As ih37 described, it is critical to clearly establish your customer needs and expectations in your relationship with the vendor. When the packaging provided by the vendor is arriving with defects, they are not meeting their contractual agreement. Well before considering finding a new vendor, the detected defects must be directly discussed with the vendor in question. Considering that the vendor was previously audited and validated by your company, the vendor has a track record to be trusted and should be given the opportunity to resolve the issue. However, given how much this failure delays the project, an agreement must be settled with the vendor that will allow you to get back on schedule and minimize the costs. Their ability to recover from the failure will determine the future of your relationship with the vendor. That is, expectations should be set in the vendor’s failure recovery, and if the vendor fails in meeting the expectations, the relationship should be placed under reconsideration.