How can you ensure suppliers provide adequate warranties?

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Warranties are an important aspect of supplier sourcing, as they can protect you from faulty products, unexpected costs, and legal disputes. However, not all suppliers offer the same level of warranty coverage, and some may try to avoid or limit their obligations. How can you ensure that your suppliers provide adequate warranties for your needs? Here are some tips to help you negotiate and verify warranty terms with your suppliers.

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拉马林甘沙拉瓦南

精實六西格瑪黑帶認證 | 全球採購策略師 | 經驗豐富的領導者 22 年以上的卓越表現 | 電動汽車和汽車產業 | SAR Group Livguard、前 Greaves/Ampere EV、前 Okaya EV、前 Sona…

1 Know your requirements

Before you approach any potential suppliers, you should have a clear idea of what kind of warranty you need for your products. Consider factors such as the expected lifespan, performance, maintenance, and safety of your products, as well as the potential risks and costs of defects or malfunctions. You should also research the industry standards and best practices for warranties in your sector, and benchmark them against your competitors and customers' expectations.

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拉马林甘沙拉瓦南

精實六西格瑪黑帶認證 | 全球採購策略師 | 經驗豐富的領導者 22 年以上的卓越表現 | 電動汽車和汽車產業 | SAR Group Livguard、前 Greaves/Ampere EV、前 Okaya EV、前 Sona BLW(Comstar)
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A crucial aspect of effective supply chain management is ensuring that supplier warranties align with our expectations. Clear, detailed contracts lay the foundation, outlining the duration, scope, and conditions of warranties. We set performance benchmarks, creating a standard for quality that suppliers must meet to fulfil their warranty obligations.

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2 Compare and contrast offers

Once you have a shortlist of suppliers that meet your basic criteria, you should compare and contrast their warranty offers. Look for details such as the duration, scope, exclusions, limitations, and conditions of the warranty, as well as the process and costs of claiming it. You should also check the reputation and reliability of the suppliers, and how they handle warranty issues and disputes. You can use tools such as scorecards, matrices, or checklists to evaluate and rank the suppliers based on their warranty offers.

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3 Negotiate for better terms

If you are not satisfied with the warranty offers from your preferred suppliers, you can try to negotiate for better terms. You should prepare a strong case for why you need a higher level of warranty coverage, and how it will benefit both parties in the long run. You should also be flexible and willing to compromise on other aspects of the deal, such as price, delivery, or quality. You can use techniques such as anchoring, framing, or concession-making to persuade the suppliers to improve their warranty terms.

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4 Verify the warranty contract

After you reach an agreement with your chosen supplier, you should verify that the warranty contract reflects the terms and conditions that you negotiated. You should read the contract carefully and look for any discrepancies, ambiguities, or loopholes that could affect your warranty rights. You should also consult a legal expert if you have any doubts or questions about the contract. You should only sign the contract if you are confident that it provides adequate warranty protection for your products.

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Joshua Serunjogi

Legal Associate at ANYA KALWA AND COMPANY ADVOCATES
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Yes, I totally agree with this. Parties have to carefully review the contract. It is important to ensure that the warranty clause is clear and enforceable.

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5 Monitor and manage the warranty

Once you start working with your supplier, you should monitor and manage the warranty performance and compliance. You should keep track of the warranty claims, costs, and outcomes, and analyze them for any patterns or trends. You should also communicate regularly with your supplier and provide feedback on the warranty service and quality. You should also be prepared to deal with any warranty issues or disputes that may arise, and resolve them in a timely and professional manner.

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拉马林甘沙拉瓦南

精實六西格瑪黑帶認證 | 全球採購策略師 | 經驗豐富的領導者 22 年以上的卓越表現 | 電動汽車和汽車產業 | SAR Group Livguard、前 Greaves/Ampere EV、前 Okaya EV、前 Sona BLW(Comstar)
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To further bolster accountability, penalties for breaches are established, incentivizing adherence to agreed-upon terms. Regular audits serve as a proactive measure, allowing us to assess supplier compliance and address any potential issues swiftly.

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6 Review and improve the warranty

Finally, you should review and improve the warranty terms and conditions periodically, based on your experience and feedback. You should evaluate the effectiveness and efficiency of the warranty, and identify any gaps or opportunities for improvement. You should also consider the changing needs and expectations of your customers, and how they may affect your warranty requirements. You should then discuss and negotiate with your supplier to update and enhance the warranty accordingly.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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拉马林甘沙拉瓦南

精實六西格瑪黑帶認證 | 全球採購策略師 | 經驗豐富的領導者 22 年以上的卓越表現 | 電動汽車和汽車產業 | SAR Group Livguard、前 Greaves/Ampere EV、前 Okaya EV、前 Sona BLW(Comstar)
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Communication is key. By fostering open channels with our suppliers, we not only build trust but also create an environment where concerns can be addressed collaboratively.

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How can you ensure suppliers provide adequate warranties?

1

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3

4

5

6

7

1 Know your requirements

2 Compare and contrast offers

3 Negotiate for better terms

4 Verify the warranty contract

5 Monitor and manage the warranty

6 Review and improve the warranty

7 Here’s what else to consider

Supplier Sourcing

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How can you ensure suppliers provide adequate warranties?

1

2

3

4

5

6

7

1 Know your requirements

2 Compare and contrast offers

3 Negotiate for better terms

4 Verify the warranty contract

5 Monitor and manage the warranty

6 Review and improve the warranty

7 Here’s what else to consider

Supplier Sourcing

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