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Out-of-stocks cause 4.1 percent in lost revenue, according to retailwire.com; just as troubling, overstocks result in 3.2 percent in lost revenue for the average retailer. Retailers continue to refine their compliance programs to strike the right balance of inventory and meeting higher consumer service standards.
This is scant comfort to the suppliers who transport less-than-truckload, partial, or underutilized truckload shipments to retailers, and who may struggle with noncompliance and significant chargebacks. Without an effective retail strategy, it may be difficult for suppliers to cope with the variations among several retail programs. Failure to meet retailers’ expectations results in chargeback fees; if noncompliance continues, the supplier may lose its retail customers altogether.
Yet, even as suppliers struggle, there is an effective solution. Implementing a retail consolidation program can bring consistent transit times, reduce chargebacks for noncompliance, improve cash-to-cash cycles, and strengthen retailer relationships.
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