Refresher on FNS Instruction 709-5: Shipment and Receipt of USDA Foods

Refresher on FNS Instruction 709-5: Shipment and Receipt of USDA Foods


hello everyone and welcome to today’s webinar a refresher on FNS instruction 709 – 5 shipment and receipt of USDA foods my name is Katie del Rosario and I’ll be the moderator today speaking today we’ll have Constance Ray program analyst in the food distribution child nutrition operations branch and Danielle Ziegler program analyst in the technology branch let’s get started constance ok thanks Katie hello everyone and welcome let’s go over a brief agenda for the webinar today first we will go over what exactly is the FNS instruction 709 – 5 we’ll cover some helpful definitions used in the instruction arranging for shipment and delivery inspecting a shipment accepting and receiving unloading a shipment and filing a complaint ok so let’s jump right in what does FNS 709 – five cover the instruction applies to USDA foods received by SDA RA ITO or other company from a USDA approved vendor or from a federally contracted storage facility this applies across all USDA food distribution programs the takeaway here is that the foods must come from a USDA approved vendor or federally contracted storage facility a federally contracted storage facility refers to the multi food warehouses in Syracuse Kansas City and Nampa that are use for CSFP and fdpir programs the instruction does not cover any USDA foods received by RA from an SDA or a storage facility processor or distributor it also does not cover produce delivered through the USDA DoDfresh program a point to clarify here is that USDA foods fresh produce procured by the Agriculture marketing service is covered by 7 0 9 – 5 some examples would be apples oranges and potatoes the 7 0 9-5 covers a lot of information including 28 key terms that you need to know we don’t have time to cover all of these terms today but here are a few that might come up often in your work the Bill of Lading is documentation of the contents of a shipment and other pertinent information as required in the contract of carriage Consignee is any entity whether it be SDA ITO recipient agency commercial storage facility or processor that receives a shipment of USDA foods from a vendor or federal storage facility and then the goods receipt is the process of receipting for delivery in the web-based supply chain management system or web SCM there will be a bunch more about web SCM later on into the webinar so the first area we will talk about is arranging for shipment and delivery of USDA foods the vendor will schedule a delivery appointment at least 72 hours prior to delivery at this time they will issue an advanced shipment notification or ASN that ASN should contain shipping date expected delivery date the mode of transportation the PO and SO number and the Bill of Lading number a few things to keep in mind regarding appointments the vendor or carrier may make an earlier delivery than scheduled only if a new delivery date is a range that is acceptable to the company and the USDA personnel are available as necessary to perform any required inspections otherwise the original delivery date must be honored if the vendor or carrier arrives without a delivery appointment or is late for an appointment the company should accept the shipment if able or work with the vendor or carrier to schedule delivery at a later time when a carrier does not make a delivery appointment in advance it is recommended that the consignee report the issue and identify the carrier in the comment section of web SCM when receipting for the delivery and just to add a little more information about ASNs the vendor will create the ASN in web SCM in advance of the delivery the shipment asked to provide the consignee sufficient advance notice of the delivery the ordering organization and receiving destination designated in a web SCM will receive the ASN by email it is recommended that the delivery appointment be arranged with the consignees before entering the ASN in web SCM ideally it would not catch you off-guard many times there is a need to have a product go to a different ship to location or I just have a destination change this change must be sent to the FNS specialist 45 days before the start of the requested delivery date the information needed for this change is program material code material description sales order number sales order line number requested quantity requested delivery date shipped to location and then the new shipped to location FNS will then send this information to AMS the information is easily viewed using the contract mod view of an order status report in web SCM we do ask that you send any modifications to us in this format destinations changes require a lot of stakeholders communicating together and there are many steps in the process this is why it is important that the requests get to FNS at least 45 days prior to the start of a delivery date in the case of IDIQ materials such as usable fruits and veggies POS are issued 45 days before the start delivery date so requests that can be received before that don’t have to go through the modification process they can be updated before they are included on a PO just for some additional context here are the steps in the process the recipient would notify FNS of a destination change FNS completes its relevant forms and sends them to AMS 45 days before the start of a delivery period AMS contacts the vendors to see if there is a price change once the vendor responds AMS returns the orders to FNS and