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Shipping Dispute

I am having a problem with a customer who claims part of a shipment was not sent. The shipment was sent in early October, 120 units, 60 on each of two POs. In December I sent several unpaid invoices again and asked for payment. In January I received a payment, but it did not include one PO from the shipment in October.

I inquired about the unpaid invoice and they replied they did not receive the 60 units for one of the two POs in that shipment. So they acknowledge receiving the shipment as well as 60 units for one of the two POs, but not the other 60 units on the other PO. They claim to have done an inventory confirming they did not receive the 60 units on one PO..

At this point it is perfectly clear to me that they simply bungled the accounting of the shipment. They require me to submit separate invoices for separate POs. So there was one shipment, one packing list showing

60 units one one PO and 60 units on the other PO, two invoices, one for each PO, a certificate of origin and of course, 120 units. The problem likely came from the fact that the two invoices were for the same amounts. Likely they treated it as if the two invoices were for the same 60 units on the same PO and lost accountability for the other 60 units.

Why they can't find the remaining 60 units in their inventory I can't say. But if there was a problem with the shipment, why did they wait for three months to report it?

There is nothing at our end that separated the 120 units into two lots. We made units as fast as we could and when a lot was ready to ship *I* assigned them to POs and provided the paperwork to accompany the shipment. Manufacturing and shipping only sees this as 120 units shipping out. So there is no way they would have shorted the order by

60 units. Finally, I checked the weight. Units weigh 15.3 grams. 60 will weigh 918 grams, just under a kilogram. Packing and the box will weigh approximately a half a kilo. FedEx says the shipment was 2.7 kilos, so that clearly shows 120 units and the packaging.

None of this convinces the customer as they have their internal procedures. Short of going to court, any suggestions on how to deal with this? Surely they have a responsibility to report problems with shipments in a timely manner which they failed to do. So I don't see where I should even be dealing with this. No?

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Rick C
Reply to
rickman
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Are your units serialized? If not, this seems like a good reason to do so! I put serial number labels on all but the most totally mundane of parts.

I suppose threatening them that they will recieve no more shipments until they pay up has already been given?

Jon

Reply to
Jon Elson

...

This won't help you now, but we are getting into the habit of photographing the packing of all shipments in case of dispute. Been doing that a long time on high value orders, but doing it now on smaller ones from time to time.

John

Reply to
John Robertson

Yes, the units are serialized and I track what goes on what shipment with the numbers listed on the packing list and the invoices. I asked them about the serial numbers, but I don't think *they* track them. If I had room for a bar code they might, but the boards are too small. I have to put the SN label on top of the one chip of any size.

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Rick C
Reply to
rickman

Yeah, I've always wondered what would happen if a shipment was in dispute like this. I am banking on my serial numbers. If I can get them to give me the serial numbers for the last 1000 units they've received, I can confirm they received units from this invoice. But I know they aren't going to do that and likely can't for any units already shipped. Although I could get a court order perhaps... lol.

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Rick C
Reply to
rickman

Real talk: this combined with your other post where you say they'd refuse to do a serial # count for you to help makes me believe you're dealing with a real PITA customer who, as you say, you will never get satisfaction out of short of going to court.

They must certainly be aware that if they leave this dispute hanging without an amicable resolution you're going to eject them, right? It frankly sounds like what they really want, so I'd say just claim it on your taxes as an operating loss if you can, and then your only choice is to decide whether you want to "ghost" them tactfully, or no.

Reply to
bitrex

Make them sign for receipt of the shipment next time. Look into F.O.B. as a term of sales. I'm not going to bother explaining it to you.

Reply to
bloggs.fredbloggs.fred

But...but...motorbutt. Shipment was via FedEx and that means tracking (you can get a copy if you lost yours) AND a signed receipt.

If a package was not delivered, there is a record of that, as well as it being returned as refused or non-deliverable ("cannot find address").

