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Vendor Compliance
Supplier Summer School
Speakers
Mary KleespiesDirector of Supply-Chain
Consulting
Steve BabbittDirector of Supply-Chain
Consulting
Summer School Sessions
July 25th Session 1 What is in it for Me?
August 8th Session 2 Becoming Best in Class Vendor
August 22nd Session 3 Vendor Compliance Best Practices
Review Session 1
•What is in it for Me? Why comply with Retailer’s mandate for Compliance
•How will Vendor Compliance help the Vendor?
•Hidden Reasons for Compliance
• The retail industry is quickly moving towards issuing chargebacks and keeping track of vendor performance.
• The reason is that retailers no longer have the luxury to receive merchandise manually and will not accept noncompliance as a norm for doing business.
• Thus it is in the vendor’s best interest to meet the Retailers Business and EDI requirements.
• We are here to help you become best in class.
Why comply with Retailer Business and EDI Requirements?
• The majority of vendors that are not EDI compliant are asking (What is in it for me?)
• Why should vendors incur the cost of EDI? And try to be compliant?
• The reasons to comply range from the obvious to hidden benefits that occur due to becoming compliant.
• Let’s explore the vendors what is in it for me?
How will Vendor Compliance help the Vendor?
What Is In
it For Me?
There are added benefits to becoming compliant and have your performance measured via a scorecard.
•Vendors that have a great compliance record greatly benefit by being placed on the Retailers cross dock program which will allow their merchandise to quickly move through receiving without having their cartons opened.
•When vendors are on the cross dock program the days to process and get merchandise to store is cut in half, this is a great benefit for the vendor and retailers.
what is in it for me?
• Cross dock program reduces risk of getting chargebacks on items that were substituted or merchandise quantizes that are not correct.
• When a buyer has to order new merchandise the vendor with a great compliance record will move to the top of the list, because the buyer will not risk buying from a vendor that is not compliant or has a poor compliance record.
• Secondly , the vendor can negotiate better terms with the buyer if they have a good record of providing the right merchandise on time with a good ASN.
What is in it for me??
• Last if a vendor incurs a chargeback they will be in a better position to negotiate a reversal due to scorecard record of good compliance.
• The vendor’s record of good compliance proofs to the retailer that they are making an effort to be a good partner and the retailer in turn will work with them.
• It will build trust between the Vendor and Retailer.
What is in it for me??
Customr Retailer Supplier”
Why Should Vendors comply with Retailers Business and EDI Requirements?
The retail industry is quickly moving towards issuing chargebacks and keeping track of vendor performance. The reason is that retailers no longer have the luxury to receive merchandise manually and will not accept noncompliance as a norm for doing business. Thus it is in the vendor’s best interest to meet the Retailers Business and EDI requirements. We are here to help you become best in class.
Will Vendor Compliance help the Vendor?
• The majority of vendors that are not EDI compliant are asking (What is in it for me?)
• Why should vendors incur the cost of EDI? And try to be compliant?
• The reasons to comply range from the obvious to hidden benefits that occur due to becoming compliant.
• Let’s explore the vendors what is in it for me?
What in it for me?
• Last if a vendor incurs a chargeback they will be in a better position to negotiate a reversal due to scorecard record of good compliance.
• The vendor’s record of good compliance proofs to the retailer that they are making an effort to be a good partner and the retailer in turn will work with them.
• It will build trust between the Vendor and Retailer.
Hidden Reasons For Compliance • There are added benefits to becoming compliant
and have your performance measured via a scorecard.
• Vendors that have a great compliance record greatly benefit by being placed on the Retailers cross dock program which will allow their merchandise to quickly move through receiving without having their cartons opened.
Fast Track to reduce the risk of offsets
Areas to help quickly reduce risk and expensive offsets
1. Communications2. Education3. Here are some key things to do.
Communication Developing a partnership with your retailer is necessary!key to communication……… •Go to your Retailer’s website bulletins to keep you informed on new processes or changes to existing documents. •Schedule a quarterly meeting via conference call or onsite with your retailer. •Keep in touch with your retailer via email or phone to discuss any immediate issues. •It is ok to over communicate. •If you have offsets, ask for help to understand why you received them.
Education I want to share with you some great advise from Joe Andraski the CEO for Vics, he stated that it is essential to read trade papers on your specific field. Educating yourself is key in becoming a success in your field. Education comes in many forms reading books, trade papers, webinars, conferences.I have listed a few items to get you started.Go to your Retailers website and study the following items.Study and learn your current specs on EDI documents that you have implemented
Education
Make sure you understand what is required on all new documents. Know what is expected of you when it comes to shipping and transportation requirements. Learn the key data points to help you on avoid chargebacks. Check for updates on important changes that the Retailer has on their website.
Education
Here are some key things to do1. Make sure that you have the right associates working on the requirements.2. Get to know who from the Retailer can help you and answer your questions, establish a good working relationship with the retailer.3. Understand what the requirements are and How, Why and what happens if we don’t’ meet the requirements.4. Don’t wait, get started early.5. If you are having trouble meeting all of the requirements get help and ask more questions.6. Build yourself a check list to make sure everything is done on time.7. Get a total understanding of all requirement’s that are not EDI, Packaging, Transportation, and Business rules.
Best Practice for Vendor ComplianceVendors can enjoy the benefits of transmitting data correctly immediately by following these guidelines. The following items will help reduce errors and cut out charge backs and maintain a good standing with your Retailer.Keep it simple and make them a part of your EDI routine. Use the 850 to populate the 856Carton numbers on Asn should match the numbers on carton labels on shipment to retailer.Maintain label printer on a monthly basis – to avoid having labels that do not scan.
Best Practice for Vendor ComplianceTransmit the items that were sent PO on the ASN (only if they are in cartons sent to Retailer).Transmit ASN on time.Transmit items that are actually shipped in the carton on the ASN. Invoice only what is shipped to Retailer. Correspond with Retailer via emails and keep all the emails for your records. Don’t wait until it is too late. Most retailers have a 60 day challenge limit for offsets.
Summary
•Drop- Ship – a key strategies to make a PILE OF MONEY!•Quick and Cheaply
•B2B strategy -not just about drop-shipments•Drop-Ship strategy - not about the technology it's more about the
process.•No need to be a trendsetter -companies are already doing it cost
effectively. •Don't Be a Showroom for Amazon!
Questions?
What can we do to help you?
Suggested Topics for Session 3
Steve Babbitt
281.480.1121
Presented by:
Mary Kleespies
281.984.3332
Thank You
