Monitoring Premium Freight Charges including any charges our supplier incurrs

Premium freight

We got a non-conformity on our last TS audit from BSI:
"There was no evidence available to show that the incidents of premium freight had been analysed with a view to identifying potential corrective and preventive action. Clause 8.2.1"
We now have a KPI tracked monthly for premium freight.
I don't track premium freight from suppliers unless it's our fault and we're paying the bill.

I think one of the reasons that TS auditors may have 'eased back' on this requirement is the fact that often a root cause points back to short term order increases from the customers themselves!
Whilst it may be possible to discuss this, and even develop countermeasures with some, others are less understanding.
It is a shame that in this age of process orientation, that some Customers don't recognise the importance of their role as process input.

Celtic Warrior said:

I think one of the reasons that TS auditors may have 'eased back' on this requirement is the fact that often a root cause points back to short term order increases from the customers themselves!
Whilst it may be possible to discuss this, and even develop countermeasures with some, others are less understanding.
It is a shame that in this age of process orientation, that some Customers don't recognise the importance of their role as process input.

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I agree with your comment about the customer side.

However, note that it is the TS standard which 'eased back' on this requirement, not just some auditors. QS-9000 was very prescriptive in what had to be tracked. TS just generically states that premium freight needs to be tracked. A much easier requirement.

Helmut Jilling said:

I agree with your comment about the customer side.

However, note that it is the TS standard which 'eased back' on this requirement, not just some auditors. QS-9000 was very prescriptive in what had to be tracked. TS just generically states that premium freight needs to be tracked. A much easier requirement.

Click to expand...

Other ideas for this?
Could it be enough to insert an item in Supplier Management Manual or procedure an item related to these eventual cost , causing a delay in our production and examine this in a purchasing/quality managerial review?

ANother idea could be also to have a voice in supplier evaluation score card, indicating this additional cost if any. What about?

In some organization it is 0% , because there is the procedure of consignment stock as well as enough raw materials in house that does not cause any priduction stop in case of a delay. This additional cost are alrealy paid by the suppliers.

We are a JIT company and having shipments made on time is key to our production. I make all of our suppliers use my freight carrier this way I see all the charges for shipping. If I need to use a premium service I want to know why. Did we place an order and not give enough lead time, did weather delays cause the increase in service, or did the supplier drop the ball. Either one will require some looking into. I also keep a spreadsheet of all my monthly charges, average costs, discrepancys, and volume.