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International Procurement - Learn International Procurement Online
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International Procurement - Learn International Procurement Online
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Purch-lympics Entry #2

 

Aung Kyaw Than
Procurement Team Leader, Bangalore, India

Purch-lympics - Online Competition For Purchasing Professionals "I am working for an Oil & Gas Company. In 2007, I received a report on the received material with different specification from end users. They are fiberglass boxes purchased from a U.K supplier with the catalog reference for Safety Department.

The users received those boxes as per requested color, shape and quantities but with different dimension. If only for this discrepancy, I would have advised the requesters to accept them but they came without weather-proof seals important for safety reason to use in Offshore. And this order was already paid after good receipt at forwarder in U.K as per our payment terms.

I informed the supplier about this discrepancy . After checking with the manufacturer, the supplier replied that they could not take any responsibility against it as it had been a long time since delivery was made. Having checked with the supplier, I found that they made backorder and requested the manufacturer to deliver directly to the forwarder. The manufacturer delivered similar items available in stock without informing the supplier of the difference.

I explained the situation and the reason why taking a long time to receive the goods and came to know about this at large. There was no inspection in U.K and this order was sent first to forwarder in Singapore because we cannot import any orders without import permit normally taking about 2 months for processing. Despite pre-shipment inspection in Singapore, it could not easily be identified with general checking. We can import only permitted material once a month according to our vessel schedule. Even though our warehouse personnel checked this order upon arrival, they also could not identify it.

For those reasons, we requested to replace them with correct or equivalent ones to suit our requirement for mutual benefit. I concluded my explanation with the points; in case supplier had checked in U.K or manufacturer had informed before delivery, we would not have encountered such a problem.

It was eventually granted for a credit to this order. "
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