When Does A Vendor Benefit From A Vendor Compliance Manager?

By Author: George Mitchell Sr.
Total Articles: 916
Comment this article

For vendors to form sustainable relationships with clients, they need to match merchant compliance criteria, policies which regulate many different shipping and merchandise issues to make simpler the reception and merchandising of the large amount of products from several customers. Smaller clients with lower selling capability will often have the lowest amount of demanding requirements, at the same time high selling customers will often have the most demanding. In order to satisfy these types of strenuous requirements, vendors must typically implement new facilities that brings their transport and product planning methods into compliance with their customers' standards, as well as hire a vendor compliance manager to oversee and support the compliance method.

Honestly, Is a Vendor Compliance Manager Needed for Sustaining Compliance?

Theoretically, organizations are able to build and maintain compliance without the support of any compliance manager, even so the chances of it occurring are slim. A great comparison could be to visualize whether the sales process would operate correctly without oversight. Typically, ...
... it wouldn't; and also the same holds true of vendor compliance, especially when a vendor does business with high-end dealers. While getting a compliance manager ends up in extra pay-roll, businesses who do not employ one experience more chargebacks-fees removed from invoice payments to make up for changing a vendor's mistake-and could even be dropped following repetitive violations.

In the end, having to pay the funds it requires to attain compliance with large sellers will be worth the earnings it brings, and the edge it enables at the competition. Once a key seller carries your product, its reason to have a competing item goes away. However, if it drops you for non-compliance, a better competitor can replace you. For most companies, such an situation would be a lot more than cause of alarm; it would be cause to apply the infrastructure necessary to create compliance and seek the services of a manager to supervise it. For all those still on the fence about buying compliance infrastructure and also the staff to handle it, we offer a rundown of 3 obvious vendor compliance rewards:

1. No Chargebacks

Chargebacks are a hassle for 2 reasons: they degrease your revenue, and they are generally often tough to find, because they can be subtracted from invoice payments beyond the period of time when the chargeback violation took place. No matter whom you work with; chargebacks are not going to stop unless you make compliance a priority.

2. Opportunity to do Big Business

Who wishes to work entirely with smaller clients in the interest of averting compliance measures? No one. Instead of worrying about the price of measures necessary for large clients, consider it an instantaneous sacrifice for long-term benefits.

3. Always Keeping The Competition Under control

The greater number of big contracts you've got with big sellers, the less opportunity your competitors have to penetrate industry, and the key to sustaining this benefit involves compliance measures.

About Author:

While conducting research for this article, I learned about vendor scorecard improvement and LTL logistics software at www.Ratelinx.com.