The Supplier Who Keeps Shorting You Decision Tree

Why this matters

A short is when you pay for ten and the box has eight, or the invoice lists a part that never arrived. One short is a mistake. A pattern of shorts means you are paying for parts you never got, and worse, finding out on a jobsite when you reach for a part that is not there. That blows up jobs and quietly drains your margin. The fix is to separate honest error from a real problem, then act on what you find.

Start here: are you sure it is a short?

Before you accuse anyone, rule out the common false alarms:

1. Did someone else on your crew pull it? Trucks and shop shelves leak. Confirm the part did not just get used.
2. Was it backordered, not shorted? Check the packing slip. Items marked backordered were never meant to be in the box. That is a delivery timing issue, not a short.
3. Does the packing slip match the box? Count against the slip, not the invoice. The slip is what they say they shipped.

If it survives all three, you have a genuine discrepancy. Document it immediately.

Document every short the moment you find it

You cannot win a dispute on memory. Every time:

• Count and check at delivery, before you sign. Receiving staff should verify against the packing slip on the spot.
• Photograph the discrepancy when you find one later (the sealed box, the slip, the actual contents).
• Log the date, invoice number, item, quantity billed, quantity received. Keep a simple running record.

A written record is what turns "I think they short us" into a case the vendor cannot wave off.

First occurrence: report it calmly and clearly

Honest shorts happen. The first one is a normal business correction:

• Call your contact, give the invoice number, state exactly what was billed versus received.
• Ask for a credit or the missing items shipped at no cost.
• Stay even. Counter staff make mistakes; treat the first one as a mistake.

Then watch whether they fix it cleanly. A vendor who issues the credit fast and apologizes is not your problem.

If it keeps happening: read the pattern

Pull your log. The pattern tells you which problem you actually have.

If shorts cluster on one delivery driver or one branch, it may be a process or honesty issue at that node. Ask to receive from a different branch or via counter pickup and see if the shorts stop.

If shorts cluster on backordered items getting billed but never shipped, it is a billing-system gap. Insist they not invoice items until they ship, and audit your statements for backorders that never arrived but got charged.

If shorts are random and the credits are always slow or contested, that is the serious case. A vendor who shorts you and then drags the credit is costing you money and time on both ends.

Escalate before you walk

Do not just go quiet and switch. Give the relationship one clear, documented shot:

1. Take the pattern to a manager, not the counter. Bring your log: dates, invoices, amounts. Facts, not frustration.
2. State what you need: accurate fulfillment, prompt credits, and items not billed until shipped.
3. Set a watch period. Tell them you will be tracking closely for the next stretch.

A good supplier will be alarmed and fix it. That is the outcome you want. The relationship that handles a hard conversation well is worth keeping.

When to move your business

Switch when the pattern continues after a documented escalation. At that point you have given them every chance and the data is clear. This is exactly why you keep a second source: you can move without stalling. See related: Building a Second Source for Critical Parts.

Before you fully leave:

• Make sure your backup can actually carry your critical parts.
• Reconcile any outstanding credits the old vendor still owes you and collect them.
• Keep your records. If they ever come after you for a "short payment," your short log is your defense.

References

• Trade-standard distributor receiving and packing-slip practice
• U.S. Small Business Administration: vendor-dispute and recordkeeping guidance
• See related: Building a Second Source for Critical Parts
• See related: The Supplier Relationship That Saves Your Day