Late delivery penalties are something you might want to consider if the supplier delivers your order late.  The penalty can be a percentage discount on the total order value.

It is best to include the details of your late delivery penalties in your contract/purchase order.

Try not to make this a contentious issue so they end up cutting corners to meet your delivery deadlines.   You want quality product delivered.

It is best to ask them for an estimated delivery date so you put the ball in their court and then work around that date.

If you have a delivery date you need to achieve then talk to the supplier about this and the reason why you need your order delivered by this date.   This reason could be because you have promised a large customer they would have their product by a certain date.

Always give the supplier a date that is 1 – 2 weeks earlier than when you really need the order to leave the port because they will normally always cut delivery fine.  NEVER give the supplier the exact date you need your order by OR tell them you have allowed extra time to cover you if they do deliver late.

Also there can often be circumstances where a late completion is unavoidable. Sometimes your manufacturer could have trouble sourcing their raw materials within the time constraints which is beyond their control.

At times even the shipping can be held up which is out of everyone’s control.

In these cases you cannot really hold the supplier responsible because some things are completely out of their hands.

While this doesn’t happen often, it’s something you still have to consider.