Chase and get ALL delivery paperwork for the packages, make sure you have ALL documentation for each one including whatever shows contents (60 mumbletrons, lot ONE of 60 serial numbers 1...60 package first sent

20070401, 120 mumbletrons, lot TWO of 60 serial numbers 61...120 AND lot THREE of 60 serial numbers 121...180 in package second sent 20070401). Request customer to review and comment on veracity.
Reply to
Robert Baer

that's all bs isn't it. You shipped the goods and they don't want to pay.

Ensure you have proof of shipment, and as much evidence & proof as you can. Then it's court. Unless you want to give your product away.

presumably your contract said so.

I always include a clause whereby if they pay on time it's one price, if they don't it's another.

NT

Reply to
tabbypurr

Their customers are not buying the product. Or the stock boy dosent know how to count.

I would never send 2 PO's on one shipment, that will surley cause confusion.

Late payers are put on COD over here.

Cheers

Reply to
Martin Riddle

In the electronics industry it is not uncommon to pay somewhat past 30 days. I could tell you stories about some of the BS pulled by these middlemen. I am actually selling to multi-billion dollar contract assembly houses who build the systems for a multi-billion dollar networking company. This one is actually one of the better outfits. They usually pay in 30 days, as I said, I think they goofed up the receiving because of the two invoices.

I was producing product as fast as we could with multiple POs in process. We had 120 units ready to ship and the customer wanted them shipped priority on their dollar, so I complied. It just didn't occur to me this would get botched like this.

I should send them a new invoice with the 2% per month added. I did that with one company who pathologically paid late and it took over 6 months to get the 2%, but I did get it. A VP contacted me and insisted I give them 60 day terms. The only way I would do that is if I added the 2% to the cost which he was ok with because that just got passed on to the networking company. But added as a late payment fee they had to eat it.

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Rick C
Reply to
rickman

Too much unsaid

- the amount of the unpaid invoice

- the volume of past & probable future business with this customer

- does your company have in-house legal, or would you have to contract it

If at all reasonable let it go. The customer is intractable & you have unneeded stress.

Reply to
Bob Engelhardt

And send FedEx with signature required at delivery.

I don't know why companies risk thousands to save a few bucks on shipping.

Was it insured? Or was it worth it ?>:-} ...Jim Thompson

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| James E.Thompson                                 |    mens     | 
| Analog Innovations                               |     et      | 
| Analog/Mixed-Signal ASIC's and Discrete Systems  |    manus    | 
| STV, Queen Creek, AZ 85142    Skype: skypeanalog |             | 
| Voice:(480)460-2350  Fax: Available upon request |  Brass Rat  | 
| E-mail Icon at http://www.analog-innovations.com |    1962     | 

     Thinking outside the box... producing elegant solutions.
Reply to
Jim Thompson

The invoice is for the value of a smaller car. I want to add that to the deposit on the Tesla Model 3 I made. :)

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Rick C
Reply to
rickman

You didn't read the thread did you?

"they acknowledge receiving the shipment"...

"FedEx says the shipment was 2.7 kilos"...

Does that answer your questions?

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Rick C
Reply to
rickman

My company also photographs all 4 sides of the pallets we send out for this same reason. Doesn't hurt !

boB

Reply to
boB

True, but just because FedEx delivered it doesn't mean it was received by the addressee. You need a "signature required" delivery for that.

Reply to
bloggs.fredbloggs.fred

Duh

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Rick C
Reply to
rickman

Do you have a FedEx account? If so, you can log in to your account and see the scanned signature of the person that received the package. I've done this in a couple cases where the company lost the package in their own internal mail system. Once I was able to tell them "Darlene Smith received the package on January 21" they were able to immediately locate it shoved under somebody's desk.

If you don't have a FedEx account, the shipping service should be able to look this up for you. Most packages over a few hundred Dollars are signature required at FedEx. I don't recall the exact amount that makes it required.

Jon

Reply to
Jon Elson

Proof of delivery is not an issue. I've already gotten the signature and the "proof of delivery" document from Fedex. But this doesn't prove what is in the box, except for the weight Fedex reported which is consistent with 120 boards.

The box was opened, the contents were put in inventory. That is shown by the 60 units they have already paid for.

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Rick C
Reply to
rickman

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