23 replies to this topic

[Nipper]

I ordered 1000 padfolios from a supplier (100 per carton), $8.00 © each. First problem: they arrived with each carton fully repackaged and retaped by UPS as the cartons were recycled too many times and fell apart. OK, we got past that hurdle when the supplier offered to use new cartons next time...

Next I get a call from client that the first six of 10 padfolios out of the box are blank! :eek: Client wants to know if this is going to be a problem throughout the entire 1000 pc. order, or just a "fluke". This client's warehouse is short-staffed and does not have the time to go through the whole 1000 pc order to count how many are blank and how many are imprinted. They usually send them out on an as-needed basis to satellite offices throughout the US.

SHOULD I expect them to do a piece by piece hand count?? It seems ridiculous to ask a client to tell YOU how many items are blank and how many are actually imprinted! Fellow distributor-friend suggests the warehouse randomly open a few cartons and check a few padfolios from each carton to determine if it is a fluke or throughout the run. OR...do I ask the supplier to issue a call tag and have THEM go through all the cartons? In which case the client's warehouse may need to repackage them properly for the return, because the boxes THEY used fell apart! :mad:

This is my #1 client and I cannot afford to lose them in this economy (or any economy)...What do I do?

[royster13]

You or someone hired by you better go there and do a count.....Do not make this your clients problem....

[djoctagone]

Ask if the supplier has outside representation in your territory. If so (assuming it's OK with your client), demand that s/he visit your client's facility and sort through the order.

If that doesn't work, calculate what your time is worth (thanks, Cliff Quicksell). Sort thru the cartons yourself and require that the supplier compensate you fairly.

Given the condition the shipping cartons are in, I wouldn't trust a call tag.

[Nipper]

This client is 1000 miles away, there is no way I can go out there myself. One distributor-friend suggests it is the warehouse obligation to review the order. Another suggests random sampling from each carton of 100 and offer a discount based on that...this is just so frustrating, aggravating...and this is the only supplier of this particular padfolio so I cannot get it from another supplier next time, provided there IS a next time...

[Allan]

How much is airfare and hotel worth to you if you lose this # 1 client? I would do my darnest to be there as soon as possible to deal with it myself even if I drive myself 1000 miles (which I have done). Who knows you might pick up a few more customers on the trip. I know your client would be impressed that you showed up to deal with this.

[royhill]

AS mentioned, try not to make this any more of the client's problem and see if the supplier has any local reps. Some have regional independent reps. If not and you can't justify going yourself and depending on your relationship with client offer to "hire" one of thier employees to do the audit.

Or call one the "errand" companies in their area. Most larger cities have people that will stand in line at DMVs, shop for you, pick up dry cleaning or what have you. Good luck!

[jimknecht]

djoctagone said:

Ask if the supplier has outside representation in your territory. If so (assuming it's OK with your client), demand that s/he visit your client's facility and sort through the order.

If that doesn't work, calculate what your time is worth (thanks, Cliff Quicksell). Sort thru the cartons yourself and require that the supplier compensate you fairly.

Excuse me, but isn't the distributor the supplier's outside representation? Are you not compensated already? You saying the distributor has no role to play in dealing with problems?

We all have expenses. One of yours has to involve problem resolution. You, as the supplier's representative, has to help determine the extent of any problem. Would it be nice if everything was always done perfectly? Yes, but now lets join the real world. $hit happens & you have to deal with it.

When dealing with a problem, a supplier has to know the extent of the issue. Someone has to determine, first of all if there is a problem then secondly, how big of a problem do we have. I have no doubt the supplier would act differently if there were only a few blanks... as opposed to say 25%. So before anything else can happen, the product has to be inspected. If the distributor can't do it then the client has to step up.

[jimknecht]

Nipper said:

SHOULD I expect them to do a piece by piece hand count??

Yes, otherwise you could have issues down the road. So lets say you offer them a small discount & they accept. What happens when they eventually find out it was a huge problem? You really think they are gonna feel good about all this?

Don't do this half a$$. Bite the bullet & find a way to determine the EXACT extent of the issue.

[Nipper]

Compounding the problem is we paid the supplier an additional .20 per item to polybag the padfolios in groups of 10 to keep warehouse inventory simple and easy. Thus local offices "buy" padfolios in packets of 10 each.

NOW, after paying an additional charge for this bundling, either the warehouse manager, or myself, would be required to UNBUNDLE the package, check for an imprint, and REBUNDLE the package into a polybag of 10.

It's just ridiculous.

And as you see, the supplier had TWO opportunities to check for an imprint: during the initial run AND during the subsequent bundling.

