How an Effective Photo Documentation System will help address Chargebacks resulting in Cost Savings?
INTRODUCTION
This document describes the benefits of an effective Enterprise Photo Documentation System.
An effective Enterprise Photo Documentation System helps with
1 – Eliminate or at the least significantly reduce the chargebacks,
2 – Provides visibility to the chargebacks. The visibility gained provides insight into the compliance mistakes made while the orders are fulfilled, so that the warehouse team can address those compliance mistakes one by one.
BACKGROUND
What are chargebacks?
Chargebacks are fines that retailers impose on suppliers because the Retailers are doing extra work to process the Supplier’s product through the Retailer’s Supply Chain.
Why are suppliers getting chargebacks?
- Because Supplier’s shipments are not fully in compliance with the requirements set by the retailers on how the shipments should be arriving at the Retailer’s distribution center.
- If a supplier is not fully following the compliance requirements, then that needs to be addressed first. So dedicate a person to this activity, there are people called Compliance specialists available that knows how to get this right, they have a lot of experience working with specific retailers or you will have to review the routing guide. However a very good Enterprise Photo Documentation system will show your people the mistakes being made.
- If you are doing everything correctly, then still getting chargebacks, then the Enterprise Photo Documentation System will absolutely help you
- Are you including all the documentation? Packing slip, Shipping Label, Retailer label, BOL or Manifest, Invoice, Is your product in a good condition? Are you using correct box dims? Are you shrink wrapping as per the spec? White color/Black color/transparent – are you using the correct shrink wrapping?
- Are you floor loading or building pallets?
- If building pallets, are you building to the right height?
- Are you using CHEP pallets?
- Is your trucking company making on time deliveries?
- On date deliveries? Or Are they missing?
- If you do any of the above and if you are not sure if you are in compliant with the routing guide issued by the retailer, then you would get a chargeback.
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