drafts their modification at which point FNS changes the destination and resubmits the order to AMS and then the final completion of the modification is when AMS updates their PO so as you can see there are many steps so a contract modification is a comprehensive process please be sure any changes are given to FNS 45 days prior to the start of the delivery period as we have already emphasized ok let’s move into inspecting a shipment the truck has arrived now what here are some things to keep in mind prior to unloading first verify the truck is at the correct delivery location then carefully check the load before the truck leaves you’ll want to check that the seal is on the door of the trailer and that the number on the seal matches the field number reported on the bill of lading if the order is a split shipment remind the driver to seal the door before leaving check the thermometer on the truck take temperature of the frozen and refrigerated foods during the winter check that canned product in a drip-dry trailer has not frozen also verify the quantity of the product check pallet configuration as many different manufacturers use different configurations it is important to ensure that the BOL indicates the accurate quantity of USDA foods received especially for split shipments do not assume that someone else has counted examine the quality of USDA foods and condition of packaging and containers take photos of any issues document damaged products or other issues on the Bill of Lading before signing and dating the delivery receipt and returning it to the carrier if product damage is observed after accept ment of the shipment notify the SDA or ITO of the problem they will contact contact our FNS complaint team and file a complaint in web SCM you’ll also want to enter the goods receipt in web SCM within two calendar days of receiving the product here are a few helpful reminders the vendor is responsible for providing seals to the carriers for one-stop shipments the seal is applied at the shipping point the master solicitation states that the seal number must be reported on the appropriate delivery documents but does not specify the format for example they could be handwritten or typed the recipient or an agent of the recipient is responsible for removing the feel as you know proper inspection of a shipment is important and we can be proactive to be sure that it is done correctly please train staff and contracted warehouses on how to properly receive and store USDA foods keep the instruction 709-5 handy on how to handle any delivery issues with USDA foods take photos if there are problems if your inspection of the load indicates that all or a major portion of the USDA foods are out of condition immediately notify the SDA or ITO the SDA must notify FNS and they will contact the AMS contracting office to determine if the shipment is to be refused or if an inspection is required to determine the quality and condition of USDA foods we know these sorts of interactions happen quickly oftentimes it is best to call instead of sending an email okay so we have covered inspection what does the refusal of a shipment look like here are some reasons a shipment might be refused no seal or the seal does not match the number on the BOL if all or a major portion of the shipment is out of condition if you believe you should refuse a shipment notify the SDA who must notify FNS FNS will determine course of action and consult with AMS or the National warehouse as applicable the most important takeaways are that the FNS national office must be contacted before refusing a shipment warehouses or RA must contact the states so they can contact the FNS national office this is so that FNS can document and keep records of patterns of a certain vendor in cases of shipments originating from a vendor and not from a warehouse if the consignee inspection indicates that all or a major portion of the USDA foods in in a shipment are out of condition the consignee must notify the SDA or ITO immediately they in return will notify the FNS RO or FNS national office in cases of shipments originating from a national Multi Food Warehouse if the consignee inspection indicates that all or a major portion of the USDA foods in the shipment are out of condition the consignee must immediately notify the SDA or ITOs applicable which must in turn notify FNS RO FNS will then work with the National Multi Food Warehouse to address the issue here’s a real-life example let’s say a truck arrives that had a quick brake stop in route and the truck shifted and a pallet is knocked over you shouldn’t refuse the truck based on one pallet being knocked over in order to refuse this truck the majority of the truck would have to have that same issue as much as possible the state should be notified prior to refusal of a truck and just to re-emphasize here if there is any doubt or disagreement with the vendor or carrier about the condition of the product the recipient must immediately notify the SDA who must notify FNS we hope that you’re able to accept most deliveries let’s look at how you go about accepting and receiving if the date and/or quantity of materials on the proof of delivery and goods receipt don’t match additional review is going to be required in order to process payment for the vendor AMS may have to change the goods receipt to match the bill of lading or other types of proof of delivery when a delivery vehicle is making multiple stops for a split shipment if an incorrect number of cases are unloaded at a prior stop the quantities available