Communication about delivery delays and discontinued product is a retail concern. How can retailers effectively and realistically deal with this situation?

Customers are always mad at the retailer (not the manufacturer), as if we purposely tried to delay their order. Often customers will stop shopping at a certain retailer because of delays, but will order the same vendor's products from a different retailer, when it wasn't the retailer's but the vendor's fault in the first place.

How do we handle this issue?

We stock as much merchandise as possible. If we show it on our floor, we keep it in stock, cutting down the number of special orders. We under-promise delivery times, giving customers a “worst-case scenario” up front. We try to help our customers understand delays can happen. Yes, we occasionally lose a sale to a competitor with “quicker” ship times, but in the long run we keep our reputation. We follow up with our vendors on all orders; sometimes to the point of being annoying. So many times orders get lost, misplaced, or filed under a different name, so unless we get a confirmation of the order from the manufacturer, we always follow up with a phone call or email. When we know of delays, we alert customers right away to keep them in the loop and help them if they need to make other arrangements. When we have vendors who routinely delay orders and cause us problems with our customers, we replace them.

How do we wish our vendors would handle it? Send us a confirmation as soon as an order is placed. Send us an expected ship date as soon as it is known. Send us an update whenever anything changes. Let us know why a delay has happened so we can explain it to the customer. Very simple communication goes a long way to meeting the end result — making our customers happy.

It is frustrating that these issues always fall back on the retailer. The lack of communication has been an on-going issue and one that I don't believe will ever go away unless the industry adopts a realistic process, one where we both know what to expect and best yet, in what time period can we expect it. The factories know if they have had a production or shipment delay or a discontinued item, why wouldn't the manufacturer want us to know this? Why can't they share this with us so we can share it with our sales associates and of course our customer. In my 16 plus years I can only think of a few times that I was ever notified without checking on an order myself. Wouldn't it be wonderful if we could be in a pro-active business rather than a reactive one?

We have a sophisticated computer system that lets us look at our open orders by manufacturer, which we fax or call to check on a weekly basis. I understand manufacturers vary in size and software sophistication, but it would be wonderful to get us all on an automated system of some sort. Sometimes I wish the people at the factories spoke to us as nicely as we speak to our customers. Aren't we all important to each other in the process?

The only thing I would add is vendors need to realize we may be able to save a customer with one reasonably excused delay, but by the second and third delays our integrity is shot. It would have been much better to lose the sale at the first delay.

I agree, wholeheartedly, with everything in Phil's answer. Communication is everything — and these are the steps we retailers live and die by.

No one likes to talk about delays and problems, but honest manufacturers understand it is in their best interest to be upfront about these issues. We try to do more business with the vendors that are upfront and honest with us.

To help keep customers informed, we take the initiative to constantly be in contact with the manufacturers to follow-up on existing orders, discontinued product, product delays, etc. It's the special orders that cause us the problems.

In the end, we try to keep the customer informed and happy. If the manufacturers have too many problems and delays and do not effectively communicate with us, our sales associates lose confidence with this manufacturer and in the end that hurts that manufacturer's business with us. It is all about the manufacturer communicating the good, the bad and the ugly on a timely basis.

This issue is especially critical to the catalog business. Once a catalog is sent to print no changes can be made. If the vendor does not ship as promised it results in back orders or lost sales not to mention the disappointment to the customers.

We utilize a number of different approaches to solve this problem.

1. All import items that are slated to go into a catalog are ordered 150 days before the mail date. Vendors send back confirmation of ship dates.
2. All domestic vendors receive a letter with projections on what we plan to sell in the catalog 90 days before mail date. Vendors are required to sign and fax back with confirmation that they will be able to meet quantities and ship dates. At this time if a vendor is unable to meet the dates we require we still have time to change things in the catalog. After receipt of the signed projection letter a purchase order is sent.
3. Even after all of these steps constant follow up is required. It is a rare vendor that will be pro-active and contact you with information on delays. We begin asking about shipping information 2 weeks prior to requested ship dates. Our aim is to give the customer the most accurate information we can.
4. With habitual problem vendors, we try many different solutions—more inventory on hand to compensate for late shipping; ordering by container load from overseas so we are able to flow in the inventory instead of depending on the middle man and finding a new vendor to better meet our needs.

I agree with Phil on what we request from our vendors. Communication is the key. We all realize that delays happen but it is a lot easier to deal with if we are informed immediately and have time to make the necessary adjustments.

The key to handling this all to common problem is communication with the manufacturer and/or their sales representative. No one likes to talk about delays and problems, but honest manufacturers understand it is in their best interest to upfront about these issues. Some are and some are not. We try to do more business with the manufacturers that are upfront and honest with us.

To help keep our customers informed, we take the initiative to be constantly in contact with the manufacturers to follow-up on existing orders, discontinued product, product delays, etc. For us, items that we stock are usually not the problem. It is the special orders that seem more often than not to cause us the problems.

In the end, we try to keep the customer informed and happy. If the manufacturers have too many problems and delays and do not effectively communicate with us, our sales associates loose confidence with this manufacturer which in the end hurts that manufacturers business with us. It is all about the manufacturer communicating the good, the bad and the ugly on a timely basis.

Karen Scott -- One Step Ahead, Lake Bluff, Ill.
This issue is especially critical to the catalog business. Once a catalog is sent to print no changes can be made. If the vendor does not ship as promised it results in backorders or lost sales not to mention the disappointment to the customers. 

We utilize a number of different approaches to solve this problem.
1. All import items that are slated to go into a catalog are ordered 150 days before the mail date. Vendors send back confirmation of ship dates. 

