Technology

Why there is a need to have vendor compliance?

Vendor compliance is typically the reliance of a company on their company for the provision of goods or services that ensures the smooth running of their business. It is therefore, essential to have a well-defined policy that will help to reduce costs of a warehouse, freight as well as delivery, while increasing the speed of customer service.

Vendor compliance helps in the implementation of advanced supply chain systems, just in-time inventory, RFID systems, source marketing and ticketing, and ASNs. Moreover, an effective vendor compliance program will reduce the time spent on vendor chargebacks, claims, and disputes, thus leading to a better managed vendor relationship. It will also ensure that all processes go smoothly between the order and the payment, while helping to resolve issues effectively and promptly if they arise.

In case there is no vendor compliance, then the company will find it really hard to deal with issues such as price increase, a late delivery, or a dissatisfactory product. Therefore, a fully developed vendor compliance policy is vital as it can help your company avoid problems such as improper PO numbers, wrong products sent, and product substitution without approval, incorrect labels, improperly packaged merchandise, mixed POs, mixed SKUs, incomplete bill of landing, late deliveries, damage, nonstandard pallets, etc.