Case study | What if the supplier does not agree to compensation?

By justchinait
 / 
January 15, 2021
 / 

Akoda is a retailer in Australia that specializes in selling digital accessories products. As early as 2015, they started to conduct business between second-hand mobile phones and tablets. With the rapid growth of their business, they want to expand their sales scope so that customers have more choices. So they hope to add more accessories.

In 2019, they tried to purchase mobile phone tempered film from China. They had never contacted a Chinese supplier before. Due to language barriers, there was a problem in communication.

As a result, Akoda purchased a batch of tempered glass membranes for mobile phones, and 10% of them were found to be of poor quality and white edges were found in the inspection before shipment; Akoda required suppliers to replenish the goods according to the proportion of defective inspections, and the suppliers did not cooperate, thinking that the tempered glass membranes The appearance of white borders is a normal phenomenon, and problems occur in every factory.

The following is the demand table for Akoda’s procurement. You can see that he purchased a total of 10,000pcs. According to the normal delivery period of 10,000PCS/3-5 days, the popular mobile phone model factories generally have spare inventory.

9H/2.5D Curved glass tempered phone screen protector

iphone 11 pro

2000pcs

iphone 11

3000pcs

iphone x

3000pcs

iphone xr

3000pcs

iphone xs max

4000pcs

iphone xs

3000pcs

Because mobile phones with 2.5D glass have a curvature on edge, there are many reasons for the white edge phenomenon of the tempered glass film:

1. It is caused by errors in the hot bending process;

2. In order to seize the market, the factory has started production before the new machine is on the market. The result is that the openings, edges and other details are not handled properly, and the probability of white edges will be higher;

3. The AB glue is not good;

Now because the supplier does not cooperate, it is not replenishing the 10% defective product. Cause Akoda does not know how to solve it?

If he buys a plane ticket to come to China for this problem, the communication cost, time cost and money spent are huge. So he wanted to find a local and experienced person in Shenzhen to help solve the problem.

So I found justchinait. After Justchinait received Akoda’s request, he immediately went to the supplier’s factory to negotiate with it. Justchinait Shenzhen office only takes an hour’s drive to the factory. After arriving at the factory, Justchinait first inspected the 10% defective products. Justchinait knows that this 10% defective product is different from the other 90% qualified products. Therefore, it can be judged that the tempered film’s white edge phenomenon is caused by the replacement of AB glue in the factory.

Then Justchinait negotiated with the factory owner. The owner was very guilty after being seen by Justchinait, knowing that the factory caused the defective product. The factory promised to compensate 10% of the tempered film to the customer. For conventional products such as Iphone tempered film, the factory will have some inventory. The reason why the supplier did not agree to compensation was because the factory was unwilling to lose its profits. The factory was unable to visit the factory due to the distance from the customer, and the customer did not understand the production process. Just tell the customer that this is a normal phenomenon and want to get through.

In Justchinait’s follow-up, the factory quickly found 1,000 tempered film stocks and only needed to replace the packaging of these stocks.

The factory took out all the defective products from the order within 2 days and then packed another 1000 qualified tempered film to replace. The final products received by the customer were all qualified products, and no quality problems were found.

In fact, this phenomenon is very common in China. When a supplier or a trader encounters a problem with a customer, they always feel that the customer is too far away from China to check it in person. Just want to use various methods to shirk responsibility.

justchinait adheres to the concept of customer first and aims to help foreign buyers solve all the problems in the procurement process. Because we just want to make foreign trade procurement easier.

If you encounter such problems or need a supplier evaluation, please leave a message or contact us.

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