Question

In: Operations Management

Lets say you have a contract awarded and services begin to be delivered, and then the...

Lets say you have a contract awarded and services begin to be delivered, and then the supplier calls you and says he can no longer deliver per the terms of the contract. What do yo do, what do you think about?

Solutions

Expert Solution

First of all, I would start thinking about the promise our company has made to the customer with respect to the delivery. Being reliable is very important in business in order to gain the trust of the customers and convert them into loyal customers. So instead of thinking about taking legal action against the supplier, first I would think how I can convince the supplier to work with us and complete the assignment successfully. I will think of the options or the offers I can make them stay with us and deliver. If this does not work out then I will think of the alternatives I have and how I can meet the needs of the customer. I will talk to the competitors of the supplier in the market and check with them if they can deliver the assignment. I would keep all the people in the relevant stakeholder informed of the changes happening in the process and what are the steps we need to take. I will create an action plan with the required steps to be taken in order to save the contract we have. I will also have a discussion with the top management of the company and seek their advice before making any serious business decisions. After all these steps, I will think of taking a legal action against the supplier for not following the contract. I will sue them for the damage they have caused to the business and look for a strategic alliance with other major players in the market.


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