Vendor Compliance Programs for Supply Chain Management
Vendor management is a vital part of cost control and efficiency in supply chains that are getting longer and faster than ever. At a52 Fulfillment, we understand vendor compliance programs for supply chain management and how important it is to adhere to those program requirements. Not only will properly complying with a vendor’s requirements create a more professional appearance for your business but it can also help you build a stronger reputation for your brand.
Vendor Compliance Programs
Vendor compliance programs and the requirements that they outline in your contract are specifically designed to protect the vendor in the event that something goes wrong. A fully developed vendor compliance program will cover a whole range of scenarios and the penalties that your company will face if you do not meet those requirements. Some of the problems that may cause your company to face penalties include:
- Late delivery
- Price increase
- Dissatisfactory products
- Wrong products delivered
- Improper purchase order (PO) numbers
- Product substitution without approval
- Incorrect labels
- Improperly packaged merchandise
Adhering to Vendor Compliance Requirements
At a52 Fulfillment, we understand how challenging it can be to properly adhere to a fully developed vendor compliance program, and how the penalties from not adhering to this program can eat into your overall sales. Some of the most common vendor compliance requirements include special labelling on items, prepacking by store location for easy storing at the retailer, applying special carton labels, submitting ASNs (automated shipment notifications), obtaining approval to ship, and booking delivery appointments.
While meeting these requirements may seem like a daunting task, the good news is that you do not have to meet these requirements on your own. Partnering with a logistics company, such as a52 Fulfillment, can go a long way in helping you meet these vendor compliance program requirements properly and efficiently, including the two most important areas of any vendor compliance program: billing and performance.
· Billing compliance – ensures that you are able to invoice a retailer based on contract terms and within a reasonable timeframe. A fully developed vendor compliance program will have a billing accuracy outline and will state the number of days from order to invoice.
· Performance compliance – ensures that all services are executed to a specific standard as outlined in your contract. This requirement is important in optimizing the overall efficiency of a retail store because it ensures that all vendors are living up to their standards.
At a52 Fulfillment, we offer a wide variety of services that can help you meet even the trickiest requirements, including inventory control and freight management . If you would like to learn more about vendor compliance for supply chain management, or you are interested in one of our services, please contact a52 Fulfillment at 886-966-0252 or by filling out a contact form on our website.