other logistics companies. These trucking and other logistics companies must be controlled as per clause 8.4 also.