Why should I, OR my customer, be required to go through all this work when the supplier had TWO chances to catch their error???

Yes, I AM angry and frustrated.

Does that make more sense now that you know about the bundling? We paid EXTRA for that!

[royster13]

Do not confuse your client's problem with your problem!.....

You need to make it right with your client however you need to.....And do not let your problem with supplier cloud your judgment....Your issue is not the same as your client's issue......

Once you make it right with your client, you then need to work something out with your supplier...You certainly do not want to try and solve your client's problem based on what the supplier might do because the supplier might not do enough to make your client happy....Then you lose in the long run...

Good luck....

[Allan]

OK what has the supplier done for you? Remember you are the customer of the supplier and your client is your customer. No matter what the supplier does, you need to deal with your client. On another thread here on DT there is a debate about the supplier has ownership in your client. I disagree. I do not expect my supplier to go to my client and correct a problem. They need to work with me otherwise why are you there? You need to make your client feel like you can handle the situation and then you need to work out the issue with your supplier. I would not leave the client hanging for too long without having a resolution in place. Two days driving will get you to the door of the customer. I have driven to Memphis TN and further for my distributorship. Get a solution to your customer or that NUMBER ONE Client will be someone else's shortly.

I have a client that came to me because they ordered some pens from another distributor but the pens were incorrect. Guess what? Those incorrect pens are in the back of my car and my new client has the same pen with correct information at a lower price because I have a relationship with the pen supplier. Why didn't the other distributor do something? I don't know but I do know that the client did call the distributor but nothing was resolved until I came in making a cold call on the client.

Nipper said:

Compounding the problem is we paid the supplier an additional .20 per item to polybag the padfolios in groups of 10 to keep warehouse inventory simple and easy. Thus local offices "buy" padfolios in packets of 10 each.

NOW, after paying an additional charge for this bundling, either the warehouse manager, or myself, would be required to UNBUNDLE the package, check for an imprint, and REBUNDLE the package into a polybag of 10.

It's just ridiculous.

And as you see, the supplier had TWO opportunities to check for an imprint: during the initial run AND during the subsequent bundling.

Why should I, OR my customer, be required to go through all this work when the supplier had TWO chances to catch their error???

Yes, I AM angry and frustrated.

Does that make more sense now that you know about the bundling? We paid EXTRA for that!

[jimknecht]

Nipper said:

Why should I, OR my customer, be required to go through all this work when the supplier had TWO chances to catch their error???

If I understand this correctly, your client has only opened one polybag... out of 100. You really think that is enough of a sampling to determine the extent of the problem? What if that was the only polypack with an issue?

I suggest you have someone check at least 10 of the packs. That would be 10%. Then see what comes of all this. If no other blanks are found, simply tell your client to keep up with any blanks they find as they use up the inventory. If other blanks are spread thru the other 10 packs, then I would have the supplier pick up the whole shipment, or have them run more & ship them at no charge... with the understanding they might have to run more later.

Edited by jimknecht, 10 March 2010 - 08:29 PM.

[jimknecht]

I think it important to consider something. There is a problem... just don't yet know how big of a problem. Two folks are going to be evaluated in regards to problem resolution... you & the supplier. If either do a poor job, they will lose future business from their client. If you, the distributor, have no role in this & simply blame the supplier... you stand a good chance of being fired. Same goes for the supplier, if they don't make you feel better.

These are highly volatile times, dealing with issues. Sometimes we react in a way that goes against our basic nature. Pressure can do that to any of us. That is why I suggest you follow the Dooley method of problem resolution & hopefully your supplier will do the same. At Dooley, whenever we know we played a part in an issue, we have a simple policy. I tell the distributor they are in the drivers seat & we will do whatever they suggest. No fighting or compromising... we do whatever works for the distributor. Want the job picked up & invoice canceled? Fine. Want us to pick it up, sort the product & reship at no charge? Fine. Want us to ship extra product to make up for some shortcoming, such as this? Fine. Point is, in the big scheme of things, what happens with one job has little meaning when you consider a lifetime of working with your clients. At Dooley, we consider the long term... not the short.

I suggest you do the same. Remove any stress your client may be feeling immediately. This is critical. Make sure they understand you will make this right... no if, ands or buts. You have to make this right no matter how your supplier treats you. Make sure your client KNOWS this.

