UltraLogistik Quality Procedure Ref: QULTRA-G-10-01
Issue No: 7.0
Date: 26.03.2021
Page No: 1 of 10
Quality in Logistics
Quality in Logistics
Author Dorota Bromborz
Evaluator Szymon Należniak
Approver Bartosz Wróbel
The requirements defined in this standard are internal to both Unilever and its external parties.
It MUST NOT be disclosed to external parties other than those specifically designated by
Unilever. ANY COPIES / PRINT-OUTS OF THIS DOCUMENT ARE UNCONTROLLED
Revision History
Issue Date Issue & Updated By Reason for Update
Revision No
18.03.2009 1.0 Monika Kulak First issue
22.05.2015 2.0 Sz.Należniak / M.Dziewior Appendix update
25.05.2018 3.0 M.Tusińska / B.Szczypka General review and update
05.02.2019 4.0 Szymon Należniak Update of changes/document formalization
21.04.2020 5.0 Karolina Majowska Process change
01.10.2020 6.0 Bartosz Wróbel Appendix and document nature changes
26.03.2021 7.0 Dorota Bromborz General review and update after Audit in
sections: 2.0, 3.0, 5.0, 6.0, 7.0, 8.0.
Ref: QULTRA-G-10-01 Issue No: 7.0 Issue Date: 26/03/2021
UltraLogistik Quality Procedure Ref: QULTRA-G-10-01
Issue No: 7.0
Date: 26.03.2021
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Quality in Logistics
1.0 Purpose
The purpose of this procedure is to define process and responsibilities for handling transport related quality
issues in order to assure proper claims investigation and processing.
2.0 Scope
Included:
Processes described in this document refer to deliveries of raw & pack materials, semi-finished and finished
products where transport was managed by Ultralogistik Operational Centre and include:
- Primary transport
- Inbound transport
Excluded:
- Secondary Transport
- Inland Haulage, Ocean & Air freight
- SNCR process for claims due to the fault of the Material Supplier
3.0 Definitions
Item / Definition
Acronym
Claim Official complaint raised by Receiving Point due to wrong condition of delivered goods
Claim provider Relevant party which informs LQT about the claim e.g. SU, DC
DC Distribution Center
KPI Key Performance Indicator
LOM Logistics Operations Manager
LQS Logistics Quality Specialist
LQT Logistics Quality Team
LNM Logistics Network Manager
MCO Multi Country Organization
MSO Marketing Sales Organization
OPS Ultralogistik Operations
PQNC Pallet Quality Non conformance
QA Quality
R&D Research and Development
RIR Receipt Incident Report
SCFS Supply Chain Finance
SHE Safety, Healthy, Environment
SNCR Supplier Non-Conformance Report
SU Sourcing Unit (Unilever factory)
TSP Transport Service Provider
UEBV Unilever Europe BV
UTMS Unilever Transport Management System
3PM/CM 3rd Party Manufacturing/ Colaborative Manufacturer
3PMO 3rd Party Manufacturer Operations
Ref: QULTRA-G-10-01 Issue No: 7.0 Issue Date: 26/03/2021
UltraLogistik Quality Procedure Ref: QULTRA-G-10-01
Issue No: 7.0
Date: 26.03.2021
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Quality in Logistics
4.0 Responsibilities / Accountabilities
Who Responsible For:
Logistics Quality Team Assistance with assessment of party at fault for received claims, processing
the claims with the Carriers, general claims reporting and improvement
actions with the Carriers.
SU Quality Inspection of affected goods, decision making about the fate of affected
goods in case of inbound claims. Root cause analysis and implementation
of corrective actions in case of primary claims assigned as SU’s
responsibility.
MSO Quality Inspection of affected goods, decision making about the fate of affected
goods in case of primary claims. Leading improvements related to PQNC
claims.
Ultralogistik Operations Coordination of all action related to transport execution.
Procurement Team Support LQT in terms of problematic claims/escalations.
Finance Team Issuing the debit note against the Carrier on LQT request, following the
payment recovery process.
Claim provider Provide all data to LQT needed to properly process the claim.
More detailed process flows with roles and responsibilities split is available in appendices 1, 2 and 3.
5.0 Process
1. Non-conformance notification
• Receiving party notices non-conformance in delivery related to Unilever goods/pallets and
informs Logistics Quality Team.
• Logistics Quality Team is processing the claim:
- Claims registration and validation
- Claims investigation with Transport Company and Loading Location.
- Investigation of claim with all evidences to establish party at fault
• Non-conformance should be reported in one of following forms: SNCR, RIR, PQNC or other
agreed like non-conformance protocol with all related documents and proofs justifying
complaint.
