Solving supply chain issues Empty shelves

Consumer Protection New Zealand (NZ) has issued advice on how businesses can solve problems with supply chain issues.

For instance, faulty goods and services bought by businesses and consumer problems caused by suppliers.

On the website [www.consumerprotection. govt.nz] where it says ‘Solving problems with suppliers: Your rights when there’s a problem with something you’ve bought for your business from a supplier’, there’s information on consumer problems caused by suppliers such as, “What to do if a customer complaint is due to a problem caused by your supplier or manufacturer – and how to take it further if they won’t take responsibility”.

What entrepreneurs can do for their customers

The website states when customers complain, the problem can be caused by the business’ suppliers. They may have a faulty product, shipping delays or broken products due to the courier.

It’s best for business people to advise their customers that they’ll solve the issue. Once an issue has been resolved, that’s when business owners can complain to their suppliers.

The business owner has to give their customer a solution and tell them they’re working with their supplier to sort the issue. It’s been recommended by Consumer Protection NZ to update customers regularly.

Complaining to their supplier

Once business owners give customers a solution, they should let their suppliers know there’s been a problem. Before making contact with the supplier, they should check the contract to see if:

• Any terms/regulations have been ignored

• It displayed any rights to compensation.

The supplier has contracted out of any regulations when selling to other businesses such as the Consumer Guarantees Act or Sale of Goods Act.

According to Consumer Protection NZ, “Business-to-business sales often include a written statement contracting out of the Consumer Guarantees Act (CGA) — meaning the buyer can’t use this law to claim a remedy if something goes wrong. This law protects those buying for domestic or household use only.”

Entrepreneurs might be able to claim under other regulations/terms of their contract. It’s also a good idea for them to have trustworthy relationships with their suppliers.

If there’s an issue, then the suppliers should want to stop it from happening again, even if they’ve been outsourced.

Entrepreneurs should also bring paperwork from the sale, evidence of the issue and other helpful information. Even if they can’t get a refund or solution, their supplier should want to know the issue, so they can assure it won’t ever happen again.

Business people’s rights

Entrepreneurs have contractual rights written in the warranty, contract or sales agreement. They might also have some rights via common law, regulations made by judges when deciding cases, and some acts.

“Businesses can only rely on the Consumer Guarantees Act (CGA) if something goes wrong with a product, service or vehicle that’s usually for household or personal use. Even then, the supplier can contract out of the CGA when selling to other businesses.”

Therefore, entrepreneurs should carefully research commercial contracts before signing and get legal support when they can. CT