Over the past few weeks, we covered the importance and benefits of implementing a proper inbound shipping program as a customer. But what are the advantages of an inbound shipping program to you as the vendor? Healthy vendor relationships are important to ensure profitability in your business. Vendor Compliance Programs exist to improve vendor performance and reduce supply chain variability.
A detailed plan to outline your customers’ shipping processes is a tool that allows trading
partners to collaborate rather than disagree over shipment expectations.
As a vendor, having a clear compliance document to outline your customers’ expectations and policies take the guesswork out of shipping and allows you to deliver exactly what your customers want. This enables you to build a reputable relationship with your customer.
A stable, predictable process for inbound shipping will reduce redundant or overlapping activities. Also, the responsibility of the shipment can shift from the vendor to the customer. As a vendor, the last thing you want is for a shipment to fall through; but if you follow the shipping program outlined by your customer, you may not have to take full responsibility.
Areas of focus should be who is responsible for routing decisions, freight bill payment and costs of necessary service upgrades. Ownership of these items could change based on order quantity or value, so clear direction is key.
Opportunity to Streamline
Most shipping differences in your warehouse come in areas such as labeling and palletizing, which have a critical impact on distribution flow. When you have clearly outlined processes, you can look across you customer base to identify areas of common practice and streamline related processes, saving you time and money.
Understanding lead time expectations can bring clarity to the purchase order process and carrier selection. Excellent communication of purchase orders and delivery by dates in both your organization and with your customer will allow for optimized routing decisions in both cost and transit.
Vendor compliance to your customers is an important aspect to the success of your business. Establishing trust, communication and guidelines will significantly increase your chance of freight being at the right place at the right time.
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