Special Report: Vendor Relations

For example, take late delivery of receipts, a major cause of back orders. Back-ordered merchandise costs most companies $7 to $12 per unit. This is absorbed across your business; for instance, in call-center costs (“Where’s my back order?”), additional picking and packing, second outbound shipping expenses, and loss of shipping and processing revenue offset. To have vendors control shipping or not follow compliance routing is a sure way to significantly increase transportation costs.