GPI 097 – When you anticipate delivering late, tell the customer so there is no surprise.

Do not hesitate to tell customers as early as possible when things are about to go wrong.

Schedules do not go without problems.  Plans veer off the road for various reasons.  Material comes in late.  Key people quit or do not show up for work.  Labor shortages cause problems.  Machinery breaks down and spare parts are backordered.  A key process is found missing or the parts you have made are off specification and must be remade.  Many different reasons can cause late deliveries and most customers if told early enough will work with you, but you must tell them quickly.

Pick up the telephone and tell your vendor you are late.  When you can project the delivery will be late, pick up the telephone and call your customer to let him know the probability.  Do not hesitate.  Try to tell them well ahead of time if possible.  Be honest.  Tell them the likelihood of their shipment not arriving on time and give them your best estimated new delivery date.

Be prepared to give the customer a new time of arrival.  Tell the customer your new date so they can now make a decision.  They may have an alternative vendor who has stock on the shelves (at a higher price).  They may have plenty of extra room in their project schedule so your delay may not affect them at all.  What you do know is if you do not tell him until it is the last minute, you increase the chances of ruining your entire relationship with him.

You will never know your customers’ options so do not guess.  You do not know if his production schedule is totally dependent upon your arrival with good parts and product.  He may have a two week lead time built into his schedule.  You do not know, but you do know what is about to be late, so call him now.  Give him a constant updated report until he tells you not to.  He may temporarily be upset, but he won’t fire you normally if you are honest with him.

Be prepared to give up something for your delay.  You may need to pay for late fees to the vendor.  These should have been negotiated in the contract if they were relevant or possible.  If the customer has responded favorably, you might throw in the freight this time or some extra pieces at ‘no cost’.  Give something up and show your commitment to the customer to make your relationship more valuable in the future.