Dear Piyush,
In our place, our procedures to handle the rejected products/stocks are:
1. QC/QA issuing a report which verify the products/stocks are rejected. The analysis result should be attached.
2. Distribute the Report to relevant Department, in our case: Warehouse, PPIC, and Production. But sometimes we also distribute it into Purchasing and R&D.
3. The Warehouse then conducting a Monthly Disposal Report which based on QC Report. It must be signed by related Dept. Head (including accounting), the GM, and the Director.
4. Warehouse then scheduling the disposal time.
5. At the D-Day, the representative from: QC, Warehouse, and Accounting MUST be witnessing the disposal activities. They have to ensure the items and the quantities are the same as attached in Monthly Disposal Report. And they MUST ensure, that all of the items were disposed properly (burned, soaked, etc.), so it wont be able to used again. Plus, they have to documenting (took a picture) all of items and disposal activities.
You may pointing external party to do the disposal stuffs, but the important thing is you have to present and witnessing the whole disposal activities, and document it. As someone always said: to make sure it goes right, you have to do it by your own...
Regards,
Arya