• Claims should be provided via one of 3 possible protocols depending on the type of NC : SNCR
for raw and pack materials; RIR for finish and semi finish goods. The SNCR/ RIR claims should
be reported on the same day as delivery of the products or at least 5 days after delivery date.
The PQNC claim is created for NC of semi and Finish Goods, due to the fault of the Supplier or
below the 200€/1 layer on the pallet. The deadline for previous month data upload is until the
5th working day of current month.
The ones which are reported on daily basis (SNCR/RIR) need to meet some legal
requirements. Two most important are:
- For apparent loss or damage Receiving party needs to place on transport documents
non-conformance notification signed by driver not later than the time of delivery.
Ref: QULTRA-G-10-01 Issue No: 7.0 Issue Date: 26/03/2021
UltraLogistik Quality Procedure Ref: QULTRA-G-10-01
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Date: 26.03.2021
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Quality in Logistics
- For loss or damage which is not apparent Receiving party needs to report non-
conformance to LQT Team within 5 working days after the day of delivery.
Full recommendation of SC Legal Team how to report claims is attached as Appendix 7.
• Claims are reported to the following email address [email protected] in case of
daily basis issues and through PQNC Tool in case of monthly basis issues.
• Claim reporting process depends on below factors:
- The receiving site, whether it’s SU or DC
- Type of received goods, whether it’s Semi-Finished/Finished Goods or Raw & Pack
Materials
- Type of defect and size of loss
• Depending on the type of cargo we may have three processes of claims:
I. Inbound Process for Raw&Pack materials – SNCR Process
Applicable where recipient of the goods is SU.
All claims related to raw & pack materials must be reported by the receiving SU in
SNCR tool in SAP system. When party at fault identified by SU is supplier then claim is
not manage by LQT. Only when party at fault identified by SU is Ultralogistik then LQT
manage claim with TSP.
II. Primary Process for Semi-Finished and Finished Goods – RIR & PQNC Process
To get a background information and guideline on how to report non-conformances and
specify the type of complaint, read guideline document EUQMS UQP 702 Appendix 8.
Applicable when the recipient of the goods is Unilever DC.
There are two ways of reporting RIR & PQNC depends on type of defect and size of
loss:
a) When received RIR is identified by LQT as faulted by loading location then it is
reported into PQNC tool and the RIR provider, loading location or 3PMO (in case
of Colaborative Manufacturers from external companies) are informed about
resolution of the claim.
b) When identified party at fault is TSP then claim is reported in Database and
manage with TSP.
Picture 1. Difference between RIR daily claim form and PQNC monthly form
Ref: QULTRA-G-10-01 Issue No: 7.0 Issue Date: 26/03/2021
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Date: 26.03.2021
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Quality in Logistics
Picture 2. RIR excel form view
Picture 3. PQNC tool Home Page
III. Other specific process
In exceptional scenarios (e.g. deliveries to final customer DC or accidents in transit) the
claim with all details can be communicated via email to Logistics Quality Team
(
[email protected]) based on non-conformance protocol.
In case of safety incident, the Global SHE Manager [email protected] MUST be
always informed with all related documents and photo evidences.
The LQT must inform SHE Manager about below issues:
- Any road accidents
- Drug smuggling
- Whole cargo/ truck stolen,
- Thefts (minimum 1 stolen pallet)
c) Then safety procedure is lead by Logistics SHE and Security Team. When
received non-conformance protocol is identified by LQT as faulted by loading
location, then it is reported into PQNC tool. The RIR provider, loading location or
3PMO (in case of Colaborative Manufacturers from external companies) are
informed about resolution of the claim.
Ref: QULTRA-G-10-01 Issue No: 7.0 Issue Date: 26/03/2021
UltraLogistik Quality Procedure Ref: QULTRA-G-10-01
Issue No: 7.0
Date: 26.03.2021
Page No: 6 of 10
Quality in Logistics
When identified party at fault is TSP then claim is reported in Database and managed
with TSP by LQT.
Detailed procedure might be found in Appendix 1, 2 and 3.
Formal process might be found in Operational Requirements for Transport Service Providers final E13
2. Finance process
• Once liability and value of the claim has been accepted by Carrier, Logistics Quality Specialist
informs Financial Department about the necessity of issuing of debit note on a Carrier.
If the costs of claim are not significant it may be deducted from the Freight Costs in UTMS, but
it has to be agreed with the Carrier and Operational Team each time.
