Are Vendor Compliance Penalties Inevitable?
Like the cost of EDI, many suppliers believe that Vendor Compliance Chargebacks are just a cost of doing business and have resigned themselves to accepting less revenue and profit. But, also like EDI, chargebacks DO NOT have to impact your revenue and profitability. It can be a win-win situation.
The truth is that non-compliance by suppliers can cost retailers literally billions of dollars in unexpected processing and rework. When you, as a supplier, make money for your retailers they will value your relationship more highly. When you don’t, the opposite is true and it will be reflected in your Supplier Scorecard and subsequent penalties.
In fact, it’s estimated that Vendor Compliance Chargebacks can now amount to 1% or more of revenue due to a supplier’s failure to comply with retailer order, billing and shipping requirements.
To this end, large retailers like Wayfair and Walmart recommend OPAL to their suppliers in order to address these issues – for two very important reasons:
- OPAL is 100% compliant with not only Wayfair and Walmart requirements, but also nearly 100 other retailers – with new ones being added each month. OPAL processes a retailer’s orders for the supplier and complies with all necessary transactions (Acknowledgement, Confirmation, ASN, Invoices, etc.), PO pricing, packaging, labeling, shipping documentation and accurate, on-time inventory feeds in just a few seconds per order. This speed and accuracy makes a supplier much more valuable to their retailer.
- For the supplier, OPAL processes orders with a no-touch, self-driving approach that works 24×7, without the need for an additional Warehouse Management System, Shipping Software, Retailer Portal or EDI company. It also reduces Order Processing time by up to 90%, Order Processing Cost by up to 80% and Undelivered Packages to less than 1%, while also increasing Order Accuracy up to 99%, Picker and Packer Productivity and Daily Shipments by 25%-50%. All without EDI charges.
Stopping Vendor Compliance Chargebacks comes from taking the time and resources to understand why the problems are occurring and the steps that must be taken to keep them from occurring in the future. Implement OPAL, an intelligent software system that autonomously manages the order processing and fulfillment workflow in a method that is always retailer compliant. Power up and power on with OPAL.