How can you negotiate contracts with suppliers who miss deadlines?

I have found that if a supplier can’t meet deadlines for RFI or RFQ they will not deliver at any stage. Save yourself time money and stress by finding a provider that can meet deadlines.

Para lograr una buena negociación, el contrato debe ser claro, coherente y preciso, además debe contener clausulas de multas, hitos del servicio y clausulas de salida, estas clausulas de salida deben ser medible y cuantitativa. La negociación con un proveedor que no cumple los plazos se debe realizar en base a contar con registros y trazabilidad del su servicio, esta información debe ser llevada a diario e informada al proveedor de forma contractual. Además debes tener claro y evaluados en impacto tus incumplimiento sobre el proveedor, para proyectar tu costo y umbral de negociación. Estos antecedentes te permitirán contar con una base sólida para la negociación y lograr un acuerdo de lo efectivamente desarrollado en el contrato.

A deadline is a deadline. If a supplier does not make it to the line they are dead. If I have made a commitment to my internal customer and it has not been fulfilled be my external source that is the end of the contract. My trusted supply chain knows they can not make me look like a liar and expect continued business.

As a project manager or contracts manager you have to discuss the root causes of the delays with the supplier and revise the historical data for this supplier to check if he usually delays delivering or it was for only one time Then you can assess if the supplier will be aligned with your organisation terms and conditions or not Based on the above you can make a decision if you will deal with him or find another supplier who can align with your organisation terms and conditions

Missed deadlines from suppliers impacts on your ability to process your contracts, so make sure that you have enough suppliers to meet your needs who can cope within your terms of need. A supplier who misses a deadline can be bad for business, so they must be involved within your terms of reference and should they fail your needs, then they will lose their position in your supply chain. Suppliers need your business and will do what is reasonable to make your deadlines but mistakes do happen but you suppliers must stay ahead of the game and keep you well informed of progress, together with any possible delays. It is not hard to set in place a system of notifications through stages of supply to delivery, keeping all parties well informed.

Negotiating with suppliers who miss deadlines requires a balance of firmness and understanding. Initiate discussions by reviewing contract terms and highlighting missed deadlines. It's crucial to listen to their challenges or reasons for delays. Propose realistic timelines and possibly renegotiate terms if necessary, ensuring they align with our business needs. If issues persist, explore penalties or incentives for future compliance. Clear, consistent communication and documented agreements are key. This approach fosters accountability while maintaining a professional relationship, leading to improved supplier performance and adherence to deadlines.

I would never do business with such a supplier. A supplier known for missing deadlines is in serious jeopardy of going out of business. Find a more reliable supplier.

As vezes vale pagar um pouco mais para evitar a perda de prazos, se o fornecedor não está entregando no prazo adequado. A perca do contrato de fornecimento é a melhor forma de educação.

Initiate communication with the supplier and find out the root cause of the issue. Learn from your supplier's mistake and get acquainted with their capabilities. It could reveal they cannot accommodate your company and a new supplier will need sourced. It could also uncover their credibility. In either case, it is not to be overlooked and needs addressed. Ensure everything, from the opening to the closing, is documented.

One of the things that could be taken out of context is undocumented communications. When discussing contract details with potential suppliers, it's critical to document them. Either by taking meeting minutes or recording the calls/zoom depending on the magnitude or impact of the contract. Always follow up with an email. "Per our conversation"... etc.

Including liquidated damages in the contract terms and applying a cost impact per working day shall be deducted from the Contractor's estimate if the work is not completed prior to the expiration of the time limits. This is enforceable in a court of law and typically gets an immediate response from the supplier.

1. Communicate clearly: Let the supplier know that you are aware of the missed deadlines and ask for an explanation. 2. Be firm: Let the supplier know that missed deadlines are unacceptable and can lead to a breach of contract. Ensure that there are consequences for missed deadlines, such as penalties or the right to cancel the contract. 3. Find a solution: Often, missed deadlines may be due to unforeseen circumstances. Find a solution that ensures timely delivery going forward, such as adjusting the delivery schedule or increasing communication. 4. Re-evaluate the contract: If the supplier continues to miss deadlines, it may be time to re-evaluate the contract and consider finding a new supplier who can reliably deliver on time.