When the question of late delivery comes, buyer can inform seller in advance that they have to comply with the strict delivery schedules. You also need to explain to seller about the implications of late delivery such as financial loss, loss of your potential customers and you must make them to realise how important is to stick to the delivery schedules.

Ofcourse buyers can not be blamed in case of natural calamities etc.

It is better for buyer to place the order well in advance taking calculated measure of late delivery.

Also Buyer can incorporate a penaulty clause in the contract.

Eg.

Say As per the contract delivery is on or before 15th december.

Delivery - December 15, 2006
Delivery 16th Dec - 20th Dec - Penaulty 2%.
Delivery 21st Dec - 27th Dec - Penaulty 5%.
Delivery 28th Dec - 5th Jan - Penaulty 10%.
Deliveyr 6th Jan -15th Jan - Penaulty 25%.
Delivery after 15th January - Contract Termination or you can put additional conditions.

You can deduct the penaulty amount as per the contract from the Invoice value and pay less to your seller if he fails to comply to the delivery schedules. This formula can be applied for each and every schedule.

This way you can put conditions in your contract for late delivery.

By advancing your purchase program and giving sufficient time to seller to supply can avoid this late delivery problems on your business.

Never reveal your exact deadline to your seller. Always keep a fews days or weeks in your hand to handle any untoward incidents.

Then there wont be late delivery and the question of penaulties.

with regards
pr swamy
Email id : swamypr1@rediffmail.com