will be incorrect for the remaining stops as mentioned previously pallets may be arranged differently than expected different vendors palletize differently and not all pallets in a delivery may contain the same quantity it is important to count the number of cases not just the palette when these types of issues occur to ensure proper payment to the vendor extra work is required including paperwork follow-up requests – recounts and manual invoice processes FNS policy requires entry versus receipt in web SCM within two calendar days this indicates acceptance of the shipment and allows payment to the vendor in a timely manner if no goods receipt is entered by the expected date AMS may manually enter a goods receipt based on the vendors proof of delivery document to meet prompt pay requirements FNS does periodically review to see what orders have not been receipted and may contact SDAs and ITOs about missing goods receipts in addition to the good quantity of goods receipt must also include the quantity rejected or damaged as applicable note that if the entire shipment is rejected no information is required or should be entered into web SCM in addition to entering quantities in web SCM for the goods receipt please also write the following quantities on the bill of lading or proof of delivery document the quantity accepted including any overage or shortfalls quantity and damage condition and the quantity rejected also make sure that there is the date on the bill of lading with a signature this is the date that will be entered for the goods receipt in web SCM and then used to calculate the vendors payment date not all web SCM users can enter the goods receipt this ability is linked to the user’s role if SDA’s or ITOs are the sole two organization and are entering the goods we see the user must have the order manager role if a ship to organization is entering goods receipt the user must have the organization manager role users with these roles will navigate to operation order processing shipment received to enter their goods receipts manually or upload receipt information from another system to web S CM when manually entering a receipt in web SCM the following information is required signed by this is the person who accepted the shipment the date received which is when the delivery was made it may not be the same as the date that the goods receipt is entered if it’s not entered the same day good quantity which may be the case quantity or the weight depending on the material if applicable also enter the rejected quantity and any damaged details some information but not the quantities can be applied to multiple lines on the order at once using the receipt header at the top of the screen any lines for an order that are available to receipt will be listed in the display view in the lower portion of the screen at this time the default view for most orders is domestic view web SCM now allows the streamlined process for creating and reconciling the ASN goods receives and invoices this new electronic invoicing process impacts all users who view and enter receipts from material shipped directly from a commodity vendor outbound deliberation the National warehouses are not impacted these key changes include that there’s there is less data entry when the ASN is available the good quantity will be pre-populated from the ASN but you can still update the assistant necessary for variable weight materials you will only need to enter the case quantity the weight will be calculated automatically after submitting the receipt you also have the ability to view and modify recent receipt if modified modifications are entered on the same day they’ll be applied right away anything entered after that day will need to be reviewed by the USDA there’s also a new layout for the receiving screen called the ein V View phased implementation will occur over several months beginning this fall new POS are being for direct delivery materials that are set up for EINV for receding we still have POS that exist that will continue to use the existing receiving process once these are phased out all directions will use E I N V let’s take a look at some of the ways the e I N V view looks different first you’ll notice there are two new columns on the left side further actions is used to select a line for modification then the new receipt status column indicates whether the line is available to receipt it has already been repeated it’s been processed or is under review with USDA also the columns have been rearranged there are a couple columns in particular the good quantity and the rejected quantity that are in opposite order pay special attention to this and then at the bottom of the screen you’ll see there’s a button called modify receipt a few tips for receiving a web SCM especially with the new screen check the column header when entering quantities note that the good and rejected quantities are in opposite order for the domestic view in einv view this will be tricky during this transition phase where you’ll be seeing both versions of the screen for damages discovered after submitting a receipt use the complaints process avoid using modify receipt to change the damaged quantity it’s okay to fix a mistake but don’t use modify to enter any damage discovered later if you can’t make modification you can contact the help desk for example if you realize that you received the wrong line and need to cancel out receive if you aren’t able to search for the receipt or if you can’t select the button to modify a receipt there are a few cases