Customer supplied product meaning

Customer supplied products that are issued for incorporation into supplies don t often require maintenance however, items for use in conjunction with the contract may be retained for such a duration that maintenance is necessary. If the products require any maintenance you should be provided with a maintenance specification and the appropriate equipment to do the job. Maintenance may include both preventive and corrective maintenance but you should clarify with your customer which it is. You may have the means for preventive maintenance, such as lubrication and calibration, but not for repairs. Always establish your obligations in the contract regarding customer supplied product, because you could take on commitments for which you are not contractually covered if something should go wrong. You need to establish who will supply the spares and re-certify the equipment following repair. 

While not measurable, these subjective terms enable customers to rate products and services on the extent to which they satisfy their requirements and are therefore suitable for their purpose. However, to the company supplying products and services, a more precise means of measuring quality is needed. To the supplier, a quality product is one that meets in full the perceived customer requirements. 

Although the title of this clause refers to subcontractors, this term is not used in ISO 9001 in the traditional sense of organizations supplying products or service to customer specifications. It is used in ISO 9001 to refer to any organization that supplies products or services to a customer whether to their own specification or a customer specification. For consistency therefore, the term subcontractor in this section has no special meaning. 

Statutory and regulatory requirements are those which apply in the country to which the product or service is to be supplied. While some customers have the foresight to specify these, they often don t. Just because such requirements are not specified in the contract doesn t mean you don t need to meet them. 

The price of a prodnct is obvionsly a major determinant of the demand for it by customers. The demand for the product then establishes the scale of production, i.e. the supply of the product. The relationship between the price of a product, the amount of product that a manufacturing company can profitably sell, and the amounts of product that will be bought by customers can be sununarised by means of supply and demand curves (Figure 13.9). A supply curve gives the relationship... 

Many users of large amounts of water treatment chemicals have product supplied in either semi-bulk or bulk containers (tanker trucks). Semi-bulk usually means the supply of intermediate bulk containers (IBCs) or tote bins. These are reusable, stackable containers, holding 120 to 330 gal. (450 to 1250 1). One ton semi-bulks are very common. They are available in a variety of construction materials and configurations. The customer may hold two IBCs on-site for every product employed, with one IBC being exchanged as soon as it becomes empty. Alternatively, the IBC may be used to supply small day tanks. 

Allocative efficiency defines the extent to which the quantity of product and service supplied is efficient 39. In a broad perspective this means that all customers who are willing to pay a price equal to or above the marginal cost of production and transportation shall be supplied with gas. When it comes to transportation services only, the aim is to have sufficient capacity to serve all shippers with a willingness to pay a tariff equal to or above marginal transportation costs. Allocative inefficiency exists if this aim is not met or if there is excess capacity due to lack of willingness to pay the given tariff. 

The functional performance of milk fat, milk fat fractions and butter when used as ingredients in complex food products can be evaluated only by means of empirical trials in which products are made and assessed on a laboratory scale using carefully standardized ingredients, equipment, instruments, procedures and reporting of results (O Brien, 2003). It is commercially important that suppliers of milk fat-based food ingredients be able to demonstrate the efficacy of their products, and be able to supply food manufacturer customers with detailed quantitative advice on how their products can be used to best advantage in customers products functional tests provide the means of doing this (O Brien, 2003). 

In Demand Driven Supply Chain companies, processes are built from the outside-in, which means, they are based on a clear view of the customer, what is important for them and the requirements for account profitability. These companies become zealots on new product introductions and use their supply networks to shape and respond to demand. 

Wanke et al. (2010) argue that the perception of logistics systems being complex is confirmed by several authors, but it is not always clear what does it mean. They defined complexity in logistics in terms of quantifiable scales and based on the notion of numerous actors or parts that are interconnected and can be captured by measures such as the company s gross revenue, its number of supphers, active customers, number of employees, number of employees involved in supply chain management, active stock keeping tmits (SKUs), number of distribution centers, orders processed and new product launches per year. 

The flexible production and customer service themes (themes 2 and 3) required major changes in the way Acme managed its plant capacity and scheduled its operations. These changes reflect focused strategies aimed at the emerging role of distributors in the supply chain. For Acme, this could mean three strategies ... 

Cash-to-cash cycle time The time between payments for product components to suppliers to the time customers make payments. This parameter has become an important measure of supply chain performance, reflecting both financial and inventory management process performance. Most have negative measures ranging from 30 to 80 days. Some, notably Dell, have a positive cycle time, meaning they collect payments from customers before they have to pay suppliers. 

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