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Control of "Drop Shipping".

Discussion in 'Supplier Quality, Audits & Other Supplier Issues' started by MonsterEnergy22, Mar 19, 2024.

  1. MonsterEnergy22

    MonsterEnergy22 Member

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    Good afternoon all,

    Very basic question, but how does my organisation exert control over product we've sold but not produced.

    My organisation does not usually operate this way. However, in the occurrence of a customer complaint, we may have our powder coater supplier hand over the product straight to a courier for delivery to a customer, especially if the customer is performing an installation on a tight deadline.

    We usually have all powder coated items returned to our site.

    If this happens, how do I maintain some sort of control? The only knowledge I have right now is the confirmation of the courier that the items have been delivered with 0 further customer complaints so I only have the assumption that everything is conforming.

    Or.. because this is a rare occurrence, should I even bother addressing this at all?
     
    MonsterEnergy22, Mar 19, 2024
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  2. Andy Nichols

    Andy Nichols Moderator Staff Member

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    You get the drop shipper to enter into a contractually required Quality Assurance/Control Plan which includes their methods and other stuff of how they will control those shipments. Then you have a basis to audit, periodically, as time progresses. Let me know if you need anything more on such plans.
     
    Andy Nichols, Mar 19, 2024
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  3. MonsterEnergy22

    MonsterEnergy22 Member

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    Morning Andy, thanks for the reply.

    we use commercial couriers in these instances, some you may know/remember from the UK such as DHS & TLP, so I'm not sure we'd be able to exert much, if at all? I'd be interested in learning more on control plans to see if there's anything I can do?

    Unless we target the powder coater supplier instead?

    Thank you!
     
    MonsterEnergy22, Mar 20, 2024
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  4. Andy Nichols

    Andy Nichols Moderator Staff Member

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    If the powder coater is the final step in processing and they then pack your products for forwarding to (your) customers, a control plan would be of significance. You are correct that DHL etc are not going to care too much, after all they receive a package and do their best to get it delivered, with little real impact on the final result.
     
    Andy Nichols, Mar 20, 2024
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  5. Golfman25

    Golfman25 Well-Known Member

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    So if I am understanding, you send parts out for coating. Most of the time you get back, inspect, then Ship to the customer. Then every once in a while you have the coating company send direct to the customer.

    if so, it just seems you need some way of verifying the coating is done properly. Maybe have them forward their inspection results before product is released.
     
    Golfman25, Mar 20, 2024
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  6. Bev D

    Bev D Moderator Staff Member

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    You may also want to ensure that the labeling is correct with your part number, coater’s lot number etc. I’ve been burned on this when the part numbers don’t line up…
     
    Bev D, Mar 20, 2024
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  7. MonsterEnergy22

    MonsterEnergy22 Member

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    Morning Golfman, yes that's exactly what happens. True I could ask for those, probably the easiest way to go about this.
     
    MonsterEnergy22, Mar 21, 2024
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  8. MonsterEnergy22

    MonsterEnergy22 Member

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    Morning Bev, i'm assuming the best way to go about this would be to obtain photographic evidence from the supplier?
     
    MonsterEnergy22, Mar 21, 2024
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  9. Andy Nichols

    Andy Nichols Moderator Staff Member

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    You can ask for all kinds of things, Monster, however, experience shows that if this is to be anything like a) effective and b) long term, then a Control Plan is the only option, written in to the supply contract.
    In the plan you should document an agreement of the actions the powder coater is going to take to assure the job goes out correctly (and you'll want to involve them in that, of course). I'd include the actions necessary to be taken in case of rejections etc. Think of it as a mini-QMS.

    I've experience of this type of thing (when I was at Renishaw Metrology) and it worked really well. You may have to do some supplier development, if they lack sophistication, but otherwise, it'll pay off long term.
     
    Andy Nichols, Mar 21, 2024
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  10. Bev D

    Bev D Moderator Staff Member

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    As Andy said - specify it in your supplier agreement. Period. One off requests for proof are silly unless you have some prior evidence that the supplier is not compliant to the agreement. This what a QMS and supplier agreements are for.

    Even Moses used the stone tablets
     
    Bev D, Mar 21, 2024
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  11. Andy Nichols

    Andy Nichols Moderator Staff Member

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    Reminds me of a joke, the punchline of which is... "Great, I'll take 10!" :D
     
    Andy Nichols, Mar 21, 2024
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  12. MonsterEnergy22

    MonsterEnergy22 Member

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    Well, at the moment we don't actually have supplier agreements. We simply procure goods when and where we need them, pay and receive, any specific requirements are usually communicated via the PO. My organisation has just had a new procurement Manager and I'm aware that's something that's now being looked into. I'm not sure if I could implement any controls without the existence of supplier agreements?
     
    MonsterEnergy22, Mar 22, 2024
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  13. Andy Nichols

    Andy Nichols Moderator Staff Member

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    You could, depending on the sophistication of your supplier, do it purely through good corporate relationships. They may see it as a risk reduction opportunity and good, as they say this side of the pond... "CYA"
     
    Last edited: Mar 22, 2024
    Andy Nichols, Mar 22, 2024
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  14. Golfman25

    Golfman25 Well-Known Member

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    You can. Don't over complicate it. Sit down with them if local, or online if not, and explain what you need and find out what they think they can do and/or provide. You can then add it to your POs.

    I am having a similar conversation with a customer right now. They used to be an hour away, so we just delivered parts and they had all the coating done. Now, they are in a different country and are shipping the parts twice, thru customs, to get coated. I couldn't believe it when they told me -- as the coater is 2.5 hours away from us. I gave them a few options for us to provide inspection data, or samples, instead of shipping all over the world. :)
     
    Golfman25, Mar 22, 2024
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