where the buttons may show up but it’s not available just because there are multiple lines on the PIO and some are enabled and some are not so if you if you can’t make the modification on your own then you can contact the help desk a few important reports that are available in web SCM are the order status report the requisition status report and the received shipment report these all show receipt information you can customize the search by order number material date etc note that while any receipts are in pending status for the EINV process these reports may not reflect the latest submitted changes until the review is completed for constructions job AIDS and other training materials related to receiving reports and many other functions can be found in web SCM by clicking on the help tab a training environment called entran is available for hands-on practices web SCM sample data has been added to the training environment to allow users to practice entering and modifying receipts in the new EINV view if you have questions or need assistance with web SCM receipting or to request access to entran contact the web SCM help desk additional resources for working with web SCM can be found on the FNS website ok Thank You Danielle let’s go over what you should do if you need to file a complaint here are some reasons you might report a complaint if there is an issue with food safety this would mean a potential to cause injury or illness for an example of foreign object such as a bone metal or plastic product quality condition would be taste odor color consistency product temperature cooking performance and then issues with packaging leaks damage seals or packaging generic labels if the product does not meet your expectations then you should report the issue if a foreign object is found please save it frequently the vendor will ask to see the item this information is also shared with food safety agencies FDA and FSIS a quality complaint will include all the needed information as well as supporting documents and pictures case labels are very important the sales order is the critical piece of information to file the complaint in web SCM you can get this information off the paperwork received with the shipment of USDA foods also needed is lot case or can product code or pack date you’ll also want to include a description of the issue for example all corner cases of the bottom layer of pallets are dented and crushed cans are leaking and their wet spots on cartons the quantity of damaged product received for example 800 cases received 152 of them are dented and leaking also include photos that clearly show what the problem is include a ruler or something to show the size and the dimension of a foreign object and then again please do save any foreign objects found if you do need to file a complaint do so using web SCM the state enters the complaint so the person who enters the complaint sent in web SCM complaint number you can also use the complaint hotline or our email address listed here all right I want to thank Constance and Danielle for providing some very important information about the FNS 709 dash 5 instruction and I’d like to introduce a few other panelists that will be joining us with Constance and Danielle to help answer questions we have Janice Fitzgerald branch chief of the food distribution household operations branch we have Shenique bridges program analyst in the child nutrition operations branch and we have Erika Antonson branch chief of the policy branch we have a quite a few experts here in the room to help answer all the questions that you’re submitting and we’ll go ahead and get started it looks like we have one right now is it okay to use a plastic seal no it is not okay to use a plastic seal all seals must be high security seals we have some related questions that we’ll go over really quick what sealed types are considered to be a high-security seal so per the master solicitation which can be found on the AMS website seal shall be an 8 inch diameter cable tie secure steel stereotype or equivalent device it can only be removed by bolt cutters type tools so if the seals don’t match that we I think we have another question also refers to that as far as you’re rejecting you interstate can reject that if the seal is not high security seal great thank you what if the delivery doesn’t have a seal number if there’s no seal number you should also be rejected as well however arm and times we can come you can contact FNS affirm and we can always contact the vendor and sometimes you know sometimes things happen where the vendor might be getting win in the paperwork to put the seal number on there so sometimes we can have them back the paperwork to the warehouse showing the correct seal number so that everything matches up so that you don’t have to reject it but again that is up to the state perfect Danielle this one might be for you for entering receipt shipments in web-based supply chain management is it two calendar days or two business days it’s two calendar days great thank you see what happens with damage materials that are not rejected are they considered accepted usable or not usable it depends on the extent of the damage so it has to be done on a case-by-case basis if you accept the damage and it’s and you’re able to use a portion of it and some of it must be destroyed then that’s that would be one instance so it depends on the but it really is depends on the damage and if you add the extent of the damage so it’s really has to be done on a case-by-case basis thanks Janice so one