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Purchase Order breached- Company based in California

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by , 07-05-2012 at 06:46 PM (1051 Views)
In the beginning of 2010 Bel Air Lighting USA (which is a supplier to Lowes)based in Valencia, California contacted us to supply goods to them as an intermediary on behalf of Lowes. From Feb 2010 to May 2010 we were involved with product sampling and three samples were developed and approved by Lowes. The first order (a 40 foot container) was placed by Bel Air Lighting (against an advance payment) to be delivered in August 2010. The shipment was sent for US$ 20000.
In July 2010 another order of USD$85,000 was placed by Bel Air Lighting on behalf of Lowes, however we were asked to audit our factory and provide testing to our products, as Lowes pressed Bel Air Lighting for vendor audits. This order was due for shipping in November 2010. The first audit was done by J&J (a buying agency in New Delhi) in July where we scored 40%. We were told by Bel Air Lighting that this score was acceptable. We were also asked by Bel Air Lighting to test our products for different parameters by SGS Delhi, which were also passed.
In October 2010 Bel Air Lighting surprised us (knowing that the inventory was already produced) by mentioning that Lowes wanted to re-audit us on certain requirements by increasing the passing benchmark to 50%. They also wanted to re-audit our products by testing them in the United States. The audit was done towards the end of November and we passed the audit scoring 53%. We received the news in December from Bel Air Lighting that the products were being tested in the United States and the report would be released in the first week of January 2011. In mid January 2011 Bel Air Lighting told us that our products had passed all the testing requirements in the United States, We had already produced the entire required inventory worth USD$85000 when Bel Air Lighting refused to take the inventory delivery from us.
Because of this we laid off our employees, and shut down one of our school projects. Bel Air Lighting did not take any responsibility of this unethical approach and instead of accepting their fault they left us to deal with it on our own. Our business is a Fair Trade Business and we used our simplicity to produce this order for Bel Air Lighting. They have not answered any of our questions and given any direct explanation. Bel Air Lighting owner, Mr Cary Haber, has not answered any of our phone calls or emails and as a vendor we have invested our own money to produce this order on time.
Please advise