Vendor Compliance and Warehouse Chargebacks

Vendor Compliance and Warehouse Chargebacks | LoadProof

This next best practice that you can implement in your distribution center is something called vendor performance. So vendor performance is basically you as a retailer or a distributor or as an ecommerce order fulfiller you are buying your product from different vendors.

When the vendor ship to your DC, you can rate them on how well they are doing in terms of compliance. Compliance requirements are mandatory in all of the big ecom warehouses. For example let’s take Walmart or Staples or Amazon, all these big distribution companies handle larger merchandise, which is being pushed through their supply chain. They need a lot of automation, material handling equipment, sorters, conveyors, and robots for moving these merchandise, which are products through their distribution center. They are all sent it to their stores and for fulfilling orders. When they have all this material handling equipment robots and everything, they can accept only certain box sizes, certain labels and certain barcodes.

The barcodes, boxes have to be of a certain size, if it’s outside of that size then it has to be marked as a non-conveyable or a non-sortable or a non robot-able. Because nowadays there are a lot of robots hitting the DC so all those things will have to be complied with, only then the product will move smoothly through all these different material handling equipment. All these different material handling equipment are used, so all the boxes whatever you are shipping will go through those MHE. For a smooth operation it’s important that as a distributor you rate your vendor and give them feedback. It can be a box issue, where the box is too big or too small. In these scenarios you cannot ride your conveyor which means you give them a range of box sizes and tell them to ship in those dimensions.

Also the label has to be applied only in certain places, because only then the scanners can scan. The barcode and the label should also be at a certain size only, then only the scanner can scan the barcode. If it is way too small the scanner cannot scan and if the barcode is way too big the scanners cannot scan as well. All of these compliance instructions are documented in something called as compliance manual. The compliance manual is also issued to the vendor that is shipping to your facility and obviously which means in delivery there are no horror stories.

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