Letter to Vendor Stating Performance is Below Expectation

A letter to the vendor stating the performance is below expectation is a letter that is written by the customer organization, which has received the products of, or services from a vendor, who is the addressee of this letter. In this letter, the organization informs the vendor that the vendor’s performance level is below the level that had been expected by the organization. In addition, the organization also demands action from the vendor to avoid unpleasing consequences.

The reasons behind the issuance of this letter are manifold. Few of them are:

  • It informs about the customer’s dissatisfaction in a formal way.
  • It informs about the rectification that the customer organization requires from the vendor.
  • It is a first step in the process of taking any sort of action.
  • It serves the purpose of a warning letter.
  • It can set the basis for taking legal action.
  • It seeks cooperation and understanding.

When a customer organization is not satisfied with the performance of a vendor, professionalism demands it to formally inform the vendor about the issues and seek cooperation. In this scenario, the organization sends a letter to the vendor stating the performance is below expectation. Its length, tone, and details are dependent on the severity of the issue as well as the organization’s dissatisfaction level.  However, generally, the following information is included in such letters:

  • Date.
  • Details of the vendor.
  • Details of the organization.
  • The issue with the products/services in terms of performance.
  • The expectations that the organization had, and how vendor’s performance is not up to the mark.
  • Show disappointment.
  • Action required by the organization.
  • Consequences in the case of non-cooperation of the vendor.
  • Show hope for rectification, and the associated benefits in terms of future contracts.
  • Salutations and signature.

These letters may prove to be detrimental to the vendor’s goodwill, which is why either the vendors avoid them by trying to show good performance or take immediate corrective actions after receiving such sort of a letter. Therefore, usually, things get settled down after this letter, and the customer organization does not have to take any legal or strict action.

Sample Letter

Dear Mr. Johnathan,

I am writing this letter to show my disappointment in the machines that you delivered on 5th June 20XX.

We placed an order with your company ABC Limited on 8th May 20XX, for 10 sewing machines. We wanted you to customize them as per our requirements, which is why we provided enough time for you to prepare and check them. However, to our dismay, the performance level of the machines is way below what we expected from your company. The machines have not been completely customized as we had requested, and the speed is also very slow. They are not efficient to be used for commercial purposes.

We had heard good reviews about ABC Limited, which is why we placed our first order with you. However, your products are extremely unsatisfactory. We are unsure if we can even have a future relationship with your company.

We want you to take the machines back and change them as per our needs without any extra charges. If you are not ready to do that, we have all the related contractual papers, and we will be forced to take some legal action.

We are hoping for your total cooperation. Your good customer service may generate future contracts from us. You can contact us back at [X].

Thank you for understanding.

Regards,

Steven Watson.


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