Scholastic will print about as many copies of the next Harry Potter book as the number of promises some vendors will make during the sales process.
As good old Harry often learns, things are not always as they seem and spells have unforeseen consequences. So it is with vendor promises, something is bound to happen which will be a reason/excuse why a promise made in the sales process can't be honored later on.
What can be done about this? I'm sure you've heard of the idea of vendor fines - if a vendor misses a deadline or performs unsatisfactorily, this idea says that we should get them where it counts- in the wallet. My question is what vendor is going to agree to this?
I know there are such provisions in big government construction and public works contracts. What happens when the government tries to impose one of the fines? A court battle ensues - and a large one since these fines for cost overrun and construction delays can be in the tens of millions of dollars.
What about smaller private, non-construction contracts that you are more likely to encounter on a daily basis? Would you want to hold your packaging vendor to a fine schedule if there was a problem getting your boxes and blister packaging delivered? How about your chemical supply vendor if the company is late delivering your seasonal supply of insect repellant component? Can you get your catalog company to agree to be financially liable if a catalog misprint results in a page that features your company's best selling products being left out of half the catalogs?
The best and most obvious "fine" is the threat of loss of future business. Nonetheless, how realistic do you think vendor fines are? Have you made them work?
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