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Where we will give the penalty for delay in supply to the
Supplier?

Question Posted / yogesh agrawal

Answer Posted / yogesh agrawal

There is no separate provision for penalty, usually it is
entertained by writing footnotes in purchase order and is
called LD (Liquidated Damages) clause. It is mentioned
like" LD is applicable @0.5% per week if the goods are
delivered after < date/ weeks> LD will be determined by the
overdue days/weeks". There is one more way out when
calculating supplier performance report.

Is This Answer Correct ?    4 Yes 3 No



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