Survey

In spite of high inflation some cost savings were obtained. How much net cost changes in the last 6-12 months did you obtain over or under the budget?

More than 10% under.
1 to 10% under.
No change.
1% to 5% over,
6% or more over.

Everybody makes errors and sooner or later all suppli-ers make a mistake. Some mistakes are so minor tha..." />

Obtain Compensation for Supplier Errors

Date: 07/01/2012

Everybody makes errors and sooner or later all suppli-ers make a mistake. Some mistakes are so minor that it is not worthwhile to obtain compensation. Also a supplier may be very grateful if you overlook a small error, and they are likely to not hold the buyer accountable if the buyer’s error caused a problem.

Don’t try to profit from every supplier error. If you do so, the supplier is not likely to want any more of your business. Your objective should only be to get back what the error cost you.

Nevertheless, you should keep a record of even minor errors, because sometimes they add up over time and indicate a more serious situation. Many small errors may be as detrimental to operations as one big problem.

There are several different ways to correct a more critical problem. Goods can be returned and your account can be credited, or you can get the wrong material replaced by the proper goods.

Sometimes the material is still usable. When so, you may be partially credited. You shouldn’t need to pay the full amount. The amount of the compensation should be negotiable.

In certain cases it is difficult to obtain any help whatsoever. For example, recently the post office has been delivering mail that is mangled and torn. Covers and some pages are missing. A simple apology is about all that is given. The excuse is usually, "the machine did it". Filing a claim requires filling out a form and involves a long wait for any results. The value of the goods is usually so small that it is hardly worthwhile to file a claim.

Here is a suggestion for the postal authorities. When you ruin a piece of mail, at least give the customer free stamps as compensation.

If you have experienced the same problem and like the idea, send your comments to the postmaster, with a copy to your congressman. Maybe if enough people do so, we can either get the service to improve or get some compensation for our damaged goods. The cost of the stamps will provide an incentive for improvement.