Supplier blames old stock for refusing a price cut?
Ask the supplier to connect its purchase records to the usable old material allocated to your orders, then reconcile consumption against production. Agree the remaining quantity, how it affects your price and the review trigger when it is exhausted. For help checking this evidence in China, contact Cambridge China Bridge.
Define the claim before discussing a discount
Ask which material, grade and purchase batch prevents the reduction, and which products use it. Request a breakdown separating material cost from processing, packaging and margin. Compare against a current quote for the same approved material, currency and delivery basis. A cheaper market headline alone does not establish the saving available on your product.
Separate the existing order price from the price you are negotiating for future orders. Ask the supplier to explain the material-related difference in words and supporting calculations. Use the factory negotiation guide for the wider discussion; this review tests the specific old-stock explanation.
Match purchase records to material received
Request the material purchase order, invoice, delivery receipt and stock entry for each claimed batch. Match the material description, grade, dates, quantities, units and purchase price across them. Ask about discounts, rebates, returns and credits that change the effective cost. An invoice can support a purchase price without proving that the material remains in stock.
If commercial confidentiality limits disclosure, propose redacted copies or a supervised review of originals. Keep the fields needed to trace the claim visible. Record which documents were checked and which remain unavailable. Treat an unsupported explanation as unresolved when negotiating, rather than assuming either dishonesty or proof.
Identify the stock allocated to your orders
Request a dated stock count showing batch identity, storage location, usable quantity and the quantity allocated to your named orders. Separate material already issued to production, stock reserved for other customers and damaged or unsuitable material. Ask the supplier to explain the allocation basis and whether your previous forecast or order prompted the purchase.
Agree whether the allocation is a physical reservation or a planning entry. For shared material, ask how consumption by other customers reduces the claimed balance. A factory-wide stock total does not explain your share. Discuss any request to fund surplus stock separately, using the whole raw-material batch guide.
Reconcile consumption after each production run
Start with the agreed opening balance. Add documented receipts or transfers into the allocation, then deduct net production issues, supplier returns, transfers out and recorded losses to reach the closing balance. Show unused material returned from production separately so it is not deducted as consumed. Keep the same units throughout and compare the result with a physical count.
Match material issues to production orders and completed goods using the approved BOM and agreed allowance for process waste. Investigate differences through work in progress, rejects, rework, scrap and unexplained adjustments. Do not let each run restart the original stock claim. The buyer-supplied material reconciliation guide covers the separate case where you provide the material.
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Agree the price review before the stock runs out
Put the accepted remaining allocation, interim pricing basis and review trigger in writing. Estimate exhaustion from the production plan, but trigger the review against reconciled consumption. Agree how a run mixing old and newly purchased material will be priced, and identify the orders or production batches to which the revised price will apply.
At exhaustion, request the closing reconciliation and a fresh quote against the unchanged specification. Check the replacement material cost alongside other explained cost changes; agree the resulting price rather than assuming the entire material saving becomes a unit-price reduction. If the claimed balance grows, require evidence of the added stock and a separate agreement before extending the interim arrangement.
Frequently asked questions
Does a supplier invoice prove old stock is still there?
No. Match it to receipt records, stock movements and a dated count. Then identify the usable quantity allocated to your orders.
What if the supplier will not show purchase invoices?
Offer redacted documents or a supervised review of originals. Preserve batch, quantity and cost traceability. Record missing evidence and keep the claim unresolved in negotiations.
Should I pay for old material reserved for other buyers?
Ask the supplier to separate your allocation from other customers' stock and explain its basis. Negotiate any shared-stock cost explicitly rather than accepting the factory's total inventory as your burden.
When should the supplier review the price?
Agree the trigger before accepting an interim price: reconciled exhaustion of the accepted allocation, with a review point if consumption slips. Specify which future orders receive the revised price.