What If the Qualified Products Aren’t Enough to the Contract? Leave a comment

International Trade Tips

Case

An American customer ordered 2000 pieces of parts and asked for delivery by January 30th. And our factory produces 2,000 pieces of material according to the request. However, only 1860 products were qualified for final predelivery inspection on January 20th. There is no time to make another 140 pieces. How to communicate with the customer?

Suggestion

Firstly, you need to know whether the customer is a middleman or an end-user. If he is a middleman, you can find if he has inventory or other suppliers. If it is an end-user, it is important to know whether the 2,000 items are used in batches or once. In case it is used in batches, the problem is not big. If it is used once, when is the latest arrival date?

After understanding these situations, confirm with the customer to see if he can accept only 1,860 pieces. Settling accounts with 1860 pieces of products is the best result. You don’t have to rush to make another 140 products. You can even ask for a 2% to 3% price cut as compensation. Sometimes, customers will order more than they need for avoiding an emergency. So, that matter may not affect his arrangement. At the same time, you should also prepare the material, just in case.

In case the customer says that the 2000 products are used together, you can ask him about the deadline for delivering the goods. If time is enough, all the products will be shipped together. If not, you can ship the 1860 pieces first. Then confirm with the customer that the earliest delivery date of another 140 products. You must try your best to make these 140 products quickly, send it in the fastest way as far as possible. Try not to affect the customer’s production arrangements.

It is also possible that no matter what you do, it is too late. Then you can only discuss with the customer how to deal with it, and give him a certain compensation according to the contract.

 

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