[PnP-Focus] Re: Customer & Supplier (Answer to Rainal Lasumin)

The question now is the business model.  If you have decided that your 
organization must offer loans to its suppliers in order to differentiate 
yourself in the market then the lending process is a core process and 
should be discussed within your purchasing and/or vendor selection 
process.  You will want to control such an important value-added 
activity to your business.

But, if you make no material profit from the lending activity, then this 
might look like a negative payables (where you pay your suppliers before 
they deliver) and it would be difficult to call the farmers customers.  
ISO is not prescriptive so you can decide how to describe your 
business.  I think that if it's an important activity to your business 
model that is associated with your product flow (your suppliers --> your 
product realization --> your ultimate customers), then you should 
include it in your ISO documentation.

Chris Anderson, CQA
Bizmanualz, Inc.

Sheikh Mohsin Ali wrote:

>*As far as Chirs, CQA, Bizmanuals answers *
>**
>*I totally agree with him but again if loan is your business function to
>facilitate the Farmers then they are not your Customers unless you are a
>financial institution. So, I cannot conclude that there are two processes.
>Focus on the core business function which will be the Scope of Certfication.
>*
>**
>*If on the controrary your are a financial institution and giving loan to
>the supplier then I have no problem. It really depends on the business
>function. Its advisable not to make processess complicated.*
>**
>*Thank you*
>**
>*Sheikh Mohsin Ali*
>
>
>Our Contract farmers supply us the products (poultry, raw honey, mushroom)
>for processing or sell directly to the market. They are our partners in
>production. But at the same time we provide them loan and kept thier land
>title(customer property) as collateral. We deduct thier loan via sales of
>thier products, and we kept 5-10% of thier income in financial institution
>as compulsary saving. We kept thier bank pass book(customer property).
>
>(a) Can they also considered as customer, thereby providing processes as
>required by 7.5.3?
>
>(b) What are the practical ways to distinguish between customer and
>supplier?
>
>Thanks.
>
>Rainal Lasumin.
>Sabah.Malaysia.
>__
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>
>  
>


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