question is if a bill of lading is not separating USDA and commercial foods from a processor what can the state do well the BOL should have if it’s coming from usda i sales on a number or purchase order number something to that effect so it should not in any way match what a commercial BOL looks like if that is happening an accepting i happen to women see em your ASN will not show a commercial shipment of our processes ok one more question must consignees reject shipments arriving with non hi security seals even though the number on the seal matches the bill of lading well as a master solicitation phase it should be a high security seal so that that’s the guidance that we can give in those cases it should be rejected but if you know if you’re if it’s a school and you want to reach out to you know your state wants to reach out to the child attrition operations branch and just confirm that probably wouldnt be a bad idea same in if this is a household program and reach out to your regional office so they can in turn reach out to headquarters just to confirm that might be the best course of action thank you alright we’ve got a few more web-based supply chain management questions someone is asking if they’ll get more instructions about the new receding process in web-based supply chain management there is a new work instruction that’s available in the Help section of web SEM it’s called make sure I get this right enter and modify shipping receipt EIN V great thank you so keep your eyes peeled for that in the Help section for web-based supply chain management another web-based supply chain management question what are some examples when the modification button would be used well first the that line on the PIO has to be enabled for e I and V so that will be all new POS issued basically from now forward and what you’ll see is that you can click that button that says modify receipt once in a while if it’s grayed out it just means that there’s a Pio with multiple line items and not all of the line items have been enabled so you probably won’t see that right now just because we are in the go-live phase we have been doing some pilot testing over the past few months and then those are the cases where that was occurring more frequently because it might be like 10 lines on a Pio instead of the whole Pio so I you probably won’t encounter that but generally if you see the button you can make a modification I do want to mention though that you can only enter modification for a short window of time after you have entered the receipt it’s not there forever so pretty much stick with the same 2-day time frame the best thing to do is if you catch a mistake on the same day because it won’t need to be reviewed by USDA if you catch it the following day it will go into a pending status and it will be held and that’s where your reports might not be up to date until USDA clears it so generally if you see the button you can do the modification right thanks Danielle and one more question I believe for you may we still upload an excel document for multiple line items being risky yes the the upload process for entering receipts has not changed right can they upload the bill of lading and certificates after they’ve already submitted the ASN those documents tend to wag a couple of days behind how should we handle that I think this is a vendor question so the best resource is going to be AMS okay so another question we are a school nutrition program and we order commodities for further processing they were then shipped to an approved warehouse from the manufacturer who is responsible for receiving the order and web-based supply chain management foods that go to a further processor do not are not a part of the web SCM system after after it’s been shipped to a processor the raw product any end products it does not go through what I see it so that is through whatever program you have internally in your school district okay great another question what’s the appropriate protocol for consignees when a USDA inspector fails the grade of a shipment of fresh USDA food yeah this if the fresh it fails inspection it should not be accepted all right straight answer what if a partial load is received at a second stop and was not resealed the second stuff can reject that load however like in the today’s presentation we do encourage especially if it’s a stop within multiple warehouses within your face please encourage your warehouses to remind the driver to reseal the truck because in most cases they have a seal ready but they just might forget when they’re pulling out of your of the first stop so please encourage them to sometimes again it’s up to the state if they want to reject but yes if it’s not sealed you can reject the low grade another couple web-based supply chain management questions how long will the sample when they supply chain management training for the new entry format be available it will be available for the foreseeable future alright that’s good to hear it was just a matter of getting the data in there so now it’s there great and will there be a WebEx or is there a training module about e-invoicing we don’t have a WebEx or specific training plan I think that we are working on a simulation that may help so I I guess we’ll have something available in the training announcements within web SCM if you’re you may have noticed sometime in the last year we started making announcements on the homepage and on the training pages within web svm so stay tuned with those because that’s where we’ve been putting a lot of these