Achieving Vendor Compliancy With Freight Logistics

In the world of modern retail, there are three keys to making products sell well: developing great products, developing great advertising campaigns, and meeting the vendor compliance standards of large retailers, where products sell in higher volume due to heavier customer traffic and other factors. At first glance, the hardest part of this trio would seem to be developing great products or great ad campaigns. But for many companies, meeting compliance standards-also referred to as vendor requirements-is the biggest challenge. All retailers have vendor compliancy standards, but larger retailers’ standards are the most stringent, beginning with method of shipping and ending with how goods are labeled upon arrival (carton barcode label formats, shipping documentation formats, UPC hangtag or label formats, EDI document formats, etc.).

As one might expect, a prominent reason why small to midsized companies don’t sell through major retailers is the cost of implementing infrastructure that would facilitate vendor requirements. There are, however, ways to make complying with major retailer requirements affordable, and one of them is shipping logistics, which comes in three basic forms: in-house logistics, third party logistics (3PL), and logistics software, also known as freight management software. In house logistics requires hiring experts whose salaries sizably increase payroll, while 3PL and freight management software are more affordable, with the latter receiving first position, as it allows companies to become their own logistic expert for the price of a software as a service (SAAS) application.

How Can Logistics Software Help With Vendor Compliancy?

Freight management software can assure that certain compliance standards are met during the shipping process, such as preferred method of delivery, freight packaging and stacking strategies, and labeling. But it can also make affordable the infrastructure necessary for compliance standards that it doesn’t encompass by significantly reducing the cost of the shipping process. Freight management software reduces the cost of shipping in two ways: by eliminating the considerably higher expense of in-house experts or 3PL providers, and by increasing range of shipping options, identifying options that aren’t possible with most 3PL providers due their business interest in the shipping arrangement.

Companies that implement freight management software typically experience a 10 percent reduction in annual shipping cost after one year, with savings increasing thereafter. Considering increased profits that come with selling goods through major retailers, this savings could facilitate other necessary compliancy moves that would soon be offset by increased sales. If your shipping process hasn’t been reviewed in recent years and you aren’t selling your goods through major retailers due to vendor compliancy requirements, contact a provider of freight management software for a free consultation today. You may be able to save on your shipping process and start selling your products at larger retailers, a scenario that could revolutionize your bottom line.