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How do I handle manufacturer`s defective goods?

JeannieJeannie subscriber Posts: 8
edited March 2008 in Strategies & Tactics for Getting Efficient
Hi SuN Members,
 
I am curious to know how other companies handle defective goods from overseas manufacturers. Does anyone have any experiences to share about how to handle defective goods?
 
For instance, if I receive goods that are not up to par and not within the tolerance level, then what should I do?
 
Would the manufacturer tell me to ship the defective goods back to them?
Who would be responsible for shipping it back?
Would the manufacturer give you back a refund?
Would the manufacturer make a new batch and then ship it to you?
 
I mean, I know as a consumer, when I buy something that is defective, I know I can always return it back to the stores like Target, Kohls, etc.  But then, what does Target and Kohl`s do with the defective goods? Do they get a full reimbursement back from manufacturers?
 
So, that`s what I`m curious about.  If anyone has any idea about defective goods, please do share! =) I would really appreciate it!
 
Thanks in advance!
 
-Jeannie Lit
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    GrillCharmerGrillCharmer subscriber Posts: 7
    Hello Jeannie!  I don`t have any answers for you, I`m really wondering what advice others have. 
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    art8art8 subscriber Posts: 6
    Hello Jeannie, I see that not a lot of response on this issue. But here is my 2 cents. When I place an order to China I usually pay  30% before production.  The other  30% when shipment has been sent . The final 40% when it has been received and inspected. If we find defective products we subtract from the last payment. But we only inspect at random 20% of the order. If you can get 80%-85% of your product passable then I think that is a good number for efficient. With each run try to improve that number.  For the other mater when we finalize each product and inspect each one before shipment,  this is the time when we find  more defective products. At this point we try to get credit from the manufacturer on the next run. This saves on shipping and changing money. I usually take lots of pictures to prove my point. You can also negotiate to upgrade the materials at a lower cost. I guest it depends on your manufacturer. Hope this helps.
    art82008-3-27 8:31:54
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    JeannieJeannie subscriber Posts: 8
    Hello Art8,
     
    Thank you so much for taking the time to tell me your experience! I really appreciate it!
     
    Your input has been very helpful.  I will definitely start taking more pictures to show as proof and hopefully, will get a credit from the manufacturer on the next run.
     
    Thanks again for sharing!
     
    Sincerely,
     
    Jeannie
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