• If the invoice is issued for the first time to a transport company then LQT is required to verify the
address and VAT details directly with Transport company.
LQT has a tracker file to update:
a. the list of Carriers
b. changes made in Name,
c. Company address,
d. Vat number
e. Customer Numbers for invoicing
• If the TSP Company details must be updated or changed, the LQT team, is obliged to:
a. inform finance team SCFS, Customer Data UEBV Customer-Data-
[email protected] about changes of the Name, address or Vat number for
currently contracted TSP
b. provide a document confirming these changes (letterhead)
c. fill in the template to create new Customer Number for invoicing
d. provide a document with Name, address and Vat number (letterhead) to create new
Customer Number for invoicing
a. Capgemini is checking Quality Database and looking for status of solving method for claim
“DEBIT NOTE”. For such shipment Capgemini requests to UltraLogistik Financial Dept. for
email with confirmation from Carrier about liability for costs. Email confirmation is included in
request from Logistics Quality Specialist. Capgemini raise BMC request for Debit Note. Once
request is approved by SCFS team, Debit Note is created by IBM send by regular post to
Carrier and PDF copy is forwarded to [email protected].
b. Logistics Quality Specialist responsible for claim is obligated to forward invoice to Carrier,
putting Trade Debtors team in email copy.
c. If payment is not arranged within contracted due date, then Trade Debtors team is responsible
to chase Carrier for payment. In case of lack of response from Carrier, Logistics Quality
Specialist is involved for support.
d. All utilizations of damaged stock should be performed by proper logistic/stock control person
within receiving party by using SAP MB transaction and proper movement type of this stock. As
an effect these costs are allocated to proper Quality Defects cost centre.
e. The income from the Carrier shall be booked on the same UEBV Quality Defects account
where the cost was allocated by the relevant party.
Appropriate documentation including UEBV Business Waste treatment and guideline is attached as
Appendix 4.
Ref: QULTRA-G-10-01 Issue No: 7.0 Issue Date: 26/03/2021
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Issue No: 7.0
Date: 26.03.2021
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Quality in Logistics
Picture 4. Financial flow for invoice creation for primary claims with TSP as party at fault
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3. Quality KPIs review
Logistics Quality Team is internally reviewing on a monthly basis all claims reported.
The basic RIR and SNCR Q KPI factor is :
• the Success Quote, calculated by dividing the value of claims received by the value of claims
charged to the TSP.
• the number of claims received by the LQT member during the month and split per product
Category
• the TSP performance, calculated by the number of claims received during the month split per
TSP and claim value.
The report is available on the PQNC Power Bi Tool for all Unilever Employees
Based on this data LQT is responsible for monitoring of the number of recurring issues and working on
improvement plan together with TSP. LQT is responsible for informing MSO Q or SU Q contact person
about concerns and recurring problems
LQT is preparing, reviewing and validating PQNC report on monthly basis. The recipient of the Report
is SU Quality, MSO Quality role and LNM
The report contains number of affected pallets and an estimated rework cost of affected pallets
delivered to relevant DC.
The report is available on the PQNC Power Bi Tool for all Unilever Employees on every 10th of current
month.
Based on this data, each regional MSO is responsible for monitoring of the type and number of
recurring issues and working on improvement plan together with Supplier of the goods.
4. Continues Improvement – improvement projects with relevant parties
As a part of Quality KPIs review process, improvement actions are being identified to be addressed to
the relevant parties.
LQT Continues Improvement Actions are prioritized based on criticality level, frequency and big scale
issues from quantity and cost perspective and are most focused on performance of contracted
transport companies. Lessons Learned are created and shared within Operational Teams and Carriers.
When situation repeats One Pager with most important points is created and shared with Operational
Teams and Carriers.
Based on KPI from previous year, as Preventive Action, One Pager might be send to Carriers to avoid
similar situation in current year (e.g. water damage during winter season).
Number of claims per Carrier are checked and top 10 Carriers with highest numbers of claims are
included into improvement plan. Claims are under investigation of Carrier for root cause and an action
plan to solve identified causes of issues is required from them. Improvement plan is led by LQT with
support of responsible LPS.
In case of PQNC results, all improvement activities are leaded by local MSO or 3PMO with support or
consultancy of LQT, MCO QA dept., SU QA dept., R&D, Logistics.
Ref: QULTRA-G-10-01 Issue No: 7.0 Issue Date: 26/03/2021
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Date: 26.03.2021
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Quality in Logistics
5. Cooperation with Ultralogistik and Procurement
LQT cooperates with Ultralogistik Operations in the event of unexpected transport related issues that
may appear during either loading or unloading process, which leads to damage of the cargo.
