What are my options if a supplier breaches a contract?

If a supplier breaks their end of the deal, here’s what you can do:

1. Review the Contract: Pinpoint the exact clauses they’ve violated and any penalties that are laid out in the agreement.
2. Try to Resolve It Informally: Reach out to the supplier to discuss the issue and negotiate a fix, whether it’s correcting the problem or offering financial compensation.
3. Enforce Penalty Clauses: If informal talks don’t work, invoke the penalties in your contract – like fines or withholding payments.
4. Take Legal Action: For serious breaches, you may need to escalate. Depending on your contract, this could mean arbitration, litigation, or other legal remedies.
5. Get Expert Help: Bring in a sourcing pro like Zignify Global Product Sourcing to mediate the issue or help you find a more reliable supplier moving forward.