How Damages, Deficiencies and Missing Items Are Managed

Procurement does not always go to plan. Products can arrive damaged. The wrong hardware finish can be sent. A workroom may have an issue with a custom stain and need to restart the finishing process. Materials required for production can be delayed at customs.

There are so many variables throughout the procurement cycle, and even with careful planning, issues will come up. What matters is having a clear process for identifying, documenting and resolving them before they create larger problems for the project.

Inspect items as soon as possible

Once an item has been received, either directly or at a receiving warehouse, it should be safely and carefully unpacked and inspected as soon as possible.

Is it the correct item? Is the finish right? Does the light work when plugged in? Are there scratches, cracks or dents? Is anything missing, such as a lamp harp or piece of hardware? Check everything you reasonably can and make note of any issues in your item tracker. If you find a deficiency, connect with the supplier or your sales representative right away. To help move the process along, have the sales order, item information and clear photos ready to send.

Of course, some products cannot easily be unpacked or fully inspected before installation. In those cases, speak with your representative or supplier ahead of time to understand how deficiencies are assessed and handled. Knowing their policies beforehand can help avoid surprises if an issue does arise.

Document everything

Documentation is especially important during delivery and installation.

Take photos of how boxes and packaging arrive and, where appropriate, how items are being unpacked. Once an item is in place, inspect it again and take a clear photo.

Did it arrive in perfect condition? Take a photo anyway. This gives you a record showing the condition of the piece when it arrived and was installed.

If you find a deficiency, take clear photos from multiple angles so the supplier can easily understand the issue when you contact them. Keep those photos, along with notes and correspondence, filed within your tracking system.

Determine what actually went wrong

Before jumping to conclusions, try to determine where the issue occurred.

Was the wrong finish noted on the purchase order? Was the package damaged during transit? Was there an issue during manufacturing? Did you clearly request a custom cord length, but it wasn't included in production? Trace the information back through the purchase order, sales order, approvals and correspondence to see where the discrepancy began. Once you understand what happened, document it clearly.

This is particularly important because the source of the issue may determine who is responsible for correcting it and any associated costs.

Notify the appropriate party quickly

Many suppliers have terms stating that orders must be inspected and deficiencies reported within a specific period after delivery.

Once an issue has been identified, contact the appropriate supplier, representative, workroom, receiver or other party as soon as possible. Include the relevant order information, a clear description of the issue and supporting photos so they have what they need to begin assessing it.

The longer an issue sits unresolved, the fewer options you may have available.

Understand the possible resolutions

Not every deficiency requires the same solution.

Depending on the issue, the supplier may offer a replacement, repair, refinishing, replacement part, credit or another solution. Lead times should also be considered when deciding how to proceed.

Sometimes an issue can be resolved quickly enough that the client never needs to experience the disruption at all. Other times, particularly with custom or long-lead items, the resolution may need to become part of the larger project schedule.

Track the resolution… don't assume it's resolved

Sending the deficiency inquiry is only the beginning.

Confirm that the supplier has received it, and don't assume the issue is being handled simply because an email was sent. If you haven't received a response, follow up within a reasonable timeframe and continue tracking the communication so the issue doesn't fall through the cracks.

Once a solution has been agreed upon, document the next steps. If a replacement is being produced, confirm the expected lead time. If it has shipped, request tracking information where applicable. If a repair is required, confirm who is coordinating it and when it will happen.

Keep the item's status updated until the issue has actually been fully resolved.

Consider the impact on the project

A deficiency should be assessed not only by what went wrong, but by the impact it may have on the rest of the project.

Does the item significantly affect the design intent? Is it preventing another element from being installed or completed? Will waiting for a replacement affect the installation schedule or client handover? Is there another way to work around the issue without affecting the overall timeline? Are there additional costs involved, and who is responsible for them?

The client's experience should also be considered.

For example, if a dining chair arrives with a small scratch on the leg but is otherwise safe and usable, it may make more sense to bring the chair to site while the replacement is being processed and swap it out later. A missing dining table, however, has a very different impact on the completion and use of the room.

Part of managing deficiencies is knowing which issues require immediate escalation and which can be resolved quietly in the background.

Communicate internally

Depending on your role, make sure the key people working on the project are aware of the issue. This could be the lead designer, project manager or another member of the project team.

Log the information clearly, including what happened, who has been contacted, the proposed resolution and any outstanding next steps.

Good internal documentation also means the issue doesn't live solely in one person's inbox. If you're away and something comes up, another team member should be able to understand the status, continue moving the resolution forward or communicate the necessary information to the client.

Prevent repeat problems

Deficiencies can also provide useful lessons for improving your procurement process.

If you received the pink striped lamp instead of the pink ombré lamp because the incorrect SKU appeared on the purchase order or supplier's sales order, that's a reminder to carefully review order documents before approving them.

If an item was delivered but wasn't inspected until it was brought to site four months later, only to discover it was damaged and has since been discontinued, that's a much harder problem to solve.

Not every deficiency can be prevented, but many issues can be caught much earlier through careful documentation, order reviews and timely inspections.

When something does go wrong, look at whether there is an opportunity to improve the process so the same issue is less likely to happen again.

Final thoughts…

The goal isn't to have a procurement process where nothing ever goes wrong. With so many suppliers, manufacturers, carriers, workrooms and individual products involved, that simply isn't realistic.

The goal is to catch issues early, understand their impact and resolve them as efficiently as possible, ideally before they become something the client needs to hear or worry about.

Having a clear system for receiving items, documenting deficiencies, communicating with suppliers and tracking resolutions makes those inevitable hiccups much easier to manage. It also helps keep the larger design process moving smoothly while the problem is being handled behind the scenes.

Cheers,
Lo