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Delayed Shipment, missing in transit, damaged shipment on arrival, wrong HS Code on docs for which shipment get stuck at customs, discrepancies in shipping documents, if it is LC on sight then you might receive container full load of bananas instead of equipment :)
The worst things during logistics processes when you are procuring equipment are:
1) Bad quality of the equipment;
2) Lost quantity and damage;
I think better to resolve this issue since the beginning and rest responsibility on to the vendor side on the basis of contract terms. In case if you are not sure that supplier will release acceptable quality of equipment you have to think about arranging of inspection at collection point (which has to be included in to amount of the contract of course). Inspection report signed from both sides will be helpful upon delivery of equipment to the destination point.
Lost qty and damage are the things which more difficult to control but you still can use such tools as insurance, delivery terms on responsibility of supplier and payment terms.
The above worst things are most dangerous as per my opinion, but I agree with other participants that there is a lot of “hidden pitfalls” )))
Insufficient time spend in technical specifications of equipment to be procured, resulting in down time for client or own processes. Solution, ensure people understand the process of supply chain, procurement and necessity of verification prior order. Set up proper MS to ensure people understand the impact of a good MS or SAP system.
Buying locally will be expensive, and purchase from abroad will be high risk of shipment clearance nowadays. Preferabily low qty will be purchase it locally is a better solution. Big orders must be purchase from manufacturer with pre-caution.
The worst thing will be subject to the personal experience.
my worst experience was the material i ordered was lost by shipper by an accident. thus our company committed to pay delay penalty at work site. the financial loss was solved thru insurance. but it was affected badly on the prestige of the company, however, covered by future support and treatment.
With respects of all above, There are three principles if they are missing in the procurements process can be very worst in any stage, and these principles are
1- Fairness
2-Competitiveness
3- Transparency.
Also non clear Purchase Request, not show clearly (specification, quantity, time of delivery and other requirement), it takes procurements process to worst case and any step of the process.
Good day
a summary of all what has been said above:
- loss of quantities
- damages physical
- bad quality
- Delayed Shipments
- Unavailability of proper transportation mean
- Force majeur situation
- Loss of documentation
- Error in documentation
- shipment delay, damaged shipment, partial shipment, clearance delay from port/customs
- Bad procurement strategy
to my understanding and generally what I have seen in my professional career all are correct and many other situations could be added take into a serious consideration those factors which have 60% probability to happen during the procurement life cycle. according to statistics 90 % of the companies do not consider risks in their procurement and logistics. have a clear policy and procedures to manage risks in procurement how to mitigate risks.
and some risks cannot be eliminated but a contingency plan to be prepared as plan B and an amount of money to cover losses or to take into considerations all delays in your schedule. in procurement we cannot be optimists but conservatives and a strong follow up plan.
the worst are those events that can affect time, cost and the scope consequently the quality. any risk that its probability is high and not accepted by the stakeholders and not enough managed in the schedule of work.
e worst things during logistics processes when you are procuring equipment are:
1) Bad quality of the equipment;
2) Lost quantity and damage;
I think better to resolve this issue since the beginning and rest responsibility on to the vendor side on the basis of contract terms. In case if you are not sure that supplier will release acceptable quality of equipment you have to think about arranging of inspection at collection point (which has to be included in to amount of the contract of course).
The worst thing is delay in items from the suppliers, which will lead to shortages. The main way to avoid this is to have truest been you and the suppliers and to provide them with forecast ahead of time. all shortages/delays are not always the suppliers fault, it also can be due to the time it takes to get the PO issued to the suppliers(lengthy approval process).
