Achieving Vendor Compliance Management With Logistics Software
If you plan on opening a manufacturing business, one of the first challenges you'll face is vendor compliance management.
Vendor compliance is a set of standards that govern how a customer wishes to receive goods from a vendor.
Ranging from simple to complex, some standards deal with general compliance issues while others include additional standards that complicate compliance, making it more expensive for vendors to do business with the customer.
More complex bodies compliance standards are usually found at the biggest customers, making finding a way to meet them well worth a vendor's time and effort.
How Does Shipping Logistics Affect Vendor Compliance Management? Regardless of a customer's compliance standards, many of them will surround the shipping process, especially concerning how products are delivered in terms of packaging, labeling, invoicing, etc.
Therefore, arriving at a shipping process that offers the most flexibility of shipping options at the lowest cost is usually the goal.
Without an effective logistic function to address compliance management, one of two things is prone to happen: a rise in product pricing due to the customer's extra effort in bringing the product under compliance, or the customer dropping the vendor.
Being dropped by a customer is never positive, but when the customer is large it can be catastrophic.
When a customer drops a certain vendor, it often replaces it with a vendor in the same industry, which, if the customer is large enough, could make a vendor fall measurably behind its competitors within a matter of months.
To avoid this situation through addressing the shipping process, vendors have one of three options: they can implement their own logistics department that oversees their own shipping fleet; outsource their logistics to a third party logistics (3PL) provider; or implement logistics software, which performs the work of a logistic expert and presents the results through a user friendly interface.
3PL has been the traditional option for companies that don't feature their own logistics department and shipping fleet, but logistics software is quickly becoming the option of choice for companies that need an economical shipping management solution.
Instead of paying an enormous price for a comprehensive 3Pl provider to manage the shipping process and offer new shipping solutions, companies are opting to receive the same level of service through logistics software.
Other benefits of using logistics software versus 3PL include: greater range of shipping options due to the removal of 3PL business interest; easy adaptability of software options when shipping needs change; and affordable implementation cost.
To anticipate twists and turns in the compliance process, and to meet the standards of the most lucrative customers, logistics software offers the greatest flexibility of shipping options at the lowest price.
Vendor compliance is a set of standards that govern how a customer wishes to receive goods from a vendor.
Ranging from simple to complex, some standards deal with general compliance issues while others include additional standards that complicate compliance, making it more expensive for vendors to do business with the customer.
More complex bodies compliance standards are usually found at the biggest customers, making finding a way to meet them well worth a vendor's time and effort.
How Does Shipping Logistics Affect Vendor Compliance Management? Regardless of a customer's compliance standards, many of them will surround the shipping process, especially concerning how products are delivered in terms of packaging, labeling, invoicing, etc.
Therefore, arriving at a shipping process that offers the most flexibility of shipping options at the lowest cost is usually the goal.
Without an effective logistic function to address compliance management, one of two things is prone to happen: a rise in product pricing due to the customer's extra effort in bringing the product under compliance, or the customer dropping the vendor.
Being dropped by a customer is never positive, but when the customer is large it can be catastrophic.
When a customer drops a certain vendor, it often replaces it with a vendor in the same industry, which, if the customer is large enough, could make a vendor fall measurably behind its competitors within a matter of months.
To avoid this situation through addressing the shipping process, vendors have one of three options: they can implement their own logistics department that oversees their own shipping fleet; outsource their logistics to a third party logistics (3PL) provider; or implement logistics software, which performs the work of a logistic expert and presents the results through a user friendly interface.
3PL has been the traditional option for companies that don't feature their own logistics department and shipping fleet, but logistics software is quickly becoming the option of choice for companies that need an economical shipping management solution.
Instead of paying an enormous price for a comprehensive 3Pl provider to manage the shipping process and offer new shipping solutions, companies are opting to receive the same level of service through logistics software.
Other benefits of using logistics software versus 3PL include: greater range of shipping options due to the removal of 3PL business interest; easy adaptability of software options when shipping needs change; and affordable implementation cost.
To anticipate twists and turns in the compliance process, and to meet the standards of the most lucrative customers, logistics software offers the greatest flexibility of shipping options at the lowest price.