The 13 Steps to a Successful Retail Vendor Compliance Program
Retail vendor compliance is a complicated, and at times controversial subject. Controversial, obviously. because consumer goods manufacturers are generally not happy about paying penalties for non-performance – even if well deserved – and there is no question that there have been examples of retailers running programs that appear abusive to some suppliers. When this happens, vendors view compliance programs as fundamentally unfair, perceiving the "chargebacks" to be at times arbitrary, often not clear, and set at overly high levels.
That can give vendor compliance programs a bad name even for those retailers that are doing it the right way. SCDigest believes that vendor compliance programs run the right way can be identified by several key attributes:
- A focus on improving supply chain and logistics performance, not generating chargeback revenue
- Programs and penalty regimens that are easy to understand, with prompt and clear communication of errors and penalties when they occur
- Chargeback levels that accurately reflect the cost to the retailer from the error