Rush Order Handling Procedure
This policy defines the process for identifying, approving, and executing rush purchase orders across all departments. It establishes mandatory expedite fees, senior management authorization thresholds, and post-order audit requirements to ensure premium shipping costs are controlled and justified.
A "rush order" is any purchase order that requires delivery in less than the vendor's standard lead time, incurs an expedite fee, or demands shipment via premium freight. This policy ensures that all rush orders are justified, approved by appropriate authority, and tracked for root cause analysis. The goal is to reduce premium freight spend by 20% year‑over‑year while maintaining production uptime.
This procedure applies to all company staff who initiate, approve, or receive purchase orders. It covers direct materials (raw stock, consumables, tooling) and indirect goods (MRO, office supplies) with a unit cost above $500 CAD. Exceptions require written VP‑level sign‑off on the rush approval form. Vendors with whom we have negotiated priority‑service agreements are excluded from the surcharge requirement, but the rush approval workflow still applies.
- Every rush order must be submitted using the "Standard Rush Request Form" (RUSH‑001) and include a written business justification. Email approvals are not sufficient; the form must be signed by the approved delegating authority.
- Expedite fees exceeding $250 (or 15% of line total) must be pre‑approved by the Director of Procurement. All rush orders with a total landed cost over $5,000 require VP‑level approval before the PO is issued.
- No more than three rush orders per supplier per month may be processed without a dedicated vendor escalation review. The Category Manager must perform a monthly root‑cause analysis and present findings at the Supply Chain Review Board.
- After delivery, a "Rush Order After‑Action Report" must be completed by the requestor within 5 business days. The report identifies what failed in the planning cycle and proposes corrective action to prevent recurrence. The report is filed in the procurement document vault.
- Requestor (department lead or team member) – Initiates the RUSH‑001 form, provides justification, and completes the After‑Action Report within 5 days of receipt.
- Operations Supervisor – Validates the operational need and confirms that no suitable inventory buffer exists. Must sign line items under $1,000.
- Procurement Buyer – Sources the item, negotiates expedite fees with the vendor, enters the rush PO in the ERP system with the "RUSH" flag, and tracks delivery status daily.
- Category Manager – Reviews monthly rush order data, identifies repeat offenders (suppliers or internal requestors), and proposes mitigation strategies to the Supply Chain Review Board.
- VP Supply Chain – Final approver for rush orders over $5,000 total landed cost. May waive the after‑action report requirement on a case‑by‑case basis.