Customer-supplied material
Customer-furnished stock and components: identity, custody, quantity reconciliation, service acceptance and source-specific disposal limits.
Tags: commercial, materials, traceability
On this page
Meaning and scope
Customer-supplied or customer-furnished material is stock or components the customer provides for manufacturing. In the US federal property clause, material includes items consumed or incorporated into a product. That clause treats equipment and special tooling separately and excludes intellectual property and software from Government property. FAR definitions for that clause
A material receipt records what arrived. Use the agreement to establish ownership and permitted use, and the receiving inspection to establish technical acceptance.
Quantity basis and yield
In this hypothetical batch, 62 kg goes into conforming parts. That is 68.9% of the 90 kg consumed and 62% of the 100 kg received. All quantities use net mass for the same material. Assume a completed batch with no opening stock, additional receipts, work in progress, moisture change or unmeasured loss.
| Outcome | Material mass |
|---|---|
| Incorporated into conforming parts | 62 kg |
| Measured scrap | 28 kg |
| Unused material returned | 10 kg |
| Total received | 100 kg |
The balance closes because 100 kg = 62 kg + 28 kg + 10 kg. If material yield is defined here as conforming-part material mass divided by material consumed, consumed mass is 100 kg − 10 kg = 90 kg and yield is 62 kg / 90 kg ≈ 68.9%. Relative to all received mass, the incorporation fraction is instead 62 kg / 100 kg = 62%. The different denominators answer different questions; neither percentage is a recommended allowance or expected process result.
Piece yield uses counts of parts, not kilograms of stock. A count of sheets, bars or containers cannot be substituted for net material mass without a stated conversion basis. An unexplained balance difference is not automatically authorized scrap, normal loss or a debt. The arithmetic supplies no rule for allocating its consequences.
Protolabs explicitly notes uncertainty in the quantity of supplied resin needed because processing issues can occur. That statement supports the distinction between supplied quantity and achievable output; it supplies no universal yield percentage. S2
Material acceptance is service-specific
Protolabs' U.S. customer-supplied material page concerns injection molding with thermoplastics and liquid silicone rubber. It makes use conditional on engineering review, identifies trade name, grade and colorant code as relevant information, and requests safety and technical data sheets. Its thermoplastic policy specifies virgin resin rather than regrind; its shipping provisions use a supplied material identification number and manufacturer-standard containers. These are that provider's published conditions, not rules for every molding service or every material. S2
The UK Protolabs FAQ states that its machining service does not accept customer-supplied material, while its molding discussion allows many customer-supplied resins. The difference is between stated service offerings; acceptance of one supplied material/process combination cannot establish acceptance of another. Neither page identifies an actual customer's approved stock or establishes the capability of another manufacturer. S3
Synthesis: material identity and suitability are separate evidence. A supplier's material ID can identify an approved description without being a heat or batch number. Traceability to a particular lot requires the relationship between that lot, its accompanying documentation and the quantities actually used. A safety data sheet describes hazards; it is not a lot-specific inspection result or evidence that a finished part meets its drawing.
Custody and documentary events
For U.S. federal contracts incorporating FAR 52.245-1, paragraph (f)(1)(ii) addresses documented receipt, ownership identification and shipment discrepancies. Paragraph (f)(1)(iii) specifies property records, including quantities received, issued and remaining; units; contract identification; location; disposition; and transaction references and dates. Its approved immediate-consumption alternative permits cross-referenced receipt, issue and use documents instead of formal property records. This is a source-specific accountability example, not a requirement for all commercial shops. S1
The following distinctions are explanatory synthesis of that documentary example and Protolabs' material-identification example. They describe the meaning of evidence rather than a required workflow. S1 S2
| Evidence or event | What it describes | What remains separate |
|---|---|---|
| Material specification and lot identity | Which stock or component population is involved | Actual condition and suitability on arrival |
| Packing information and receipt | What was declared shipped and what arrived | Resolution of a shortage, damage or identity discrepancy |
| Issue to an order or operation | Material transferred into a particular use | Amount incorporated into conforming finished parts |
| Return or recorded disposition | Where a remaining quantity went | Ownership, disposal authority and any financial settlement |
A usable offcut or unused container balance is not automatically scrap. Under FAR 52.245-1(a), production scrap is unusable production-related material, which can still have reprocessing value. Paragraph (j) restricts disposal of contractor inventory without the required authorization, except as otherwise provided in the contract, while (j)(3)(ii) provides a separate production-scrap treatment unless the Plant Clearance Officer determines otherwise. These distinctions belong to that federal clause. S1
Ownership, returns and coverage limits
FAR 52.245-1(e)(1) expressly retains Government title to Government-furnished property. Protolabs' material page separately reserves disposal of buyer-supplied materials after inactivity and refers to its sale terms for specifics. The material page states no inactivity interval, so it supplies no specific storage deadline. S1 S2
Synthesis: the phrase “customer-supplied” alone does not settle storage duration, return freight, loss liability, insurance, permissible substitution, scrap ownership, scrap proceeds or replacement responsibility. Those subjects depend on the applicable agreement and jurisdiction. This article does not interpret a customer's contract, establish legal rights or calculate a financial liability.
Source versions
S1 is the U.S. FAR 52.245-1, Government Property (September 2021), displayed within FAC 2026-01, effective March 13, 2026. Its federal-contract scope does not establish private-sector terms. The default clause was examined; alternate clauses and agency supplements are outside this article's coverage.
S2 and S3 are undated live manufacturer pages, inspected October 30, 2026 PDT, for the U.S. molding and UK service examples respectively. They are not archived contractual editions. No paywalled standard, specific customer agreement, actual stock certificate or lot inspection was examined.
Related: Customer-owned tooling, Consignment inventory and Commercial terms.