WH-SOP-35 Handling of Non Conforming Products of Non Conforming Products Ver : 1.0 AT/WH/SOP 35 ......
Transcript of WH-SOP-35 Handling of Non Conforming Products of Non Conforming Products Ver : 1.0 AT/WH/SOP 35 ......
Handling of Non Conforming Products
Ver : 1.0
AT/WH/SOP 35
Date : 06/08
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1. Objective
The objective of this SOP is to describe the activities involved in Identifying, Segregating, Storing, Replenishing the missing components/Rectifying the possible damages and Claiming / Selling the damaged / non conforming stocks (both handsets and accessories) identified in the warehouse
- While Receiving the stocks from the Suppliers - While Receiving the stocks back from the Channels (with or without
incident reports) - While Warehouse Handling
The objective of this work instruction is also to Agree / control prices for any clearance activities of the damaged / nonconforming stock.
2. Scope
The scope of the activities defined in the procedure is applicable to the handling and clearance of the damaged / non conforming stocks in the warehouse of Axiom Telecom. This process is applicable to the damaged / non conforming stocks that comes under any of the classification as mentioned below:
• Incorrect products in the shipment
• Mismatch IMEI no.
• Incorrect Transceiver component
• Incorrect Accessory Items
• Missing Transceiver
• Missing other than transceiver
• Product Damage
• Packaging damage
• Incorrect package
• Label Quality, etc The non conforming stocks will be identified at various levels like receiving the stocks from the supplier (Visible damages), Retail sales advisor while opening the sales box in front of the customer (invisible damages), Customer returns (invisible damages), during the process of replenishing, picking or warranty processing (visible / invisible damages), old stocks, etc. Claims for each non conforming items shall be handled separately based on the nature of non conformances and Brands. (Refer: LG-WI-05 Claims Processing R1) Non Claimable stocks shall be cleared / sold with the best price that will be finalized and approved by the senior management.
Handling of Non Conforming Products
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3. Definitions and Classifications of Damaged / Non Conforming Stocks
Non Conforming Products – Means the products that doesn’t conform to the product requirements. This can be identified during different stages of Operations like New Shipment arrival, In Warehouse (for example During cycle counting process, Picking phase, replenishing phase, etc), Channel returns, etc. Once the non conforming products are identified in the warehouse, the products should be quarantined and stored properly with proper
• Tags, signs or stickers affixed to the product
• Labeled bins, boxes and bags
• Remarks or descriptions written directly on the product
• Tape or ribbon wrapped around the product
• Storing the product in specially marked areas , etc
S.No
Category: Description: Examples
1.
Incorrect products in the shipment
Some or all product models shipped different than agreed. Example: in-box item and/or complete sales package is different than what was ordered by the customer.
2. Mismatch IMEI no.
IMEI does not match in transceiver, type label, gift box or master carton. Includes also missing and duplicate IMEI, label etc.
3. Incorrect transceiver component
Shipment includes transceivers with different HW than agreed. Parts on transceiver, not accessory items
4. Incorrect other in-box items
Inbox accessory items different than agreed. Including user guide, MMC card, cable, battery, etc. Accessory in sales box.
Handling of Non Conforming Products
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5.
Missing transceiver
Transceiver/s missing in the sales boxes, entire sales packages
missing from master carton, or entire master carton or shipment
is missing. E.g. products are stolen.
6.
Missing other than transceiver
Oter items than transceivers missing from the sales boxes.
Including user guide, MMC card, cable, battery, etc.
7.
Product physically damaged
Items in the sales box damaged. E.g. scratch in the transceiver,
dust under the window, or protective film forgotten to remove
from inside of the window. Can include also assembly related problems. It’s not Packaging
damage. If damage to packing causes damage to products, then
choose product physically damaged.
8.
Packaging damage -
Major
Major Damage in the packaging e.g. sales package, master carton, or pallet. It’s not product damage.
If packaging is damaged but product is not damaged, choose
packaging damage.
9.
Packaging damage -
Minor
Minor dent or scratch in the sales packaging. These can be rectified
and sold in the respective channels.
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10.
Incorrect packaging
Shipment packed incorrectly or with incorrect packaging material.
E.g. sales package insert is incorrect, master carton is stacked
incorrectly, or pallet material is incorrect.
11.
Label quality
Missing, poorly positioned, poor printing quality (bar code, text) in label. Label on transceiver, sales package, master carton or pallet.
12.
Product functionally inoperable
Product cannot be sold or used as-is. May cause delays at Trade Customer and/or need repaired or
replaced.. E.g. Does not turn on, Blank
screen, Power cycles, Corrupted screen, Non-functioning Keypad,
etc. It should not be caused by
physical or transportation damage to device or packaging.
