November 26, 2022

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Big Bottling Company ‘Blacklists’ Vendor Over Disagreement on Price, Delivery Date

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Tosin Olukoga, Operations Manager, 4TKOG Global Services, a general supply company, has narrated how Big Bottling Company Ltd., manufacturers of Big Cola, blacklisted his company, resulting in liabilities in excess of N1.2 million.
Olukoga told FIJ that the last meaningful transaction both companies had was on January 25, when Big Bottling Company sent 4TKOG a purchase order to import some of the materials the bottling company needed for its routine production.
The relationship became strained in April when Big Bottling Company asked 4TKOG for a price review on commodities supplied. 4TKOG declined the demand for a review because, according to Olukoga, it was not convenient for the company at the time.
“Big Bottling Company Ltd. gave us a purchase order to deliver five boxes of Biotrace and Aquatrace at N299,500 each in January,” Olukoga said.
“We delivered one unit and ought to deliver the remaining four units, which in total amounted to over N1.2 million.
“We imported these items from Germany, according to their order. But on Wednesday, they told us that they would not accept the goods. The company blacklisted us without communicating any cancellation to us.
“We have invested our money into importing their order. Now, our fund is tied down with them. The liability is in our hands.”
Olukoga also said the bottling company delayed the payment for their previous supply for over three months and then backlisted his company because it refused to shift ground on the agreed price.
“They ought to pay us within a month, according to the terms. They defaulted for three months,” he said.
“They wanted us to deviate from the initial agreed price. We told them we could not do that but could review future prices; because of that, they treated us harshly and denied us entrance into their office.
“They delayed the payment of over N2 million for three months, against the initial one month we agreed on. They paid what they owed on Tuesday and backlisted us on Wednesday.”
When Fcontacted Gbenga Bolaji, Big Bottling Company’s procurement manager, he said, “The time of delivery ought to be between one to two weeks. He said it could only be delivered between four to six weeks, but they delivered after four months. We got the items from another vendor.”
It was also asked if 4TKOG was blacklisted over the disagreement on price review. “Not really. The goods were not delivered between that period. We cannot halt production because of delay from any vendor,” Bolaji said.
However, Olukoga said 4TKOG was not liable for such delay because Big Bottling Company agreed to the condition.
“In our quote, we made it known that there might be a delay from the manufacturer, and clearly stated that we would not be liable for such delay.
“The went ahead to issue a purchase order after they have read those conditions.
“They also did not communicate any order cancellation, which still makes the purchase order valid,” he said.
(C)FIJ
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