5.4 Vendor/Supplier Communication/Coordination
(Or: "How to get what you paid for, when you need it")
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5.4.1 Purchase Orders & Delivery Tracking
Paper Trail = Power
📝 Bulletproof PO System
Field Why It Matters Common Mistake
PO Number Legal tracking (Format: YYYYMMDD-001) Using "PO-1", "PO-2" etc.
Delivery SLA Penalty clauses for delays Vague "ASAP" timelines
QC Standards Photos/specs of expected quality Verbal agreements
Pro Tools:
• Zoho Inventory (Free for <50 POs/month)
• ShipBob (For e-commerce tracking)
• WhatsApp Business (For Indian supplier comms)
🔥 Horror Story:
A Chennai manufacturer accepted verbal POs from a supplier. Delivered:
• 40% defective raw materials
• ₹17L loss (No proof for legal recovery)
PO Template Snippet:
markdown
PO #20240615-028
Supplier: [Registered Name] | GSTIN: [Number]
📅 Delivery: 2024-06-25 (Late fee: 1%/day after 72h)
🔍 QC: Match sample #S-2024-05 (Photos attached)
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5.4.2 Dispute Resolution
When Things Go South
⚖️ The 5-Step Conflict Protocol
1. Freeze Payment (But don't notify yet)
2. Document Everything (Photos, timestamps, witness statements)
3. Official Notice (Registered post + email)
4. Negotiation Window (48h for resolution)
5. Legal/Arbitration (As per contract)
💡 Indian-Specific Hacks:
• RTI Applications: For govt supplier delays
• Local Influencers: Resolve disputes via industry associations
• Paid-Partial Trick: Pay 70% upfront, 30% after QC
💀 Nightmare Scenario:
A Mumbai cafe changed dairy suppliers to save ₹5/liter. New vendor:
• Delivered spoiled milk 3 straight days
• Health inspector fined ₹2.8L
• 1-star reviews: "Food poisoning guaranteed"
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🛡️ Vendor Health Check
"How vulnerable is your supply chain?"
Parameter 😱 Danger Zone 🛠️ Managed Risk 🛡️ Ironclad
PO Process WhatsApp messages Email confirmations ERP-integrated system
Delivery Tracking "Trust me" updates Some checkpoints Live GPS + IoT sensors
Dispute Resolution Yelling matches Partial refunds Contractual penalties
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🚨 Vendor Emergencies
"When suppliers fail:"
Disaster Immediate Action Prevention
Critical delay 1. Activate backup supplier
2. Claim force majeure with clients Maintain 20% buffer stock
Quality rejection 1. Segregate bad inventory
2. Issue debit note Pre-shipment inspections
Supplier bankruptcy 1. File claim with NCLT
2. Retrieve raw materials Diversify vendor base
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📌 Founder's Vendor Toolkit
1. The Blacklist Book
o Shared industry spreadsheet of fraudulent suppliers
2. The QC "Red Team"
o Rotating staff who intentionally find faults in deliveries
3. The Chai Diplomacy Kit
o Always keep ready:
• Extra negotiation copies
• Voice recorder (with consent)
• Cheque book for on-spot settlements
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🎯 Final Thought
"Your vendors can make you a hero or bankrupt you. Treat them like extended employees—train, audit, and reward accordingly."
