The onset of warmer weather can encourage complacency about goals made at the start of the year, but the need for EDI compliance is as important as ever. During my May business travels I discovered a common concern among retailers: the task of convincing the executive management team and merchandise areas to impose chargebacks on non-compliant vendors.
This raises the question: is it good business practice to expect and receive exactly what is on the purchase order?
If the answer is "yes," then vendors should be charged for violations such as:
Shipping the wrong items
Shipping incomplete orders
However, you must have the following in place before you enforce a compliance program with chargebacks:
Vendors with basic initial EDI compliance
Ability to send alerts notifying vendors of EDI errors or lack of shipment
Ability to allow vendors the opportunity to fix their errors and resend
Development of a scorecard for tracking how well vendors meet your requirements
The most important element of EDI compliance is the ability to track and document compliance errors. This powerfully enables the efficiency of your warehouse by ensuring that you receive the right product at the right time.
Is it not good business practice to get what you ordered in a timely manner?
If you would like to learn more about achieving EDI compliance, then please feel free to contact me and I will be happy to assist you.