Provisions and terms of electronic ordering known as e-commerce
Our prices are the same as the suppliers price. We get paid for attracting business via the web by them, we do not add any percentages onto the suppliers price.
Due to the extermely fast method of placing orders and resultant faster delivery from the suppliers stock on hand, it has become necessary to encompass both the suppliers terms and the rights of the customer to provide absolute clarity.
It has to be understood by the customer that there is a difference between stock on hand and stock that has to be produced to fill an order. Most suppliers limit the stock on hand to an acceptable business level and is dependent on both seasonal and cost of production (factory gate). If a supplier expends resource be it in any part of the production of goods i.e. manufacture, ordering materials, chain which includes mode or method of invoicing and delivery such costs have to be recouped should an order be cancelled. It is impossible to say at which part of the production if the item is in production or simply stock on hand.
For clarity I will give a simple example:
An order is placed and 7 days later the customer cancels the order. No doubt as each day passes the element of cost of production increases on the suppliers side, ultimately resulting in the end point shipping. Some suppliers will take the goods back as part of their goodwill and others will not and may penalise you with a portion of the cost of production. Suppliers know how much out of pocket they are for each order. They may wish to recover shipping only, they may well may wish to recover COP % if they are not saturated by the stock to be returned.
Let us say 1000 ostrich eggs were ordered, the customer wanted them decoupaged with lions, elephants. The agency receives and processes the order, The supplier has to place it in the production line schedule. The supplier has had to purchase the A grade egg, spend time cleaning it, set the decoupager to work on the eggs. Varnish the eggs, dry the eggs, pack the eggs, create the invoice, arrange for the courier to collect. Here I have simplified the chain. All the elements in the chain have physical costs and time costs. Such costs are build into the wholesale price. Whereas returning/cancelling the order can render the supplier vunerable.
It is not part of the suppliers responsibility to run your enterprise or foot costs - this is built into your mark-up margin, sundry expenses such as returns must be at your cost - you can claim them back from the South African Revenue Service on your tax return, either as an operating expense or as a loss.
What is an acceptable cancellation period from time of electronic order?
In analysing cancellations broadly, nothing more than 48 hours - the longer it takes to cancel, the greater your liability to the supplier. You may postpone delivery and invoicing to a later date if something is unforseen, however this can only be done before the goods are shipped. Most suppliers will accommodate a delay in a delivery date for one month, two dependent on the supplier and goods ordered may be subject to any increase in the factory price.
What are the responsibilities of the supplier?
The suppliers responsibility is to provide you with goods that you ordered. If a supplier substitutes any product without advising you in advance - they are in breach of the NCPA. If they overcharge you due to an increase, this must be communicated before the goods are sent. In other words subject to your approval.
What if goods are damaged or consignment has been tampered with goods missing?
Your responsibility is to report it within 24 hours of receiving the consignment, either to us via any medium email, trouble ticket under our online services, telephone or fax or to the supplier. It is important that you check the consignment when it arrives. Some things are of such a common nature that I need not mention them but feel that I have to do so. Examine the consignment boxes - are they squashed, damaged, ripped open, seals on boxes indicate they have been opened.
Check the manifest of each box to that of the delivery note/invoice. Note which items from which box are missing, damaged not functional. It is important for the supplier to make a claim against the transporter (shipper) or their insurance. Detail is key.
Supplier Terms & Conditions
Each supplier has their own set of terms and conditions which are not superceded by Fine Line Agencies Group T&C's.
If a supplier stipulates 30 days for the provision of an account it shall be interpreted as 30 days as from date of invoice and not the date that goods have been delivered. Should delivery be delayed for whatsoever reason, it remains the purchasers responsibility to communicate with the supplier. Non-communication will render the payment date as 30 days froim date of invoice.
30 days is not 30 working days it is 30 calendar days. The supplier shall be justified in adding interest or suspending further orders until the customer adheres to the terms.