No visible environmental damage (exposure to water, cold, heat,
etc.). Not cosmetic damage, not missing parts on transceiver
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Summary of Handling the Non Conforming items
Source Definition of non conforming products
identified from the source
Nature of Non Conforming
Products
Process for handling the non conforming
products
Person Responsible
for classifying
the non conforming
product
Person Responsible for claiming /
selling the non
conforming product
New Shipment (Principles)
The non conforming products like damaged package, missing items, product damage, wrong items, etc identified in the warehouse while receiving new shipments from the suppliers
Incorrect products in the shipment, Mismatch IMEI no., Incorrect Items inside the box, Missing items, Product Damage, Package Damage, Label Quality, etc
All the non conforming products will be properly stored in the respective locations and a claim will be placed with the supplier ( Refer the work instruction for Claiming Process)
Admin Controller- Warehouse
Logistics Assistant
Package damage (major / minor)- Claimable from the Principle
Admin Controller- Warehouse
Logistics Assistant
Missing Accessories like Battery, memory cards, charger, etc-Claimable from Principle
Admin Controller- Warehouse
Logistics Assistant
Warehouse Operations
The non conforming products like damaged package, missing items, product damage, etc identified during the warehouse operations. This will also include non conforming products caused due to the pilferage happened in the warehouse
Missing Handsets -Claimable from Principle
All the non conforming products will be properly stored in the respective locations and a claim will be placed with the supplier ( Refer the work instruction for Claiming Process) Admin
Controller- Warehouse
Logistics Assistant
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Box Damage due to the handling of stocks in the warehouse
All the non conforming products will be properly stored in the respective locations and will be sold through the wholesale channel with the price approved by VP/CEO. The difference amount / loss will be accounted against warehouse channel
Admin Controller- Warehouse
Wholesale Dept.
Missing items due to theft or pilferages in the warehouse
All the non conforming products will be properly stored in the respective locations and will be sold through the wholesale channel after replenishing the missing accessories from the warehouse stocks. The cost of the accessories taken from the stock shall be charged against warehouse channel
Logistics Manager
Wholesale Dept.
Package damage (major / minor)- Claimable from the Principle
Admin Controller- Warehouse
Logistics Assistant
Missing Accessories like Battery, memory cards, charger, etc-Claimable from Principle
Admin Controller- Warehouse
Logistics Assistant
Channel Returns
The non conforming products like , missing items, product damage, wrong items, etc identified in the channels in front of the customers
Missing Handsets -Claimable from Principle
All the non conforming products will be properly stored in the respective locations and a claim will be placed with the supplier ( Refer the work instruction for Claiming Process) Admin
Controller- Warehouse
Logistics Assistant
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Box Damage due to the handling of stocks in the channels
All the non conforming products will be properly stored in the respective locations and will be sold through the wholesale channel with the price approved by VP/CEO. The difference amount / loss will be accounted against the respective channel
Admin Controller- Warehouse
Wholesale Dept.
Missing items due to theft or pilferages in the channels
All the non conforming products will be properly stored in the respective locations and will be sold through the wholesale channel after replenishing the missing accessories from the warehouse stocks. The cost of the accessories taken from the stock shall be charged against the respective channel
Logistics Manager
Wholesale Dept.
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4. Abbreviations / Synonyms
GIDR – Goods In Discrepancy Report Transceiver - Handsets
5. Inputs
• GIDR
• Incident Reports
• Template for Approval of Damaged Stocks
6. Process
• Handling the Non Conforming Products – New Shipments
• Handling the Non Conforming Products – Channel Returns
• Handling the Non Conforming Products – In Warehouse Process
• Clearance of Non Conforming Products
• Stock Adjustment after the Claims Process
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7. Activities
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Handling of Non Conforming Products
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8. Outputs
• GIDR
• Credit Notes
• Sales Invoice
• Template for Approval of Clearance Stock
9. Monitoring and Measurement
• Stock Status in Damaged Location
• No. of Pending Claims –Logistics Coordinator
• GIDR status – Logistics Coordinator
• No. of GIDR’s made within 24hrs of identification of non conforming product in the
warehouse
• No. of Claims made within 48 hrs of receipt of GIDR
• Credit Note received Vs Claims raised
10. Forms and Records
Name Reference
Incident Report
GIDR
Template for Approval of Clearance Stock
Template for - approval of defectuve stocks (2).xls
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Date : 07/08
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11. Interfaces
12. Process Tailoring
None
SOP WH-SOP-02 Stock receipt
WH-SOP- Stock Returns from Retail
WH-SOP- Stock Returns from Direct Distribution
WH-SOP- Stock Returns from Wholesales
WI • LG-WI-05 Claims Processing R1
• LG-WI-06 Goods Inwards Inspection -Nokia
ISO Clause 7.5.3,7.5.5, 8.3