The Buyer and /or Merchandiser may feel it necessary to request compensation from a supplier if he fails to delivery at the agreed time.
OUR RIGHT TO CLAIM:
Late shipments trigger extra freight charges (several shipments, air cargo…) and might even be the cause of loss of sales.
It is vital when acceptng an order from one of our B&M teams that the suppliers respects the timings. If a supplier is at risk of shipping / delivering late and opts to, or is requested, to air freight product this must be at the suppliers own cost & cannot be passed on to Shop Direct.
Claims for incorrect labelling, incorrect cartons, non-standard pallets etc.in most cases are dealt with directly by Warehousing & Returns W&R. The B&M team will be in receipt of a copy of all notice of non-conformance (root casue email ) from the W&R.
Claims raised by the B&M team may include the following:
- value of goods (loss of sales embedded)
- value of goods (loss of sales direct)
A calculation for loss of sales is based on the value of sales – minus cost of goods
e.g. if the overall contract / order value for 100 x £10 = £1,000
Embedded sales - quantity 50 x selling price £20, minus contract val: £500. Total amount claimed £500
Direct sales – quantity 50 x selling price £15, minus contract val: £500 Total amount claimed £250
The Buyer/Merchandiser will advise you at the time of raising the claim which of the calculation apply.
- additional shipping / transport costs
- 3rd party rectification
- 3rd party rectification / inspection costs
- late delivery charge
- additional non delivery charge
- marketing cost
- photography of product
- held orders quantity the number of (customers whose orders have not been filled because product is late arriving)
- customer compensation (the amount we have agreed to pay each of the customers with held orders)
- product recall costs – amount spent on total customers contacted x cost per letter/text.
- deduction taken off the claim for % no returns allowance (if applicable)
Any claims raised by customers for compensation for damage to property or person are handled via our Legal department and Insurance team.