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What to do when you receive defective goods or products from a supplier

On Behalf of | May 3, 2024 | Business Law |

Finding defective or damaged goods/products during a quality control inspection can be devastating, as your supplier contract spells out the quality of the items you want. 

So, what can you do if a supplier fails to observe this term?

Here is what to consider:

Request a product rework 

Before taking any further steps, contact your supplier as soon as possible. Let them know you have received unacceptable goods and would like a product rework. It’s vital to handle this conversation through email for documentation purposes. Take pictures of the damaged goods and attach them to your emails. 

Your supplier can correct the damaged products to meet your quality standards. For example, they can make sewing alterations, refinish footwear, repackage goods due to mislabeling and replace poor-quality hardware.

Once the products are sent to you after a rework, you should re-inspect them to ensure they meet the intended quality standards.

You and your supplier should discuss the costs of returning the goods and re-inspection expenses. Chances are your supplier contract covers retail chargebacks related to quality defects. 

Discard them

If the damaged products can’t be corrected, perhaps a rework can worsen the issue, you can ask for a replacement. This means you will destroy the defective ones to prevent them from ending up in the market. Ensure that you dispose of the products correctly. 

Further, if the supplier still has other damaged goods with your brand information at the factory, send a team to oversee their destruction – a dishonest employee at the factory may steal and sell them on the gray market.  

A supplier not meeting the required quality standard can lead to a delay in operations, which can translate to a loss of money. If this happens to you, get legal guidance to protect your business.