Receipt of a non-compliant delivery, penalties and warehouse capacity

Invoice received: XOF 70,950,000, i.e. XOF 28,841,500 more than the value accepted: it is non-compliant and must be returned for correction.

Penalty: delivery on 17 October instead of the 10th, i.e. 7 days late: 7 × 0.5% = 3.5% × 70,950,000 = XOF 2,483,250 (below the 10% cap). The 200 blankets and the replacements have not yet been delivered: depending on how the contract is read, the penalty continues to run on these items, to be confirmed with the procurement department and calculated on final delivery.

Amount payable at this stage, on a corrected invoice: 42,108,500 - 2,483,250 = XOF 39,625,250.

Options: (1) reject the 1,500 sets and require compliant sets (replacement at the supplier's expense); (2) require the supplier to complete each set with the missing knife and ladle, checked on receipt; (3) accept the incomplete sets with a price reduction.

Analysis: option 3 changes the specification after the contract has been awarded: it requires a written amendment and the programme's agreement, and it may distort competition (other suppliers could have offered a cheaper 12-piece set). The programme must say whether the missing pieces are essential for households (the knife and ladle are essential for preparing meals). Option 2 is often the quickest and preserves the specification.

Recommendation: notify the non-compliance within 5 working days; ask the supplier to complete the sets within a set deadline (option 2) or, failing that, to replace them (option 1). The decision lies with the procurement committee or procurement manager together with the programme, in writing, and not with the storekeeper or the logistics officer alone. The sets remain in quarantine, labelled, not to be distributed, until the decision.

Capacity: 20 × 12 = 240 m²; 240 × 0.70 = 168 m² usable; 168 / 1.2 = 140 floor positions; × 2 levels = 280 pallets. Free positions: 280 - 160 = 120 pallets.

Requirement: tarpaulins accepted 1,435 / 100 = 14.35, i.e. 15; jerrycans 2,880 / 60 = 48; blankets 2,800 / 150 = 18.7, i.e. 19; kitchen sets 1,500 / 30 = 50; mosquito nets 3,000 / 400 = 7.5, i.e. 8; quarantine of damaged items: tarpaulins 1, jerrycans 120 / 60 = 2. Total: 143 pallets, i.e. 23 more than the space available.

Solutions: (1) have the supplier take back the non-compliant kitchen sets as soon as it is notified, or leave them in its custody until the decision: the requirement falls to 93 pallets, within capacity; (2) have the 145 damaged items taken back immediately; (3) bring forward the dispatch to the sites of items planned for the next distribution; (4) failing that, a temporary mobile storage unit or rental of nearby premises, secure and insured. Do not reduce the aisles or stack higher than 2 levels: risk of accidents and crushed items. Keep a separate, clearly marked quarantine area.

Sample answer: "Subject: purchase order no. [reference], claim following the delivery of 17 October. Dear Sir or Madam, in accordance with the claims clause of our contract, we hereby notify you of the discrepancies found on receipt: 40 tarpaulins missing and 25 torn; 120 jerrycans cracked; 200 blankets not delivered; 1,500 kitchen sets non-compliant (12 pieces instead of 14, knife and ladle missing). We ask you to deliver the missing items and replace the damaged items within 10 days, and to complete the kitchen sets or replace them in line with the specification. The rejected items are held at your disposal. The delivery was 7 days late: the contractual penalty of XOF 2,483,250 will be deducted from the payment. Please send us an invoice matching the quantities accepted (XOF 42,108,500 to date). Kind regards."

Weaknesses: the storekeeper signed the delivery note "1,500 received" before the count, which weakens the claim for the 40 missing tarpaulins; no check of the specification on receipt (the kitchen sets could have been distributed); the invoice covers the whole order without reconciliation.

Rules: delivery note signed only after the count, with the words "subject to count and quality control" if the truck cannot wait; goods received note prepared by a second person (segregation of duties); quality control by sample against the specification; payment only after three-way matching (purchase order, goods received note, invoice).