Where we will give the penalty for delay in supply to the Supplier?

Where we will give the penalty for delay in supply to the
Supplier?

Question Posted / partha

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Where we will give the penalty for delay in supply to the Supplier?..

Answer / vamshi

If it is a permanent supplier we generally mention it in
the MSA(Master Service Agreement) or sometimes we usually
mention in the SLA(service level agreement) also

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Where we will give the penalty for delay in supply to the Supplier?..

Answer / yogesh agrawal

There is no separate provision for penalty, usually it is
entertained by writing footnotes in purchase order and is
called LD (Liquidated Damages) clause. It is mentioned
like" LD is applicable @0.5% per week if the goods are
delivered after < date/ weeks> LD will be determined by the
overdue days/weeks". There is one more way out when
calculating supplier performance report.

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3 No

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