The penalty system for purchases


One good marketing person always haggles not exactly for the price but more for the quality and the delivery time. When there is delayed delivery they get a premium of a discount and for a spoiled item they get a refund plus a discount. That forces the supplier to be strict with their quality control and delivery which is good for the industry.


I like this discussion because the penalty system is a good measure to ensure the quality and promptness of delivery. It is beneficial not only to the customer but also to the supplier. When the goods are delayed in delivery both parties suffer because the ordered stocks would not be complete and the supplier is penalized. This is a good topic for warehouse and transport managers.