What strategies do you use to keep your suppliers accountable? We have had ongoing issues with nearly all vendors declining to sign our purchase orders, which is where our terms are called out. However, the vendor will not proceed until we sign their order acknowledgment, which typically states terms that are favorable only to the vendor. The order acknowledgment uses vague language around delivery dates and times. We have recently experienced multiple situations where the supplier pushes our order or attempts to deliver outside of site hours, and we have no contract or purchase order signed that we can hold them to. Meanwhile, as a subcontractor, we are penalized for missing deadlines as a result of the suppliers not meeting their original commitments.
In past years, we have been able to leverage whether or not the supplier is awarded the project based on their ability to comply with our terms, but lately, the vendors are not open to any route other than us signing their order form with their terms because they have numerous other orders that can replace the business they would have had with us.
I know with the current supply chain and economic landscape this is even more of a challenge, but I would to hear any strategies other companies use to combat this.
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Deseray Gruben
Controller
Kovach Enclosure Systems LLC
Chandler AZ
(970) 597-0142
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