[Nipper]

Jim, you are obviously a very wise person and I only wish it were easier to follow your advice. I would LOVE to ask the supplier to issue calltags and review the order back at the factory themselves. But you may recall the shipping cartons they originally used were not new, but recycled. They fell apart enroute and were entirely repackaged/retaped by UPS. So shipping them back to the supplier would require my client repackaging the entire order in new cartons, costing them time, and time is money. Would I offer my client money, or a discount, to repackage the goods? I absolutely would! But there are only 2 people in a warehouse that manages well over $1 million dollars of goods annually...they really don't have time for extra work even if I pay for it, and when day is done they're ready to go home--not stay several hours extra, even at good pay, to repackage my supplier's goods for them.

I am actually struggling with the idea of just crediting them the whole order, free, to resolve the matter entirely. That's how much this client means to me...but that could be setting a bad precedent, doesn't hold the supplier accountable, and, really, I don't have that kind of money anyway. Even worse, this is the only supplier for this item so it's not like I can get the next order from someone else.

I just cannot imagine having TWO opportunities, during production and during polybagging, to confirm an imprint and just ignoring it entirely. TWO opportunities....

Thanks again, friends, for all the good advice. Hopefully it will all come together in my mind overnight and gel into a good solution tomorrow.

[Allan]

Sounds like you have made your decision. I hope you get another order.

Good luck. I still would take the time to go to the company myself no matter the issues in my place if the client is as important as you say he is.

Sometimes the extra effort will make you a bigger person in the industry. Who knows what referral might come from this if it is handled correctly to the client's satisfaction. At this point he is the important person. Deal with the supplier once you know the extent of the issue.

Another story... I ordered some CD cases with the logo imprinted on the front. When my client got the order, several of them were printed upside down and on the back cover. As soon as I was told that there was ONE that was printed that way, I beat feet to the client's office and I went through the remaining cases and had to pull about 36 of them out. I told the client that I will not charge him for the errored cases and that I would have replacements in his hands as soon as possible. I called the supplier, who asked for the cases to be returned to them, and told them to run 36 replacements. I shipped the bad 36 (on my dime) to the supplier and received credit for them. I was out the 36 replacements as the supplier refused to do what I did for my client. I was not upset about that as it is their choice. They have not received a second order from me, though. That is my choice. My client has placed several other orders with me over the years. They never knew that I ate the cost of replacing the supplier's error.

[FindingPromo]

This is an excellent opportunity to earn even more credibility as the "go-to-guy/gal." As they say, sometimes challenges turn into even more opportunities if dealt with int he right way, in a timely manner.

Yes, the Supplier had at least two points of QC where they "should" have noticed the blanks that were not logoed, but that's beside the point right now, now you need to satisfy this customer.

A) Contact your customer and let them know that they will be made whole, no matter what, and with little inconvenience to them.

B) Start to identify the extent of the problem. As Jim suggested, ask that your clients spend just a few minutes identifying if they have enough logoed product to get them through a short period of time, for the complete extent of the problem to be figured out.

From there (if it looks like the random check, does in fact identify a larger problem), I'd suggest that you suggest to your supplier to pay for you, the travel cost to visit your client. As long as it's not a walkup airfare and you can plan this out a week or so in advance, the cost of an airplane ticket and a rental car, would most likely be similar or up to even much less than what most likely is hundreds and hundreds of pounds of boxes for a round trip (even ground) shipment.

The Freight on this shipment (let alone the faulty boxes, that's another issue), is a sizable cost to consider here.

There is that other option that was mentioned, to have the Supplier Rep that covers that local area, be the one that does the inventory and QC on site. That option is one that you should make for yourself, depending on your relationship with both your customer and your supplier.

If it's a staff employee of the Supplier, I would think that they would have no problem doing this for you, and representing your company all along the way. If it's an independent Supplier Rep, I know I for one would do it, if it was in a reasonable proximity to where I was going to be in the near future on my travel and rounds. Again, that decision is one that you need to make on your own, depending on whether you've chosen to share with your customer how the Supplier / Manufacturers work as a part of the delivery process.

Once again, making your customer know and "feel." that you are the solution and you have a team behind you to support you to make this right, is what your client wants to hear. Until the depth of the problem is identified, it's kinda hard how much anyone needs to be spending on problem identification first, let alone complete problem resolution.

Good Luck!

Edited by FindingPromo, 11 March 2010 - 10:37 AM.

[jimknecht]

Nipper said:

Jim, you are obviously a very wise person and I only wish it were easier to follow your advice. I would LOVE to ask the supplier to issue calltags and review the order back at the factory themselves. But you may recall the shipping cartons they originally used were not new, but recycled. They fell apart enroute and were entirely repackaged/retaped by UPS. So shipping them back to the supplier would require my client repackaging the entire order in new cartons, costing them time, and time is money. Would I offer my client money, or a discount, to repackage the goods? I absolutely would! But there are only 2 people in a warehouse that manages well over $1 million dollars of goods annually...they really don't have time for extra work even if I pay for it, and when day is done they're ready to go home--not stay several hours extra, even at good pay, to repackage my supplier's goods for them.

