16 Nov 5 Proven Strategies to Ensure Vendor Compliance
Do You Know How Much Vendors’ Non-Compliance Costs You?
Retailers already take vendor non-compliance very seriously, in addition, the lack of coordination between retailers and their vendors means that both sides are losing out on increased revenue, incur unnecessary costs, and miss out of hidden opportunities. Many of the business intelligence tools that are available today provide good information, however, this data is backward looking at what already happened to your inventory. Retalon provides a truly collaborative and forward looking approach to vendor compliance.
Here are 5 Proven Strategies to Perfect Vendor Compliance & Boost your Business:
1. Be Prepared for Changes in Demand
Provide vendors visibility of future orders and demand forecasts, and allow vendors to be prepared for changes in demand so they can manage their shipments more efficiently.
2. Monitor your Selling Power
Identify what products/categories tend to have low ISP (In-Stock Percent of Inventory) in advance. ISP indicates to retailers and vendors when they are most likely to lose what we call “Selling Power”, so that they can react early, and build inventory on time.
3. Lower the Impact of late or Incomplete Shipments
If a shipment has not been released in time (or is incomplete) Retalon will help you mitigate the risk and lower the impact by suggesting an optimal allocation strategy.
4. Add Stock Only When it Adds Value
Identify the combined risk (lead time variability, demand volatility, product contribution etc.) effect on safety stock and keep your costs down.
5. Make Sure that Promo Stock is Available when Promos Happens
If promo inventory arrives late, you sell the regular quantity at a promo price. This is the main reason promotions fail. Know how to calculate your promotional inventory and when is the best time to ship it.
Register for a personalized analytics assessment, it is the perfect way to learn how much non-compliance costs YOU.