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Logistics Protocol Supplier Customer PDF Print E-mail
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Introduction

The logistics protocol is a complement to the commercial contract established between a supplier and a customer. It defines the logistics rules, that have to be respected to insure the correct realization of the various processes (in terms of cost, quality and time).

Logistics managers will find in this document a guideline for logistics protocol elaboration. It will have to be adapted according to each company situation (purchasing INCOTERM, warehousing activities characteristics, supply organization, quality rules...).

This example fits with distribution activities and allows :

  • establishing a description of the customer needs and requirements,
  • obtaining the supplier's commitment

---> Recommended bibliography for Logistics protocol

 

1) Company's goals


(Naming of the company) wishes to establish through a narrow collaboration with its suppliers a continuous improvement process for its logistic flows and their reliability.

The logistics protocol is a collaboration element between the parties allowing the physical and information flows continuous improvement, as well as the respect of delivery times and quantity commitments. It aims to offer the best service to the final customer.

If the supplier uses subcontracted parties, he commits himself to inform his subcontractors of the defined below conditions and of their applicability.

(Naming of the company) wishes to know the subcontracted company chosen by the supplier to realize his logistics operations.



2) Orders

2.1 Orders emission and receiving confirmation

Orders are exclusively emitted by(Naming of the company).

Orders are passed on to the supplier via (fax, EDI, webEDI....).

Orders receiving acknowledgement must be transmitted within working days / hours

 

2.2 Delivery times reliability

The supplier makes the commitment to respect the delivery times defined as well as to anticipate the possible shortage situations and to inform (Naming of the company) about it.

The supplier can contact with (Identify the functions authorized in this information management) to inquire possibilities of planned delivery date modification.

All orders must be delivered at the delivery date confirmed by the supplier.

The supplier has to inform (Identify the functions authorized in this information management) about any risk of delay or non compliance with the ordered quantity.

Evaluation

Any delivery delay can be subject to penalties.

The delivery deadlines respect is estimated with (Precise the KPI).

This rate must not exceed .

(Detail calculation mode in the appendix)


2.3 Order's content respect

All orders must be delivered completely.

Non-compliance with the ordered quantity generates a series of additional logistics and administrative costs, shortages, sales loss and loss of credibility with the customers.

The supplier commits, in case of impossibility to satisfy the need, to communicate the information immediately to (Identify the functions authorized in this information management). And this, to define an eventual new delivery schedule and its associated action plan.

 

Evaluation

The orders respect is measured by (Precise the KPI) which must never be lower than  .

(Detail calculation mode in the appendix)

 

2.4 Information reliability

Once the order accepted, the supplier commits to deliver in the respect of corresponding quality, quantity and time conditions. He owes the implementation of the necessary means to respect his obligations and insure the reliability of the information in relation with the order delivery.

The information passed on to (Identify the functions authorized in this information management) must be clear, regular, reliable and anticipate eventual shortage situations.

The control of information flow is for (Naming of the company) an essential criterion for its suppliers performance evaluation.

Every beginning of year the supplier transmits to (Naming of the company) the annual calendar of his delivery activity closure.

Any modification of this calendar must be communicated to (Naming of the company), at least month(s) before the modification application.

(Identify the goods destination places), are operational every working day of the year. So the supplier has to take the necessary measures to assure a regular goods delivery flow, respecting the confirmed delivery dates.

In case of some (Identify the places of destination of the goods) reception activity closure for inventory reason, the information will be notified with a month(es) advance notice by (Identify the functions authorized in this information management).

In case of acts of god, the supplier commits to immediately communicate to (Identify the functions authorized in this information management), an information on the immediate and long-term consequences on the delivery activity.

The supplier will have to propose to the company an alternative plan including a new supplies source. This plan will be validated by (Identify the functions authorized in this information management) before its implementation.



3) Goods delivery

Goods delivery has to respect the destination point´s unloading schedule andor the delivery date process.

 

3.1 Guarantee of the selected carrier

Vehicles state has to be in accordance with current laws. They have to be in good working condition, good presentation, maintenance and cleanliness state.

The supplier makes sure, when loading, of the correct stowage and placement of the goods in the vehicles.

(Naming of the company) adduces the right to refuse the collaboration with a carrier.

 

3.2 Safety protocol

Every driver entering the site of (Naming of the company) has to respect the premises´s safety instructions.

Safety instructions are available in consultation in .

The supplier has to pass on to his carrier these safety instructions (in the appendix).

 

3.3 Advance - Delay

In case the carrier presents himself in advance comparing to the forecasted delivery date, if the workload and the state of the supplies allows it, (Identify the functions authorized in this information management) can authorize the unloading of the goods.

Delays in delivery, not previously notified by the supplier or his carrier to (Identify the functions authorized in this information management), will be object of penalties.

 

3.4 Unloading

The carrier gives access to the goods and attends the unloading.

A first visual control is realized in the unloading zone. If the goods present deteriorations, as for example: stain, damaged packaging, humidity, rust (Identify the functions authorized in this information management) can refuse the truck unloading in its totality.

