Start networking and exchanging professional insights

Register now or log in to join your professional community.

Follow

A procurement manager wrongly orders2 times the supplies required.the supplier refused to refund,the company blames him.what can he do?

user-image
Question added by amer jayyousi , Business Development Consultant , freelance
Date Posted: 2013/12/06
Rehan Qureshi
by Rehan Qureshi , Financial Consultant , Self Employeed

He has to pay for his mistake. 

Mohammad Tohamy Hussein Hussein
by Mohammad Tohamy Hussein Hussein , Chief Executive Officer & ERP Architect , Egyptian Software Group

Conceptually, the procurement manager executes purchase requests from authorized personnel in the different departements and withing these department's budgets. Therefore such an incedent should be very remote and if happend it should be for a comparatively small value. If this is not the case then I sufggest looking for farudal behavior.

But uf ut happens, then define who is accountable for the mistake and work with him/her to resolve the issue. If this is proven to be a fraud, the issue should be raised to concerned entities in the company. If it isn't, if the items are required at later stage (consider exxpiry dates if they exist), then keep it for a later use. If the item is not required for near future use, work with your supplier to resell it. If non of the above is doable, whoever is accountable should pay for it as per the company's policy and based on his/her history of such incedents.

elfatih mohamed ali Ali
by elfatih mohamed ali Ali , Procurement and Logistic Officer , Sudanese Microfinance Development Facility SMDF

to confess committed mistake pay the total amount or submitted his resignation

ibrahim magdy eldin mahmoud
by ibrahim magdy eldin mahmoud , projects director , Aircraft factory

procurement manager is responsiity

syed osaf ali shah shah
by syed osaf ali shah shah , SALES OFFICER , PAK AGRO CHEMICAL,HOUSE OF ITALIA

HE HAS TO PAY FOR HIS ACTION

 

Ajay Gupta
by Ajay Gupta , Project Manager , CH2M Hill Energy Canada Ltd

Procurement manager should work extra, to find a buyer, and redirect extra ordered material .

Nadeem Asghar
by Nadeem Asghar , Supply Chain Consultant/Trainer , Independent Practitioner

Normally the procurement contracts are irrevocable and the buyer cannot at his own cancel and return the material for refund. However, suppliers are in a continuous relationship with the buyer and the procurement manager should make all out efforts to persuade the supplier to take the material back and refund. If not, then the material may be kept in the organization for future use with carrying and inventory cost to be charged to the Procurement Manager as penalty.

In addition to this, the Procurement Manager must analyze systems to see the flaws which allowed double ordering and make necessary correction so as to avoid any such mishap in future. 

More Questions Like This