Partial delivery

Partial delivery
See also
Payment against documents Net purchases Consignment sale Normal loss Credit memo Goods received note Purchase invoice Contract note Inventory in transit

Partial delivery is a type of delivery when an order is divided into two or more smaller orders and a delivery dates of each of them might be different.

The partial delivery notifications

From Europen law perspective, Bar C. and Clive E. are explaining a requirement of the notification: The buyer does not have to notify the seller that not all the goods have been delivered, if the buyer has reason to believe that the remaining goods will be delivered. Later on in the same document, they are adivising the following about requirement of the notification of a late or a partial delivery:

1. if the seller is not notifying the buyer about late delivery within an agreed or reasonable time, the buyer cannot rely on the contracted good and is not obligated to pay for not received goods,
2. if a part of goods were not received (for example due to some descrutions which took place in the way), the buyer should be notified if the missed part of the delivery is going to be delivered or not, and there might be still reason to rely on the delivery; however a unit price of a prodcuct might be part of negotiations here as it might impact sales,
3. if in the delivery some units were missed but an invoice includes the whole contracted quantity, the buyer might assume that there will be no late partial delivery, consequently the buyer is not obligated to pay for that part on the invoice and might negotiate a unit purchase price of received part.

Shipping cost for the partial delivery

Stecke K. E. and Zhao X. are presenting detailed models of optimasation of a total shipping cost. They are dividing calculations of shipping costs functions (taking a shipping time into consideration) to linear and non-linear for the partial deliveries as well and presents beneficial outcome to total costs. As the partial delivery gives possibility to split an order into smaller orders, the production of goods might be optimased by minimasing for example cost of stocking.

Author: Bartłomiej Zegarliński

References

• Bar C., Clive E. (2010), Principles, definitions and model rules of European Private Law in Draft Common Frame of Reference (DCFR), Oxford University Press, UK
• Sharma K., Mutsaddi A. (2010), Configuring SAP ERP Sales and Distribution, John Wiley and Sons, Canada
• Stecke K. E., Zhao X. (2004) Production and Transportation Integration for a Make-to-Order Manufacturing Company with a Commit-to-Delivery Business Mode in Manufacturing & Service Operations Management, The University of Texas at Dallas, USA
• Weiya Z., Zhi-Long C., Ming C. (2010), Integrated production and distribution scheduling with committed delivery dates in Operations Research Letters 38, Shanghai University, China