resources thanks Danielle Janice can loads of fresh items be reinspected if they start to show signs of spoilage again this would have to be handled on a case-by-case basis but typically the vendor is responsible for having an inspector at the destination at the time of delivery for those roots and vegetables those fresh fruits and vegetables that require destination inspection that is the that is the only responsibility of the vendor so again if there’s an issue after delivery that would have to be handled on a case-by-case basis thanks Janice Shenique what about when a load is delivered late on a Friday and not received into inventory until Monday that is perfectly fine it happens often and yes we can’t we don’t expect that if it comes in late after hours that they’re going to receipt it on Sunday so yes we see the first thing on Monday right thank you for split deliveries are States able to change the delivery amount upon delivery and this is Janice and I’m guessing that this means that the one-stop had hundred cases a second stuff has 500 cases and for some reason the first stop took 400 cases leaving the second stop with only 400 cases technically no orders are orders or web scm and is that go on appeal are done on a line by line basis so those two stops are having a separate line item on WN what I see them on the PIO so the amount is tied to that line item so if there’s an overage if one stop takes more than what they should and then the second stuff doesn’t get enough we actually have to do a contract modification and that is just like a contract destination that that is a process so no it’s just our automatic thing it has to be changed on the contract so we really you know stress that each stop take what they should what they ordered now if the trumpet is the load is already be seen and you want to move your product that’s up to you to say some of your products so another way out that is not a responsibility of the vendor at that point all right let’s see can there be a repeat of the information needed for a destination change I can kind of scroll back together and wide as I needed and I think Constance can review that info the information needed for a destination change is program material code material description sales order number sales order line number requested quantity requested delivery dates shipped to location the original shipped to location and then the new ship to location if you are in web SCM you can easily find this information using the contract mod view of an order status report okay great thanks Constance and again this webinar is recorded so if you didn’t catch it quite the first time we will definitely make the recording available okay we have a question where can I find a complaint form this is Janice there is no a quote unquote form it must be entered in WB SCM there’s uh there does the functionality is a within web scm to enter a complaint so there’s no hard copy form thanks Janice okay we’ve got another question for Danielle when you enter a USB a commodity delivery for a school do I have to enter the order number in inter shipment receipt okay so the order number can be the sales order number or a PO and that is subset point the first part of entering the receipt so when you open the enter shipment receipt transaction the first thing that happens is you’ll enter an order number and then do a search and then you would select the specific delivery line to be receipted okay what is the minimum amount required for a truck to make a stop on a multi stop load well we we do on specify 25% um you can try for less than that however there’s no guarantee that vendors will bid on that we have the reason for the 25% because um all of multiple stops on a trailer cost cost of it cost more money to ship so cost the vendor more money so there’s no guarantee that it will get awarded okay thanks Janice Danielle if you ordered 500 cases but received 450 and sorry the question just disappeared on me okay so if you ordered 500 cases but receive 450 and the Bill of Lading shows 450 how do you receipt the change in web based supply chain management you would receipt what you actually receive which is the 450 and if the order was four or 500 then it would be a fifty case shortfall depending on there’s different ways that might be handled if the 15 might be shipped later or it might be restored it’d be a case by case but but report or receipt what you actually get don’t worry about what is them on the order so if four hundred and fifty show up that’s what you receive great thanks Danielle we had a question about if all of the pictures related to a complaint won’t be allowed to be attached in web-based supply chain management where do they send the remaining pictures Constance sure in that situation you could use the complaint email which is USDA food complaints at USDA dot-gov it’s noted on the last slide of this webinar great thank you all right so I think we’re going to end the webinar for today I want to thank all our presenters and panelists for sharing all of this great information and thank all of you for joining us today as a reminder the webinar is recorded and I’m going to send out a link to the recording to all registered participants in a week or two and then the webinar will be posted on our FNS website as well so stay tuned for that email and don’t hesitate to contact us if we didn’t get a chance to answer your question today you can contact us at USDA foods with an S at USDA dot-gov thank you have a great day

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