Remedies For Supplier Screw-ups, Part I<\/h3><\/div><\/div><\/div>PurchTips edition #245<\/p>\n<\/div>
Which Contractual Remedies Do You Use?<\/h4><\/div><\/div><\/div>If a supplier’s product fails to comply with acceptance criteria, there are five common contractual remedies that procurement professionals use: replacement, supplier repair, self-repair, refund, and contract termination. You can negotiate for a specific remedy or the option to choose from a list of remedies at time of failure.<\/p>\n
For each possible remedy, there are things that should be contractually specified to avoid disputes. In this edition of PurchTips, we’ve provided two checklists to help you determine what to agree upon with your supplier when drafting the contract if replacement and\/or supplier repair are among your preferred remedy options. A future edition of PurchTips will provide checklists related to the other remedies.<\/p>\n
If replacement is your chosen option:<\/b><\/p>\n\n- Do you need to return the defective item or can you simply dispose of it?<\/li>\n
- If you need to return the defective item, does the supplier need to receive the defective item prior to shipping the replacement?<\/li>\n
- If you need to return the defective item, who pays for the shipping of the defective item and the shipping of the replacement?<\/li>\n
- If you need to return the defective item, what shipping options (e.g., next day air, ground shipping, etc.) are acceptable for shipping the item back to the supplier?<\/li>\n
- How quickly must the supplier deliver the replacement (including any shipping time)?<\/li>\n<\/ul>\n
If supplier repair is your chosen option:<\/b><\/p>\n\n- Who pays for the shipping of the defective item from your organization to the supplier and for the shipping of the repaired item back to you?<\/li>\n
- What shipping options (e.g., next day air, ground shipping, etc.) are acceptable\/required for shipping the item back to the supplier then back to you?<\/li>\n
- How quickly after receipt of the defective item must the supplier deliver the repaired item (including any shipping time)?<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/spsm_verify.jpg\" "\\"spsm_verify\\"")
<\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services.jpg\" "\\"services\\"")
<\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
PurchTips edition #245<\/p>\n<\/div>
Which Contractual Remedies Do You Use?<\/h4><\/div><\/div><\/div>If a supplier’s product fails to comply with acceptance criteria, there are five common contractual remedies that procurement professionals use: replacement, supplier repair, self-repair, refund, and contract termination. You can negotiate for a specific remedy or the option to choose from a list of remedies at time of failure.<\/p>\n
For each possible remedy, there are things that should be contractually specified to avoid disputes. In this edition of PurchTips, we’ve provided two checklists to help you determine what to agree upon with your supplier when drafting the contract if replacement and\/or supplier repair are among your preferred remedy options. A future edition of PurchTips will provide checklists related to the other remedies.<\/p>\n
If replacement is your chosen option:<\/b><\/p>\n\n- Do you need to return the defective item or can you simply dispose of it?<\/li>\n
- If you need to return the defective item, does the supplier need to receive the defective item prior to shipping the replacement?<\/li>\n
- If you need to return the defective item, who pays for the shipping of the defective item and the shipping of the replacement?<\/li>\n
- If you need to return the defective item, what shipping options (e.g., next day air, ground shipping, etc.) are acceptable for shipping the item back to the supplier?<\/li>\n
- How quickly must the supplier deliver the replacement (including any shipping time)?<\/li>\n<\/ul>\n
If supplier repair is your chosen option:<\/b><\/p>\n\n- Who pays for the shipping of the defective item from your organization to the supplier and for the shipping of the repaired item back to you?<\/li>\n
- What shipping options (e.g., next day air, ground shipping, etc.) are acceptable\/required for shipping the item back to the supplier then back to you?<\/li>\n
- How quickly after receipt of the defective item must the supplier deliver the repaired item (including any shipping time)?<\/li>\n<\/ul>\n<\/div><\/div><\/div><\/div><\/div>
Do You Want a More Rewarding Procurement Career?<\/h5><\/div><\/span><\/div>Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n
Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div>
Download<\/span><\/a><\/div><\/div><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div><\/span><\/div>Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n
You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n
Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>
If a supplier’s product fails to comply with acceptance criteria, there are five common contractual remedies that procurement professionals use: replacement, supplier repair, self-repair, refund, and contract termination. You can negotiate for a specific remedy or the option to choose from a list of remedies at time of failure.<\/p>\n
For each possible remedy, there are things that should be contractually specified to avoid disputes. In this edition of PurchTips, we’ve provided two checklists to help you determine what to agree upon with your supplier when drafting the contract if replacement and\/or supplier repair are among your preferred remedy options. A future edition of PurchTips will provide checklists related to the other remedies.<\/p>\n
If replacement is your chosen option:<\/b><\/p>\n If supplier repair is your chosen option:<\/b><\/p>\n Are you tired of not getting enough opportunities, respect, and money out of your procurement career? Well, guess what? Nothing will change unless you take action towards becoming a world-class procurement professional.<\/p>\n Earning your SPSM Certification is the action to take if you want to bring the most modern procurement practices into your organization and achieve your career potential. Download the SPSM Certification Guide today to learn how to get started on your journey to a more rewarding procurement career!<\/p>\n<\/div> Are you a procurement leader whose team isn\u2019t achieving the results you know are possible? Maybe it\u2019s not enough cost savings. Or frustrating performance from the supply base. Or dissatisfied internal customers.<\/p>\n You need a performance improvement plan that\u2019s easy to implement and quick to produce results. The NLPA can help.<\/p>\n Download our whitepaper \u201cThe Procurement Leader\u2019s Guide To A More Successful Team.\u201d You\u2019ll learn the 7 steps for transforming your staff into a results-producing, world-class procurement team.<\/p>\n<\/div>\n
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Do You Want a More Rewarding Procurement Career?<\/h5><\/div>
<\/span><\/div>Need Better Performance From Your Procurement Team?<\/h5><\/div>
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![](\"https:\/\/www.certitrek.com\/nlpa\/wp-content\/uploads\/sites\/5\/2020\/12\/services-contracting.jpg\" "\\"services-contracting\\"")
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