2. All domestic vendors receive a letter with projections on what we plan to sell in the catalog 90 days before mail date. Vendors are required to sign and fax back with confirmation that they will be able to meet quantities and ship dates. At this time if a vendor is unable to meet the dates we require we still have time to change things in the catalog. After receipt of the signed projection letter a purchase order is sent. 

3. Even after all of these steps constant follow up is required. It is a rare vendor that will be pro-active and contact you with information on delays. We begin asking about shipping information 2 weeks prior to requested ship dates. Our aim is to give the customer the most accurate information we can. 

4. With habitual problem vendors, we try many different solutions—more inventory on hand to compensate for late shipping; ordering by container load from overseas so we are able to flow in the inventory instead of depending on the middle man and finding a new vendor to better meet our needs.
I agree with Phil on what we request from our vendors. Communication is the key. We all realize that delays happen but it is a lot easier to deal with if we are informed immediately and have time to make the necessary adjustments. 

Sandy Buttrill -- Kidspace, Amarillo, Texas 

The problems resulting from the lack of communication between vendors and our stores on discontinued or delayed shipments is certainly one of the biggest challenges we all face. Through many years of experience, we have found the best defense is a good offense. Stocking the inventory we floor provides our “instant gratification” customers product availability when they want it. 

Items customers order that are not in stock, we quote lengthy delivery times from what we actually expect them to be. It’s the under promise, 12 - 14 weeks, and over deliver, received in 4 weeks approach. We not only tell them verbally, we print it on the receipt, allow 12 - 14 weeks for this special order. 

We then initiate continuous follow ups on the sold POs with the vendors and keep our customers in the loop if the vendor has had a delay. It is very time consuming for us to check on the sold POs day in and day out, but it is critical. We always contact our customer and explain that we are relating to them, exactly what the vendor is reporting to us as to the expected availability. We explain that we are totally at the mercy of the vendor, trucking delays, weather, strikes, etc. 

We offer the customer the opportunity to switch product to one available, free delivery, loaner furniture or a refund. We loyally support our vendors that assume part of the responsibility for the lost revenue from their errors and delays, i.e. discounts on the sale that was delayed, free freight, or even the kind gesture of a note or call from the factory’s representative to the customer explaining the delay was not the fault of the retailer. 

We have a few vendors who have stock availability accessible 24/7. That is incredibly efficient communication! It is the best to be able to go to a Web site, type in our account number, our password and immediately check product availability or call an 800 number, key in our account number, password, the item number and check availability or even look at an e-mail, scan to the item, and check availability. 

Vendors and dealers need to constantly remember that they are in fact, “partners for profit.” The mutual survival and success of both depends on how well they communicate and how fairly they work together to service the end customer! 

Dave Laub -- Room to Grow, Cincinnati, Ohio 

This is probably the single greatest issue we face as retailers. Consumers expect to receive product in reasonable time frames and in good condition. We have to set the expectation of what is a "reasonable time frame" based on our knowledge of a particular vendor and what information they provide to us. 

Our very good vendors supply us with accurate inventory availability information and order lead time information. This may be done via paper reports or via the Internet. The important part of this information is for the vendor to keep it accurate and up to date. If they update it once a month, it becomes useless after a few days. If the vendor has proven that it does not deliver according to the information provided then we need to learn how to "interpret" the data and give our customers manipulated information. Of course, we always have to add a couple of weeks for safety purposes. 

Once that "reasonable time frame" expectation is set our reputation and continued business success depends on the expectation becoming reality. I believe that the retailers need to come together as a group and find a way to hold the vendors accountable for late shipments. The consumer does not blame the manufacturer or distributor. 

The consumer blames the retailer. Each time the vendor ships us late it hurts our reputations and our ability for future business. However, the best we get from the vendor is an occasional "I'm sorry." The few vendors who do ship as expected give our sales people the confidence to promote their product to our consumers. And promote they do. 

I find it amazing that many vendors feel that acknowledging orders is unnecessary. Personally, I thank every customer who purchases anything, no matter how large or small, every time they purchase something. Some vendors don't even feel the responsibility to say "Yes, I received it." Thus, we have to take our time to verify that the order has been received by the vendor. 

Wouldn't it be nice if a vendor would make a phone call, shoot you an email, or send you a fax to let you know that something had changed on one of your orders? Dream on! Vendors don't initiate communication, except to ask when you will put their new group on your sales floor. Fortunately, we do not treat our customers that way. 

We have to be proactive in communicating with our customers. So what do we have to do? We have to initiate the contact with the manufacturer, sometimes making two or three or four requests before getting a response. Wouldn't it be nice if they at least had an 800 number to call since we have to call them? We even have to pay for the phone call to most of the vendors. 

I have invited many of my furniture vendors to come to my store for a week and talk with the consumer and take the phone calls from the consumers asking where their late product is. To date I have yet to have one take me up on my offer. Perhaps that would change their view for the need to communicate. Since most of the vendors communicate (or don't communicate) to the same degree (almost not at all) it almost seems as though they all got together and agreed that proactive communication is taboo. It surely makes their jobs easier. 

It has become clear to me that each time a customer registers a complaint that I need to pass on that complaint to the vendor. Vendors do not know (and do not seem to care) how many complaints we get. So I believe that each time a customer complains about a product being late, we should pick up the phone and call the Sales Manager, V P Sales, President, whomever the highest level of contact is within the company, call them. Squeak loudly, just like the consumer squeaked to you. I no longer feel like I need to shield the vendor from the consumer. If the vendor will not take the appropriate proactive communication, then I believe it is only fair that they receive the resultant communication. 

Perhaps, if we all squeak, and squeak loudly, maybe their communication will improve.