I am actually struggling with the idea of just crediting them the whole order, free, to resolve the matter entirely. That's how much this client means to me...but that could be setting a bad precedent, doesn't hold the supplier accountable, and, really, I don't have that kind of money anyway. Even worse, this is the only supplier for this item so it's not like I can get the next order from someone else.

I just cannot imagine having TWO opportunities, during production and during polybagging, to confirm an imprint and just ignoring it entirely. TWO opportunities....

Thanks again, friends, for all the good advice. Hopefully it will all come together in my mind overnight and gel into a good solution tomorrow.

You are still missing a main point. It is too early to be talking about call tags or anything else. Someone has to investigate the extent of the problem FIRST. No supplier is gonna fly someone out to do the investigation... that is your job. At that point, the supplier then has options. They can print more product & ship at their expense or fly someone to check the whole order. Keep in mind, as of right now, the problem is tiny, with no proof that this is a huge issue.

Secondly, if you decide to credit the whole job, that has absolutely nothing to do with letting your supplier off the hook. These are two completely separate situations... how you deal with your client & how your supplier deals with you. My point is, if your supplier tells you to take a hike & they will do nothing, are you then prepared to tell your client the same? I sure hope not. But please keep in mind, as of right now, this problem is nowhere near so bad as to require a full credit. That is, unless you choose to take no part in determining the extent of the issue. Maybe you will choose to give a huge credit because you are unable or unwilling to do part of your job. However, if that is the case, don't expect the supplier to reciprocate. They expect you to be a part of the solution. It is not their fault that you are so far away from your client.

You have to get over the fact that the supplier had two chances to catch this. What difference does it make if they had 5 chances? We all make mistakes. What separates the good from the great is how we deal with our mistakes.

[plantia]

The supplier screwed up, get over that for now and make your customer happy! AFTER the customer is happy (at whatever cost that may be), then go back to the supplier and have them make things right! This is YOUR responsibility FIRST!!!

[Nipper]

:) Jim, Royhill and Mark--Thank you VERY much for sticking with me last night and generating so many good ideas. After sleeping on the matter I woke up with an idea--contact the local Manpower office and see if they would have someone available to inspect and repackage any blanks for reshipment back to the factory. I phoned first thing, and they can have someone out there today for $15-$20.00 an hour, minimum 4 hours. They handle the whole payroll issue, and I could setup an account immediately and pay by credit card. So the inspection/repackaging cost could be as little as $100.00, and be completed TODAY. Much better than me attempting to drive or fly out, which would not only cost considerably more money, but we would lose a lot of valuable time that could be dedicated to inspection.

I next spoke with my client who really appreciated the quick response and creative solution...she then added that the warehouse manager's daughter was home from school on easter break and might just want to pick up the inspection project herself (at our expense, of course, which is great).

I am grateful to everyone who responded to my problem. When you are knee-deep in quicksand it is easy to panic and hard to generate solutions. Thank you all for keeping me focused on the real problem: keeping my client as happy and stress free as possible, with minimal work at their end!

Hannah

[jmyers]

A couple of thoughts from my point of view here. I absolutely agree with Jim that you need to get a better idea of what's up with the issue. You don't necessarily have to even open the polybag sets if you just want a sampling. It may be enough to start with looking at the top one in the set for an imprint and then continue to adjust from there.

You talked about crediting the entire order, but wouldn't grab a flight and just go check yourself? Seems a lot cheaper to show up and help deal with it if the customer is very important than to deal with all the badness associated with crediting an entire order.

I obviously don't know or want to know who the supplier is, but even the best folks make mistakes at some point, regardless of how many chances there are. I am sure they would love to help, but it is hard to know what the help needs to be without more data. There are certainly times when we will send a rep over to help in a process like this, but it isnt alwasy possible and I do agree with Jim that this is really your responsibility in the deal.

Last thought, not related to the resolution, but throwing it out anyway. You are saying that there is only one supplier for this item for the future. I would be extremely shocked if that were true, as that is not the case for almost any item in our industry, much less a common one like a padfolio. Even if you don't see any other suppliers with it in a catalog, there are a lot of suppliers who will go out and get it for you as long as there is some minimum quantity (i.e. 2500 or so). I would never feel trapped with your source, and as a supplier, I am well aware that almost everything I sell can always be bought from someone else.