A first quantitative reception allows the control of parcels and palets number. If this number is not in accordance with the transport documentation and Delivery Note, or if there are non ordered goods in the delivery, it can be refused in its totality.

If the load is not in compliance with elementary safety regulations (stability of palets) and if it can exist a risk unloading, the load will be refused its totality.

 

Recommended bibliography

 

 

3.5 Delivery Note

Any delivered good must be accompanied with its Delivery Note.

Any Delivery Note must be related to an Order number.

The Delivery Note must contain the following information:

  • Order number
  • Destination point address
  • Supplier's contact details

Each line of the Delivery Note must precise:

  • Item EAN code
  • Item clear description
  • internal item reference
  • Ordered quantity
  • Delivered quantity
  • Total number of packagings delivered
  • Total number of pallets delivered

 

3.6 Labeling

Each logistics unit label must describe its contain. The label is sticked on the pallet visible part, and in case of parcel, on the visible face from outside.

The following information is precised on each pallet:

  • Destination point address
  • Number of the pallet on the total number of pallets delivered
  • For each item:
  • Order number
  • Item code and EAN
  • Item description
  • Quantity

On each parcel, the labeling clarifies the information below:

  • Destination point address
  • Number of the parcel on the total number of parcels delivered
  • For each item:
  • Order number
  • Item code and EAN
  • Item description
  • Quantity

(labeling models in appendix).

 

 

4) Invoicing

4.1 Invoicing rules

Invoices are transmitted through (mail, EDI, webEDI....).

Packaging units used on the invoice must be identical to delivery note and order units.

(Naming of the company) will pay according to the negotiated delay. The negotiated payment times begin from the invoice date (which will never be previous than the delivery date).

 

4.2 Invoice contain

The invoice must contain the following information:

  • Normalized heading (Corporate name, Fiscal number, etc.)
  • Invoicing address
  • Invoice issuing date
  • Order number
  • Delivery Note number
  • Payment conditions

NB : ( Naming of the company) payment conditions are .

  • Item code and EAN
  • Item description
  • Item quantity (in ordering unit)
  • Item quantity (in invoicing unit, if need be)
  • Item unit price (in contractual currency)
  • Total amount of the line (in contractual currency)
  • Discounts, rebates

Any invoice not containing the required data or not respecting the accorded quantities and/or prices will be returned to the supplier. An invoice cannot make reference to orders from destination points that are not part of (Naming of the company).

(Invoice model in the appendix)

 

Evaluation

Supplier's invoices quality is estimated by (Identify the KPI).

This rate has to not exceed  %. (Detail calculation mode in the appendix).

 

 

5) Delivery disputes

5.1 Management

The supplier will indicate to (Identify the functions authorized in this information management) the name, address and phone number of the person in charge of delivery disputes management.

The information relative to the disputes of delivery, will be communicated to the supplier via (fax, EDI, webEDI...).

In case of quantitative delivery disputes or breakage identified during the receiving process, it will be indicated on the supplier's delivery note and transportation bill, the date and discrepancy details. If necessary this statement will be followed by a return order emitted by (Identify the functions authorized in this information management) within working days maximum.

The supplier commits himself to handle these statements within working days maximum after reception date.

 

5.2 Missing goods

Motive:

  • Missing pallet
  • Missing goods in an opened packaging

In case of goods missing, the supplier has to deliver it one within a maximum time negotiated with (Identify the functions authorized in this information management).

 

5.3 Inaccurate documents

Motive:

  • Incomplete delivery note
  • No delivery note

The incident will be registered and will be the object of penalties.

 

5.4 Non respect of forecasted delivery time

Motive:

  • Advance / Delay in delivery with regard to confirmed delivery date.

The incident will be registered and will be the object of penalties.

 

5.5 Non compliance with procedures

Motive:

  • No order receipt confirmation
  • Delay in issuing the order receipt confirmation
  • Multiples deliveries for one order

The non compliance with these procedures, necessary for the smooth running of the logistics, is registered as a supplier incident.

The incident will be registered and will be the object of penalties.

 

5.6 Returns

Motive:

  • Broken and damaged goods (identified during the receiving process)
  • Superfluous, not corresponding, not ordered goods. (identified during the receiving process)

 

In case of returns to supplier, the corresponding times are defined with (Identify the functions authorized in this information management).

The recovery of the goods in the premises of (Naming of the company) is under the supplier responsibility and takes place in a maximum time of days.

The credit note corresponding to a return to supplier, will precise the return order number given by (Identify the functions authorized in this information management).

A credit note cannot concern several returns to supplier.



APPENDIX

  1. Interlocutors of (Naming of  the company)
  2. Delivery points receiving opening times
  3. Security general norms
  4. Documentation models (order, order receiving confirmation, BL, invoice...) and / or reference to the EDI messages description
  5. Suppliers performance evaluation KPIs
  6. Labeling
  7. Palletization norms per logistics family