Resolving supplier defects through trade rather than refunds

Business Relationship Preservation Factors

Dear Mr. Supplier,

CURRENT ISSUE

I am writing in regards to the most recent computer chip shipment which you purveyed for my company. As I initially notified you via the phone, approximately 25% of that shipment was defective. My company was not able to utilize that percentage, which is certainly an anomaly when I consider what has historically been a fairly prosperous and lengthy relationship between our two organizations. The purpose of this communication is to maintain that relationship and come to an understanding about how to address the previously mentioned issue and still go forward in a way that is mutually beneficial to both of our companies. I truly believe that there are a number of different options that we have for redressing this situation in a positive manner.

THE INTENDED OUTCOME

The intended outcome of the previously discussed trade is to ultimately preserve the successful relationship our two companies have long fostered. After doing business with one another for as long as we two have, it is clear that the defective supplies were an aberration that has far from compromised the integrity of our relationship. By issuing a trade between our organizations, we can move forward with the same degree of success that has typically characterized our relationship. Moreover, we can do so in a way that will ensure that future success is not only attainable, but expected. Therefore, the expected outcome of the proposed trade is a propagation of our long-term relationship. Furthermore, that outcome is a continuation of our relationship in such a way that neither party has any regrets or cause for recrimination. We should both be able to continue to do business with one another with confidence and in such a way that is useful for both parties. The consequences of winning and losing are significant to those on both sides of the proverbial coin. By effecting a trade between our organizations, we can create a way so that neither party loses, and both of our organizations win. In such a way, we can "include the objectives, interests, and needs" (Picker, 2002) of each party. The victories for both sides are readily apparent; we will continue to procure quality products from your organization, which will in turn retain its status as our primary purveyor of computer supplies.

TIME FRAME

There is a fair amount of flexibility in the time frame that my company would like to see the proposed trade take effect. Obviously, it is beneficial to my organization to make up for the slight loss we incurred on this purchase as soon as possible. Nonetheless, I understand that your organization may have made prior commitments that warrant its attention beforehand. Therefore, I hope that you will agree to facilitate this trade in a time frame commensurate with the business schedule for both of our respective organizations, so we can get to the anchoring and adjustment period (Buell, 2007).

ALTERNATIVES AND SOLUTIONS

The solution proposed in this document is predicated on the concept of power. Your organizations has the power to reimburse mine for the costly defects of the aforementioned computer chips by providing additional hardware required to implement those computer chips. One possible solution is to trade some of that additional hardware for a promise of future orders of computer chips. Should a substantial percentage (greater than 5%) of those future chips prove defective, then our trad will be void and we will require full repayment for the additionally purchased hardware and the 25% of the initially defective computer chips. The crux of the trade requires that additional hardware at a discounted price. We would like to begin bidding for the discount of that price at 50%, and are not willing to pay more than 60% of full retail price for that additional hardware. Should you agree to these terms, then our organization will continue to patronize yours for supplies. Specifically, we will order the same amount of computer chips as in our last order. Moreover, we will place this order in the next six months -- provided we receive the additional hardware within the next five weeks. Please contact me in regards to your perception of the equity of this trade. I welcome your feedback in this matter, and look forward to hearing from you soon.