From above responsibilities are excluded:
- WAH management
- Wrong equipment type
- Not appropriate driver behaviour
- Damages on sites not related to UL goods
- Missing thermograph
The LQT as well has to work closely together with the LPS:
- LQT provides an input to the formal agreement or operational requirements against TSP.
- LPS supports LQT in case of problematic claims and TSPs management
- Include LPS in cc of claim communication with transport company when claim amount is equal
or higher than 5 000 €
6. Requirements for temperature transport condition
Frozen and Ice cream transports should follow all requirements from UQP-32 - Warehouse and
Transport and GMP1505 - Good Ice Cream Cold Chain Practice.
Other should follow requirements in: Appendix 5, 6.
6.0 Records
Record Location / Database held in Retention
Times
Quality R:\Ultra\Public\QUALITY\NEW CLAIMS DATABASE 5 years
Claims
database
PQNC/KPI Power BI Tool https://app.powerbi.com/groups/me/apps/8214816e-5f00- 5 years
reports 44ad-b9f4-ad18c0ff4d2a/reports/f7fad5d5-0b7e-40e1-aeab-
398e3458053f/ReportSection813d45434118b9b5fb8f?ctid=f66fae02-5d36-
495b-bfe0-78a6ff9f8e6e
PQNC https://login.salesforce.com for Unilever Network 5 years
platform https://unilever.force.com/PQN for External Users (non-Unilever)
TSP 5 years
Customer
https://unilever.sharepoint.com/sites/LoQTeam/Shared%20Documents/Forms/AllItems.aspx
Number
tracker
7.0 Cross-References
Policies • Unilever Policies
Associated • ULTK Q-Ultra-P-10-Non-conformance Management
Procedures
General • https://unilever.sharepoint.com/sites/QMS_Global
Documents • GMP1505 - Good Ice Cream Cold Chain Practice
• UQG6001 - Warehouse & Distribution Co-Ship and / or Co-Store Guidance
for Raw Materials / Pack Materials / Semi-Finished Goods / Finished Goods
• UQP60 - Warehouse & Distribution Co-Ship and/or Co-Store for Finished
Goods, Semi-Finished Goods, Raw Materials and Pack Materials
Ref: QULTRA-G-10-01 Issue No: 7.0 Issue Date: 26/03/2021
UltraLogistik Quality Procedure Ref: QULTRA-G-10-01
Issue No: 7.0
Date: 26.03.2021
Page No: 10 of 10
Quality in Logistics
• UQP-32 - Warehouse and Transport
• Q-Ultra-G-10-02-Secondary transport claims management
• Q-Ultra-G-10-03 Ocean & Air Transport Claims Process
• UQP 702 RIR and PQNC guideline for reporting non-conformances in
transport delivery
• Unilever SC Legal Team recommendation
Templates • RIR
• PQNC
• TSP Customer Number creation
External • Operational Requirements for Transport Service Providers final E13
References
8.0 Appendices
Appendix 1: Process flow for 1Y_FG_SFG final v
Appendix 2: Process flow for 1Y_RawPack Materials final v
Appendix 3: Rules at receiving locations in case of transport-related claims
Appendix 4 UEBV Business Waste treatment and guideline
4.1 General - Quality Defects.pptx
4.2 Business Waste Accounting Details.xls
Appendix 5: Temperature Ranges-Foods-2019.05.15
Appendix 6: Temperature Ranges-HPC-2019.04.17
Appendix 7: Unilever SC Legal Team recommendation – CMR claims
Appendix 8: EUQMS UQP 702 RIR and PQNC Guideline
Appendix 9: UEBV - New Customer Master Data request template
https://unilever.sharepoint.com/sites/UEBVSalesReconciliation/Shared%20Documents/
Forms/AllItems.aspx?id=%2Fsites%2FUEBVSalesReconciliation%2FShared%20Docum
ents%2FCMD%20REQUEST%20TEMPLATE&p=true&originalPath=aHR0cHM6Ly91bmls
ZXZlci5zaGFyZXBvaW50LmNvbS86Zjovcy9VRUJWU2FsZXNSZWNvbmNpbGlhdGlvbi9F
bHZqSmVKOWRVbEZucVNLMHYyc2Nzc0J1eUZvSWdQeGtFZHBRaWlnWERmUzRBP3J
0aW1lPVRfVkRwNHpjMkVn
END OF DOCUMENT
Ref: QULTRA-G-10-01 Issue No: 7.0 Issue Date: 26/03/2021
