Many companies have implemented supply chain compliance programs. These compliance programs are designed as a financial incentive to drive quality in the supply chain process. Many of these programs focus on imposing financial penalties on suppliers as opposed to creating financial rewards. A typical compliance program can dictate dozens of business rules that must be adhered to. Violating any single business rule typically has a fine (a.k.a. chargeback or deduction).
An investigation of the most common compliance rules shows a high concentration of fines associated with the following:
Damage to product shipments
Errors in processing the Advance Shipment Notice (ASN)
The frequency and abundance of chargebacks via a compliance program, along with the uniqueness of rules tied to each trading partner, have made management of any given compliance program daunting. As a result companies are seeking to digitize these unique business rules and to monitor events such that the business can be alerted to activities that run afoul of any given compliance rule prior to incurring a penalty.
DiCentral has developed a solution known as DiMetrics which proactively monitors your EDI transactions. Based on configuration parameters, alerts can be issued when a compliance rule is violated or about to be violated—allowing the business to correct the problem and to re-issue the proper transaction, thereby avoiding the compliance penalty. If you are looking for a solution to minimize and/or avoid compliance penalties, fell free to call or email. We’d love to have a conversation about how DiCentral can help you satisfy trading partner demands and steer clear of chargebacks.
-Daniel Ford, DiCentral