Supplier Non-Conformance - Failure to Deliver to Contract
Claims for are applied when Shop Direct experience inefficiencies in our supply chain directly attributable to the supplier – ‘Failure to deliver to contract’.
What do we mean by Failure to deliver to contract?
- Late or Early Delivery
- Non-Delivery
- Cancellation
- Product delivered which is not to agreed contract or specification, ie: Size, Colour, Design, SKU, Packaging, Labelling, Fabric, Quality, Fit, Feel
- Product which is delivered damaged, soiled, infested, deemed unfit for intended purpose
Claims resulting from failure to deliver to contract are designed to be:
- Consistent across our supply base
- Clear, transparent and fair
- Fast and efficient
- Intended to recover losses/costs incurred - never a punitive measure
Claims costing: Although every effort is made to collate and present claims as a single charge there may be occasions when this will not be possible. e.g. should a supplier have been unable to deliver on the agreed date affecting customer orders, the Buyer & Merchandiser may request compensation to cover the costs of compensating customers who have orders on hold, plus costs of mailing customers etc.
If delivery is then received and found to be incorrectly labelled an additional charge to correct matters may be raised by the Warehousing Manager.
3rd Party claims: There may be times when it is not possible to rectify the product on site and we may need to use the services of a 3rd party rectifier. On these occasions 100% of the costs incl. any transportation charges will be invoiced to the supplier.
Claims Reporting: When reporting on supplier failure every effort is made to do this promptly and we will do everything we can to work with the supplier on effective and timely resolution.
It should be noted that there will be occasions when it will not be possible to complete & issue a claim invoice quickly, for example when the issue raised is taking time to resolve.
Should a supplier fail to respond to notice of intent to claim, acceptance will be assumed and the claims invoice released. Notice of intent to claim may be in the form of a simple email.
Claims are negotiable but only up to the point when a claims invoice has been released.
How much do we charge? The following pages should provide you with a list of all costs which may be charged by our warehouse and/or returns centres (DC/RC), Buying Teams, Finance Team.
In addition to this we have included an example of a claims costings.
PLEASE NOTE THAT THE ALL CHARGES ARE SUBJECT TO CHANGE WITHOUT NOTICE.