Retail compliance has become a topic of national interest and debate – forcing suppliers to evaluate and ask the question, “What is the best way to manage tight retail shipping requirements?” A common misconception in the CPG industry is that it is always a better choice to let a retailer handle pickup and delivery of product(s) to avoid retail compliance issues.
The truth: suppliers still see chargebacks when opting for collect (“Customer Pick-Up”) shipping. What’s more, by controlling transportation, suppliers often see operational savings and an increase in margin. Master retail compliance and optimize your spend by understanding the difference between Prepaid and Collect – then assess which freight management process is right for you.
When working in a Prepaid Program, suppliers must meet or exceed 98% On-Time, 99% In-Full delivery. Whereas in a Collect Program, suppliers are held to a different delivery standard by the individual retailer. This means that a reliable retail logistics partner drives suppliers’ ability to meet these requirements – allowing products to have stronger, more consistent on-shelf presence – driving higher sales, improved supply chain performance and eliminated retailer fines.
Unlike Collect, a Prepaid Program puts suppliers in charge of their production and inventory review schedules – offering shorter lead times, greater flexibility and increased control across the supply chain. With shorter lead times to store shelves, products are more frequently in-stock and available to consumers both in-store and online, leading to more opportunities to convert new customers.
To ensure compliance with specific retailer requirements, partner with a 3PL that offers a comprehensive suite of Value-Added Services. Leveraging a full-service 3PL’s packaging, labeling, bar coding, point-of-sale displays services and more, suppliers can move their products through the middle mile efficiently and with as few outside vendors as possible. This control affords suppliers valuable data-driven insights to make better business decisions that drive their company forward.
Hidden fees can drastically change any budget and make it hard to plan ahead. Leverage a fully integrated retail logistics expert that offers a transparent pricing model. Through a price transparency approach, suppliers gain insight into all fuel surcharges and administrative fees – making it easier to determine freight factor and make better bottom-line business decisions. Often times when a supplier uses a retailer’s collect transportation program, they lose control over scheduling, which can in turn also cause unexpected freight fees.
Turn freight management into a business advantage by leveraging a retail logistics expert to drive compliance and scorecard performance, optimize freight spend and enhance supply chain efficiency.
Turn freight management into a business advantage by leveraging a retail logistics expert to drive compliance and scorecard performance, optimize freight spend and enhance supply chain efficiency.