What are Typical Vendor Charge Backs?
In developing dozens of vendor compliance manuals, we have seen a wide variety of items, categories, and lists of vendor charge backs. We feel like with a new compliance program, you should include the following, to start with:
- Shipment did not conform to routing guide
- Early shipment without approval
- Improper PO# on carton
- Product substitution
- Late shipment or shipment past PO cancel date
- Product does not meet specifications
- Merchandise not poly bagged to specs
- Product does not have SKU# or proper bar code
- Incorrect labels or placement of labels
- Product lacks country of origin or certificate
- Merchandise not packaged according to specs, repackaging required
- Merchandise required 100% inspection
- Mixed POs on pallet or in cartons
- Mixed SKUs per carton
- Incomplete bill of lading not complete
- Merchandise damage not caused by carrier
- Packing list incomplete
- Delivery without appointment
Of course there will be other items that will need to be included further down the road, once your program has been implemented and running for a while. The charge backs and the dollars associated with them should have enough “teeth” but not overly aggressive to irritate your vendors.
Call or email Jeff Barry at 804-264-8040 or jbarry@fcbco.com to schedule a call to discuss vendor charge backs to be included as well as dollars associated with them. F. Curtis Barry & Company is a national consulting firm that works with eCommerce, catalog, retail, manufacturing and wholesale distributors on projects focusing distribution centers, order management systems, warehouse management systems, inventory management and forecasting, and freight rate analysis.
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