Minimize Vendor Non-Compliance

The ultimate goal for any retailer is to have the right product, at the right place, in the right quantity and at the right time. However, retailers are heavily dependent upon their suppliers to help them achieve this goal.

In order to maintain a level of control over inventory shipments and ensure suppliers deliver accurate, on time orders, many retailers develop formal and often complex vendor guidelines. Vendors who do not comply with the rules are penalized financially in the form of charge backs. Of course, it is in the best interest of every supplier to meet their retail clients’ expectations; however, suppliers don’t always have the visibility to identify when they are at risk for not delivering the right goods on time.

Traditional vendor compliance programs focus on reporting non-compliance and obtaining charge backs. They are difficult to manage, involving thousands of suppliers and hundreds of guidelines. Moreover, they only scratch the surface of how companies can collaborate with vendors to save money.