Leverage a 3PL to reduce Retail Compliance fines in Food and Beverage Distribution

Retail compliance, also known as vendor compliance, is the process of following a retailers  guidelines for shippers. The requirements can range from proper labeling, pallet configurations, loading specifications, delivery compliance, routing and shipping windows, and cancellation policies. Failure to meet these requirements can result in hefty fines that can impact your supply chain.    

ODW Logistics has deep experience working alongside food and beverage companies with data-driven approaches and expert insights to ensure retail compliance, eliminate chargebacks and improve vendor retails.

We handle retail distribution for some of North America's largest food and beverage companies and have developed proven techniques and inside knowledge to help them keep more of the revenue they earn.

Your food & beverage supply chain should be managed by experienced teams with the knowledge to help you enter new markets and avoid significant financial penalties and operational setbacks.

COMPLEX RETAIL COMPLIANCE REQUIREMENTS

Many big retailers issue regular updates for their compliance programs, such as new routing requirements or packaging. The list can be long, including labeling, pallet style and configuration, pallet stacking, routing, and so on.

It's not uncommon for a retailer to dispute a load up to 60 days after delivery. It's tough to retrieve information so far after the fact. ODW has systems in place to help shippers respond to those disputed loads and reduce or eliminate claims and chargebacks.

PREVENTION PAYS OFF WITH RETAIL COMPLIANCE

Retail compliance is a journey. Working with a provider that understands mass-retailers can help you reduce your chargebacks.

We focus on controlling the things you can control. It's critical to develop a proactive state of mind to comply with the current program and stay ahead of the updates that your customers are putting in place.

ODW works with more than 50 food and beverage clients. Each one may have different requirements. When one of them gets an update from a major retailer, we check with other clients to see if they have received similar updates.

This proactive approach helps customers who may not have seen the update or have a different update to implement.

We proactively share innovative solutions to meet requirements more efficiently. For example, one customer shipping into a major drugstore chain implemented a new requirement for labeling on every case. As a result, we recommended switching from cartons to envelopes and affixing labels to the pallet. There was a significant reduction in labor and an increase in accuracy. We communicated that solution with other clients who wanted to make the same adjustment to their compliance agreements.

We also conducted a comprehensive compliance audit for a national baked goods supplier to set a baseline for improvement. The audit identified issues driving retail chargebacks, such as routing guidelines, order submission errors, and mismanaged key performance indicators (KPIs).

ODW implemented procedure guidelines, redesigned the racking layout, reorganized storage, and rebalanced inventories. Retail chargebacks dropped 87% in the first 12 months, and the company improved storage capacity by 60% while eliminating inefficient space in their network. 

THE IMPORTANCE OF INSIDE KNOWLEDGE OF RETAIL COMPLIANCE

We proactively share our food and beverage distribution experience and innovative solutions to help clients meet their requirements more efficiently.

We have developed a basic rule book for each major retailer with insider details to shorten the learning curve. If a client is making inroads with a new retailer, we educate them on the nuances of that particular program.

Our customers lean on us for recommendations. They can use our insights to negotiate their individual compliance standards, which will help them enter a new relationship with confidence. For example, we'll share typical compliance charges and routing requirements for similar companies.

RETAIL COMPLIANCE SOLUTIONS THAT WORK

Our solutions are proven to reduce retail compliance fines. A combination of processes, technology, and training instills discipline throughout the operation. 

Shipment Tracking

No one likes to admit they were late. Whether the carrier is behind schedule or the warehouse isn't ready, a timeline delay can lead to expensive chargebacks. Our real-time data transparency allows for proactive resolutions with retailers on compliance issues and chargebacks.

Digitizing Supply Chain Information

Remember encyclopedias gathering dust on a shelf? We do. That's why we store routing guides and other compliance information in a digital system that helps automate other processes. The system generates order information, audit sheets, retailer-level specialty notes, and other critical documentation. Our associates use it to ensure they follow the proper steps, and auditors use it to track orders.

That database drives visual cues for our associates, who may work on multiple customer orders each day. The visual cues help employees follow routing compliance and indicate if they're working on a load with special requirements.

We capture images of shipments to audit specified percentages of orders as they leave the facility or orders flagged for follow-up. There's a historical record of goods entering the facility and being loaded onto a trailer. This allows us to do two things: Proactively course-correct before problems occur and quickly find answers to help solve problems that may have arisen down the supply chain.

Our system tracks trends in chargebacks and inventory occurrences. We can investigate when a company continuously reports shortages or overages on particular SKUs. This granular level of tracking has discovered discrepancies like a pallet configuration that was supposed to upgrade from 160 items to 180 items and was never changed. We track the top trends like this quarterly and review them with each client.

Three-Point Verification Technology

Our three-point verification technology tracks the movement of inbound goods. When carriers arrive at one of our facilities, the event is timestamped, and they go through an electronic check-in. Electronic bills of lading are issued only after the entire order is loaded onto a truck. Then, the E-BoL is generated and timestamped. Finally, the driver signs and dates the document when they leave the yard, or the guard shack checks individual timestamps and records when the carrier exits.

This process cuts down on detention fines and provides proof of when the carrier exited the facility. If the carrier is late for delivery, it's their claim to pay.

STRATEGIC PARTNERSHIPS

While the 3PL manages your logistics program, retail compliance is a shared responsibility. The major retailers deal with hundreds of 3PLs and other providers. The retailers' focus is on their suppliers, not the 3PLs. The 3PL doesn't own the relationship; you do.

Logistics providers don't get the retail compliance information directly in most cases. The client must communicate updates, and ODW will implement them and have conversations with other clients of that retailer.

ODW Logistics has the experience, processes, people, and technology to help you mitigate retail compliance risk. We'll help you reduce retail chargebacks and strengthen your logistics processes.

Ensure Retail Compliance and Save on Fines. Discover How with ODW Logistics.

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